Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Mar. 09, 2015 | Aug. 02, 2014 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Jan-15 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AEO | ||
Entity Registrant Name | AMERICAN EAGLE OUTFITTERS INC | ||
Entity Central Index Key | 919012 | ||
Current Fiscal Year End Date | -30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 195,022,073 | ||
Entity Public Float | $1,874,117,608 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $410,697 | $418,933 |
Short-term investments | 10,002 | |
Merchandise inventory | 278,972 | 291,541 |
Accounts receivable | 67,894 | 73,882 |
Prepaid expenses and other | 73,848 | 88,155 |
Deferred income taxes | 59,102 | 45,478 |
Total current assets | 890,513 | 927,991 |
Property and equipment, at cost, net of accumulated depreciation | 694,856 | 632,986 |
Intangible assets, at cost, net of accumulated amortization | 47,206 | 49,271 |
Goodwill | 13,096 | 13,530 |
Non-current deferred income taxes | 14,035 | 24,835 |
Other assets | 37,202 | 45,551 |
Total assets | 1,696,908 | 1,694,164 |
Current liabilities: | ||
Accounts payable | 191,146 | 203,872 |
Accrued compensation and payroll taxes | 44,884 | 23,560 |
Accrued rent | 78,567 | 76,397 |
Accrued income and other taxes | 33,110 | 5,778 |
Unredeemed gift cards and gift certificates | 47,888 | 47,194 |
Current portion of deferred lease credits | 12,969 | 13,293 |
Other liabilities and accrued expenses | 50,529 | 45,384 |
Total current liabilities | 459,093 | 415,478 |
Non-current liabilities: | ||
Deferred lease credits | 54,516 | 59,510 |
Non-current accrued income taxes | 10,456 | 16,543 |
Other non-current liabilities | 33,097 | 36,455 |
Total non-current liabilities | 98,069 | 112,508 |
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; 194,516 and 193,149 shares outstanding, respectively | 2,496 | 2,496 |
Contributed capital | 569,675 | 573,008 |
Accumulated other comprehensive income | -9,944 | 12,157 |
Retained earnings | 1,543,085 | 1,569,851 |
Treasury stock, 55,050 and 56,417 shares, respectively, at cost | -965,566 | -991,334 |
Total stockholders' equity | 1,139,746 | 1,166,178 |
Total liabilities and stockholders' equity | $1,696,908 | $1,694,164 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 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 | 194,516,000 | 193,149,000 | 192,604,000 |
Treasury stock, shares | 55,050,000 | 56,417,000 | 56,962,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Total net revenue | $3,282,867 | $3,305,802 | $3,475,802 |
Cost of sales, including certain buying, occupancy and warehousing expenses | 2,128,193 | 2,191,803 | 2,085,480 |
Gross profit | 1,154,674 | 1,113,999 | 1,390,322 |
Selling, general and administrative expenses | 806,498 | 796,505 | 834,601 |
Restructuring charges | 17,752 | ||
Loss on impairment of assets | 33,468 | 44,465 | 34,869 |
Depreciation and amortization expense | 141,191 | 131,974 | 126,246 |
Operating income | 155,765 | 141,055 | 394,606 |
Other income, net | 3,737 | 1,022 | 7,432 |
Income before income taxes | 159,502 | 142,077 | 402,038 |
Provision for income taxes | 70,715 | 59,094 | 137,940 |
Income from continuing operations | 88,787 | 82,983 | 264,098 |
Loss from discontinued operations, net of tax | -8,465 | -31,990 | |
Net income | $80,322 | $82,983 | $232,108 |
Basic income per common share: | |||
Income from continuing operations | $0.46 | $0.43 | $1.35 |
Loss from discontinued operations | ($0.04) | ($0.16) | |
Basic net income per common share | $0.42 | $0.43 | $1.19 |
Diluted income per common share: | |||
Income from continuing operations | $0.46 | $0.43 | $1.32 |
Loss from discontinued operations | ($0.04) | ($0.16) | |
Diluted net income per common share | $0.42 | $0.43 | $1.16 |
Weighted average common shares outstanding - basic | 194,437 | 192,802 | 196,211 |
Weighted average common shares outstanding - diluted | 195,135 | 194,475 | 200,665 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Net income | $80,322 | $82,983 | $232,108 |
Other comprehensive (loss) income: | |||
Foreign currency translation (loss) gain | -22,101 | -17,140 | 638 |
Other comprehensive (loss) income | -22,101 | -17,140 | 638 |
Comprehensive income | $58,221 | $65,843 | $232,746 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Contributed Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | |||
In Thousands, except Share data | |||||||||
Beginning Balance at Jan. 28, 2012 | $1,416,851 | $2,496 | $552,797 | $1,771,464 | ($938,565) | [1] | $28,659 | ||
Beginning Balance (in shares) at Jan. 28, 2012 | [2] | 193,848,000 | |||||||
Stock awards | 76,108 | 76,108 | |||||||
Repurchase of common stock as part of publicly announced programs (in shares) | [2] | -8,407,000 | |||||||
Repurchase of common stock as part of publicly announced programs | -173,554 | -173,554 | [1] | ||||||
Repurchase of common stock from employees (in shares) | [2] | -280,000 | |||||||
Repurchase of common stock from employees | -4,125 | -4,125 | [1] | ||||||
Reissuance of treasury stock (in shares) | 7,443,000 | 7,443,000 | [2] | ||||||
Reissuance of treasury stock | 78,248 | -11,054 | -36,213 | 125,515 | [1] | ||||
Net income | 232,108 | 232,108 | |||||||
Other comprehensive income | 638 | 638 | |||||||
Cash dividends and dividend equivalents ($2.05, $0.375, and $0.50 per share in 2012, 2013, and 2014 respectively) | -405,087 | 9,214 | -414,301 | ||||||
Ending Balance at Feb. 02, 2013 | 1,221,187 | 2,496 | 627,065 | 1,553,058 | -990,729 | [1] | 29,297 | ||
Ending Balance (in shares) at Feb. 02, 2013 | 192,604,000 | 192,604,000 | [2] | ||||||
Stock awards | 1,184 | 1,184 | |||||||
Repurchase of common stock as part of publicly announced programs (in shares) | [2] | -1,600,000 | |||||||
Repurchase of common stock as part of publicly announced programs | -33,051 | -33,051 | [1] | ||||||
Repurchase of common stock from employees (in shares) | [2] | -1,059,000 | |||||||
Repurchase of common stock from employees | -23,385 | -23,385 | [1] | ||||||
Reissuance of treasury stock (in shares) | 3,204,000 | 3,204,000 | [2] | ||||||
Reissuance of treasury stock | 5,215 | -56,706 | 6,090 | 55,831 | [1] | ||||
Net income | 82,983 | 82,983 | |||||||
Other comprehensive income | -17,140 | -17,140 | |||||||
Cash dividends and dividend equivalents ($2.05, $0.375, and $0.50 per share in 2012, 2013, and 2014 respectively) | -70,815 | 1,465 | -72,280 | ||||||
Ending Balance at Feb. 01, 2014 | 1,166,178 | 2,496 | 573,008 | 1,569,851 | -991,334 | [1] | 12,157 | ||
Ending Balance (in shares) at Feb. 01, 2014 | 193,149,000 | 193,149,000 | [2] | ||||||
Stock awards | 12,372 | 12,372 | |||||||
Repurchase of common stock from employees (in shares) | [2] | -517,000 | |||||||
Repurchase of common stock from employees | -7,464 | -7,464 | [1] | ||||||
Reissuance of treasury stock (in shares) | 1,884,000 | 1,884,000 | [2] | ||||||
Reissuance of treasury stock | 7,741 | -17,988 | -7,503 | 33,232 | [1] | ||||
Net income | 80,322 | 80,322 | |||||||
Other comprehensive income | -22,101 | -22,101 | |||||||
Cash dividends and dividend equivalents ($2.05, $0.375, and $0.50 per share in 2012, 2013, and 2014 respectively) | -97,302 | 2,283 | -99,585 | ||||||
Ending Balance at Jan. 31, 2015 | $1,139,746 | $2,496 | $569,675 | $1,543,085 | ($965,566) | [1] | ($9,944) | ||
Ending Balance (in shares) at Jan. 31, 2015 | 194,516,000 | 194,516,000 | [2] | ||||||
[1] | 55,050 shares, 56,417 shares, and 56,962 shares at January 31, 2015, February 1, 2014 and February 2, 2013, respectively. During Fiscal 2014, Fiscal 2013, and Fiscal 2012, 1,884 shares, 3,204 shares, and 7,443 shares, respectively, were reissued from treasury stock for the issuance of share-based payments. | ||||||||
[2] | 600,000 authorized, 249,566 issued and 194,516 outstanding, $0.01 par value common stock at January 31, 2015; 600,000 authorized, 249,566 issued and 193,149 outstanding, $0.01 par value common stock at February 1, 2014; 600,000 authorized, 249,566 issued and 192,604 outstanding, $0.01 par value common stock at February 2, 2013. The Company has 5,000 authorized, with none issued or outstanding, $0.01 par value preferred stock at January 31, 2015, February 1, 2014 and February 2, 2013. |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Cash dividends and dividend equivalents, Per share | $0.50 | $0.38 | $2.05 |
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 | 194,516,000 | 193,149,000 | 192,604,000 |
Common stock, par value | $0.01 | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Preferred stock, par value | $0.01 | $0.01 | $0.01 |
Treasury stock, shares | 55,050,000 | 56,417,000 | 56,962,000 |
Reissuance of treasury stock, shares | 1,884,000 | 3,204,000 | 7,443,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Operating activities: | |||
Net income | $80,322 | $82,983 | $232,108 |
Loss from discontinued operations, net of tax | 8,465 | 31,990 | |
Income from continuing operations | 88,787 | 82,983 | 264,098 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 142,351 | 134,047 | 128,397 |
Share-based compensation | 16,070 | -6,541 | 66,349 |
Deferred income taxes | -2,279 | 20,100 | -30,647 |
Foreign currency transaction loss (gain) | -495 | 1,378 | 100 |
Loss on impairment of assets | 33,468 | 44,465 | 34,869 |
Changes in assets and liabilities: | |||
Merchandise inventory | 8,586 | 40,148 | 35,202 |
Accounts receivable | 3,084 | -29,511 | -6,664 |
Prepaid expenses and other | 14,282 | -10,844 | 404 |
Other assets | 6,612 | -36,089 | -8,165 |
Accounts payable | -5,280 | 28,568 | -10,468 |
Unredeemed gift cards and gift certificates | 1,238 | 1,269 | 1,473 |
Deferred lease credits | -4,528 | 583 | -11,073 |
Accrued compensation and payroll taxes | 20,716 | -42,465 | 23,018 |
Accrued income and other taxes | 24,826 | -25,840 | -7,408 |
Accrued liabilities | -9,012 | 27,605 | 20,186 |
Total adjustments | 249,639 | 146,873 | 235,573 |
Net cash provided by operating activities from continuing operations | 338,426 | 229,856 | 499,671 |
Investing activities: | |||
Capital expenditures for property and equipment | -245,002 | -278,499 | -93,939 |
Purchase of long-lived assets in a business combination | -20,751 | ||
Acquisition of intangible assets | -1,264 | -6,835 | -1,125 |
Purchase of available-for-sale securities | -52,065 | -111,086 | |
Sale of available-for-sale securities | 10,002 | 162,785 | 15,500 |
Net cash (used for) provided by investing activities from continuing operations | -236,264 | -195,365 | -190,650 |
Financing activities: | |||
Payments on capital leases and other | -7,143 | -2,839 | -3,066 |
Repurchase of common stock as part of publicly announced programs | -33,051 | -173,554 | |
Repurchase of common stock from employees | -7,464 | -23,386 | -4,125 |
Net proceeds from stock options exercised | 7,305 | 6,197 | 76,401 |
Excess tax benefit from share-based payments | 742 | 8,833 | 13,279 |
Cash used to net settle equity awards | 0 | 0 | 0 |
Cash dividends paid | -97,224 | -72,280 | -403,490 |
Net cash used for financing activities from continuing operations | -103,784 | -116,526 | -494,555 |
Effect of exchange rates on cash | -7,578 | -8,151 | 504 |
Cash flows of discontinued operations | |||
Net cash provided by (used for) operating activities | 963 | -24,616 | |
Net cash used for investing activities | -780 | ||
Net cash used for financing activities | 0 | 0 | 0 |
Effect of exchange rates on cash | 0 | 0 | 0 |
Net cash provided by (used for) discontinued operations | 963 | -25,396 | |
Net decrease in cash and cash equivalents | -8,237 | -90,186 | -210,426 |
Cash and cash equivalents - beginning of period | 418,933 | 509,119 | 719,545 |
Cash and cash equivalents - end of period | $410,697 | $418,933 | $509,119 |
Business_Operations
Business Operations | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Business Operations | 1 | Business Operations | |||||||||||
American Eagle Outfitters, Inc. (the “Company”), a Delaware corporation, operates under the American Eagle Outfitters® (“AEO”) and aerie® by American Eagle Outfitters® (“aerie”) brands. The Company operated 77kids by American Eagle Outfitters® (“77kids”) until its exit in Fiscal 2012. | |||||||||||||
Founded in 1977, American Eagle Outfitters is a leading apparel and accessories retailer that operates more than 1,000 retail stores in the U.S. and internationally, online at ae.com and aerie.com and international store locations managed by third-party operators. Through its brands, the Company offers high quality, on-trend clothing, accessories and personal care products at affordable prices. The Company’s online business, AEO Direct, ships to 81 countries worldwide. | |||||||||||||
Merchandise Mix | |||||||||||||
The following table sets forth the approximate consolidated percentage of total net revenue from continuing operations attributable to each merchandise group for each of the periods indicated: | |||||||||||||
For the Years Ended | |||||||||||||
January 31, | February 1, | February 2, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
Men’s apparel and accessories | 39 | % | 40 | % | 39 | % | |||||||
Women’s apparel and accessories (excluding aerie) | 53 | % | 52 | % | 52 | % | |||||||
aerie | 8 | % | 8 | % | 9 | % | |||||||
Total | 100 | % | 100 | % | 100 | % | |||||||
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
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 January 31, 2015, the Company operated in one reportable segment. | |||||||||||||
The Company exited its 77kids brand in Fiscal 2012. These Consolidated Financial Statements reflect the results of 77kids as discontinued operations for all periods presented. | |||||||||||||
Fiscal Year | |||||||||||||
Our financial year is a 52/53 week year that ends on the Saturday nearest to January 31. As used herein, “Fiscal 2015” refers to the 52 week period ending January 30, 2016. “Fiscal 2014” and “Fiscal 2013” refer to the 52 week period ended January 31, 2015 and February 1, 2014, respectively. “Fiscal 2012” refers to the 53 week period ended February 2, 2013. “Fiscal 2011” and “Fiscal 2010” refer to the 52 week periods ended January 28, 2012 and January 29, 2011, respectively. | |||||||||||||
Estimates | |||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of 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 its 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 under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. 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 (refer to Note 11 to the Consolidated Financial Statements). | |||||||||||||
Cash and Cash Equivalents, Short-term Investments and Long-term Investments | |||||||||||||
Cash includes cash equivalents. The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. | |||||||||||||
As of February 1, 2014, short-term investments include treasury bills and term-deposits purchased with a maturity of greater than three months, but less than one year. | |||||||||||||
Long-term investments are included within other assets on the Company’s Consolidated Balance Sheets. As of January 31, 2015 and February 1, 2014, the Company held no long-term investments. | |||||||||||||
Refer to Note 3 to the Consolidated Financial Statements for information regarding cash and cash equivalents and investments. | |||||||||||||
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. Additionally, ASC 320 requires additional disclosures relating to debt and equity securities both in the interim and annual periods as well as requires the Company to present total OTTI with an offsetting reduction for any non-credit loss impairment amount recognized in other comprehensive income (“OCI”). | |||||||||||||
There was no net impairment loss recognized in earnings for all years presented. | |||||||||||||
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 at the time which both title and risk of loss for the merchandise transfers 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. | |||||||||||||
Property and Equipment | |||||||||||||
Property and equipment is recorded on the basis of cost 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, the Company’s management evaluates the value of leasehold improvements and store fixtures associated with retail stores, which have been open for a period of time sufficient to reach maturity. 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. Impairment losses are recorded on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of the assets. When events such as these occur, the impaired assets are adjusted to their estimated fair value and an impairment loss is recorded separately as a component of operating income under loss on impairment of assets. | |||||||||||||
During Fiscal 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. | |||||||||||||
During Fiscal 2013, the Company recorded asset impairment charges of $44.5 million consisting of $25.2 million for the impairment of 69 retail stores and $19.3 million for the Company’s Warrendale, Pennsylvania Distribution Center, recorded as a loss on impairment of assets in the Consolidated Statements of Operations. The retail store impairments were recorded based on the results of the Company’s evaluation of stores that considered performance during the holiday selling season and a significant portfolio review in the fourth quarter of Fiscal 2013 that considered current and future performance projections and strategic real estate initiatives. The Company 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. | |||||||||||||
During Fiscal 2012, the Company recorded asset impairment charges of $34.9 million consisting of the impairment of 52 retail stores, which is recorded as a loss on impairment of assets in the Consolidated Statements of Operations. This impairment was recorded based on the results of the Company’s evaluation of stores that considered performance during the holiday selling season and strategic decisions made in the fourth quarter of Fiscal 2012 regarding the rebalancing of our store fleet. The Company 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 $16.6 million of store asset impairment charges related to 77kids stores, which is included in Discontinued Operations. | |||||||||||||
Refer to Note 15 to the Consolidated Financial Statements for additional information regarding the discontinued operations for 77kids. | |||||||||||||
When the Company closes, remodels or relocates a store prior to the end of its lease term, the remaining net book value of the assets related to the store is recorded as a write-off of assets within depreciation and amortization expense. | |||||||||||||
Refer to Note 7 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 recently acquired operations 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 January 31, 2015. 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 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 Fiscal 2014, Fiscal 2013 or Fiscal 2012. | |||||||||||||
Refer to Note 8 to the Consolidated Financial Statements for additional information regarding intangible assets. | |||||||||||||
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. | |||||||||||||
Self-Insurance Liability | |||||||||||||
The Company is self-insured for certain losses related to employee medical benefits and worker’s compensation. Costs for self-insurance claims filed and claims incurred but not reported are accrued based on known claims and historical experience. Management believes that it has adequately reserved for its self-insurance liability, which is capped through the use of stop loss contracts with insurance companies. However, any significant variation of future claims from historical trends could cause actual results to differ from the accrued liability. | |||||||||||||
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”) under the AEO and aerie brands. These credit cards are issued by a third-party bank (the “Bank”) in accordance with a credit card agreement (“the Agreement”). The Company has no liability to the Bank for bad debt expense, provided that purchases are made in accordance with the Bank’s procedures. We receive cash from the Bank in accordance with the Agreement and based on card activity. We recognize revenue for such cash receipts when the amounts are fixed or determinable and collectability is reasonably assured. The revenue is recorded in other revenue, which is a component of total net revenue in our Consolidated Statements of Operations. | |||||||||||||
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 at AEO and aerie 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 at AEO and aerie 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-AEO 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 AEREWARDS® 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. | |||||||||||||
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. | |||||||||||||
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. | |||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Beginning balance | $ | 2,205 | $ | 4,481 | $ | 2,929 | |||||||
Returns | (79,813 | ) | (85,871 | ) | (86,895 | ) | |||||||
Provisions | 80,857 | 83,595 | 88,447 | ||||||||||
Ending balance | $ | 3,249 | $ | 2,205 | $ | 4,481 | |||||||
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 upon 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 the Company’s 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 the Company’s buyers and certain senior merchandising executives; rent and utilities related to the Company’s stores, corporate headquarters, distribution centers and other office space; freight from the Company’s distribution centers to the stores; compensation and supplies for the Company’s 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 the Company’s 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 the Company’s design, sourcing and importing teams, the Company’s buyers and the Company’s distribution centers as these amounts are recorded in cost of sales. | |||||||||||||
Advertising Costs | |||||||||||||
Certain advertising costs, including direct mail, in-store photographs and other promotional costs are expensed when the marketing campaign commences. As of January 31, 2015 and February 1, 2014, the Company had prepaid advertising expense of $6.6 million and $9.0 million, respectively. All other advertising costs are expensed as incurred. The Company recognized $94.2 million, $87.0 million and $90.0 million in advertising expense during Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | |||||||||||||
Store Pre-Opening Costs | |||||||||||||
Store pre-opening costs consist primarily of rent, advertising, supplies and payroll expenses. These costs are expensed as incurred. | |||||||||||||
Other Income, Net | |||||||||||||
Other income, net consists primarily of interest income/expense, foreign currency transaction gain/loss and realized investment gains/losses. | |||||||||||||
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 gift card breakage of $7.0 million, $7.3 million and $8.9 million during Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | |||||||||||||
Legal Proceedings and Claims | |||||||||||||
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”), the Company 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, results of operations or consolidated cash flows of the Company. | |||||||||||||
Supplemental Disclosures of Cash Flow Information | |||||||||||||
The table below shows supplemental cash flow information for cash amounts paid during the respective periods: | |||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Cash paid during the periods for: | |||||||||||||
Income taxes | $ | 38,501 | $ | 65,496 | $ | 142,009 | |||||||
Interest | $ | 638 | $ | 387 | $ | 348 | |||||||
Segment Information | |||||||||||||
In accordance with ASC 280, Segment Reporting (“ASC 280”), the Company has identified three operating segments (American Eagle Outfitters® Brand retail stores, aerie® by American Eagle Outfitters® retail stores and AEO Direct) that reflect the Company’s operational structure as well as the business’s internal view of analyzing results and allocating resources. All of the operating segments have been aggregated and are presented as one reportable segment, as permitted by ASC 280. | |||||||||||||
The following tables present summarized geographical information: | |||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Total net revenue: | |||||||||||||
United States | $ | 2,895,310 | $ | 2,954,635 | $ | 3,131,233 | |||||||
Foreign(1) | 387,557 | 351,167 | 344,569 | ||||||||||
Total net revenue | $ | 3,282,867 | $ | 3,305,802 | $ | 3,475,802 | |||||||
-1 | Amounts represent sales from American Eagle Outfitters and aerie international retail stores, AEO Direct sales that are billed to and/or shipped to foreign countries and international franchise revenue. | ||||||||||||
(In thousands) | January 31, | February 1, | |||||||||||
2015 | 2014 | ||||||||||||
Long-lived assets, net: | |||||||||||||
United States | $ | 664,734 | $ | 614,284 | |||||||||
Foreign | 90,424 | 81,503 | |||||||||||
Total long-lived assets, net | $ | 755,158 | $ | 695,787 | |||||||||
Reclassifications | |||||||||||||
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 | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
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 value of our cash and marketable securities, which are recorded on the Consolidated Balance Sheets: | |||||||||
(In thousands) | January 31, | February 1, | |||||||
2015 | 2014 | ||||||||
Cash and cash equivalents: | |||||||||
Cash | 370,692 | $ | 330,013 | ||||||
Money-market | 40,005 | 25,696 | |||||||
Treasury bills | — | 63,224 | |||||||
Total cash and cash equivalents | 410,697 | $ | 418,933 | ||||||
Short-term investments: | |||||||||
Treasury bills | — | $ | 10,002 | ||||||
Total short-term investments | — | $ | 10,002 | ||||||
Total | 410,697 | $ | 428,935 | ||||||
Proceeds from the sale of available-for-sale securities were $10.0 million, $162.8 million and $15.5 million for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. Purchases of available-for-sale securities for Fiscal 2013 and Fiscal 2012 were $52.1 million and $111.1 million, respectively. At January 31, 2015 and February 1, 2014, the fair value of all available for sale securities approximated par, with no gross unrealized holding gains or losses. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
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 this 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 January 31, 2015 and February 1, 2014, the Company held certain assets that are required to be measured at fair value on a recurring basis. These include cash equivalents and investments. | |||||||||||||||||
In accordance with ASC 820, the following tables represent the fair value hierarchy for the Company’s financial assets (cash equivalents and investments) measured at fair value on a recurring basis as of January 31, 2015 and February 1, 2014: | |||||||||||||||||
Fair Value Measurements at January 31, 2015 | |||||||||||||||||
(In thousands) | Carrying | Quoted Market | Significant Other | Significant | |||||||||||||
Amount | Prices in Active | Observable | Unobservable | ||||||||||||||
Markets for | Inputs (Level 2) | Inputs | |||||||||||||||
Identical Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Cash and cash equivalents | |||||||||||||||||
Cash | $ | 370,692 | $ | 370,692 | $ | — | $ | — | |||||||||
Money-market | 40,005 | 40,005 | — | — | |||||||||||||
Total cash and cash equivalents | $ | 410,697 | $ | 410,697 | $ | — | $ | — | |||||||||
Total short-term investments | — | — | — | — | |||||||||||||
Total | $ | 410,697 | $ | 410,697 | $ | — | $ | — | |||||||||
Fair Value Measurements at February 1, 2014 | |||||||||||||||||
(In thousands) | Carrying | Quoted Market | Significant Other | Significant | |||||||||||||
Amount | Prices in Active | Observable | Unobservable | ||||||||||||||
Markets for | Inputs (Level 2) | Inputs | |||||||||||||||
Identical Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Cash and cash equivalents | |||||||||||||||||
Cash | $ | 330,013 | $ | 330,013 | $ | — | $ | — | |||||||||
Treasury bills | 63,224 | 63,224 | — | — | |||||||||||||
Money-market | 25,696 | 25,696 | — | — | |||||||||||||
Total cash and cash equivalents | $ | 418,933 | $ | 418,933 | $ | — | $ | — | |||||||||
Short-term investments | |||||||||||||||||
Treasury bills | $ | 10,002 | $ | 10,002 | $ | — | $ | — | |||||||||
Total short-term investments | $ | 10,002 | $ | 10,002 | $ | — | $ | — | |||||||||
Total | $ | 428,935 | $ | 428,935 | $ | — | $ | — | |||||||||
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 January 31, 2015 or February 1, 2014. | |||||||||||||||||
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 January 31, 2015, 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 Fiscal 2014 and Fiscal 2013, certain long-lived assets related to the Company’s retail stores and corporate assets were determined to be unable to recover their respective carrying values and were written down to their fair value, resulting in a loss of $33.5 million and $44.5 million, respectively, which is recorded as a loss on impairment of assets within the Consolidated Statements of Operations. The fair value of the impaired assets after the recorded loss is an immaterial amount. | |||||||||||||||||
The fair value of the Company’s stores 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 | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Earnings per Share | 5 | Earnings per Share | |||||||||||
The following is a reconciliation between basic and diluted weighted average shares outstanding: | |||||||||||||
For the Years Ended | |||||||||||||
(In thousands, except per share amounts) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Weighted average common shares outstanding: | |||||||||||||
Basic number of common shares outstanding | 194,437 | 192,802 | 196,211 | ||||||||||
Dilutive effect of stock options and non-vested restricted stock | 698 | 1,673 | 4,454 | ||||||||||
Dilutive number of common shares outstanding | 195,135 | 194,475 | 200,665 | ||||||||||
Equity awards to purchase approximately 2.3 million, 1.7 million and 1.5 million shares of common stock during the Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively, were outstanding, but were not included in the computation of weighted average diluted common share amounts as the effect of doing so would have been anti-dilutive. | |||||||||||||
Additionally, for Fiscal 2014, approximately 1.9 million of performance-based restricted stock awards 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 performance goals. For Fiscal 2013, approximately 1.8 million of performance-based restricted stock awards 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 performance goals. | |||||||||||||
Refer to Note 12 to the Consolidated Financial Statements for additional information regarding share-based compensation. |
Accounts_Receivable
Accounts Receivable | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Accounts Receivable | 6 | Accounts Receivable | |||||||
Accounts receivable are comprised of the following: | |||||||||
(In thousands) | January 31, | February 1, | |||||||
2015 | 2014 | ||||||||
Franchise and license receivable | $ | 24,945 | $ | 22,943 | |||||
Merchandise sell-offs and vendor receivables | 12,953 | 16,106 | |||||||
Credit card program receivable | 9,637 | 15,000 | |||||||
Marketing cost reimbursements | 4,640 | 6,063 | |||||||
Gift card receivable | 4,453 | 986 | |||||||
Landlord construction allowances | 3,354 | 11,626 | |||||||
Other Items | 7,912 | 1,158 | |||||||
Total | $ | 67,894 | $ | 73,882 | |||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Property and Equipment | 7 | Property and Equipment | |||||||||||
Property and equipment consists of the following: | |||||||||||||
(In thousands) | January 31, | February 1, | |||||||||||
2015 | 2014 | ||||||||||||
Land | $ | 17,495 | $ | 17,986 | |||||||||
Buildings | 201,024 | 140,600 | |||||||||||
Leasehold improvements | 571,312 | 600,572 | |||||||||||
Fixtures and equipment | 852,408 | 732,228 | |||||||||||
Construction in progress | 42,470 | 102,974 | |||||||||||
Property and equipment, at cost | $ | 1,684,709 | $ | 1,594,360 | |||||||||
Less: Accumulated depreciation | (989,853 | ) | (961,374 | ) | |||||||||
Property and equipment, net | $ | 694,856 | $ | 632,986 | |||||||||
Depreciation expense is summarized as follows: | |||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Depreciation expense | $ | 132,529 | $ | 116,761 | $ | 122,756 | |||||||
Additionally, during Fiscal 2014, Fiscal 2013 and Fiscal 2012, the Company recorded $6.4 million, $14.6 million and $3.7 million, respectively, related to asset write-offs within depreciation and amortization expense. | |||||||||||||
Intangible_Assets
Intangible Assets | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Intangible Assets | 8 | Intangible Assets | |||||||||||
Intangible assets include costs to acquire and register the Company’s trademark assets. The following table represents intangible assets as of January 31, 2015 and February 1, 2014: | |||||||||||||
(In thousands) | January 31, | February 1, | |||||||||||
2015 | 2014 | ||||||||||||
Trademarks, at cost | $ | 59,385 | $ | 58,121 | |||||||||
Less: Accumulated amortization | (12,179 | ) | (8,850 | ) | |||||||||
Intangible assets, net | $ | 47,206 | $ | 49,271 | |||||||||
Amortization expense is summarized as follows: | |||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Amortization expense | $ | 3,465 | $ | 2,714 | $ | 1,952 | |||||||
The table below summarizes the estimated future amortization expense for intangible assets existing as of January 31, 2015 for the next five Fiscal Years: | |||||||||||||
(In thousands) | Future | ||||||||||||
Amortization | |||||||||||||
2015 | 3,404 | ||||||||||||
2016 | 3,473 | ||||||||||||
2017 | 3,472 | ||||||||||||
2018 | 3,452 | ||||||||||||
2019 | 3,433 |
Other_Credit_Arrangements
Other Credit Arrangements | 12 Months Ended | |
Jan. 31, 2015 | ||
Other Credit Arrangements | 9 | Other Credit Arrangements |
In December 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 take advantage of a favorable credit environment. | ||
All obligations under the Credit Facilities are unconditionally guaranteed by certain subsidiaries. The obligations under the 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. | ||
As of January 31, 2015, the Company was in compliance with the terms of the Credit Agreement and had $8.1 million outstanding in stand-by letters of credit. No loans were outstanding under the Credit Agreement on January 31, 2015. | ||
The Credit Facilities replace the Company’s syndicated, unsecured, revolving credit facility in the amount of $150.0 million. | ||
Additionally, the Company has borrowing agreements with two separate financial institutions under which it may borrow an aggregate of $155.0 million USD for the purposes of trade letter of credit issuances. The availability of any future borrowings under the trade letter of credit facilities is subject to acceptance by the respective financial institutions. | ||
As of January 31, 2015, the Company had outstanding trade letters of credit of $13.7 million. |
Leases
Leases | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Leases | 10 | Leases | |||||||||||
The Company leases all store premises, some of its office space and certain information technology and office equipment. The store leases generally have initial terms of 10 years and are classified as operating leases. Most of these store leases provide for base rentals and the payment of a percentage of sales as additional contingent rent when sales exceed specified levels. Additionally, most leases contain construction allowances and/or rent holidays. In recognizing landlord incentives and minimum rent expense, the Company amortizes the items on a straight-line basis over the lease term (including the pre-opening build-out period). | |||||||||||||
A summary of fixed minimum and contingent rent expense for all operating leases follows: | |||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Store rent: | |||||||||||||
Fixed minimum | $ | 279,640 | $ | 260,668 | $ | 250,844 | |||||||
Contingent | 6,733 | 6,576 | 9,758 | ||||||||||
Total store rent, excluding common area maintenance charges, real estate taxes and certain other expenses | $ | 286,373 | $ | 267,244 | $ | 260,602 | |||||||
Offices, distribution facilities, equipment and other | 15,449 | 17,153 | 14,960 | ||||||||||
Total rent expense | $ | 301,822 | $ | 284,397 | $ | 275,562 | |||||||
In addition, the Company is typically responsible under its store, office and distribution center leases for tenant occupancy costs, including maintenance costs, common area charges, real estate taxes and certain other expenses. | |||||||||||||
The table below summarizes future minimum lease obligations, consisting of fixed minimum rent, under operating leases in effect at January 31, 2015: | |||||||||||||
(In thousands) | Future Minimum | ||||||||||||
Lease Obligations | |||||||||||||
Fiscal years: | |||||||||||||
2015 | 287,091 | ||||||||||||
2016 | 259,106 | ||||||||||||
2017 | 229,489 | ||||||||||||
2018 | 199,208 | ||||||||||||
2019 | 173,388 | ||||||||||||
Thereafter | 549,046 | ||||||||||||
Total | 1,697,328 | ||||||||||||
Other_Comprehensive_Income
Other Comprehensive Income | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Other Comprehensive Income | 11 | Other Comprehensive Income | |||||||||||
The accumulated balances of other comprehensive income included as part of the Consolidated Statements of Stockholders’ Equity follow: | |||||||||||||
(In thousands) | Before | Tax | Accumulated | ||||||||||
Tax | Benefit | Other | |||||||||||
Amount | (Expense) | Comprehensive | |||||||||||
Income | |||||||||||||
Balance at January 28, 2012 | $ | 28,659 | — | $ | 28,659 | ||||||||
Foreign currency translation gain | 638 | — | 638 | ||||||||||
Balance at February 2, 2013 | $ | 29,297 | — | $ | 29,297 | ||||||||
Foreign currency translation loss | (17,140 | ) | — | (17,140 | ) | ||||||||
Balance at February 1, 2014 | $ | 12,157 | — | $ | 12,157 | ||||||||
Foreign currency translation loss | (22,101 | ) | — | (22,101 | ) | ||||||||
Balance at January 31, 2015 | $ | (9,944 | ) | — | $ | (9,944 | ) | ||||||
ShareBased_Payments
Share-Based Payments | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Share-Based Payments | 12 | Share-Based Payments | |||||||||||||||
The Company accounts for share-based compensation under the provisions of ASC 718, Compensation — Stock Compensation (“ASC 718”), which requires the Company 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 Fiscal 2014 and Fiscal 2012 was $16.1 million ($9.9 million, net of tax) and $66.3 million ($40.9 million, net of tax), respectively. Total share-based compensation expense included in the Consolidated Statements of Operations for Fiscal 2013 was a net benefit of $6.5 million ($4.1 million, net of tax). | |||||||||||||||||
ASC 718 requires recognition of compensation cost under a non-substantive vesting period approach for awards containing provisions that accelerate or continue vesting upon retirement. Accordingly, for awards with such provisions, the Company recognizes compensation expense over the period from the grant date to the date retirement eligibility is achieved, if that is expected to occur during the nominal vesting period. Additionally, for awards granted to retirement eligible employees, the full compensation cost of an award must be recognized immediately upon grant. | |||||||||||||||||
At January 31, 2015, the Company had awards outstanding under three share-based compensation plans, which are described below. | |||||||||||||||||
Share-based compensation plans | |||||||||||||||||
2014 Stock Award and Incentive Plan | |||||||||||||||||
The 2014 Plan was approved by the stockholders on May 29, 2014. The 2014 Plan authorized 11.5 million shares for issuance, in the form of options, stock appreciation rights (“SARS”), restricted stock, restricted stock units, bonus stock and awards, performance awards, dividend equivalents and other stock based awards. The 2014 Plan provides that the maximum number of shares awarded to any individual may not exceed 4.0 million shares per year for options and SARS and no more than 1.5 million shares may be granted with respect to each of restricted shares of stock and restricted stock units plus any unused carryover limit from the previous year. The 2014 Plan allows the Compensation Committee of the Board to determine which employees receive awards and the terms and conditions of the awards that are mandatory under the 2014 Plan. The 2014 Plan provides for grants to directors who are not officers or employees of the Company, which are not to exceed in value $300,000 in any single calendar year ($500,000 in the first year a person becomes a non-employee director). Through January 31, 2015, approximately 46,700 shares of restricted stock and approximately 23,400 shares of common stock had been granted under the 2014 Plan to employees and directors. Approximately 62% of the restricted stock awards are performance-based and are earned if the Company meets established performance goals. The remaining 38% of the restricted stock awards are time-based and vest over three years. | |||||||||||||||||
2005 Stock Award and Incentive Plan | |||||||||||||||||
The 2005 Plan was approved by the stockholders on June 15, 2005. The 2005 Plan authorized 18.4 million shares for issuance, of which 6.4 million shares are available for full value awards in the form of restricted stock awards, restricted stock units or other full value stock awards and 12.0 million shares are available for stock options, SAR, dividend equivalents, performance awards or other non-full value stock awards. The 2005 Plan was subsequently amended in Fiscal 2009 to increase the shares available for grant to 31.9 million without taking into consideration 9.1 million non-qualified stock options, 2.9 million shares of restricted stock and 0.2 million shares of common stock that had been previously granted under the 2005 plan to employees and directors (without considering cancellations as of January 31, 2009 of awards for 2.9 million shares). The 2005 Plan provides that the maximum number of shares awarded to any individual may not exceed 6.0 million shares per year for options and SAR and no more than 4.0 million shares may be granted with respect to each of restricted shares of stock and restricted stock units plus any unused carryover limit from the previous year. The 2005 Plan allows the Compensation Committee of the Board to determine which employees receive awards and the terms and conditions of the awards that are mandatory under the 2005 Plan. The 2005 Plan provides for grants to directors who are not officers or employees of the Company, which are not to exceed 20,000 shares per year (not to be adjusted for stock splits). Through January 31, 2015, 17.1 million non-qualified stock options, 10.4 million shares of restricted stock and 0.4 million shares of common stock had been granted under the 2005 Plan to employees and directors (without considering cancellations to date of awards for 13.1 million shares). Approximately 95% of the options granted under the 2005 Plan vest over three years, 4% vest over one year and 1% vest over five years. Options were granted for ten and seven year terms. Approximately 62% of the restricted stock awards are performance-based and are earned if the Company meets established performance goals. The remaining 38% of the restricted stock awards are time-based and vest over three years. The 2005 Plan terminated on May 29, 2014 with all rights of the awardees and all unexpired awards continuing in force and operation after the termination. | |||||||||||||||||
1999 Stock Incentive Plan | |||||||||||||||||
The 1999 Stock Option Plan (the “1999 Plan”) was approved by the stockholders on June 8, 1999. The 1999 Plan authorized 18.0 million shares for issuance in the form of stock options, stock appreciation rights (“SAR”), restricted stock awards, performance units or performance shares. The 1999 Plan was subsequently amended to increase the shares available for grant to 33.0 million. Additionally, the 1999 Plan provided that the maximum number of shares awarded to any individual may not exceed 9.0 million shares. The 1999 Plan allowed the Compensation Committee to determine which employees and consultants received awards and the terms and conditions of these awards. The 1999 Plan provided for a grant of 1,875 stock options quarterly (not to be adjusted for stock splits) to each director who is not an officer or employee of the Company starting in August 2003. The Company ceased making these quarterly stock option grants in June 2005. Under this plan, 33.2 million non-qualified stock options and 6.7 million shares of restricted stock were granted to employees and certain non-employees (without considering cancellations to date of awards for 9.7 million shares). Approximately 33% of the options granted were to vest over eight years after the date of grant but were accelerated as the Company met annual performance goals. Approximately 34% of the options granted under the 1999 Plan vest over three years, 23% vest over five years and the remaining grants vest over one year. All options expire after 10 years. Performance-based restricted stock was earned if the Company met established performance goals. The 1999 Plan terminated on June 15, 2005 with all rights of the awardees and all unexpired awards continuing in force and operation after the termination. | |||||||||||||||||
Stock Option Grants | |||||||||||||||||
The Company grants both time-based and performance-based stock options under the 2005 Plan. 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 three years and are earned if the Company meets pre-established performance goals during each year. | |||||||||||||||||
A summary of the Company’s stock option activity under all plans for Fiscal 2014 follows: | |||||||||||||||||
For the Year Ended January 31, 2015 | |||||||||||||||||
Options | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||||||
Outstanding — February 1, 2014 | 3,925 | $ | 17.65 | ||||||||||||||
Granted | 126 | $ | 14.5 | ||||||||||||||
Exercised(1) | (613 | ) | $ | 12.07 | |||||||||||||
Cancelled | (1,048 | ) | $ | 23.66 | |||||||||||||
Outstanding — January 31, 2015 | 2,390 | $ | 16.28 | 1.8 | $ | 514 | |||||||||||
Vested and expected to vest — January 31, 2015 | 2,380 | $ | 16.29 | 1.8 | $ | 514 | |||||||||||
Exercisable — January 31, 2015(2) | 509 | $ | 13.03 | 3.5 | $ | 513 | |||||||||||
-1 | Options exercised during Fiscal 2014 ranged in price from $8.09 to $14.05. | ||||||||||||||||
-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 January 31, 2015. | ||||||||||||||||
The weighted-average grant date fair value of stock options granted during Fiscal 2014, Fiscal 2013 and Fiscal 2012 was $3.99, $4.17 and $3.72, respectively. The aggregate intrinsic value of options exercised during Fiscal 2014, Fiscal 2013 and Fiscal 2012 was $1.3 million, $3.9 million and $57.4 million, respectively. Cash received from the exercise of stock options and the actual tax benefit realized from share-based payments was $7.3 million and ($0.5) million, respectively, for Fiscal 2014. Cash received from the exercise of stock options and the actual tax benefit realized from share-based payments was $6.2 million and $8.7 million, respectively, for Fiscal 2013. Cash received from the exercise of stock options and the actual tax benefit realized from share-based payments was $76.4 million and $14.1 million, respectively, for Fiscal 2012. | |||||||||||||||||
The fair value of stock options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: | |||||||||||||||||
For the Years Ended | |||||||||||||||||
Black-Scholes Option Valuation Assumptions | January 31, | February 1, | February 2, | ||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Risk-free interest rates(1) | 1.5 | % | 0.3 | % | 0.6 | % | |||||||||||
Dividend yield | 3.1 | % | 2 | % | 2.8 | % | |||||||||||
Volatility factors of the expected market price of the Company’s common stock(2) | 41.2 | % | 34.4 | % | 41.2 | % | |||||||||||
Weighted-average expected term(3) | 4.5 | years | 2.5 | years | 4.0 | years | |||||||||||
Expected forfeiture rate(4) | 8 | % | 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. The weighted average expected option terms were determined based on historical experience. | ||||||||||||||||
-4 | Based on historical experience. | ||||||||||||||||
As of January 31, 2015, there was $0.4 million of unrecognized compensation expense related to nonvested stock option awards that is expected to be recognized over a weighted average period of 2.1 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 activity of the Company’s restricted stock is presented in the following tables: | |||||||||||||||||
Time-Based Restricted Stock | Performance-Based | ||||||||||||||||
Units | Restricted Stock Units | ||||||||||||||||
For the year ended | For the year ended | ||||||||||||||||
January 31, 2015 | January 31, 2015 | ||||||||||||||||
(Shares in thousands) | Shares | Weighted-Average | Shares | Weighted-Average | |||||||||||||
Grant Date | Grant Date | ||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
Nonvested — February 1, 2014 | 1,155 | $ | 20.13 | 2,395 | $ | 16.85 | |||||||||||
Granted | 1,506 | 14.11 | 1,314 | 14.21 | |||||||||||||
Vested | (648 | ) | 18.08 | (604 | ) | 15.34 | |||||||||||
Cancelled/Forfeited | (417 | ) | 17.56 | (670 | ) | 16.05 | |||||||||||
Nonvested — January 31, 2015 | 1,596 | 15.95 | 2,435 | 16.02 | |||||||||||||
As of January 31, 2015, there was $16.2 million of unrecognized compensation expense related to nonvested time-based restricted stock unit awards that is expected to be recognized over a weighted average period of 1.9 years. Additionally, there was $2.8 million of unrecognized compensation expense related to performance-based restricted stock unit awards which will be recognized as achievement performance goals are probable over a one to three year period. | |||||||||||||||||
As of January 31, 2015, the Company had 8.9 million shares available for all equity grants. | |||||||||||||||||
Retirement_Plan_and_Employee_S
Retirement Plan and Employee Stock Purchase Plan | 12 Months Ended | |
Jan. 31, 2015 | ||
Retirement Plan and Employee Stock Purchase Plan | 13 | Retirement Plan and Employee Stock Purchase Plan |
The Company maintains a profit sharing and 401(k) plan (the “Retirement Plan”). Under the provisions of the Retirement Plan, full-time employees and part-time employees are automatically enrolled to contribute 3% of their salary if they have attained 20 1/2 years of age. In addition, full-time employees need to have completed 60 days of service and part-time employees must complete 1,000 hours worked to be eligible. Individuals can decline enrollment or can contribute up to 50% of their salary to the 401(k) plan on a pretax basis, subject to IRS limitations. After one year of service, the Company will match 100% of the first 3% of pay plus an additional 50% of the next 3% of pay that is contributed to the plan. Contributions to the profit sharing plan, as determined by the Board, are discretionary. The Company recognized $10.5 million, $9.6 million and $15.8 million in expense during Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively, in connection with the Retirement Plan. In Fiscal 2014, the Company announced a change to the Retirement Plan effective January 1, 2015. The Company will match 100% of the first 3% of pay plus an additional 25% of the next 3% of pay that is contributed to the plan. | ||
The Employee Stock Purchase Plan is a non-qualified plan that covers all full-time employees and part-time employees who are at least 18 years old and have completed 60 days of service. Contributions are determined by the employee, with the Company matching 15% of the investment up to a maximum investment of $100 per pay period. These contributions are used to purchase shares of Company stock in the open market. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Income Taxes | 14 | Income Taxes | |||||||||||
The components of income before income taxes from continuing operations were: | |||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
U.S. | $ | 193,167 | $ | 157,669 | $ | 381,131 | |||||||
Foreign | (33,665 | ) | (15,592 | ) | 20,907 | ||||||||
Total | $ | 159,502 | $ | 142,077 | $ | 402,038 | |||||||
The significant components of the Company’s deferred tax assets and liabilities were as follows: | |||||||||||||
(In thousands) | January 31, | February 1, | |||||||||||
2015 | 2014 | ||||||||||||
Deferred tax assets: | |||||||||||||
Rent | $ | 28,323 | $ | 27,458 | |||||||||
Deferred compensation | 16,109 | 22,654 | |||||||||||
Foreign tax credits | 15,546 | 13,436 | |||||||||||
Accruals not currently deductible | 9,899 | 9,059 | |||||||||||
Employee compensation and benefits | 9,609 | 2,799 | |||||||||||
Net Operating Loss | 9,179 | 4,226 | |||||||||||
State tax credits | 7,595 | 6,215 | |||||||||||
Inventories | 6,939 | 11,234 | |||||||||||
Deferred Revenue | 5,150 | 124 | |||||||||||
Foreign and state income taxes | 3,774 | 3,255 | |||||||||||
Loyalty Reserve | 2,908 | 3,196 | |||||||||||
Capital loss carryforward | — | 16,207 | |||||||||||
Other | 3,871 | 844 | |||||||||||
Gross deferred tax assets | 118,902 | 120,707 | |||||||||||
Valuation allowance | (10,563 | ) | (20,601 | ) | |||||||||
Total deferred tax assets | $ | 108,339 | $ | 100,106 | |||||||||
Deferred tax liabilities: | |||||||||||||
Property and equipment | $ | (30,054 | ) | $ | (23,595 | ) | |||||||
Prepaid expenses | (3,227 | ) | (4,544 | ) | |||||||||
Other | (1,921 | ) | (1,654 | ) | |||||||||
Total deferred tax liabilities | $ | (35,202 | ) | $ | (29,793 | ) | |||||||
Total deferred tax assets, net | $ | 73,137 | $ | 70,313 | |||||||||
Classification in the Consolidated Balance Sheet: | |||||||||||||
Current deferred tax assets | $ | 59,102 | $ | 45,478 | |||||||||
Noncurrent deferred tax assets | 14,035 | 24,835 | |||||||||||
Total deferred tax assets | $ | 73,137 | $ | 70,313 | |||||||||
The net decrease in deferred tax assets and liabilities was primarily due to an increase in the deferred tax liability for property and equipment basis differences. | |||||||||||||
Significant components of the provision for income taxes from continuing operations were as follows: | |||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Current: | |||||||||||||
Federal | $ | 66,229 | $ | 29,794 | $ | 143,612 | |||||||
Foreign taxes | (792 | ) | (50 | ) | 6,939 | ||||||||
State | 9,447 | 9,162 | 18,845 | ||||||||||
Total current | 74,884 | 38,906 | 169,396 | ||||||||||
Deferred: | |||||||||||||
Federal | $ | (1,178 | ) | $ | 20,611 | $ | (26,063 | ) | |||||
Foreign taxes | (85 | ) | 695 | (1,486 | ) | ||||||||
State | (2,906 | ) | (1,118 | ) | (3,907 | ) | |||||||
Total deferred | (4,169 | ) | 20,188 | (31,456 | ) | ||||||||
Provision for income taxes | $ | 70,715 | $ | 59,094 | $ | 137,940 | |||||||
At February 1, 2014, the Company had a valuation allowance of $16.2 million related to capital loss carryforwards. During the fiscal year ended January 31, 2015, the Company utilized all of its capital loss carryforwards and released the $16.2 million valuation allowance associated with the capital loss carryforward. | |||||||||||||
As a result of additional tax deductions related to share-based payments, tax benefits have been recognized as contributed capital for Fiscal 2014, Fiscal 2013 and Fiscal 2012 in the amounts of ($0.5 million), $8.7 million and $14.1 million, respectively. | |||||||||||||
The Company repatriated the earnings of its Canadian subsidiaries as of January 31, 2015. Upon distribution of the earnings, the Company was subject to income and withholding taxes offset by U.S. foreign tax credits resulting in no material impact on tax expense. It is Management’s position to indefinitely reinvest accumulated earnings of our Canadian subsidiaries outside of the United States to the extent not repatriated in Fiscal 2014. | |||||||||||||
As of January 31, 2015, the Company had state and foreign net operating loss carryovers that could be utilized to reduce future years’ tax liabilities, totaling $10.3 million. A portion of these net operating loss carryovers begin expiring in the year 2018 and some have an indefinite carryforward period. Management believes it is more likely than not that the foreign net operating loss carryovers will not reduce future years’ tax liabilities in certain foreign jurisdictions. As such a valuation allowance of $7.2 million has been recorded on the deferred tax assets related to the cumulative foreign net operating loss carryovers. | |||||||||||||
As of January 31, 2015, the gross amount of unrecognized tax benefits was $12.6 million, of which $9.1 million would affect the effective income tax rate if recognized. The gross amount of unrecognized tax benefits as of February 1, 2014 was $14.6 million, of which $9.7 million would affect the effective income tax rate if recognized. | |||||||||||||
The following table summarizes the activity related to our unrecognized tax benefits: | |||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Unrecognized tax benefits, beginning of the year balance | $ | 14,601 | $ | 17,250 | $ | 31,578 | |||||||
Increases in current period tax positions | 2,166 | 2,294 | 2,458 | ||||||||||
Increases in tax positions of prior periods | — | 440 | — | ||||||||||
Settlements | (73 | ) | — | (4,809 | ) | ||||||||
Lapse of statute of limitations | (471 | ) | (453 | ) | (1,592 | ) | |||||||
Decreases in tax positions of prior periods | (3,614 | ) | (4,930 | ) | (10,385 | ) | |||||||
Unrecognized tax benefits, end of the year balance | $ | 12,609 | $ | 14,601 | $ | 17,250 | |||||||
Unrecognized tax benefits decreased by $2.0 million during Fiscal 2014, decreased $2.6 million during Fiscal 2013 and decreased by $14.3 million during Fiscal 2012. The unrecognized tax benefit changes were primarily related to federal and state income tax settlements and other changes in income tax reserves. Over the next twelve months the Company believes it is reasonably possible the unrecognized tax benefits could decrease by as much as $5.6 million as the result of federal and state tax settlements, statute of limitations lapses, and other changes to the reserves. | |||||||||||||
The Company records accrued interest and penalties related to unrecognized tax benefits in income tax expense. Accrued interest and penalties related to unrecognized tax benefits included in the Consolidated Balance Sheet were $1.6 million and $1.9 million as of January 31, 2015 and February 1, 2014, respectively. During Fiscal 2012, the Company recognized a net benefit of $4.8 million in the provision for income taxes related to the reversal of accrued interest and penalties primarily due to federal and state income tax settlements. An immaterial amount of interest and penalties were recognized in the provision for income taxes during Fiscal 2014 and Fiscal 2013. | |||||||||||||
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Internal Revenue Service (“IRS”) examination of the Company’s U.S. federal income tax return for the tax year ended January 2012 was completed in February 2014. Accordingly, all years prior to the tax year ended January 2013 are no longer subject to U.S. federal income tax examinations by tax authorities. Additionally, the Company is participating in the IRS’s Compliance Assurance Process (CAP) for the years ended February 1, 2014 and January 31, 2015. The Company does not anticipate that any adjustments will result in a material change to its financial position, results of operations or cash flow. With respect to state and local jurisdictions and countries outside of the United States, with limited exceptions, generally, the Company and its subsidiaries are no longer subject to income tax audits for tax years before 2008. Although the outcome of tax audits is always uncertain, the Company believes that adequate amounts of tax, interest and penalties have been provided for any adjustments that are expected to result from these years. | |||||||||||||
The Company has foreign tax credit carryovers in the amount of $19.3 million and $13.4 million as of January 31, 2015 and February 1, 2014, respectively. The foreign tax credit carryovers begin to expire in Fiscal 2019 to the extent not utilized. No valuation allowance has been recorded on the foreign tax credit carryovers as the Company believes it is more likely than not that the foreign tax credits will be utilized prior to expiration. | |||||||||||||
The Company has state income tax credit carryforwards of $11.7 million and $10.7 million as of January 31, 2015 and February 1, 2014, respectively. These income tax credits can be utilized to offset future state income taxes and have a carryforward period of 10 to16 years. They will begin to expire in Fiscal 2018. | |||||||||||||
A reconciliation between the statutory federal income tax rate and the effective income tax rate from continuing operations follows: | |||||||||||||
For the Years Ended | |||||||||||||
January 31, | February 1, | February 2, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
Federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes, net of federal income tax effect | 4 | 4 | 3 | ||||||||||
Valuation allowance changes, net | 6 | 4 | (1 | ) | |||||||||
Tax settlements | (1 | ) | (2 | ) | (3 | ) | |||||||
Other | — | 1 | — | ||||||||||
44 | % | 42 | % | 34 | % | ||||||||
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Discontinued Operations | 15 | Discontinued Operations | |||||||||||
In Fiscal 2012, the Company exited the 77kids business. These Consolidated Financial Statements reflect the results of 77kids as a discontinued operation for all periods presented. | |||||||||||||
In connection with the exit of the 77kids business, the Company became secondarily liable for obligations under lease agreements for 21 store leases assumed by the third party purchaser. In Fiscal 2014, the third party purchaser did not fulfill its obligations under the leases, resulting in the Company becoming primarily liable. The Company was required to make rental and lease termination payments and received reimbursement from the $11.5 million stand-by letter of credit provided by the third party purchaser. The Company has incurred $13.7 million in expense above the letter of credit proceeds to terminate store leases. The cash outflow for termination costs are expected to be paid in the first quarter of Fiscal 2015. | |||||||||||||
In accordance with ASC 460, Guarantees (“ASC 460”), as the Company became primarily liable under the leases upon the third party purchaser’s default, the remaining amounts to exit the lease agreements have been accrued in our Consolidated Financial Statements related to these guarantees. | |||||||||||||
Costs associated with exit or disposal activities are recorded when incurred. A summary of the pre-tax exit and disposal costs recognized within Loss from Discontinued Operations on the Consolidated Income Statement for 77kids are as follows. There were no exit or disposal costs recognized in Fiscal 2013 related to 77kids. | |||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Non-cash charges | |||||||||||||
Asset impairments | $ | — | $ | — | $ | 16,623 | |||||||
Cash charges | |||||||||||||
Lease-related charges | $ | 13,673 | $ | — | $ | 7,768 | |||||||
Inventory charges | — | — | 10,237 | ||||||||||
Severence charges | — | — | 3,439 | ||||||||||
Total charges | $ | 13,673 | $ | — | $ | 38,067 | |||||||
A rollforward of the liabilities for the exit of the 77kids brand recognized in the Consolidated Balance Sheets is as follows: | |||||||||||||
(In thousands) | January 31, | ||||||||||||
2015 | |||||||||||||
Accrued liability as of February 1, 2014 | $ | — | |||||||||||
Add: Costs incurred | 25,173 | ||||||||||||
Less: Cash payments | (10,537 | ) | |||||||||||
Accrued liability as of January 31, 2015 | $ | 14,636 | |||||||||||
The tables below present the significant components of 77kids’ results included in Loss from Discontinued Operations on the Consolidated Statements of Operations for the years ended January 31, 2015, February 1, 2014 and February 2, 2013. | |||||||||||||
For the Years Ended | |||||||||||||
January 31, | February 1, | February 2, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
Total net revenue | $ | — | $ | — | $ | 20,117 | |||||||
Loss from discontinued operations, before income taxes(1) | $ | (13,673 | ) | $ | — | $ | (51,839 | ) | |||||
Income tax benefit | 5,208 | — | 19,849 | ||||||||||
Loss from discontinued operations, net of tax | $ | (8,465 | ) | $ | — | $ | (31,990 | ) | |||||
Loss per common share from discontinued operations: | |||||||||||||
Basic | $ | (0.04 | ) | $ | — | $ | (0.16 | ) | |||||
Diluted | $ | (0.04 | ) | $ | — | $ | (0.16 | ) | |||||
-1 | Loss from discontinued operations is presented net of the reversal of non-cash lease credits for Fiscal 2012 | ||||||||||||
Restructuring_Charges
Restructuring Charges | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
Restructuring Charges | 16 | 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 Fiscal 2014 are included in the table as follows. | |||||
(In thousands) | For the year ended | ||||
January 31, | |||||
2015 | |||||
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 impairment 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: | |||||
(In thousands) | January 31, | ||||
2015 | |||||
Accrued liability as of February 1, 2014 | $ | — | |||
Add: Costs incurred, excluding non-cash charges | 17,752 | ||||
Less: Cash payments | (5,296 | ) | |||
Accrued liability as of January 31, 2015 | $ | 12,456 | |||
Quarterly_Financial_Informatio
Quarterly Financial Information - Unaudited | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Quarterly Financial Information - Unaudited | 17 | Quarterly Financial Information — Unaudited | |||||||||||||||
The sum of the quarterly EPS amounts may not equal the full year amount as the computations of the weighted average shares outstanding for each quarter and the full year are calculated independently. | |||||||||||||||||
Fiscal 2014 | |||||||||||||||||
Quarters Ended | |||||||||||||||||
(In thousands, except per share amounts) | May 3, | August 2, | November 1, | January 31, | |||||||||||||
2014 | 2014 | 2014 | 2015 | ||||||||||||||
Total net revenue | $ | 646,129 | $ | 710,595 | $ | 854,290 | $ | 1,071,853 | |||||||||
Gross profit | $ | 225,845 | $ | 237,547 | $ | 315,472 | $ | 375,810 | |||||||||
Income from continuing operations | 3,866 | 5,813 | 9,035 | 70,073 | |||||||||||||
Loss from discontinued operations, net of tax | — | — | — | (8,465 | ) | ||||||||||||
Net income | $ | 3,866 | $ | 5,813 | $ | 9,035 | $ | 61,608 | |||||||||
Basic per common share amounts: | |||||||||||||||||
Income from continuing operations | $ | 0.02 | $ | 0.03 | $ | 0.05 | $ | 0.36 | |||||||||
Loss from discontinued operations, net of tax | — | — | — | (0.04 | ) | ||||||||||||
Basic net income per common share | $ | 0.02 | $ | 0.03 | $ | 0.05 | $ | 0.32 | |||||||||
Diluted per common share amounts: | |||||||||||||||||
Income from continuing operations | $ | 0.02 | $ | 0.03 | $ | 0.05 | $ | 0.36 | |||||||||
Loss from discontinued operations, net of tax | — | — | — | (0.04 | ) | ||||||||||||
Diluted net income per common share | $ | 0.02 | $ | 0.03 | $ | 0.05 | $ | 0.32 | |||||||||
Fiscal 2013 | |||||||||||||||||
Quarters Ended | |||||||||||||||||
(In thousands, except per share amounts) | May 4, | August 3, | November 2, | February 1, | |||||||||||||
2013 | 2013 | 2013 | 2014 | ||||||||||||||
Total net revenue | $ | 679,477 | $ | 727,313 | $ | 857,305 | $ | 1,041,707 | |||||||||
Gross profit | $ | 263,609 | $ | 245,495 | $ | 298,875 | $ | 306,020 | |||||||||
Income from continuing operations | 27,976 | 19,594 | 24,903 | 10,510 | |||||||||||||
Loss from discontinued operations, net of tax | — | — | — | — | |||||||||||||
Net income | $ | 27,976 | $ | 19,594 | $ | 24,903 | $ | 10,510 | |||||||||
Basic per common share amounts: | |||||||||||||||||
Income from continuing operations | $ | 0.14 | $ | 0.1 | $ | 0.13 | $ | 0.05 | |||||||||
Loss from discontinued operations, net of tax | — | — | — | — | |||||||||||||
Basic net income per common share | $ | 0.14 | $ | 0.1 | $ | 0.13 | $ | 0.05 | |||||||||
Diluted per common share amounts: | |||||||||||||||||
Income from continuing operations | $ | 0.14 | $ | 0.1 | $ | 0.13 | $ | 0.05 | |||||||||
Loss from discontinued operations, net of tax | — | — | — | — | |||||||||||||
Diluted net income per common share | $ | 0.14 | $ | 0.1 | $ | 0.13 | $ | 0.05 | |||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
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 January 31, 2015, the Company operated in one reportable segment. | |||||||||||||
The Company exited its 77kids brand in Fiscal 2012. These Consolidated Financial Statements reflect the results of 77kids as discontinued operations for all periods presented. | |||||||||||||
Fiscal Year | Fiscal Year | ||||||||||||
Our financial year is a 52/53 week year that ends on the Saturday nearest to January 31. As used herein, “Fiscal 2015” refers to the 52 week period ending January 30, 2016. “Fiscal 2014” and “Fiscal 2013” refer to the 52 week period ended January 31, 2015 and February 1, 2014, respectively. “Fiscal 2012” refers to the 53 week period ended February 2, 2013. “Fiscal 2011” and “Fiscal 2010” refer to the 52 week periods ended January 28, 2012 and January 29, 2011, respectively. | |||||||||||||
Estimates | Estimates | ||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of 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 its 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 under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. 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 (refer to Note 11 to the Consolidated Financial Statements). | |||||||||||||
Cash and Cash Equivalents, Short-term Investments and Long-term Investments | Cash and Cash Equivalents, Short-term Investments and Long-term Investments | ||||||||||||
Cash includes cash equivalents. The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. | |||||||||||||
As of February 1, 2014, short-term investments include treasury bills and term-deposits purchased with a maturity of greater than three months, but less than one year. | |||||||||||||
Long-term investments are included within other assets on the Company’s Consolidated Balance Sheets. As of January 31, 2015 and February 1, 2014, the Company held no long-term investments. | |||||||||||||
Refer to Note 3 to the Consolidated Financial Statements for information regarding cash and cash equivalents and investments. | |||||||||||||
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. Additionally, ASC 320 requires additional disclosures relating to debt and equity securities both in the interim and annual periods as well as requires the Company to present total OTTI with an offsetting reduction for any non-credit loss impairment amount recognized in other comprehensive income (“OCI”). | |||||||||||||
There was no net impairment loss recognized in earnings for all years presented. | |||||||||||||
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 at the time which both title and risk of loss for the merchandise transfers 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. | |||||||||||||
Property and Equipment | Property and Equipment | ||||||||||||
Property and equipment is recorded on the basis of cost 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, the Company’s management evaluates the value of leasehold improvements and store fixtures associated with retail stores, which have been open for a period of time sufficient to reach maturity. 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. Impairment losses are recorded on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of the assets. When events such as these occur, the impaired assets are adjusted to their estimated fair value and an impairment loss is recorded separately as a component of operating income under loss on impairment of assets. | |||||||||||||
During Fiscal 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. | |||||||||||||
During Fiscal 2013, the Company recorded asset impairment charges of $44.5 million consisting of $25.2 million for the impairment of 69 retail stores and $19.3 million for the Company’s Warrendale, Pennsylvania Distribution Center, recorded as a loss on impairment of assets in the Consolidated Statements of Operations. The retail store impairments were recorded based on the results of the Company’s evaluation of stores that considered performance during the holiday selling season and a significant portfolio review in the fourth quarter of Fiscal 2013 that considered current and future performance projections and strategic real estate initiatives. The Company 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. | |||||||||||||
During Fiscal 2012, the Company recorded asset impairment charges of $34.9 million consisting of the impairment of 52 retail stores, which is recorded as a loss on impairment of assets in the Consolidated Statements of Operations. This impairment was recorded based on the results of the Company’s evaluation of stores that considered performance during the holiday selling season and strategic decisions made in the fourth quarter of Fiscal 2012 regarding the rebalancing of our store fleet. The Company 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 $16.6 million of store asset impairment charges related to 77kids stores, which is included in Discontinued Operations. | |||||||||||||
Refer to Note 15 to the Consolidated Financial Statements for additional information regarding the discontinued operations for 77kids. | |||||||||||||
When the Company closes, remodels or relocates a store prior to the end of its lease term, the remaining net book value of the assets related to the store is recorded as a write-off of assets within depreciation and amortization expense. | |||||||||||||
Refer to Note 7 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 recently acquired operations 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 January 31, 2015. 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 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 Fiscal 2014, Fiscal 2013 or Fiscal 2012. | |||||||||||||
Refer to Note 8 to the Consolidated Financial Statements for additional information regarding intangible assets. | |||||||||||||
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. | |||||||||||||
Self-Insurance Liability | Self-Insurance Liability | ||||||||||||
The Company is self-insured for certain losses related to employee medical benefits and worker’s compensation. Costs for self-insurance claims filed and claims incurred but not reported are accrued based on known claims and historical experience. Management believes that it has adequately reserved for its self-insurance liability, which is capped through the use of stop loss contracts with insurance companies. However, any significant variation of future claims from historical trends could cause actual results to differ from the accrued liability. | |||||||||||||
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”) under the AEO and aerie brands. These credit cards are issued by a third-party bank (the “Bank”) in accordance with a credit card agreement (“the Agreement”). The Company has no liability to the Bank for bad debt expense, provided that purchases are made in accordance with the Bank’s procedures. We receive cash from the Bank in accordance with the Agreement and based on card activity. We recognize revenue for such cash receipts when the amounts are fixed or determinable and collectability is reasonably assured. The revenue is recorded in other revenue, which is a component of total net revenue in our Consolidated Statements of Operations. | |||||||||||||
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 at AEO and aerie 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 at AEO and aerie 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-AEO 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 AEREWARDS® 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. | |||||||||||||
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. | |||||||||||||
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. | |||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Beginning balance | $ | 2,205 | $ | 4,481 | $ | 2,929 | |||||||
Returns | (79,813 | ) | (85,871 | ) | (86,895 | ) | |||||||
Provisions | 80,857 | 83,595 | 88,447 | ||||||||||
Ending balance | $ | 3,249 | $ | 2,205 | $ | 4,481 | |||||||
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 upon 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 the Company’s 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 the Company’s buyers and certain senior merchandising executives; rent and utilities related to the Company’s stores, corporate headquarters, distribution centers and other office space; freight from the Company’s distribution centers to the stores; compensation and supplies for the Company’s 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 the Company’s 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 the Company’s design, sourcing and importing teams, the Company’s buyers and the Company’s distribution centers as these amounts are recorded in cost of sales. | |||||||||||||
Advertising Costs | Advertising Costs | ||||||||||||
Certain advertising costs, including direct mail, in-store photographs and other promotional costs are expensed when the marketing campaign commences. As of January 31, 2015 and February 1, 2014, the Company had prepaid advertising expense of $6.6 million and $9.0 million, respectively. All other advertising costs are expensed as incurred. The Company recognized $94.2 million, $87.0 million and $90.0 million in advertising expense during Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | |||||||||||||
Store Pre-Opening Costs | Store Pre-Opening Costs | ||||||||||||
Store pre-opening costs consist primarily of rent, advertising, supplies and payroll expenses. These costs are expensed as incurred. | |||||||||||||
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. | |||||||||||||
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 gift card breakage of $7.0 million, $7.3 million and $8.9 million during Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. | |||||||||||||
Legal Proceedings and Claims | Legal Proceedings and Claims | ||||||||||||
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”), the Company 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, results of operations or consolidated cash flows of the Company. | |||||||||||||
Segment Information | Segment Information | ||||||||||||
In accordance with ASC 280, Segment Reporting (“ASC 280”), the Company has identified three operating segments (American Eagle Outfitters® Brand retail stores, aerie® by American Eagle Outfitters® retail stores and AEO Direct) that reflect the Company’s operational structure as well as the business’s internal view of analyzing results and allocating resources. All of the operating segments have been aggregated and are presented as one reportable segment, as permitted by ASC 280. | |||||||||||||
The following tables present summarized geographical information: | |||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Total net revenue: | |||||||||||||
United States | $ | 2,895,310 | $ | 2,954,636 | $ | 3,131,233 | |||||||
Foreign(1) | 387,557 | 351,167 | 344,569 | ||||||||||
Total net revenue | $ | 3,282,867 | $ | 3,305,802 | $ | 3,475,802 | |||||||
-1 | Amounts represent sales from American Eagle Outfitters and aerie international retail stores, AEO Direct sales that are billed to and/or shipped to foreign countries and international franchise revenue. | ||||||||||||
(In thousands) | January 31, | February 1, | |||||||||||
2015 | 2014 | ||||||||||||
Long-lived assets, net: | |||||||||||||
United States | $ | 664,734 | $ | 618,715 | |||||||||
Foreign | 90,424 | 81,503 | |||||||||||
Total long-lived assets, net | $ | 755,158 | $ | 700,218 | |||||||||
Reclassifications | Reclassifications | ||||||||||||
Certain reclassifications have been made to the Consolidated Financial Statements for prior periods in order to conform to the current period presentation. |
Business_Operations_Tables
Business Operations (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Consolidated Percentage of Net Sales from Continuing Operations Attributable to Each Merchandise Group | The following table sets forth the approximate consolidated percentage of total net revenue from continuing operations attributable to each merchandise group for each of the periods indicated: | ||||||||||||
For the Years Ended | |||||||||||||
January 31, | February 1, | February 2, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
Men’s apparel and accessories | 39 | % | 40 | % | 39 | % | |||||||
Women’s apparel and accessories (excluding aerie) | 53 | % | 52 | % | 52 | % | |||||||
aerie | 8 | % | 8 | % | 9 | % | |||||||
Total | 100 | % | 100 | % | 100 | % | |||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
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 | ||||||||||||
Sales Return Reserve | The sales return reserve reflects an estimate of sales returns based on projected merchandise returns determined through the use of historical average return percentages. | ||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Beginning balance | $ | 2,205 | $ | 4,481 | $ | 2,929 | |||||||
Returns | (79,813 | ) | (85,871 | ) | (86,895 | ) | |||||||
Provisions | 80,857 | 83,595 | 88,447 | ||||||||||
Ending balance | $ | 3,249 | $ | 2,205 | $ | 4,481 | |||||||
Supplemental Cash Flow Information for Cash Amounts Paid | The table below shows supplemental cash flow information for cash amounts paid during the respective periods: | ||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Cash paid during the periods for: | |||||||||||||
Income taxes | $ | 38,501 | $ | 65,496 | $ | 142,009 | |||||||
Interest | $ | 638 | $ | 387 | $ | 348 | |||||||
Summary of Geographical Information | The following tables present summarized geographical information: | ||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Total net revenue: | |||||||||||||
United States | $ | 2,895,310 | $ | 2,954,635 | $ | 3,131,233 | |||||||
Foreign(1) | 387,557 | 351,167 | 344,569 | ||||||||||
Total net revenue | $ | 3,282,867 | $ | 3,305,802 | $ | 3,475,802 | |||||||
-1 | Amounts represent sales from American Eagle Outfitters and aerie international retail stores, AEO Direct sales that are billed to and/or shipped to foreign countries and international franchise revenue. | ||||||||||||
(In thousands) | January 31, | February 1, | |||||||||||
2015 | 2014 | ||||||||||||
Long-lived assets, net: | |||||||||||||
United States | $ | 664,734 | $ | 614,284 | |||||||||
Foreign | 90,424 | 81,503 | |||||||||||
Total long-lived assets, net | $ | 755,158 | $ | 695,787 | |||||||||
Cash_and_Cash_Equivalents_Shor1
Cash and Cash Equivalents, Short-term Investments and Long-term Investments (Tables) | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Fair Market Values for Cash and Marketable Securities | The following table summarizes the fair market value of our cash and marketable securities, which are recorded on the Consolidated Balance Sheets: | ||||||||
(In thousands) | January 31, | February 1, | |||||||
2015 | 2014 | ||||||||
Cash and cash equivalents: | |||||||||
Cash | 370,692 | $ | 330,013 | ||||||
Money-market | 40,005 | 25,696 | |||||||
Treasury bills | — | 63,224 | |||||||
Total cash and cash equivalents | 410,697 | $ | 418,933 | ||||||
Short-term investments: | |||||||||
Treasury bills | — | $ | 10,002 | ||||||
Total short-term investments | — | $ | 10,002 | ||||||
Total | 410,697 | $ | 428,935 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Fair Value Hierarchy for Financial Assets (Cash Equivalents and Investments) Measured at Fair Value on Recurring Basis | In accordance with ASC 820, the following tables represent the fair value hierarchy for the Company’s financial assets (cash equivalents and investments) measured at fair value on a recurring basis as of January 31, 2015 and February 1, 2014: | ||||||||||||||||
Fair Value Measurements at January 31, 2015 | |||||||||||||||||
(In thousands) | Carrying | Quoted Market | Significant Other | Significant | |||||||||||||
Amount | Prices in Active | Observable | Unobservable | ||||||||||||||
Markets for | Inputs (Level 2) | Inputs | |||||||||||||||
Identical Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Cash and cash equivalents | |||||||||||||||||
Cash | $ | 370,692 | $ | 370,692 | $ | — | $ | — | |||||||||
Money-market | 40,005 | 40,005 | — | — | |||||||||||||
Total cash and cash equivalents | $ | 410,697 | $ | 410,697 | $ | — | $ | — | |||||||||
Total short-term investments | — | — | — | — | |||||||||||||
Total | $ | 410,697 | $ | 410,697 | $ | — | $ | — | |||||||||
Fair Value Measurements at February 1, 2014 | |||||||||||||||||
(In thousands) | Carrying | Quoted Market | Significant Other | Significant | |||||||||||||
Amount | Prices in Active | Observable | Unobservable | ||||||||||||||
Markets for | Inputs (Level 2) | Inputs | |||||||||||||||
Identical Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Cash and cash equivalents | |||||||||||||||||
Cash | $ | 330,013 | $ | 330,013 | $ | — | $ | — | |||||||||
Treasury bills | 63,224 | 63,224 | — | — | |||||||||||||
Money-market | 25,696 | 25,696 | — | — | |||||||||||||
Total cash and cash equivalents | $ | 418,933 | $ | 418,933 | $ | — | $ | — | |||||||||
Short-term investments | |||||||||||||||||
Treasury bills | $ | 10,002 | $ | 10,002 | $ | — | $ | — | |||||||||
Total short-term investments | $ | 10,002 | $ | 10,002 | $ | — | $ | — | |||||||||
Total | $ | 428,935 | $ | 428,935 | $ | — | $ | — | |||||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Reconciliation Between Basic and Diluted Weighted Average Shares Outstanding | The following is a reconciliation between basic and diluted weighted average shares outstanding: | ||||||||||||
For the Years Ended | |||||||||||||
(In thousands, except per share amounts) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Weighted average common shares outstanding: | |||||||||||||
Basic number of common shares outstanding | 194,437 | 192,802 | 196,211 | ||||||||||
Dilutive effect of stock options and non-vested restricted stock | 698 | 1,673 | 4,454 | ||||||||||
Dilutive number of common shares outstanding | 195,135 | 194,475 | 200,665 | ||||||||||
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Accounts receivable | Accounts receivable are comprised of the following: | ||||||||
(In thousands) | January 31, | February 1, | |||||||
2015 | 2014 | ||||||||
Franchise and license receivable | $ | 24,945 | $ | 22,943 | |||||
Merchandise sell-offs and vendor receivables | 12,953 | 16,106 | |||||||
Credit card program receivable | 9,637 | 15,000 | |||||||
Marketing cost reimbursements | 4,640 | 6,063 | |||||||
Gift card receivable | 4,453 | 986 | |||||||
Landlord construction allowances | 3,354 | 11,626 | |||||||
Other Items | 7,912 | 1,158 | |||||||
Total | $ | 67,894 | $ | 73,882 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Property and Equipment | Property and equipment consists of the following: | ||||||||||||
(In thousands) | January 31, | February 1, | |||||||||||
2015 | 2014 | ||||||||||||
Land | $ | 17,495 | $ | 17,986 | |||||||||
Buildings | 201,024 | 140,600 | |||||||||||
Leasehold improvements | 571,312 | 600,572 | |||||||||||
Fixtures and equipment | 852,408 | 732,228 | |||||||||||
Construction in progress | 42,470 | 102,974 | |||||||||||
Property and equipment, at cost | $ | 1,684,709 | $ | 1,594,360 | |||||||||
Less: Accumulated depreciation | (989,853 | ) | (961,374 | ) | |||||||||
Property and equipment, net | $ | 694,856 | $ | 632,986 | |||||||||
Depreciation Expense | Depreciation expense is summarized as follows: | ||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Depreciation expense | $ | 132,529 | $ | 116,761 | $ | 122,756 | |||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Intangible Assets | The following table represents intangible assets as of January 31, 2015 and February 1, 2014: | ||||||||||||
(In thousands) | January 31, | February 1, | |||||||||||
2015 | 2014 | ||||||||||||
Trademarks, at cost | $ | 59,385 | $ | 58,121 | |||||||||
Less: Accumulated amortization | (12,179 | ) | (8,850 | ) | |||||||||
Intangible assets, net | $ | 47,206 | $ | 49,271 | |||||||||
Amortization Expense | Amortization expense is summarized as follows: | ||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Amortization expense | $ | 3,465 | $ | 2,714 | $ | 1,952 | |||||||
Estimated Future Amortization Expense | The table below summarizes the estimated future amortization expense for intangible assets existing as of January 31, 2015 for the next five Fiscal Years: | ||||||||||||
(In thousands) | Future | ||||||||||||
Amortization | |||||||||||||
2015 | 3,404 | ||||||||||||
2016 | 3,473 | ||||||||||||
2017 | 3,472 | ||||||||||||
2018 | 3,452 | ||||||||||||
2019 | 3,433 |
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Summary of Fixed Minimum and Contingent Rent Expense | A summary of fixed minimum and contingent rent expense for all operating leases follows: | ||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Store rent: | |||||||||||||
Fixed minimum | $ | 279,640 | $ | 260,668 | $ | 250,844 | |||||||
Contingent | 6,733 | 6,576 | 9,758 | ||||||||||
Total store rent, excluding common area maintenance charges, real estate taxes and certain other expenses | $ | 286,373 | $ | 267,244 | $ | 260,602 | |||||||
Offices, distribution facilities, equipment and other | 15,449 | 17,153 | 14,960 | ||||||||||
Total rent expense | $ | 301,822 | $ | 284,397 | $ | 275,562 | |||||||
Future Minimum Lease Obligations, Consisting of Fixed Minimum Rent, Under Operating Leases | The table below summarizes future minimum lease obligations, consisting of fixed minimum rent, under operating leases in effect at January 31, 2015: | ||||||||||||
(In thousands) | Future Minimum | ||||||||||||
Lease Obligations | |||||||||||||
Fiscal years: | |||||||||||||
2015 | 287,091 | ||||||||||||
2016 | 259,106 | ||||||||||||
2017 | 229,489 | ||||||||||||
2018 | 199,208 | ||||||||||||
2019 | 173,388 | ||||||||||||
Thereafter | 549,046 | ||||||||||||
Total | 1,697,328 | ||||||||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Accumulated Balances of Other Comprehensive Income | The accumulated balances of other comprehensive income included as part of the Consolidated Statements of Stockholders’ Equity follow: | ||||||||||||
(In thousands) | Before | Tax | Accumulated | ||||||||||
Tax | Benefit | Other | |||||||||||
Amount | (Expense) | Comprehensive | |||||||||||
Income | |||||||||||||
Balance at January 28, 2012 | $ | 28,659 | — | $ | 28,659 | ||||||||
Foreign currency translation gain | 638 | — | 638 | ||||||||||
Balance at February 2, 2013 | $ | 29,297 | — | $ | 29,297 | ||||||||
Foreign currency translation loss | (17,140 | ) | — | (17,140 | ) | ||||||||
Balance at February 1, 2014 | $ | 12,157 | — | $ | 12,157 | ||||||||
Foreign currency translation loss | (22,101 | ) | — | (22,101 | ) | ||||||||
Balance at January 31, 2015 | $ | (9,944 | ) | — | $ | (9,944 | ) | ||||||
ShareBased_Payments_Tables
Share-Based Payments (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Summary of Stock Option Activity | A summary of the Company’s stock option activity under all plans for Fiscal 2014 follows: | ||||||||||||||||
For the Year Ended January 31, 2015 | |||||||||||||||||
Options | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||||||
Outstanding — February 1, 2014 | 3,925 | $ | 17.65 | ||||||||||||||
Granted | 126 | $ | 14.5 | ||||||||||||||
Exercised(1) | (613 | ) | $ | 12.07 | |||||||||||||
Cancelled | (1,048 | ) | $ | 23.66 | |||||||||||||
Outstanding — January 31, 2015 | 2,390 | $ | 16.28 | 1.8 | $ | 514 | |||||||||||
Vested and expected to vest — January 31, 2015 | 2,380 | $ | 16.29 | 1.8 | $ | 514 | |||||||||||
Exercisable — January 31, 2015(2) | 509 | $ | 13.03 | 3.5 | $ | 513 | |||||||||||
-1 | Options exercised during Fiscal 2014 ranged in price from $8.09 to $14.05. | ||||||||||||||||
-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 January 31, 2015. | ||||||||||||||||
Black-Scholes Option Valuation Assumptions | The fair value of stock options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: | ||||||||||||||||
For the Years Ended | |||||||||||||||||
Black-Scholes Option Valuation Assumptions | January 31, | February 1, | February 2, | ||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Risk-free interest rates(1) | 1.5 | % | 0.3 | % | 0.6 | % | |||||||||||
Dividend yield | 3.1 | % | 2 | % | 2.8 | % | |||||||||||
Volatility factors of the expected market price of the Company’s common stock(2) | 41.2 | % | 34.4 | % | 41.2 | % | |||||||||||
Weighted-average expected term(3) | 4.5 | years | 2.5 | years | 4.0 | years | |||||||||||
Expected forfeiture rate(4) | 8 | % | 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. The weighted average expected option terms were determined based on historical experience. | ||||||||||||||||
-4 | Based on historical experience. | ||||||||||||||||
Summary of Restricted Stock Activity | A summary of the activity of the Company’s restricted stock is presented in the following tables: | ||||||||||||||||
Time-Based Restricted Stock | Performance-Based | ||||||||||||||||
Units | Restricted Stock Units | ||||||||||||||||
For the year ended | For the year ended | ||||||||||||||||
January 31, 2015 | January 31, 2015 | ||||||||||||||||
(Shares in thousands) | Shares | Weighted-Average | Shares | Weighted-Average | |||||||||||||
Grant Date | Grant Date | ||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
Nonvested — February 1, 2014 | 1,155 | $ | 20.13 | 2,395 | $ | 16.85 | |||||||||||
Granted | 1,506 | 14.11 | 1,314 | 14.21 | |||||||||||||
Vested | (648 | ) | 18.08 | (604 | ) | 15.34 | |||||||||||
Cancelled/Forfeited | (417 | ) | 17.56 | (670 | ) | 16.05 | |||||||||||
Nonvested — January 31, 2015 | 1,596 | 15.95 | 2,435 | 16.02 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Components of Income Before Income Taxes from Continuing Operations | The components of income before income taxes from continuing operations were: | ||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
U.S. | $ | 193,167 | $ | 157,669 | $ | 381,131 | |||||||
Foreign | (33,665 | ) | (15,592 | ) | 20,907 | ||||||||
Total | $ | 159,502 | $ | 142,077 | $ | 402,038 | |||||||
Components of Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred tax assets and liabilities were as follows: | ||||||||||||
(In thousands) | January 31, | February 1, | |||||||||||
2015 | 2014 | ||||||||||||
Deferred tax assets: | |||||||||||||
Rent | $ | 28,323 | $ | 27,458 | |||||||||
Deferred compensation | 16,109 | 22,654 | |||||||||||
Foreign tax credits | 15,546 | 13,436 | |||||||||||
Accruals not currently deductible | 9,899 | 9,059 | |||||||||||
Employee compensation and benefits | 9,609 | 2,799 | |||||||||||
Net Operating Loss | 9,179 | 4,226 | |||||||||||
State tax credits | 7,595 | 6,215 | |||||||||||
Inventories | 6,939 | 11,234 | |||||||||||
Deferred Revenue | 5,150 | 124 | |||||||||||
Foreign and state income taxes | 3,774 | 3,255 | |||||||||||
Loyalty Reserve | 2,908 | 3,196 | |||||||||||
Capital loss carryforward | — | 16,207 | |||||||||||
Other | 3,871 | 844 | |||||||||||
Gross deferred tax assets | 118,902 | 120,707 | |||||||||||
Valuation allowance | (10,563 | ) | (20,601 | ) | |||||||||
Total deferred tax assets | $ | 108,339 | $ | 100,106 | |||||||||
Deferred tax liabilities: | |||||||||||||
Property and equipment | $ | (30,054 | ) | $ | (23,595 | ) | |||||||
Prepaid expenses | (3,227 | ) | (4,544 | ) | |||||||||
Other | (1,921 | ) | (1,654 | ) | |||||||||
Total deferred tax liabilities | $ | (35,202 | ) | $ | (29,793 | ) | |||||||
Total deferred tax assets, net | $ | 73,137 | $ | 70,313 | |||||||||
Classification in the Consolidated Balance Sheet: | |||||||||||||
Current deferred tax assets | $ | 59,102 | $ | 45,478 | |||||||||
Noncurrent deferred tax assets | 14,035 | 24,835 | |||||||||||
Total deferred tax assets | $ | 73,137 | $ | 70,313 | |||||||||
Components of Provision for Income Taxes from Continuing Operations | Significant components of the provision for income taxes from continuing operations were as follows: | ||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Current: | |||||||||||||
Federal | $ | 66,229 | $ | 29,794 | $ | 143,612 | |||||||
Foreign taxes | (792 | ) | (50 | ) | 6,939 | ||||||||
State | 9,447 | 9,162 | 18,845 | ||||||||||
Total current | 74,884 | 38,906 | 169,396 | ||||||||||
Deferred: | |||||||||||||
Federal | $ | (1,178 | ) | $ | 20,611 | $ | (26,063 | ) | |||||
Foreign taxes | (85 | ) | 695 | (1,486 | ) | ||||||||
State | (2,906 | ) | (1,118 | ) | (3,907 | ) | |||||||
Total deferred | (4,169 | ) | 20,188 | (31,456 | ) | ||||||||
Provision for income taxes | $ | 70,715 | $ | 59,094 | $ | 137,940 | |||||||
Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to our unrecognized tax benefits: | ||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Unrecognized tax benefits, beginning of the year balance | $ | 14,601 | $ | 17,250 | $ | 31,578 | |||||||
Increases in current period tax positions | 2,166 | 2,294 | 2,458 | ||||||||||
Increases in tax positions of prior periods | — | 440 | — | ||||||||||
Settlements | (73 | ) | — | (4,809 | ) | ||||||||
Lapse of statute of limitations | (471 | ) | (453 | ) | (1,592 | ) | |||||||
Decreases in tax positions of prior periods | (3,614 | ) | (4,930 | ) | (10,385 | ) | |||||||
Unrecognized tax benefits, end of the year balance | $ | 12,609 | $ | 14,601 | $ | 17,250 | |||||||
Reconciliation Between Statutory Federal Income Tax Rate and Effective Income Tax Rate from Continuing Operations | A reconciliation between the statutory federal income tax rate and the effective income tax rate from continuing operations follows: | ||||||||||||
For the Years Ended | |||||||||||||
January 31, | February 1, | February 2, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
Federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes, net of federal income tax effect | 4 | 4 | 3 | ||||||||||
Valuation allowance changes, net | 6 | 4 | (1 | ) | |||||||||
Tax settlements | (1 | ) | (2 | ) | (3 | ) | |||||||
Other | — | 1 | — | ||||||||||
44 | % | 42 | % | 34 | % | ||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Consolidated Financial Statements as a Discontinued Operation | 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) | For the year ended | ||||||||||||
January 31, | |||||||||||||
2015 | |||||||||||||
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: | ||||||||||||
(In thousands) | January 31, | ||||||||||||
2015 | |||||||||||||
Accrued liability as of February 1, 2014 | $ | — | |||||||||||
Add: Costs incurred, excluding non-cash charges | 17,752 | ||||||||||||
Less: Cash payments | (5,296 | ) | |||||||||||
Accrued liability as of January 31, 2015 | $ | 12,456 | |||||||||||
Significant Components Included in Loss from Discontinued Operation on Consolidated Statement of Operation | The tables below present the significant components of 77kids’ results included in Loss from Discontinued Operations on the Consolidated Statements of Operations for the years ended January 31, 2015, February 1, 2014 and February 2, 2013. | ||||||||||||
For the Years Ended | |||||||||||||
January 31, | February 1, | February 2, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
Total net revenue | $ | — | $ | — | $ | 20,117 | |||||||
Loss from discontinued operations, before income taxes(1) | $ | (13,673 | ) | $ | — | $ | (51,839 | ) | |||||
Income tax benefit | 5,208 | — | 19,849 | ||||||||||
Loss from discontinued operations, net of tax | $ | (8,465 | ) | $ | — | $ | (31,990 | ) | |||||
Loss per common share from discontinued operations: | |||||||||||||
Basic | $ | (0.04 | ) | $ | — | $ | (0.16 | ) | |||||
Diluted | $ | (0.04 | ) | $ | — | $ | (0.16 | ) | |||||
-1 | Loss from discontinued operations is presented net of the reversal of non-cash lease credits for Fiscal 2012 | ||||||||||||
Segment, Discontinued Operations | |||||||||||||
Consolidated Financial Statements as a Discontinued Operation | A summary of the pre-tax exit and disposal costs recognized within Loss from Discontinued Operations on the Consolidated Income Statement for 77kids are as follows. There were no exit or disposal costs recognized in Fiscal 2013 related to 77kids. | ||||||||||||
For the Years Ended | |||||||||||||
(In thousands) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
Non-cash charges | |||||||||||||
Asset impairments | $ | — | $ | — | $ | 16,623 | |||||||
Cash charges | |||||||||||||
Lease-related charges | $ | 13,673 | $ | — | $ | 7,768 | |||||||
Inventory charges | — | — | 10,237 | ||||||||||
Severence charges | — | — | 3,439 | ||||||||||
Total charges | $ | 13,673 | $ | — | $ | 38,067 | |||||||
Rollforward of Liabilities Recognized in Consolidated Balance Sheet | A rollforward of the liabilities for the exit of the 77kids brand recognized in the Consolidated Balance Sheets is as follows: | ||||||||||||
(In thousands) | January 31, | ||||||||||||
2015 | |||||||||||||
Accrued liability as of February 1, 2014 | $ | — | |||||||||||
Add: Costs incurred | 25,173 | ||||||||||||
Less: Cash payments | (10,537 | ) | |||||||||||
Accrued liability as of January 31, 2015 | $ | 14,636 | |||||||||||
Quarterly_Financial_Informatio1
Quarterly Financial Information - Unaudited (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Quarterly Financial Information | Fiscal 2014 | ||||||||||||||||
Quarters Ended | |||||||||||||||||
(In thousands, except per share amounts) | May 3, | August 2, | November 1, | January 31, | |||||||||||||
2014 | 2014 | 2014 | 2015 | ||||||||||||||
Total net revenue | $ | 646,129 | $ | 710,595 | $ | 854,290 | $ | 1,071,853 | |||||||||
Gross profit | $ | 225,845 | $ | 237,547 | $ | 315,472 | $ | 375,810 | |||||||||
Income from continuing operations | 3,866 | 5,813 | 9,035 | 70,073 | |||||||||||||
Loss from discontinued operations, net of tax | — | — | — | (8,465 | ) | ||||||||||||
Net income | $ | 3,866 | $ | 5,813 | $ | 9,035 | $ | 61,608 | |||||||||
Basic per common share amounts: | |||||||||||||||||
Income from continuing operations | $ | 0.02 | $ | 0.03 | $ | 0.05 | $ | 0.36 | |||||||||
Loss from discontinued operations, net of tax | — | — | — | (0.04 | ) | ||||||||||||
Basic net income per common share | $ | 0.02 | $ | 0.03 | $ | 0.05 | $ | 0.32 | |||||||||
Diluted per common share amounts: | |||||||||||||||||
Income from continuing operations | $ | 0.02 | $ | 0.03 | $ | 0.05 | $ | 0.36 | |||||||||
Loss from discontinued operations, net of tax | — | — | — | (0.04 | ) | ||||||||||||
Diluted net income per common share | $ | 0.02 | $ | 0.03 | $ | 0.05 | $ | 0.32 | |||||||||
Fiscal 2013 | |||||||||||||||||
Quarters Ended | |||||||||||||||||
(In thousands, except per share amounts) | May 4, | August 3, | November 2, | February 1, | |||||||||||||
2013 | 2013 | 2013 | 2014 | ||||||||||||||
Total net revenue | $ | 679,477 | $ | 727,313 | $ | 857,305 | $ | 1,041,707 | |||||||||
Gross profit | $ | 263,609 | $ | 245,495 | $ | 298,875 | $ | 306,020 | |||||||||
Income from continuing operations | 27,976 | 19,594 | 24,903 | 10,510 | |||||||||||||
Loss from discontinued operations, net of tax | — | — | — | — | |||||||||||||
Net income | $ | 27,976 | $ | 19,594 | $ | 24,903 | $ | 10,510 | |||||||||
Basic per common share amounts: | |||||||||||||||||
Income from continuing operations | $ | 0.14 | $ | 0.1 | $ | 0.13 | $ | 0.05 | |||||||||
Loss from discontinued operations, net of tax | — | — | — | — | |||||||||||||
Basic net income per common share | $ | 0.14 | $ | 0.1 | $ | 0.13 | $ | 0.05 | |||||||||
Diluted per common share amounts: | |||||||||||||||||
Income from continuing operations | $ | 0.14 | $ | 0.1 | $ | 0.13 | $ | 0.05 | |||||||||
Loss from discontinued operations, net of tax | — | — | — | — | |||||||||||||
Diluted net income per common share | $ | 0.14 | $ | 0.1 | $ | 0.13 | $ | 0.05 | |||||||||
Business_Operations_Additional
Business Operations - Additional Information (Detail) | Jan. 31, 2015 |
Country | |
Store | |
Nature Of Operations [Line Items] | |
Number of retail stores | 1,000 |
Number of countries company operates in | 81 |
Consolidated_Percentage_of_Tot
Consolidated Percentage of Total Net Revenue from Continuing Operations Attributable to Each Merchandise Group (Detail) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Product Information [Line Items] | |||
Percentage of total net revenue | 100.00% | 100.00% | 100.00% |
Men's apparel and accessories | |||
Product Information [Line Items] | |||
Percentage of total net revenue | 39.00% | 40.00% | 39.00% |
Women's apparel and accessories (excluding aerie) | |||
Product Information [Line Items] | |||
Percentage of total net revenue | 53.00% | 52.00% | 52.00% |
aerie | |||
Product Information [Line Items] | |||
Percentage of total net revenue | 8.00% | 8.00% | 9.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Nov. 01, 2014 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Store | Store | Store | ||
Significant Accounting Policies [Line Items] | ||||
Number of reportable segments | 1 | |||
Long-term Investments | $0 | $0 | ||
Net impairment loss recognized in earnings | 0 | 0 | 0 | |
Asset impairment charges | 33,468,000 | 44,465,000 | 34,869,000 | |
Finite-lived impairment charges | 0 | 0 | 0 | |
Prepaid advertising expense | 6,600,000 | 9,000,000 | ||
Advertising expense | 94,200,000 | 87,000,000 | 90,000,000 | |
Revenue related to gift card breakage | 7,000,000 | 7,300,000 | 8,900,000 | |
Number of operating segments | 3 | |||
Warrendale facility | ||||
Significant Accounting Policies [Line Items] | ||||
Asset impairment charges | 19,300,000 | |||
Noncash Corporate Office And Other Asset Impairments Charges | ||||
Significant Accounting Policies [Line Items] | ||||
Asset impairment charges | 8,400,000 | 8,400,000 | ||
Segment, Discontinued Operations | ||||
Significant Accounting Policies [Line Items] | ||||
Asset impairment charges | 25,100,000 | 25,100,000 | 25,200,000 | 34,900,000 |
Number of stores impaired | 79 | 69 | 52 | |
Segment, Discontinued Operations | 77 kids stores | ||||
Significant Accounting Policies [Line Items] | ||||
Asset impairment charges | $16,623,000 | |||
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) | 12 Months Ended |
Jan. 31, 2015 | |
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) | 12 Months Ended |
Jan. 31, 2015 | |
Maximum | Leasehold Improvements | |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | |
Useful lives in asset class | 10 years |
Sales_Return_Reserve_Detail
Sales Return Reserve (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Revenue Recognition [Line Items] | |||
Beginning balance | $2,205 | $4,481 | $2,929 |
Returns | -79,813 | -85,871 | -86,895 |
Provisions | 80,857 | 83,595 | 88,447 |
Ending balance | $3,249 | $2,205 | $4,481 |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information for Cash Amounts Paid (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Cash paid during the periods for: | |||
Income taxes | $38,501 | $65,496 | $142,009 |
Interest | $638 | $387 | $348 |
Summary_of_Geographical_Inform
Summary of Geographical Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Total net revenue | $1,071,853 | $854,290 | $710,595 | $646,129 | $1,041,707 | $857,305 | $727,313 | $679,477 | $3,282,867 | $3,305,802 | $3,475,802 | |||
Long-lived assets, net: | ||||||||||||||
United States | 664,734 | 614,284 | ||||||||||||
Foreign | 90,424 | 81,503 | 90,424 | 81,503 | ||||||||||
Total long-lived assets, net | 755,158 | 695,787 | 755,158 | 695,787 | ||||||||||
United States | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Total net revenue | 2,895,310 | 2,954,635 | 3,131,233 | |||||||||||
Foreign | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Total net revenue | $387,557 | [1] | $351,167 | [1] | $344,569 | [1] | ||||||||
[1] | Amounts represent sales from American Eagle Outfitters and aerie international retail stores, AEO Direct sales that are billed to and/or shipped to foreign countries and international franchise revenue. |
Fair_Market_Values_for_Cash_an
Fair Market Values for Cash and Marketable Securities (Detail) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
In Thousands, unless otherwise specified | ||||
Cash and cash equivalents: | ||||
Cash and cash equivalents | $410,697 | $418,933 | $509,119 | $719,545 |
Short-term investments: | ||||
Short-term investments | 10,002 | |||
Total | 410,697 | 428,935 | ||
Cash | ||||
Cash and cash equivalents: | ||||
Cash and cash equivalents | 370,692 | 330,013 | ||
Treasury bills | ||||
Cash and cash equivalents: | ||||
Cash and cash equivalents | 63,224 | |||
Short-term investments: | ||||
Short-term investments | 10,002 | |||
Money-market | ||||
Cash and cash equivalents: | ||||
Cash and cash equivalents | $40,005 | $25,696 |
Cash_and_Cash_Equivalents_and_
Cash and Cash Equivalents and Short-term Investments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from sale of available-for-sale securities | $10,002,000 | $162,785,000 | $15,500,000 |
Purchase of available-for-sale securities | 52,065,000 | 111,086,000 | |
Gross unrealized holding Gain or losses | $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 $) | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $410,697 | $418,933 | $509,119 | $719,545 |
Short-term investments | 10,002 | |||
Total | 410,697 | 428,935 | ||
Cash | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 370,692 | 330,013 | ||
Money-market | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 40,005 | 25,696 | ||
Treasury bills | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 63,224 | |||
Short-term investments | 10,002 | |||
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 | 410,697 | 418,933 | ||
Short-term investments | 10,002 | |||
Total | 410,697 | 428,935 | ||
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 | 370,692 | 330,013 | ||
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 | 40,005 | 25,696 | ||
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 | 63,224 | |||
Short-term investments | $10,002 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Fair Value Measurements Disclosure [Line Items] | |||
Loss on impairment of assets | $33,468 | $44,465 | $34,869 |
Reconciliation_Between_Basic_a
Reconciliation Between Basic and Diluted Weighted Average Shares Outstanding (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Weighted average common shares outstanding: | |||
Basic number of common shares outstanding | 194,437 | 192,802 | 196,211 |
Dilutive effect of stock options and non-vested restricted stock | 698 | 1,673 | 4,454 |
Dilutive number of common shares outstanding | 195,135 | 194,475 | 200,665 |
Earnings_per_Share_Additional_
Earnings per Share - Additional Information (Detail) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 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 | 2.3 | 1.7 | 1.5 |
Restricted Stock Units (RSUs) | |||
Earnings Per Share Disclosure [Line Items] | |||
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 | 1.9 | 1.8 |
Accounts_Receivable_Detail
Accounts Receivable (Detail) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Franchise and license receivable | $24,945 | $22,943 |
Merchandise sell-offs and vendor receivables | 12,953 | 16,106 |
Credit card program receivable | 9,637 | 15,000 |
Marketing cost reimbursements | 4,640 | 6,063 |
Gift card receivable | 4,453 | 986 |
Landlord construction allowances | 3,354 | 11,626 |
Other Items | 7,912 | 1,158 |
Total | $67,894 | $73,882 |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Land | $17,495 | $17,986 |
Buildings | 201,024 | 140,600 |
Leasehold improvements | 571,312 | 600,572 |
Fixtures and equipment | 852,408 | 732,228 |
Construction in progress | 42,470 | 102,974 |
Property and equipment, at cost | 1,684,709 | 1,594,360 |
Less: Accumulated depreciation | -989,853 | -961,374 |
Property and equipment, net | $694,856 | $632,986 |
Depreciation_Expense_Detail
Depreciation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Depreciation and Other Amortization Expenses [Line Items] | |||
Depreciation expense | $132,529 | $116,761 | $122,756 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Property, Plant, and Equipment Disclosure [Line Items] | |||
Asset write-offs | $6.40 | $14.60 | $3.70 |
Intangible_Assets_Detail
Intangible Assets (Detail) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Trademarks, at cost | $59,385 | $58,121 |
Less: Accumulated amortization | -12,179 | -8,850 |
Intangible assets, net | $47,206 | $49,271 |
Amortization_Expense_Detail
Amortization Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Finite-Lived Intangible Liabilities [Line Items] | |||
Amortization expense | $3,465 | $2,714 | $1,952 |
Estimated_Future_Amortization_
Estimated Future Amortization Expense (Detail) (USD $) | Jan. 31, 2015 |
In Thousands, unless otherwise specified | |
Schedule Of Estimated Future Amortization Expense [Line Items] | |
2015 | $3,404 |
2016 | 3,473 |
2017 | 3,472 |
2018 | 3,452 |
2019 | $3,433 |
Other_Credit_Arrangements_Addi
Other Credit Arrangements - Additional Information (Detail) (USD $) | 1 Months Ended | |
Dec. 31, 2014 | Jan. 31, 2015 | |
Entity | ||
Debt Disclosure [Line Items] | ||
Borrowing agreements, number of financial institutions | 2 | |
Demand letter of credit facilities | ||
Debt Disclosure [Line Items] | ||
Borrowing agreements with financial institutions | 155,000,000 | |
Trade Letter of Credit | ||
Debt Disclosure [Line Items] | ||
Outstanding borrowings | 13,700,000 | |
Asset Based Credit Facility | ||
Debt Disclosure [Line Items] | ||
Line of credit facility, expiration period | 5 years | |
Borrowing agreements with financial institutions | 400,000,000 | |
Unsecured Revolving Credit Facility | ||
Debt Disclosure [Line Items] | ||
Borrowing agreements with financial institutions | 150,000,000 | |
Letters of credit outstanding amount | 8,100,000 | |
Borrowings | 0 |
Leases_Additional_Information_
Leases - Additional Information (Detail) | 12 Months Ended |
Jan. 31, 2015 | |
Leases Disclosure [Line Items] | |
Initial terms of store leases | 10 years |
Summary_of_Fixed_Minimum_and_C
Summary of Fixed Minimum and Contingent Rent Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Store rent: | |||
Fixed minimum | $279,640 | $260,668 | $250,844 |
Contingent | 6,733 | 6,576 | 9,758 |
Total store rent, excluding common area maintenance charges, real estate taxes and certain other expenses | 286,373 | 267,244 | 260,602 |
Offices, distribution facilities, equipment and other | 15,449 | 17,153 | 14,960 |
Total rent expense | $301,822 | $284,397 | $275,562 |
Future_Minimum_Lease_Obligatio
Future Minimum Lease Obligation, Consisting of Fixed Minimum Rent under Operating Leases (Detail) (USD $) | Jan. 31, 2015 |
In Thousands, unless otherwise specified | |
Future Minimum Lease Obligations | |
2015 | $287,091 |
2016 | 259,106 |
2017 | 229,489 |
2018 | 199,208 |
2019 | 173,388 |
Thereafter | 549,046 |
Total | $1,697,328 |
Accumulated_Balances_of_Other_
Accumulated Balances of Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Before Tax Amount | |||
Beginning Balance | $12,157 | $29,297 | $28,659 |
Foreign currency translation gain (loss) | -22,101 | -17,140 | 638 |
Ending Balance | -9,944 | 12,157 | 29,297 |
Tax Benefit (Expense) | |||
Beginning Balance | 0 | 0 | 0 |
Foreign currency translation gain (loss) | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 |
Accumulated Other Comprehensive Income (Loss) | |||
Beginning Balance | 12,157 | 29,297 | 28,659 |
Foreign currency translation gain (loss) | -22,101 | -17,140 | 638 |
Ending Balance | ($9,944) | $12,157 | $29,297 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 43 Months Ended | 0 Months Ended | 72 Months Ended | 0 Months Ended | |||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 31, 2009 | Jun. 15, 2005 | Jun. 15, 2005 | Jun. 08, 1999 | 29-May-14 | |
CompensationPlan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation | $16,070,000 | ($6,541,000) | $66,349,000 | |||||
Share-based compensation, net of tax | 9,900,000 | 4,100,000 | 40,900,000 | |||||
Number of share-based compensation plans | 3 | |||||||
Stock awards | 12,372,000 | 1,184,000 | 76,108,000 | |||||
Shares available for all equity grants | 8,900,000 | |||||||
Stock options granted | 126,000 | |||||||
Cancellations of awards | 1,048,000 | |||||||
Weighted-average grant date fair value of stock options granted | $3.99 | $4.17 | $3.72 | |||||
Aggregate intrinsic value of options exercised | 1,300,000 | 3,900,000 | 57,400,000 | |||||
Net proceeds from stock options exercised | 7,305,000 | 6,197,000 | 76,401,000 | |||||
Tax benefit realized from stock option exercises | -500,000 | 8,700,000 | 14,100,000 | |||||
2005 Stock Award and Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares of common stock granted | 400,000 | 200,000 | ||||||
Authorized shares under the plan prior to amendment | 18,400,000 | 18,400,000 | ||||||
Shares available for all equity grants | 31,900,000 | |||||||
Stock options granted | 17,100,000 | 9,100,000 | ||||||
Cancellations of awards | 13,100,000 | |||||||
2005 Stock Award and Incentive Plan | Director | Annual | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options granted | 20,000 | |||||||
1999 Stock Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Authorized shares under the plan | 33,000,000 | 33,000,000 | ||||||
Maximum number of options that may be granted to any individual | 9,000,000 | |||||||
Authorized shares under the plan prior to amendment | 18,000,000 | |||||||
Stock options granted | 33,200,000 | |||||||
Expiration period | 10 years | |||||||
1999 Stock Incentive Plan | Director | Quarterly | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options granted | 1,875 | |||||||
1999 Stock Incentive Plan | Group 1 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares vested | 33.00% | |||||||
Vesting period | 8 years | |||||||
1999 Stock Incentive Plan | Group 2 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares vested | 34.00% | |||||||
Vesting period | 3 years | |||||||
1999 Stock Incentive Plan | Group 3 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares vested | 23.00% | |||||||
Vesting period | 5 years | |||||||
1999 Stock Incentive Plan | Group 4 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 1 year | |||||||
2014 Stock Award and Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Authorized shares under the plan | 11,500,000 | |||||||
Shares of common stock granted | 23,400 | |||||||
2014 Stock Award and Incentive Plan | Director | In any single calendar year | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock awards | 300,000 | |||||||
2014 Stock Award and Incentive Plan | Director | In the first year a person becomes a non-employee director | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock awards | 500,000 | |||||||
Restricted stock awards, restricted stock units or other full value stock awards | 2005 Stock Award and Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Maximum number of options that may be granted to any individual | 4,000,000 | |||||||
Authorized shares under the plan prior to amendment | 6,400,000 | 6,400,000 | ||||||
Restricted stock awards, restricted stock units or other full value stock awards | 2014 Stock Award and Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Maximum number of options that may be granted to any individual | 1,500,000 | |||||||
Stock options, SAR, dividend equivalents, performance awards or other non-full value stock awards | 2005 Stock Award and Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Maximum number of options that may be granted to any individual | 6,000,000 | |||||||
Authorized shares under the plan prior to amendment | 12,000,000 | 12,000,000 | ||||||
Stock options, SAR, dividend equivalents, performance awards or other non-full value stock awards | 2014 Stock Award and Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Maximum number of options that may be granted to any individual | 4,000,000 | |||||||
Restricted Stock | 2005 Stock Award and Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares granted | 10,400,000 | 2,900,000 | ||||||
Shares cancelled | 2,900,000 | |||||||
Restricted Stock | 1999 Stock Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares granted | 6,700,000 | |||||||
Shares cancelled | 9,700,000 | |||||||
Restricted Stock | 2014 Stock Award and Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares granted | 46,700 | |||||||
Employee Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation expense | 400,000 | |||||||
Unrecognized compensation expense, weighted average period | 2 years 1 month 6 days | |||||||
Employee Stock Option | 2005 Stock Award and Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares vested | 4.00% | |||||||
Vesting period | 1 year | |||||||
Employee Stock Option | 2005 Stock Award and Incentive Plan | Group 1 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares vested | 95.00% | |||||||
Vesting period | 3 years | |||||||
Expiration period | 10 years | |||||||
Employee Stock Option | 2005 Stock Award and Incentive Plan | Group 2 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares vested | 1.00% | |||||||
Vesting period | 5 years | |||||||
Expiration period | 7 years | |||||||
Performance Based Restricted Stock Unit | 2005 Stock Award and Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares vested | 62.00% | |||||||
Performance Based Restricted Stock Unit | 2014 Stock Award and Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares vested | 62.00% | |||||||
Time-based restricted stock awards | 2005 Stock Award and Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares vested | 38.00% | |||||||
Vesting period | 3 years | |||||||
Time-based restricted stock awards | 2014 Stock Award and Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares vested | 38.00% | |||||||
Vesting period | 3 years | |||||||
Time Based Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares granted | 1,506,000 | |||||||
Vesting period | 3 years | |||||||
Shares cancelled | 417,000 | |||||||
Unrecognized compensation expense, weighted average period | 1 year 10 months 24 days | |||||||
Unrecognized compensation expense | 16,200,000 | |||||||
Performance-Based Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares granted | 1,314,000 | |||||||
Vesting period | 3 years | |||||||
Shares cancelled | 670,000 | |||||||
Unrecognized compensation expense | $2,800,000 | |||||||
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 | |||||||
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 |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | |
Options | ||
Outstanding - beginning of period | 3,925 | |
Granted | 126 | |
Exercised | -613 | [1] |
Cancelled | -1,048 | |
Outstanding- end of period | 2,390 | |
Vested and expected to vest-end of period | 2,380 | |
Exercisable-end of period | 509 | [2] |
Weighted-Average Exercise Price | ||
Outstanding-beginning of period | $17.65 | |
Granted | $14.50 | |
Exercised | $12.07 | [1] |
Cancelled | $23.66 | |
Outstanding-end of period | $16.28 | |
Vested and expected to vest-end of period | $16.29 | |
Exercisable-end of period | $13.03 | [2] |
Weighted-Average Remaining Contractual Term (In years) | ||
Outstanding-end of period | 1 year 9 months 18 days | |
Vested and expected to vest-end of period | 1 year 9 months 18 days | |
Exercisable-end of period | 3 years 6 months | [2] |
Aggregate Intrinsic Value | ||
Outstanding-end of period | $514 | |
Vested and expected to vest-end of period | 514 | |
Exercisable-end of period | $513 | [2] |
[1] | Options exercised during Fiscal 2014 ranged in price from $8.09 to $14.05. | |
[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 January 31, 2015. |
Summary_of_Stock_Option_Activi1
Summary of Stock Option Activity (Parenthetical) (Detail) (USD $) | 12 Months Ended |
Jan. 31, 2015 | |
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 | $14.05 |
BlackScholes_Option_Valuation_
Black-Scholes Option Valuation Assumptions (Detail) | 12 Months Ended | |||||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||||
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ||||||
Risk-free interest rates | 1.50% | [1] | 0.30% | [1] | 0.60% | [1] |
Dividend yield | 3.10% | 2.00% | 2.80% | |||
Volatility factors of the expected market price of the Company's common stock | 41.20% | [2] | 34.40% | [2] | 41.20% | [2] |
Weighted-average expected term | 4 years 6 months | [3] | 2 years 6 months | [3] | 4 years | [3] |
Expected forfeiture rate | 8.00% | [4] | 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. The weighted average expected option terms were determined based on historical experience. | |||||
[4] | Based on historical experience. |
Summary_of_Restricted_Stock_Ac
Summary of Restricted Stock Activity (Detail) (USD $) | 12 Months Ended |
Jan. 31, 2015 | |
Time Based Restricted Stock Units | |
Shares | |
Nonvested - beginning of period | 1,155,000 |
Granted | 1,506,000 |
Vested | -648,000 |
Cancelled/Forfeited | -417,000 |
Nonvested - End of period | 1,596,000 |
Weighted-Average Grant Date Fair Value | |
Nonvested - beginning of period | $20.13 |
Granted | $14.11 |
Vested | $18.08 |
Canceled/Forfeited | $17.56 |
Nonvested - end of period | $15.95 |
Performance-Based Restricted Stock Units | |
Shares | |
Nonvested - beginning of period | 2,395,000 |
Granted | 1,314,000 |
Vested | -604,000 |
Cancelled/Forfeited | -670,000 |
Nonvested - End of period | 2,435,000 |
Weighted-Average Grant Date Fair Value | |
Nonvested - beginning of period | $16.85 |
Granted | $14.21 |
Vested | $15.34 |
Canceled/Forfeited | $16.05 |
Nonvested - end of period | $16.02 |
Retirement_Plan_and_Employee_S1
Retirement Plan and Employee Stock Purchase Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employee contribution percentage | 3.00% | ||
Years of age attained | 20 years 6 months | ||
Compensation expense | $10,500,000 | $9,600,000 | $15,800,000 |
First 3 Percent of Each Participant's Contributions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Matching contribution to defined contribution plan | 100.00% | ||
Next 3 Percent of Each Participant's Contributions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Matching contribution to defined contribution plan | 50.00% | ||
Full-time employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Periods of service to be eligible | 60 days | ||
Part-time employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Periods of service to be eligible | 1000 hours | ||
Defined Contribution Pension Plan 401k | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee contribution percentage | 50.00% | ||
Employee Stock Purchase Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Periods of service to be eligible | 60 days | ||
Employee Stock Purchase Plan | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Matching investment per pay period | $100 | ||
Employee Stock Purchase Plan | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Qualifying age | 18 years | ||
Matching percent of investment | 15.00% | ||
Revised Retirement Plan effective January 1, 2015 | First 3 Percent of Each Participant's Contributions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Matching contribution to defined contribution plan | 100.00% | ||
Revised Retirement Plan effective January 1, 2015 | Next 3 Percent of Each Participant's Contributions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Matching contribution to defined contribution plan | 25.00% |
Components_of_Income_Before_In
Components of Income Before Income Taxes from Continuing Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items] | |||
U.S. | $193,167 | $157,669 | $381,131 |
Foreign | -33,665 | -15,592 | 20,907 |
Income before income taxes | $159,502 | $142,077 | $402,038 |
Components_of_Deferred_Tax_Ass
Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Rent | $28,323 | $27,458 |
Deferred compensation | 16,109 | 22,654 |
Foreign tax credits | 15,546 | 13,436 |
Accruals not currently deductible | 9,899 | 9,059 |
Employee compensation and benefits | 9,609 | 2,799 |
Net Operating Loss | 9,179 | 4,226 |
State tax credits | 7,595 | 6,215 |
Inventories | 6,939 | 11,234 |
Deferred Revenue | 5,150 | 124 |
Foreign and state income taxes | 3,774 | 3,255 |
Loyalty Reserve | 2,908 | 3,196 |
Capital loss carryforward | 16,207 | |
Other | 3,871 | 844 |
Gross deferred tax assets | 118,902 | 120,707 |
Valuation allowance | -10,563 | -20,601 |
Total deferred tax assets | 108,339 | 100,106 |
Deferred tax liabilities: | ||
Property and equipment | -30,054 | -23,595 |
Prepaid expenses | -3,227 | -4,544 |
Other | -1,921 | -1,654 |
Total deferred tax liabilities | -35,202 | -29,793 |
Total deferred tax assets | 73,137 | 70,313 |
Classification in the Consolidated Balance Sheet: | ||
Current deferred tax assets | 59,102 | 45,478 |
Noncurrent deferred tax assets | 14,035 | 24,835 |
Total deferred tax assets | $73,137 | $70,313 |
Components_of_Provision_for_In
Components of Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Current: | |||
Federal | $66,229 | $29,794 | $143,612 |
Foreign taxes | -792 | -50 | 6,939 |
State | 9,447 | 9,162 | 18,845 |
Total current | 74,884 | 38,906 | 169,396 |
Deferred: | |||
Federal | -1,178 | 20,611 | -26,063 |
Foreign taxes | -85 | 695 | -1,486 |
State | -2,906 | -1,118 | -3,907 |
Total deferred | -2,279 | 20,100 | -30,647 |
Provision for income taxes | 70,715 | 59,094 | 137,940 |
Continuing Operations | |||
Deferred: | |||
Total deferred | ($4,169) | $20,188 | ($31,456) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | |
Income Taxes [Line Items] | ||||
Valuation allowance | $10,563,000 | $20,601,000 | ||
Tax benefits recognized as contributed capital | -500,000 | 8,700,000 | 14,100,000 | |
Net Operating Loss | 9,179,000 | 4,226,000 | ||
Net operating loss expiration year | 2018 | |||
Unrecognized tax benefits | 12,609,000 | 14,601,000 | 17,250,000 | 31,578,000 |
Unrecognized tax benefits that would affect effective income tax rate if recognized | 9,100,000 | 9,700,000 | ||
Increased decreased in unrecognized tax benefits | -2,000,000 | -2,600,000 | -14,300,000 | |
Reasonably possible amount of reduction in unrecognized tax benefit over the next twelve months | 5,600,000 | |||
Accrued interest and penalties related to unrecognized tax benefits | 1,600,000 | 1,900,000 | ||
Provision for income taxes related to the reversal of accrued interest and penalties | 4,800,000 | |||
Foreign tax credit carryovers | 19,300,000 | 13,400,000 | ||
Foreign tax credit carryovers expiration date | 2019 | |||
Deferred tax asset related to State income tax credit carryforwards | 11,700,000 | 10,700,000 | ||
Deferred tax asset related to State income tax credit minimum carryforwards years | 10 years | |||
Deferred tax asset related to State income tax credit maximum carryforwards years | 16 years | |||
Deferred tax asset related to State income tax credit carryforwards expiration period begins | 2018 | |||
State and Foreign Country Jurisdiction | ||||
Income Taxes [Line Items] | ||||
Net Operating Loss | 10,300,000 | |||
Deferred Tax Asset Operating Loss Carryforwards Foreign | ||||
Income Taxes [Line Items] | ||||
Valuation allowance | 7,200,000 | |||
Capital Loss Carryforwards | ||||
Income Taxes [Line Items] | ||||
Valuation allowance | 16,200,000 | |||
Valuation allowance released | $16,200,000 |
Activity_Related_to_Unrecogniz
Activity Related to Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Reconciliation of Unrecognized Tax Benefits [Line Items] | |||
Unrecognized tax benefits, beginning of the year balance | $14,601 | $17,250 | $31,578 |
Increases in current period tax positions | 2,166 | 2,294 | 2,458 |
Increases in tax positions of prior periods | 440 | ||
Settlements | -73 | -4,809 | |
Lapse of statute of limitations | -471 | -453 | -1,592 |
Decreases in tax positions of prior periods | -3,614 | -4,930 | -10,385 |
Unrecognized tax benefits, end of the year balance | $12,609 | $14,601 | $17,250 |
Reconciliation_Between_Statuto
Reconciliation Between Statutory Federal Income Tax Rate and Effective Income Tax Rate from continuing Operations (Detail) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Schedule of Effective Tax Rate Reconciliation [Line Items] | |||
Federal income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax effect | 4.00% | 4.00% | 3.00% |
Valuation allowance changes, net | 6.00% | 4.00% | -1.00% |
Tax settlements | -1.00% | -2.00% | -3.00% |
Other | 1.00% | ||
Effective Income Tax Rate Reconciliation, Percent, Total | 44.00% | 42.00% | 34.00% |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Cost to terminate remaining leases | $8,571,000 | ||
Exit or disposal costs | 17,752,000 | ||
Segment, Discontinued Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of stores leases | 21 | ||
Cost to terminate remaining leases | 13,700,000 | ||
Segment, Discontinued Operations | Financial Standby Letter of Credit | |||
Restructuring Cost and Reserve [Line Items] | |||
Proceeds from line Stand-by letter | 11,500,000 | ||
Segment, Discontinued Operations | 77 kids stores | |||
Restructuring Cost and Reserve [Line Items] | |||
Exit or disposal costs | $13,673,000 | $0 | $38,067,000 |
Summary_of_Exit_and_Disposal_C
Summary of Exit and Disposal Costs Recognized in Loss from Discontinued Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Nov. 01, 2014 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Non-cash charges | ||||
Asset impairments | $33,468,000 | $44,465,000 | $34,869,000 | |
Cash charges | ||||
Severence charges | 7,816,000 | |||
Total charges | 17,752,000 | |||
Segment, Discontinued Operations | ||||
Non-cash charges | ||||
Asset impairments | 25,100,000 | 25,100,000 | 25,200,000 | 34,900,000 |
Segment, Discontinued Operations | 77 kids stores | ||||
Non-cash charges | ||||
Asset impairments | 16,623,000 | |||
Cash charges | ||||
Lease-related charges | 13,673,000 | 7,768,000 | ||
Inventory charges | 10,237,000 | |||
Severence charges | 3,439,000 | |||
Total charges | $13,673,000 | $0 | $38,067,000 |
Rollforward_of_Liabilities_Rec
Rollforward of Liabilities Recognized in Consolidated Balance Sheet Discontinued Operations (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 31, 2015 |
Restructuring Cost and Reserve [Line Items] | |
Accrued liability as of February 1, 2014 | $0 |
Less: Cash payments | -5,296 |
Accrued liability as of January 31, 2015 | 12,456 |
Segment, Discontinued Operations | 77 kids stores | |
Restructuring Cost and Reserve [Line Items] | |
Accrued liability as of February 1, 2014 | 0 |
Add: Costs incurred | 25,173 |
Less: Cash payments | -10,537 |
Accrued liability as of January 31, 2015 | $14,636 |
Significant_Components_of_77ki
Significant Components of 77kid's Results Included in Loss from Discontinued Operations on Consolidated Statement of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||
Discontinued Operations [Line Items] | |||||||||||||
Total net revenue | $1,071,853 | $854,290 | $710,595 | $646,129 | $1,041,707 | $857,305 | $727,313 | $679,477 | $3,282,867 | $3,305,802 | $3,475,802 | ||
Loss from discontinued operations, net of tax | -8,465 | -8,465 | -31,990 | ||||||||||
Loss per common share from discontinued operations: | |||||||||||||
Basic | ($0.04) | ($0.04) | ($0.16) | ||||||||||
Diluted | ($0.04) | ($0.04) | ($0.16) | ||||||||||
77 kids stores | |||||||||||||
Discontinued Operations [Line Items] | |||||||||||||
Total net revenue | 20,117 | ||||||||||||
Loss from discontinued operations, before income taxes | -13,673 | [1] | -51,839 | [1] | |||||||||
Income tax benefit | 5,208 | 19,849 | |||||||||||
Loss from discontinued operations, net of tax | ($8,465) | ($31,990) | |||||||||||
Loss per common share from discontinued operations: | |||||||||||||
Basic | ($0.04) | ($0.16) | |||||||||||
Diluted | ($0.04) | ($0.16) | |||||||||||
[1] | Loss from discontinued operations is presented net of the reversal of non-cash lease credits for Fiscal 2012 |
Summary_of_Costs_Recognized_Wi
Summary of Costs Recognized Within Restructuring Charges on Consolidated Income Statement (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 31, 2015 |
Cash restructuring charges | |
Office space consolidation charges | $8,571 |
Severance and related employee costs | 7,816 |
Other corporate items | 1,365 |
Total charges | $17,752 |
Restructuring_Charges_Addition
Restructuring Charges - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 01, 2014 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment charges | $33,468 | $44,465 | $34,869 | |
Segment, Discontinued Operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment charges | 25,100 | 25,100 | 25,200 | 34,900 |
Noncash Corporate Office And Other Asset Impairments Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment charges | $8,400 | $8,400 |
Rollforward_of_Liabilities_Rec1
Rollforward of Liabilities Recognized in Consolidated Balance Sheet (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 31, 2015 |
Restructuring Cost and Reserve [Line Items] | |
Accrued liability as of February 1, 2014 | $0 |
Add: Costs incurred, excluding non-cash charges | 17,752 |
Less: Cash payments | -5,296 |
Accrued liability as of January 31, 2015 | $12,456 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Quarterly Financial Information [Line Items] | |||||||||||
Total net revenue | $1,071,853 | $854,290 | $710,595 | $646,129 | $1,041,707 | $857,305 | $727,313 | $679,477 | $3,282,867 | $3,305,802 | $3,475,802 |
Gross profit | 375,810 | 315,472 | 237,547 | 225,845 | 306,020 | 298,875 | 245,495 | 263,609 | 1,154,674 | 1,113,999 | 1,390,322 |
Income from continuing operations | 70,073 | 9,035 | 5,813 | 3,866 | 10,510 | 24,903 | 19,594 | 27,976 | 88,787 | 82,983 | 264,098 |
Loss from discontinued operations, net of tax | -8,465 | -8,465 | -31,990 | ||||||||
Net income | $61,608 | $9,035 | $5,813 | $3,866 | $10,510 | $24,903 | $19,594 | $27,976 | $80,322 | $82,983 | $232,108 |
Basic per common share amounts: | |||||||||||
Income from continuing operations | $0.36 | $0.05 | $0.03 | $0.02 | $0.05 | $0.13 | $0.10 | $0.14 | $0.46 | $0.43 | $1.35 |
Loss from discontinued operations, net of tax | ($0.04) | ($0.04) | ($0.16) | ||||||||
Basic net income per common share | $0.32 | $0.05 | $0.03 | $0.02 | $0.05 | $0.13 | $0.10 | $0.14 | $0.42 | $0.43 | $1.19 |
Diluted per common share amounts: | |||||||||||
Income from continuing operations | $0.36 | $0.05 | $0.03 | $0.02 | $0.05 | $0.13 | $0.10 | $0.14 | $0.46 | $0.43 | $1.32 |
Loss from discontinued operations, net of tax | ($0.04) | ($0.04) | ($0.16) | ||||||||
Diluted net income per common share | $0.32 | $0.05 | $0.03 | $0.02 | $0.05 | $0.13 | $0.10 | $0.14 | $0.42 | $0.43 | $1.16 |