Document and Entity Information
Document and Entity Information | 3 Months Ended |
May 04, 2019shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q/A |
Amendment Flag | true |
Amendment Description | The sole purpose of this Amendment No. 1 GameStop Corp’s Quarterly Report on Form 10-Q for the quarterly period ended May 4, 2019, originally filed with the Securities and Exchange Commission on June 11, 2019, is to file Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Due to a technical error, the eXtensible Business Reporting Language (XBRL) data is being resubmitted. |
Document Period End Date | May 4, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q1 |
Entity Registrant Name | GameStop Corp. |
Entity Central Index Key | 0001326380 |
Current Fiscal Year End Date | --02-01 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 102,268,940 |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Current Reporting Status | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Current assets: | |||
Cash and cash equivalents | $ 543.2 | $ 1,624.4 | $ 242.1 |
Receivables, net | 126 | 134.2 | 104.5 |
Merchandise inventories, net | 1,149.1 | 1,250.5 | 1,184.5 |
Prepaid expenses and other current assets | 101.8 | 118.6 | 133.1 |
Assets held for sale | 0 | 0 | 663.1 |
Total current assets | 1,920.1 | 3,127.7 | 2,327.3 |
Property and equipment, net | 313.3 | 321.3 | 333.5 |
Operating lease right-of-use assets | 807 | 0 | 0 |
Deferred income taxes | 147.3 | 147.3 | 153.6 |
Goodwill | 363.9 | 363.9 | 1,342.3 |
Other noncurrent assets | 81.7 | 84.1 | 151.7 |
Total assets | 3,633.3 | 4,044.3 | 4,308.4 |
Current liabilities: | |||
Accounts payable | 458.4 | 1,051.9 | 547.8 |
Accrued and other current liabilities | 588.9 | 780 | 646.2 |
Current portion of operating lease liabilities | 250 | 0 | 0 |
Current portion of debt, net | 0 | 349.2 | 0 |
Liabilities held for sale | 0 | 0 | 35.6 |
Total current liabilities | 1,297.3 | 2,181.1 | 1,229.6 |
Deferred income taxes | 0.1 | 0.1 | 5 |
Long-term debt, net | 468.9 | 471.6 | 818.6 |
Operating lease liabilities | 552.6 | 0 | 0 |
Other long-term liabilities | 22.7 | 55.3 | 71.7 |
Total liabilities | 2,341.6 | 2,708.1 | 2,124.9 |
Commitments and contingencies (Note 7) | |||
Stockholders' equity: | |||
Class A common stock — $.001 par value; 300 shares authorized; 102.3, 101.9 and 102.0 shares issued and outstanding | 0.1 | 0.1 | 0.1 |
Additional paid-in capital | 29 | 27.7 | 25.5 |
Accumulated other comprehensive loss | (68.2) | (54.3) | (23) |
Retained earnings | 1,330.8 | 1,362.7 | 2,180.9 |
Total stockholders’ equity | 1,291.7 | 1,336.2 | 2,183.5 |
Total liabilities and stockholders’ equity | $ 3,633.3 | $ 4,044.3 | $ 4,308.4 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Statement of Financial Position [Abstract] | |||
Class A common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Class A common stock, shares authorized | 300 | 300 | 300 |
Class A common stock, shares issued | 102.3 | 101.9 | 102 |
Class A common stock, shares outstanding | 102.3 | 101.9 | 102 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
May 04, 2019 | May 05, 2018 | ||
Income Statement [Abstract] | |||
Net sales | $ 1,547.7 | $ 1,785.8 | |
Cost of Revenue | 1,076.5 | 1,254.7 | |
Gross profit | 471.2 | 531.1 | |
Selling, general and administrative expenses | 430.6 | 456.1 | |
Depreciation and amortization | 23.1 | 28.5 | |
Operating earnings | 17.5 | 46.5 | |
Interest income | (5.3) | (0.5) | |
Interest expense | 13 | 14.2 | |
Earnings from continuing operations before income tax expense | 9.8 | 32.8 | |
Income tax expense | 2.3 | 12.4 | |
Net income from continuing operations | 7.5 | 20.4 | |
(Loss) income from discontinued operations, net of tax | (0.7) | 7.8 | |
Net income | $ 6.8 | $ 28.2 | |
Dividends per common share | $ 0.38 | $ 0.38 | |
Basic earnings (loss) per share: | |||
Income (Loss) from Continuing Operations, Per Basic Share | [1] | 0.07 | 0.20 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | [1] | (0.01) | 0.08 |
Basic earnings per share | [1] | 0.07 | 0.28 |
Diluted earnings (loss) per share: | |||
Income (Loss) from Continuing Operations, Per Diluted Share | [1] | 0.07 | 0.20 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | [1] | (0.01) | 0.08 |
Diluted earnings per share | [1] | $ 0.07 | $ 0.28 |
Weighted-average shares outstanding: | |||
Basic | 102.4 | 101.8 | |
Diluted | 102.5 | 102 | |
[1] | (1) The components of basic and diluted earnings per share may not sum to the total earnings per share due to rounding. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 6.8 | $ 28.2 |
Other comprehensive loss: | ||
Foreign currency translation adjustment | (13.9) | (35.2) |
Total comprehensive loss | $ (7.1) | $ (7) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Changes In Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Class A Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Beginning Balance (in shares) at Feb. 03, 2018 | 101.3 | ||||
Beginning Balance at Feb. 03, 2018 | $ 2,214.5 | $ 0.1 | $ 22.1 | $ 12.2 | $ 2,180.1 |
Cumulative Effect on Retained Earnings, Net of Tax | 11.5 | 11.5 | |||
Net income (loss) | 28.2 | 28.2 | |||
Foreign currency translation | (35.2) | (35.2) | |||
Dividends | (38.9) | (38.9) | |||
Stock-based compensation | 7.6 | 7.6 | |||
Exercise of stock options and issuance of shares upon vesting of restricted stock grants (in shares) | 0.6 | ||||
Exercise of stock options and issuance of shares upon vesting of restricted stock grants | (4.2) | (4.2) | |||
Ending Balance (in shares) at May. 05, 2018 | 101.9 | ||||
Ending Balance at May. 05, 2018 | 2,183.5 | $ 0.1 | 25.5 | (23) | 2,180.9 |
Beginning Balance (in shares) at Feb. 02, 2019 | 102 | ||||
Beginning Balance at Feb. 02, 2019 | 1,336.2 | $ 0.1 | 27.7 | (54.3) | 1,362.7 |
Net income (loss) | 6.8 | 6.8 | |||
Foreign currency translation | (13.9) | (13.9) | |||
Dividends | (38.7) | (38.7) | |||
Stock-based compensation | 1.9 | 1.9 | |||
Exercise of stock options and issuance of shares upon vesting of restricted stock grants (in shares) | 0.3 | ||||
Exercise of stock options and issuance of shares upon vesting of restricted stock grants | (0.6) | (0.6) | |||
Ending Balance (in shares) at May. 04, 2019 | 102.3 | ||||
Ending Balance at May. 04, 2019 | $ 1,291.7 | $ 0.1 | $ 29 | $ (68.2) | $ 1,330.8 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Changes In Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Dividends declared per common share | $ 0.38 | $ 0.38 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 6.8 | $ 28.2 |
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | ||
Depreciation and amortization (including amounts in cost of sales) | 23.3 | 34.4 |
Provision for inventory reserves | 16.3 | 16.6 |
Stock-based compensation expense | 1.9 | 7.6 |
Loss on disposal of property and equipment | 0.7 | 0.4 |
Other | (3.6) | (1.7) |
Changes in operating assets and liabilities, net: | ||
Receivables, net | 6.9 | 24.3 |
Merchandise inventories | 73.1 | 27.7 |
Prepaid expenses and other current assets | 3.8 | (0.8) |
Prepaid income taxes and income taxes payable | (1) | 12.2 |
Accounts payable and accrued liabilities | (782.2) | (678.2) |
Operating lease right-of-use assets and lease liabilities | (11) | 0 |
Changes in other long-term liabilities | 0 | (2.6) |
Net cash flows used in operating activities | (665) | (531.9) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (18.6) | (17.6) |
Other | (0.1) | 1.2 |
Net cash flows used in investing activities | (18.7) | (16.4) |
Cash flows from financing activities: | ||
Repayment of acquisition-related debt | 0 | (12.2) |
Dividends paid | (40.3) | (40.9) |
Borrowings from the revolver | 0 | |
Repayments of debt | (353.1) | 0 |
Settlement of stock-based awards | 0.6 | 4.2 |
Net cash flows used in financing activities | (394) | (57.3) |
Exchange rate effect on cash and cash equivalents and restricted cash | (6.4) | (12.2) |
Decrease in cash held for sale | 0 | 5.1 |
Decrease in cash and cash equivalents and restricted cash | (1,084.1) | (612.7) |
Cash and cash equivalents and restricted cash at end of period | $ 556.4 | $ 256.4 |
General Information
General Information | 3 Months Ended |
May 04, 2019 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1. General Information The Company GameStop Corp. (“GameStop,” “we,” “us,” “our,” or the “Company”) is a global, multichannel video game and consumer electronics retailer. GameStop operates over 5,700 stores across 14 countries. Our consumer product network also includes www.gamestop.com; Game Informer® magazine, the world's leading print and digital video game publication; and ThinkGeek, www.thinkgeek.com, the premier retailer for the global geek community featuring exclusive and unique video game and pop culture products. We operate our business in four geographic segments: United States, Canada, Australia and Europe. Our former Technology Brands segment had been comprised of Spring Mobile, Simply Mac and Cricket Wireless branded stores ("Cricket Wireless"). Cricket Wireless was sold in January 2018, and Spring Mobile was sold in January 2019. Simply Mac is reported in the United States segment in these consolidated financial statements and accompanying condensed notes. The historical results of Spring Mobile are reported as discontinued operations in our consolidated statements of operations for all periods presented. See Note 2, "Discontinued Operations and Dispositions," for further information. The consolidated statement of cash flows is presented on a combined basis for all periods presented and, therefore, does not segregate cash flows from continuing and discontinued operations. The information contained in these condensed notes to our consolidated financial statements refers to continuing operations unless otherwise noted. On May 9, 2019, we entered into a definitive agreement to sell our Simply Mac business to Cool Holdings, Inc. See Note 2, "Discontinued Operations and Dispositions," for further information. Basis of Presentation and Consolidation The unaudited condensed consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting only of normal, recurring adjustments) which are, in our opinion, necessary for a fair presentation of the information as of and for the periods presented. These unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all disclosures required under GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with our annual report on Form 10-K for the 52 weeks ended February 2, 2019 , as filed with the Securities and Exchange Commission on April 2, 2019, (the “2018 Annual Report on Form 10-K”). The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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. In preparing these financial statements, we have made our best estimates and judgments of certain amounts included in the financial statements, giving due consideration to materiality. Changes in the estimates and assumptions used by us could have a significant impact on our financial results. Actual results could differ from those estimates. Due to the seasonal nature of our business, the results of operations for the 13 weeks ended May 4, 2019 are not indicative of the results to be expected for the 52 weeks ending February 1, 2020 ("fiscal 2019"). Significant Accounting Policies Except for the accounting policy for leases, which is discussed below within "—Adoption of New Accounting Pronouncements" and within Note 5, "Leases," there have been no material changes to our significant accounting policies as noted in Note 1, "Nature of Operations and Summary of Significant Accounting Policies," within our 2018 Annual Report on Form 10-K. Restricted Cash Restricted cash of $13.2 million , $14.3 million and $16.1 million as of May 4, 2019 , May 5, 2018 and February 2, 2019 , respectively, consists primarily of bank deposits serving as collateral for bank guarantees issued on behalf of our foreign subsidiaries and is included in other noncurrent assets in our unaudited condensed consolidated balance sheets. The following table provides a reconciliation of cash and cash equivalents in the condensed consolidated balance sheets to total cash and cash equivalents and restricted cash in the condensed consolidated statements of cash flows (in millions): May 4, May 5, February 2, Cash and cash equivalents $ 543.2 $ 242.1 $ 1,624.4 Restricted cash (included in prepaid expenses and other current assets) — 2.8 2.7 Restricted cash (included in other noncurrent assets) 13.2 11.5 13.4 Total cash and cash equivalents and restricted cash in the statements of cash flows $ 556.4 $ 256.4 $ 1,640.5 Property and Equipment, Net Accumulated depreciation related to our property and equipment totaled $1,247.9 million , $1,237.1 million and $1,235.8 million as of May 4, 2019 , May 5, 2018 and February 2, 2019 , respectively. Adoption of New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standard Update ("ASU") 2016-02, Leases, which requires a lessee to recognize a liability related to lease payments and a corresponding right-of-use asset representing a right to use the underlying asset for the lease term. Entities are required to use a modified retrospective transition approach for leases that exist or are entered into after the beginning of the earliest comparative period presented in the financial statements, with certain reliefs available. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements , which provides clarifications and improvements to ASU 2016-02 including allowing entities to elect an additional transition method with which to adopt ASU 2016-02. The approved transition method enables entities to apply the transition requirements in this ASU at the effective date of ASU 2016-02 (rather than at the beginning of the earliest comparative period presented) with the effect of initially applying ASU 2016-02 recognized as a cumulative-effect adjustment to retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the year of adoption would continue to be in accordance with ASC 840, Leases (Topic 840) (“ASC 840”), including the disclosure requirements of ASC 840. In March 2019, the FASB issued ASU 2019-01, Leases which clarifies the disclosure requirements for interim periods. We adopted the new lease standard, Accounting Standards Codification Topic 842, Leases ("ASC 842"), effective February 3, 2019, using the modified-retrospective transition approach as outlined in ASU 2018-11, with no restatement of comparative periods. As permitted by the standard, we elected certain practical expedients, including the "package of practical expedients," under which we did not reassess our prior conclusions regarding lease identification, lease classification, or capitalization of initial lease direct costs for existing or expired contracts. For our real estate leases, we elected the practical expedient to not separate lease and non-lease components. For our non-real estate leases, we elected to separate lease and non-lease components. We did not elect to exclude short-term leases from our right-of-use asset and liability balances, nor did we elect the hindsight practical expedient. Under the modified-retrospective transition approach, we have recorded adjustments to our fiscal 2019 opening balance sheet (as of February 3, 2019) to recognize an initial operating lease right-of-use asset and corresponding initial lease liability of approximately $850 million . See Note 5, "Leases" for further details. |
Discontinued Operations and Dis
Discontinued Operations and Disposals (Notes) | 3 Months Ended |
May 05, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 2. Discontinued Operations and Dispositions Discontinued Operations On January 16, 2019, we completed the sale of all of the equity interest in our wholly-owned subsidiary Spring Communications Holding, Inc. ("Spring Mobile") to Prime Acquisition Company, LLC, a wholly-owned subsidiary of Prime Communications, L.P., pursuant to an Equity Purchase Agreement dated as of November 21, 2018. The net cash proceeds received from the sale totaled $727.9 million , which is subject to customary post-closing adjustments. The net proceeds received consisted of the purchase price of $700.0 million less $10.5 million of transaction costs, plus preliminary adjustments totaling $38.4 million for working capital and indebtedness. We recognized a gain on sale of $100.8 million ( $65.4 million , net of tax) during the fourth quarter of fiscal 2018. Except for customary post-closing adjustments and transition services, we have no contingencies or continuing involvement with Spring Mobile subsequent to the completion of the sale. The historical results of Spring Mobile are reported as discontinued operations in our consolidated statements of operations for all periods presented. The results of our discontinued operations for 13 weeks ended May 4, 2019 , and May 5, 2018 are as follows (in millions): 13 Weeks Ended May 4, 2019 May 5, 2018 Net sales $ — $ 148.2 Cost of sales — 22.0 Gross profit — 126.2 Selling, general and administrative expenses 0.8 110.0 Depreciation and amortization — 5.6 (Loss) income from discontinued operations before income taxes (0.8 ) 10.6 Income tax (benefit) expense (0.1 ) 2.8 Net (loss) income from discontinued operations $ (0.7 ) $ 7.8 The major classes of assets and liabilities held for sale associated with Spring Mobile are as follows (in millions): May 5, 2018 Assets: Cash and cash equivalents $ 5.0 Receivables, net 51.9 Merchandise inventories, net 121.6 Prepaid expenses and other current assets 8.8 Property and equipment, net 78.6 Goodwill 316.9 Other intangible assets, net 77.0 Other assets 3.3 Total assets held for sale $ 663.1 Liabilities: Accounts payable $ 3.6 Accrued liabilities 17.1 Other liabilities 14.9 Total liabilities held for sale $ 35.6 There were no significant operating noncash items for our discontinued operations for the 13 weeks ended May 4, 2019 . The following table presents capital expenditures, depreciation and amortization and other significant operating noncash items of our discontinued operations for the 13 weeks ended May 5, 2018 (in millions): 13 Weeks Ended May 5, 2018 Capital expenditures $ 2.9 Depreciation and amortization 5.6 Provision for inventory reserves 4.2 Disposition of Simply Mac On May 9, 2019, we entered into a definitive agreement to sell our Simply Mac business to Cool Holdings, Inc. for consideration of $8.0 million in cash at closing, subject to customary post-closing adjustments, and a promissory note in an amount dependent in part on the net value of inventory held by Simply Mac at closing. The transaction is expected to close during the third quarter of fiscal 2019. |
Revenue
Revenue | 3 Months Ended |
May 04, 2019 | |
Text Block [Abstract] | |
Significant Products | 3. Revenue Net sales by significant product category for the periods indicated is as follows (in millions): 13 Weeks Ended May 4, 2019 May 5, 2018 New video game hardware (1) $ 233.5 $ 359.2 New video game software 446.4 466.7 Pre-owned and value video game products 395.3 495.7 Video game accessories 200.2 199.1 Digital 38.1 43.0 Collectibles 157.3 142.4 Other (2) 76.9 79.7 Total $ 1,547.7 $ 1,785.8 __________________________________________________ (1) Includes sales of hardware bundles, in which physical hardware and digital or physical software are sold together as a single SKU. (2) Includes mobile and consumer electronics sold through our Simply Mac branded stores. Also includes sales of PC entertainment software, interactive game figures, strategy guides, mobile and consumer electronics sold through our Video Game Brands segments, and revenues from PowerUp Pro loyalty members receiving Game Informer magazine in print form. See Note 9 , "Segment Information," for net sales by geographic location. Performance Obligations We expect to recognize revenue in future periods for remaining performance obligations we have associated with unredeemed gift cards, trade-in credits, reservation deposits and our PowerUp Rewards loyalty program (collectively, “unredeemed customer liabilities”), extended warranties and subscriptions to our Game Informer magazine. Performance obligations associated with unredeemed customer liabilities are primarily satisfied at the time our customers redeem their gift cards, trade-in credits, reservation deposits or loyalty program points for products that we offer. Unredeemed customer liabilities are generally redeemed within one year of issuance. As of May 4, 2019 , our unredeemed customer liabilities totaled $237.4 million . We offer extended warranties on certain new and pre-owned video game products with terms generally ranging from 12 to 24 months, depending on the product. Revenues for extended warranties sold are recognized on a straight-line basis over the life of the contract. As of May 4, 2019 , our deferred revenue liability related to extended warranties totaled $68.9 million . Performance obligations associated with subscriptions to our Game Informer magazine are satisfied when monthly magazines are delivered in print form or when made available in digital format. The significant majority of our customers’ subscriptions is for 12 monthly issues. As of May 4, 2019 , we had deferred revenue of $43.9 million associated with our Game Informer magazine. Contract Balances Our contract liabilities primarily consist of unredeemed customer liabilities and deferred revenues associated with extended warranties and subscriptions to our Game Informer magazine. The opening balance, current period changes and ending balance of our contract liabilities are as follows (in millions): Contract Liabilities Balance at February 2, 2019 $ 376.9 Increase to contract liabilities (1) 215.2 Decrease to contract liabilities (2) (239.9 ) Other adjustments (3) (2.0 ) Balance at May 4, 2019 $ 350.2 __________________________________________________ (1) Includes issuances of gift cards, trade-in credits and loyalty points, new reservation deposits, new subscriptions to Game Informer and extended warranties sold. (2) Includes redemptions of gift cards, trade-in credits, loyalty points and reservation deposits as well as revenues recognized for Game Informer and extended warranties. During the 13 weeks ended May 4, 2019 , there were $28.3 million of gift cards redeemed that were outstanding as of February 2, 2019. (3) Primarily includes foreign currency translation adjustments. |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 3 Months Ended |
May 04, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Financial Instruments | 4. Fair Value Measurements and Financial Instruments Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Applicable accounting standards require disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included within Level 1 for the asset or liability, either directly or indirectly through market-corroborated inputs. Level 3 inputs are unobservable inputs for the asset or liability reflecting our assumptions about pricing by market participants. Assets and Liabilities that are Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis include our foreign currency contracts, life insurance policies we own that have a cash surrender value, and certain nonqualified deferred compensation liabilities. We value our foreign currency contracts, our life insurance policies with cash surrender values and certain nonqualified deferred compensation liabilities based on Level 2 inputs using quotations provided by major market news services, such as Bloomberg , and industry-standard models that consider various assumptions, including quoted forward prices, time value, volatility factors, and contractual prices for the underlying instruments, as well as other relevant economic measures, all of which are observable in active markets. When appropriate, valuations are adjusted to reflect credit considerations, generally based on available market evidence. Our assets and liabilities measured at fair value on a recurring basis as of May 4, 2019, May 5, 2018 and February 2, 2019, utilize Level 2 inputs and include the following (in millions): May 4, 2019 May 5, 2018 February 2, 2019 Assets Foreign currency contracts (1) $ 3.5 $ 7.7 $ 1.0 Company-owned life insurance (2) 15.1 14.6 14.6 Total assets $ 18.6 $ 22.3 $ 15.6 Liabilities Foreign currency contracts (3) $ 2.0 $ 3.2 $ 1.2 Nonqualified deferred compensation (3) 1.2 1.1 1.1 Total liabilities $ 3.2 $ 4.3 $ 2.3 __________________________________________________ (1) Recognized in prepaid expenses and other current assets in our unaudited condensed consolidated balance sheets. (2) Recognized in other non-current assets in our unaudited condensed consolidated balance sheets. (3) Recognized in accrued liabilities in our unaudited condensed consolidated balance sheets. We use forward exchange contracts, foreign currency options and cross-currency swaps (together, the “foreign currency contracts”) to manage currency risk primarily related to intercompany loans denominated in non-functional currencies and certain foreign currency assets and liabilities. The foreign currency contracts are not designated as hedges and, therefore, changes in the fair values of these derivatives are recognized in earnings, thereby offsetting the current earnings effect of the re-measurement of related intercompany loans and foreign currency assets and liabilities. The total gross notional value of derivatives related to our foreign currency contracts was $259.7 million , $342.2 million and $240.0 million as of May 4, 2019 , May 5, 2018 and February 2, 2019 , respectively. Activity related to the trading of derivative instruments and the offsetting impact of related intercompany and foreign currency assets and liabilities recognized in selling, general and administrative expense is as follows (in millions): 13 Weeks Ended May 4, May 5, Gains (losses) on the change in fair value of derivative instruments $ 2.4 $ 4.7 (Losses) gains on the re-measurement of related intercompany loans and foreign currency assets and liabilities (2.4 ) (3.0 ) Net gains $ — $ 1.7 We do not use derivative financial instruments for trading or speculative purposes. We are exposed to counterparty credit risk on all of our derivative financial instruments and cash equivalent investments. We manage counterparty risk according to the guidelines and controls established under our comprehensive risk management and investment policies. We continuously monitor our counterparty credit risk and utilize a number of different counterparties to minimize our exposure to potential defaults. We do not require collateral under derivative or investment agreements. Assets that are Measured at Fair Value on a Nonrecurring Basis Assets that are measured at fair value on a nonrecurring basis relate primarily to property and equipment, right-of-use assets and intangible assets, which are remeasured when the estimated fair value is below its carrying value. For these assets, we do not periodically adjust carrying value to fair value; rather, when we determine that impairment has occurred, the carrying value of the asset is reduced to its fair value. We did not record any impairment charges related to assets measured at fair value on a nonrecurring basis during the 13 weeks ended May 4, 2019 or May 5, 2018 . Other Fair Value Disclosures The carrying values of our cash equivalents, receivables, net, accounts payable and notes payable approximate the fair value due to their short-term maturities. As of May 4, 2019 our unsecured 6.75% senior notes due in 2021 had a net carrying value of $468.9 million and a fair value of $476.6 million . The fair values of our senior notes were determined based on quoted market prices obtained through an external pricing source which derives its price valuations from daily marketplace transactions, with adjustments to reflect the spreads of benchmark bonds, credit risk and certain other variables. We have determined this to be a Level 2 measurement as all significant inputs into the quote provided by our pricing source are observable in active markets. |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
May 04, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | 5. Leases We conduct the substantial majority of our business with leased real estate properties, including retail stores, warehouse facilities and office space. We also lease certain equipment and vehicles. These are generally leased under noncancelable agreements and include various renewal options for additional periods. These agreements generally provide for minimum, and in some cases, percentage rentals, and require us to pay insurance, taxes and other maintenance costs. Percentage rentals are based on sales performance in excess of specified minimums at various stores and are accounted for in the period in which the amount of percentage rentals can be accurately estimated. All of our lease agreements are classified as operating leases. Effective February 3, 2019, we adopted ASC 842, Leases (see Note 1, "General Information"). Under ASC 842, fixed payments associated with our operating leases are included in operating lease right-of-use ("ROU") assets and both current and noncurrent operating lease liabilities on the balance sheet. We determine if an arrangement is considered a lease at inception. We recognize ROU assets, on the commencement date based on the present value of future minimum lease payments over the lease term, including reasonably certain renewal options. As the rate implicit in the lease is not readily determinable for most leases, we utilize our incremental borrowing rate ("IBR") to determine the present value of future payments. The incremental borrowing rate represents a significant judgment that is based on an analysis of our credit rating, country risk, corporate bond yields, the effect of collateralization, as well as comparison to our borrowing rates. For our real estate leases, we do not separate the components of a contract, thus our future payments include minimum rent payments and fixed executory costs. For our non-real estate leases, future payments include only fixed minimum rent payments. We record the amortization of our ROU assets and the accretion of our lease liabilities as a single lease cost on a straight-line basis over the lease term, which includes option terms we are reasonably certain to exercise. We recognize our cash or lease incentives as a reduction to the ROU asset. We assess ROU assets for impairment in accordance with our long-lived asset impairment policy, which is performed periodically or when events or changes in circumstances indicate that the carrying amount may not be recoverable. Prior to our adoption of ASC 842, liabilities for future rental payments for operating leases were not recognized on the balance sheet. Leases with step rent provisions, escalation clauses or other lease concessions were accounted for on a straight-line basis over the lease term, which included renewal option periods when we were reasonably assured of exercising the renewal options and included “rent holidays” (periods in which we were not obligated to pay rent). Cash or lease incentives received upon entering into certain store leases (“tenant improvement allowances”) were also recognized on a straight-line basis as a reduction to rent expense over the lease term. We recorded the unamortized portion of tenant improvement allowances as a part of deferred rent. Rent expense under operating leases was as follows (in millions): 13 Weeks Ended May 4, 2019 Operating lease cost $ 86.2 Variable lease cost (1) 24.3 Total rent expense $ 110.5 _____________________________________________ (1) Variable lease cost includes percentage rentals and variable executory costs. During the 13 weeks ended May 4, 2019 , we had cash outflows of $84.3 million associated with operating leases included in the measurement of our lease liabilities and we recognized $38.6 million of ROU assets that were obtained in exchange for operating lease obligations. The weighted-average remaining lease term, which includes reasonably certain renewal options, and the weighted-average discount rate for operating leases included in the measurement of our lease liabilities, as of May 4, 2019 , were as follows: May 4, 2019 Weighted-average remaining lease term (years) 4.6 (1) Weighted-average discount rate 4.6 % _____________________________________________ (1) The weighted-average remaining lease term is weighted based on the lease liability balance for each lease as of May 4, 2019. This weighted average calculation differs from our simple average remaining lease term due to the inclusion of reasonably certain renewal options and the effect of the lease liability value of longer term leases. Expected lease payments associated with our operating lease liabilities, excluding percentage rentals, as of May 4, 2019 , are as follows (in millions): Period Operating Leases (1) Remainder of Fiscal Year 2019, as of May 4, 2019 $ 224.5 Fiscal Year 2020 218.5 Fiscal Year 2021 153.5 Fiscal Year 2022 107.6 Fiscal Year 2023 73.5 Thereafter 118.9 Total remaining lease payments 896.5 Less: Interest (93.9 ) Present value of lease liabilities $ 802.6 _____________________________________________ (1) Operating lease payments exclude legally binding lease payments for leases signed but not yet commenced. As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, ASC 840, future minimum annual rentals, including reasonably assured options, as of February 2, 2019, were as follows (in millions): Period Fiscal Year 2019 $ 296.2 Fiscal Year 2020 208.7 Fiscal Year 2021 149.1 Fiscal Year 2022 105.4 Fiscal Year 2023 71.4 Thereafter 116.2 $ 947.0 |
Debt
Debt | 3 Months Ended |
May 04, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt Senior Notes The carrying value of our long-term debt, net is comprised as follows (in millions): May 4, 2019 May 5, 2018 February 2, 2019 2019 Senior Notes principal amount $ — $ 350.0 $ 350.0 2021 Senior Notes principal amount 471.9 475.0 475.0 Less: Unamortized debt financing costs (3.0 ) (6.4 ) (4.2 ) $ 468.9 $ 818.6 $ 820.8 Less: Current portion — — (349.2 ) Long-term debt, net $ 468.9 $ 818.6 $ 471.6 2019 Senior Notes. In September 2014 , we issued $350.0 million aggregate principal amount of unsecured 5.50% senior notes due October 1, 2019 (the "2019 Senior Notes"), with interest payable semi-annually in arrears on April 1 and October 1 of each year beginning on April 1, 2015. We incurred fees and expenses related to the 2019 Senior Notes offering of $6.3 million . On April 4, 2019, we redeemed all of our $350.0 million unsecured senior notes due October 2019, plus accrued but unpaid interest, at the redemption price equal to 100% of par value. We used cash on hand for the redemption of the 2019 Senior Notes. 2021 Senior Notes. In March 2016 , we issued $475.0 million aggregate principal amount of unsecured 6.75% senior notes due March 15, 2021 (the "2021 Senior Notes"). The 2021 Senior Notes bear interest at the rate of 6.75% per annum with interest payable semi-annually in arrears on March 15 and September 15 of each year beginning on September 15, 2016. The net proceeds from the offering were used for general corporate purposes, including acquisitions and dividends. We incurred fees and expenses related to the 2021 Senior Notes offering of $8.1 million , which were capitalized during the first quarter of fiscal 2016 and are being amortized as interest expense over the term of the notes. The 2021 Senior Notes were sold in a private placement and are not registered under the Securities Act. The 2021 Senior Notes were offered in the United States to "qualified institutional buyers" pursuant to the exemption from registration under Rule 144A of the Securities Act and in exempted offshore transactions pursuant to Regulation S under the Securities Act. In the first quarter of fiscal 2019, we executed a series of open market purchases of our 2021 Senior Notes resulting in $3.1 million in aggregate principal amount being repurchased at prices ranging from 99.6% to 101.0% of par value. From May 5, 2019 through June 4, 2019, we executed an additional series of open market purchases of our 2021 Senior Notes, in which we repurchased an aggregate principal amount of $35.6 million at prices ranging from 100.9% to 101.5% of par value. The indenture governing the 2021 Senior Notes does not contain financial covenants but does contain covenants which place certain restrictions on us and our subsidiaries, including limitations on asset sales, additional liens, investments, stock repurchases, the incurrence of additional debt and the repurchase of debt that is junior to the 2021 Senior Notes. In addition, the indenture restricts payments of dividends to stockholders (other than dividends payable in shares of capital stock) if one of the following conditions exist: (i) an event of default has occurred, (ii) we could not incur additional debt under the general debt covenant of the indentures or (iii) the sum of the proposed dividend and all other dividends and other restricted payments made under the indenture from the date of the indenture governing the 2021 Senior Notes exceeds the sum of 50% of consolidated net income plus 100% of net proceeds from capital stock sales and other amounts set forth in and determined as provided in the indenture. These restrictions are subject to exceptions and qualifications, including that we can pay up to $175 million in dividends to stockholders in each fiscal year and we can pay dividends and make other restricted payments in an unlimited amount if our leverage ratio on a pro forma basis after giving effect to the dividend payment and other restricted payments would be less than or equal to 1.0 :1.0. The indenture contains customary events of default, including payment defaults, breaches of covenants, failure to pay certain judgments and certain events of bankruptcy, insolvency and reorganization. If an event of default occurs and is continuing, the principal amount of the 2021 Senior Notes, plus accrued and unpaid interest, if any, may be declared immediately due and payable. These amounts automatically become due and payable if an event of default relating to certain events of bankruptcy, insolvency or reorganization occurs. Revolving Credit Facility We maintain an asset-based revolving credit facility (the “Revolver”) with a borrowing base capacity of $420 million and a maturity date of November 2022. The Revolver maintains the $200 million expansion feature and $50 million letter of credit sublimit, and allows for an incremental $50 million first-in, last-out facility. The applicable margins for prime rate loans range from 0.25% to 0.50% and, for the London Interbank Offered (“LIBO”) rate loans, range from 1.25% to 1.50% . The Revolver is secured by substantially all of the assets of GameStop Corp. and the assets of its domestic subsidiaries. Borrowing availability under the Revolver is limited to a borrowing base which allows us to borrow up to 90% of the appraisal value of the inventory, plus 90% of eligible credit card receivables, net of certain reserves. The borrowing base provides for borrowing of up to 92.5% of the appraisal value during the period between July 15 and October 15 of each year. Letters of credit reduce the amount available to borrow under the Revolver by an amount equal to the face value of the letters of credit. Our ability to pay cash dividends, redeem options and repurchase shares is generally permitted, except under certain circumstances, including if either (1) excess availability under the Revolver is less than 20% , or is projected to be within six months after such payment or (2) excess availability under the Revolver is less than 15% , or is projected to be within six months after such payment, and the fixed charge coverage ratio, as calculated on a pro-forma basis for the prior 12 months, is 1.0 :1.0 or less. In the event that excess availability under the Revolver is at any time less than the greater of (1) $30 million or (2) 10% of the lesser of the total commitment or the borrowing base, we will be subject to a fixed charge coverage ratio covenant of 1.0 :1.0. The Revolver places certain restrictions on us and our subsidiaries, including limitations on asset sales, additional liens, investments, loans, guarantees, acquisitions and the incurrence of additional indebtedness. Absent consent from our lenders, we may not incur more than $1 billion of senior secured debt and $750 million of additional unsecured indebtedness to be limited to $250 million in general unsecured obligations and $500 million in unsecured obligations to finance acquisitions valued at $500 million or more. The per annum interest rate under the Revolver is variable and is calculated by applying a margin (1) for prime rate loans of 0.25% to 0.50% above the highest of (a) the prime rate of the administrative agent, (b) the federal funds effective rate plus 0.50% and (c) the LIBO rate for a one month interest period as determined on such day plus 1.00% , and (2) for LIBO rate loans of 1.25% to 1.50% above the LIBO rate. The applicable margin is determined quarterly as a function of our average daily excess availability under the facility. In addition, we are required to pay a commitment fee of 0.25% for any unused portion of the total commitment under the Revolver. As of May 4, 2019 , the applicable margin was 0.25% for prime rate loans and 1.25% for LIBO rate loans. The Revolver provides for customary events of default with corresponding grace periods, including failure to pay any principal or interest when due, failure to comply with covenants, any material representation or warranty made by us or the borrowers proving to be false in any material respect, certain bankruptcy, insolvency or receivership events affecting us or our subsidiaries, defaults relating to certain other indebtedness, imposition of certain judgments and mergers or the liquidation of the Company or certain of its subsidiaries. During the 13 weeks ended May 4, 2019 , we had no borrowings or repayments under our revolving credit facility. As of May 4, 2019 , total availability under the Revolver was $337.4 million , with no outstanding borrowings and outstanding standby letters of credit of $7.2 million . We are currently in compliance with the financial requirements of the Revolver. Luxembourg Line of Credit In September 2007, our Luxembourg subsidiary entered into a discretionary $20.0 million Uncommitted Line of Credit (the “Line of Credit”) with Bank of America. There is no term associated with the Line of Credit and Bank of America may withdraw the facility at any time without notice. The Line of Credit is available to our foreign subsidiaries for use primarily as a bank overdraft facility for short-term liquidity needs and for the issuance of bank guarantees and letters of credit to support operations. As of May 4, 2019 , there were no cash overdrafts outstanding under the Line of Credit and bank guarantees outstanding totaled $9.3 million . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
May 04, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 7. Commitments and Contingencies Commitments During the 13 weeks ended May 4, 2019 , there were no material changes to our commitments as disclosed in our 2018 Annual Report on Form 10-K. Contingencies Legal Proceedings In the ordinary course of business, we are, from time to time, subject to various legal proceedings, including matters involving wage and hour employee class actions, stockholder actions and consumer class actions. We may enter into discussions regarding settlement of these and other types of lawsuits, and may enter into settlement agreements, if we believe settlement is in the best interest of our stockholders. We do not believe that any such existing legal proceedings or settlements, individually or in the aggregate, will have a material effect on our financial condition, results of operations or liquidity. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
May 04, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Net Income (Loss) Per Common Share | 8. Earnings Per Share Basic net income (loss) per common share is computed by dividing the net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing the net income (loss) available to common stockholders by the weighted-average number of common shares outstanding and potentially dilutive securities outstanding during the period. Potentially dilutive securities include stock options and unvested restricted stock outstanding during the period, using the treasury stock method. Potentially dilutive securities are excluded from the computations of diluted earnings per share if their effect would be antidilutive. A reconciliation of shares used in calculating basic and diluted net income (loss) per common share is as follows (in millions, except per share data): 13 Weeks Ended May 4, May 5, Net income from continuing operations $ 7.5 $ 20.4 (Loss) income from discontinued operations, net of tax (0.7 ) 7.8 Net income $ 6.8 $ 28.2 Weighted-average common shares outstanding 102.4 101.8 Dilutive effect of stock options and restricted stock awards 0.1 0.2 Weighted-average diluted common shares outstanding 102.5 102.0 Basic earnings (loss) per share: (1) Continuing operations $ 0.07 $ 0.20 Discontinued operations (0.01 ) 0.08 Basic earnings per share $ 0.07 $ 0.28 Diluted earnings (loss) per share: (1) Continuing operations $ 0.07 $ 0.20 Discontinued operations (0.01 ) 0.08 Diluted earnings per share $ 0.07 $ 0.28 Anti-dilutive stock options and restricted stock awards 0.8 1.6 __________________________________________________ (1) The components of basic and diluted earnings per share may not sum to the total earnings per share due to rounding. |
Segment Information
Segment Information | 3 Months Ended |
May 04, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 9. Segment Information We operate our business in four geographic segments: United States, Canada, Australia and Europe. Our former Technology Brands segment had been comprised of Spring Mobile, Simply Mac and Cricket Wireless branded stores ("Cricket Wireless"). Cricket Wireless was sold in January 2018, and Spring Mobile was sold in January 2019. Simply Mac is reported in the United States segment in these consolidated financial statements and accompanying notes. The historical results of Spring Mobile are reported as discontinued operations and are excluded from our segment results for all periods presented. We identify segments based on a combination of geographic areas and management responsibility. Each of the segments includes significant retail operations with all video game brands stores engaged in the sale of new and pre-owned video game hardware, software, accessories and collectibles. Our segments also include stand-alone collectibles stores. Segment results for the United States include retail operations in 50 states, the District of Columbia and Guam; our e-commerce websites www.gamestop.com and www.thinkgeek.com; Game Informer magazine; and Simply Mac. The United States segment also includes general and administrative expenses related to our corporate headquarters in Grapevine, Texas. Segment results for Canada include retail and e-commerce operations in Canada and segment results for Australia include retail and e-commerce operations in Australia and New Zealand. Segment results for Europe include retail and e-commerce operations in 10 European countries. We measure segment profit using operating earnings, which is defined as income from continuing operations before intercompany royalty fees, net interest expense and income taxes. Transactions between reportable segments consist primarily of royalties, management fees, intersegment loans and related interest. There were no material intersegment sales during the 13 weeks ended May 4, 2019 and May 5, 2018 . Segment information for the 13 weeks ended May 4, 2019 and May 5, 2018 is as follows (in millions): United States Canada Australia Europe Consolidated 13 weeks ended May 4, 2019: Net sales $ 1,143.2 $ 72.6 $ 101.6 $ 230.3 $ 1,547.7 Operating earnings (loss) 52.2 (5.3 ) (8.2 ) (21.2 ) 17.5 13 weeks ended May 5, 2018: Net sales $ 1,293.2 $ 81.9 $ 122.1 $ 288.6 $ 1,785.8 Operating earnings (loss) 67.3 (0.3 ) (7.6 ) (12.9 ) 46.5 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 3 Months Ended |
May 04, 2019 | |
commonstocktenderoffer [Line Items] | |
Tender Offer [Text Block] | 10. Subsequent Events On June 11, 2019, we commenced a modified Dutch tender offer for up to 12,000,000 shares of our Class A common stock that will expire on July 10, 2019, unless extended. |
General Information (Policies)
General Information (Policies) | 3 Months Ended |
May 04, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation and Consolidation The unaudited condensed consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting only of normal, recurring adjustments) which are, in our opinion, necessary for a fair presentation of the information as of and for the periods presented. These unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all disclosures required under GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with our annual report on Form 10-K for the 52 weeks ended February 2, 2019 , as filed with the Securities and Exchange Commission on April 2, 2019, (the “2018 Annual Report on Form 10-K”). The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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. In preparing these financial statements, we have made our best estimates and judgments of certain amounts included in the financial statements, giving due consideration to materiality. Changes in the estimates and assumptions used by us could have a significant impact on our financial results. Actual results could differ from those estimates. Due to the seasonal nature of our business, the results of operations for the 13 weeks ended May 4, 2019 are not indicative of the results to be expected for the 52 weeks ending February 1, 2020 ("fiscal 2019"). Significant Accounting Policies Except for the accounting policy for leases, which is discussed below within "—Adoption of New Accounting Pronouncements" and within Note 5, "Leases," there have been no material changes to our significant accounting policies as noted in Note 1, "Nature of Operations and Summary of Significant Accounting Policies," within our 2018 Annual Report on Form 10-K. |
New Accounting Pronouncements | Adoption of New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standard Update ("ASU") 2016-02, Leases, which requires a lessee to recognize a liability related to lease payments and a corresponding right-of-use asset representing a right to use the underlying asset for the lease term. Entities are required to use a modified retrospective transition approach for leases that exist or are entered into after the beginning of the earliest comparative period presented in the financial statements, with certain reliefs available. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements , which provides clarifications and improvements to ASU 2016-02 including allowing entities to elect an additional transition method with which to adopt ASU 2016-02. The approved transition method enables entities to apply the transition requirements in this ASU at the effective date of ASU 2016-02 (rather than at the beginning of the earliest comparative period presented) with the effect of initially applying ASU 2016-02 recognized as a cumulative-effect adjustment to retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the year of adoption would continue to be in accordance with ASC 840, Leases (Topic 840) (“ASC 840”), including the disclosure requirements of ASC 840. In March 2019, the FASB issued ASU 2019-01, Leases which clarifies the disclosure requirements for interim periods. We adopted the new lease standard, Accounting Standards Codification Topic 842, Leases ("ASC 842"), effective February 3, 2019, using the modified-retrospective transition approach as outlined in ASU 2018-11, with no restatement of comparative periods. As permitted by the standard, we elected certain practical expedients, including the "package of practical expedients," under which we did not reassess our prior conclusions regarding lease identification, lease classification, or capitalization of initial lease direct costs for existing or expired contracts. For our real estate leases, we elected the practical expedient to not separate lease and non-lease components. For our non-real estate leases, we elected to separate lease and non-lease components. We did not elect to exclude short-term leases from our right-of-use asset and liability balances, nor did we elect the hindsight practical expedient. Under the modified-retrospective transition approach, we have recorded adjustments to our fiscal 2019 opening balance sheet (as of February 3, 2019) to recognize an initial operating lease right-of-use asset and corresponding initial lease liability of approximately $850 million . See Note 5, "Leases" for further details. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
May 04, 2019 | |
Text Block [Abstract] | |
Sales and Percentage of Total Net Sales by Significant Product Category | Net sales by significant product category for the periods indicated is as follows (in millions): 13 Weeks Ended May 4, 2019 May 5, 2018 New video game hardware (1) $ 233.5 $ 359.2 New video game software 446.4 466.7 Pre-owned and value video game products 395.3 495.7 Video game accessories 200.2 199.1 Digital 38.1 43.0 Collectibles 157.3 142.4 Other (2) 76.9 79.7 Total $ 1,547.7 $ 1,785.8 __________________________________________________ (1) Includes sales of hardware bundles, in which physical hardware and digital or physical software are sold together as a single SKU. (2) Includes mobile and consumer electronics sold through our Simply Mac branded stores. Also includes sales of PC entertainment software, interactive game figures, strategy guides, mobile and consumer electronics sold through our Video Game Brands segments, and revenues from PowerUp Pro loyalty members receiving Game Informer magazine in print form. |
Deferred Revenue Disclosure [Text Block] | The opening balance, current period changes and ending balance of our contract liabilities are as follows (in millions): Contract Liabilities Balance at February 2, 2019 $ 376.9 Increase to contract liabilities (1) 215.2 Decrease to contract liabilities (2) (239.9 ) Other adjustments (3) (2.0 ) Balance at May 4, 2019 $ 350.2 __________________________________________________ (1) Includes issuances of gift cards, trade-in credits and loyalty points, new reservation deposits, new subscriptions to Game Informer and extended warranties sold. (2) Includes redemptions of gift cards, trade-in credits, loyalty points and reservation deposits as well as revenues recognized for Game Informer and extended warranties. During the 13 weeks ended May 4, 2019 , there were $28.3 million of gift cards redeemed that were outstanding as of February 2, 2019. (3) Primarily includes foreign currency translation adjustments. |
Fair Value Measurements and F_2
Fair Value Measurements and Financial Instruments (Tables) | 3 Months Ended |
May 04, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis | Our assets and liabilities measured at fair value on a recurring basis as of May 4, 2019, May 5, 2018 and February 2, 2019, utilize Level 2 inputs and include the following (in millions): May 4, 2019 May 5, 2018 February 2, 2019 Assets Foreign currency contracts (1) $ 3.5 $ 7.7 $ 1.0 Company-owned life insurance (2) 15.1 14.6 14.6 Total assets $ 18.6 $ 22.3 $ 15.6 Liabilities Foreign currency contracts (3) $ 2.0 $ 3.2 $ 1.2 Nonqualified deferred compensation (3) 1.2 1.1 1.1 Total liabilities $ 3.2 $ 4.3 $ 2.3 __________________________________________________ (1) Recognized in prepaid expenses and other current assets in our unaudited condensed consolidated balance sheets. (2) Recognized in other non-current assets in our unaudited condensed consolidated balance sheets. (3) Recognized in accrued liabilities in our unaudited condensed consolidated balance sheets. |
Gains and Losses on Derivative Instruments and Foreign Currency Transaction | Activity related to the trading of derivative instruments and the offsetting impact of related intercompany and foreign currency assets and liabilities recognized in selling, general and administrative expense is as follows (in millions): 13 Weeks Ended May 4, May 5, Gains (losses) on the change in fair value of derivative instruments $ 2.4 $ 4.7 (Losses) gains on the re-measurement of related intercompany loans and foreign currency assets and liabilities (2.4 ) (3.0 ) Net gains $ — $ 1.7 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
May 04, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Rent expense under operating leases was as follows (in millions): 13 Weeks Ended May 4, 2019 Operating lease cost $ 86.2 Variable lease cost (1) 24.3 Total rent expense $ 110.5 _____________________________________________ (1) Variable lease cost includes percentage rentals and variable executory costs. |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Expected lease payments associated with our operating lease liabilities, excluding percentage rentals, as of May 4, 2019 , are as follows (in millions): Period Operating Leases (1) Remainder of Fiscal Year 2019, as of May 4, 2019 $ 224.5 Fiscal Year 2020 218.5 Fiscal Year 2021 153.5 Fiscal Year 2022 107.6 Fiscal Year 2023 73.5 Thereafter 118.9 Total remaining lease payments 896.5 Less: Interest (93.9 ) Present value of lease liabilities $ 802.6 _____________________________________________ (1) Operating lease payments exclude legally binding lease payments for leases signed but not yet commenced. |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, ASC 840, future minimum annual rentals, including reasonably assured options, as of February 2, 2019, were as follows (in millions): Period Fiscal Year 2019 $ 296.2 Fiscal Year 2020 208.7 Fiscal Year 2021 149.1 Fiscal Year 2022 105.4 Fiscal Year 2023 71.4 Thereafter 116.2 $ 947.0 |
Debt - Long-term Debt, excludin
Debt - Long-term Debt, excluding current maturities (Tables) | 3 Months Ended |
May 04, 2019 | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The carrying value of our long-term debt, net is comprised as follows (in millions): May 4, 2019 May 5, 2018 February 2, 2019 2019 Senior Notes principal amount $ — $ 350.0 $ 350.0 2021 Senior Notes principal amount 471.9 475.0 475.0 Less: Unamortized debt financing costs (3.0 ) (6.4 ) (4.2 ) $ 468.9 $ 818.6 $ 820.8 Less: Current portion — — (349.2 ) Long-term debt, net $ 468.9 $ 818.6 $ 471.6 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
May 04, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Shares Used in Calculating Basic and Diluted Net Income (Loss) Per Common Share | A reconciliation of shares used in calculating basic and diluted net income (loss) per common share is as follows (in millions, except per share data): 13 Weeks Ended May 4, May 5, Net income from continuing operations $ 7.5 $ 20.4 (Loss) income from discontinued operations, net of tax (0.7 ) 7.8 Net income $ 6.8 $ 28.2 Weighted-average common shares outstanding 102.4 101.8 Dilutive effect of stock options and restricted stock awards 0.1 0.2 Weighted-average diluted common shares outstanding 102.5 102.0 Basic earnings (loss) per share: (1) Continuing operations $ 0.07 $ 0.20 Discontinued operations (0.01 ) 0.08 Basic earnings per share $ 0.07 $ 0.28 Diluted earnings (loss) per share: (1) Continuing operations $ 0.07 $ 0.20 Discontinued operations (0.01 ) 0.08 Diluted earnings per share $ 0.07 $ 0.28 Anti-dilutive stock options and restricted stock awards 0.8 1.6 __________________________________________________ (1) The components of basic and diluted earnings per share may not sum to the total earnings per share due to rounding. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
May 04, 2019 | |
Segment Reporting [Abstract] | |
Sales by Segment | Segment information for the 13 weeks ended May 4, 2019 and May 5, 2018 is as follows (in millions): United States Canada Australia Europe Consolidated 13 weeks ended May 4, 2019: Net sales $ 1,143.2 $ 72.6 $ 101.6 $ 230.3 $ 1,547.7 Operating earnings (loss) 52.2 (5.3 ) (8.2 ) (21.2 ) 17.5 13 weeks ended May 5, 2018: Net sales $ 1,293.2 $ 81.9 $ 122.1 $ 288.6 $ 1,785.8 Operating earnings (loss) 67.3 (0.3 ) (7.6 ) (12.9 ) 46.5 |
General Information - Narrative
General Information - Narrative (Detail) | 3 Months Ended |
May 04, 2019Country | |
Significant Accounting Policies [Line Items] | |
Number of Stores | 5,700 |
Number of Reportable Segments | 4 |
Retail Site [Member] | |
Significant Accounting Policies [Line Items] | |
Number of Countries in which Entity Operates | 14 |
General Information - Restricte
General Information - Restricted Cash (Details) - USD ($) $ in Millions | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 | Feb. 03, 2018 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Restricted Cash and Cash Equivalents | $ 13.2 | $ 16.1 | $ 14.3 | |
Cash and cash equivalents | 543.2 | 1,624.4 | 242.1 | |
Restricted cash (included in prepaid expenses and other current assets) | 0 | 2.7 | 2.8 | |
Restricted cash (included in other noncurrent assets) | 13.2 | 13.4 | 11.5 | |
Total cash and cash equivalents and restricted cash in the statements of cash flows | $ 556.4 | $ 1,640.5 | $ 256.4 | $ 869.1 |
General Information - Property
General Information - Property and Equipment, Net (Details) - USD ($) $ in Millions | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Property, Plant and Equipment [Line Items] | |||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 1,247.9 | $ 1,235.8 | $ 1,237.1 |
General Information - Leases (D
General Information - Leases (Details) - USD ($) $ in Millions | May 04, 2019 | Feb. 03, 2019 | Feb. 02, 2019 | May 05, 2018 | |
Leases [Abstract] | |||||
Operating lease right-of-use assets | $ 807 | $ 850 | $ 0 | $ 0 | |
Operating Lease, Liability | $ 802.6 | [1] | $ 850 | ||
[1] | Operating lease payments exclude legally binding lease payments for leases signed but not yet commenced. |
Discontinued Operations and D_2
Discontinued Operations and Disposals - Narrative (Details) - USD ($) $ in Millions | May 09, 2019 | Feb. 02, 2019 |
Spring Mobile [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from Divestiture of Businesses | $ 727.9 | |
DispositionSalePrice | 700 | |
DispositionTransactionCosts | 10.5 | |
DispositionWorkingCapitalAdjustments | 38.4 | |
Gain (Loss) on Disposition of Business | 100.8 | |
DIspositionGainLossonSaleNetofTax | $ 65.4 | |
Subsequent Event [Member] | Simply Mac [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from Divestiture of Businesses | $ 8 |
Discontinued Operations and D_3
Discontinued Operations and Disposals - Results of Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ (0.7) | $ 7.8 |
Spring Mobile [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Including Discontinued Operation, Revenue | 0 | 148.2 |
Disposal Group, Including Discontinued Operation, Costs of Goods Sold | 0 | 22 |
Disposal Group, Including Discontinued Operation, Gross Profit (Loss) | 0 | 126.2 |
Disposal Group, Including Discontinued Operation, General and Administrative Expense | 0.8 | 110 |
Disposal Group, Including Discontinued Operation, Depreciation and Amortization | 0 | 5.6 |
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | (0.8) | 10.6 |
Discontinued Operation, Tax Effect of Discontinued Operation | (0.1) | 2.8 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ (0.7) | $ 7.8 |
Discontinued Operations and D_4
Discontinued Operations and Disposals - Major Classes of Assets and Liabilities (Details) - USD ($) $ in Millions | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Group, Including Discontinued Operation, Assets, Current | $ 0 | $ 0 | $ 663.1 |
Disposal Group, Including Discontinued Operation, Liabilities, Current | $ 0 | $ 0 | 35.6 |
Spring Mobile [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | 5 | ||
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 51.9 | ||
Disposal Group, Including Discontinued Operation, Inventory, Current | 121.6 | ||
Disposal Group, Including Discontinued Operation, Prepaid and Other Assets, Current | 8.8 | ||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment, Current | 78.6 | ||
Disposal Group, Including Discontinued Operation, Goodwill, Current | 316.9 | ||
Disposal Group, Including Discontinued Operation, Intangible Assets, Current | 77 | ||
Disposal Group, Including Discontinued Operation, Other Assets, Current | 3.3 | ||
Disposal Group, Including Discontinued Operation, Assets, Current | 663.1 | ||
Disposal Group, Including Discontinued Operation, Accounts Payable, Current | 3.6 | ||
Disposal Group, Including Discontinued Operation, Accrued Liabilities, Current | 17.1 | ||
Disposal Group, Including Discontinued Operation, Other Liabilities, Current | 14.9 | ||
Disposal Group, Including Discontinued Operation, Liabilities, Current | $ 35.6 |
Discontinued Operations and D_5
Discontinued Operations and Disposals - Other Significant Operating Items (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Payments to Acquire Property, Plant, and Equipment | $ 18.6 | $ 17.6 |
Spring Mobile [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Including Discontinued Operation, Depreciation and Amortization | $ 0 | 5.6 |
DisposalGroupIncludingDiscontinuedOperationInventoryReserveProvision | 4.2 | |
Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Payments to Acquire Property, Plant, and Equipment | $ 2.9 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | May 04, 2019USD ($) |
CustomerLiabilities | |
Disaggregation of Revenue [Line Items] | |
Deferred Credits and Other Liabilities, Current | $ 237.4 |
Extended Warranties | |
Disaggregation of Revenue [Line Items] | |
Deferred Credits and Other Liabilities, Current | 68.9 |
Magazine Subscriptions | |
Disaggregation of Revenue [Line Items] | |
Deferred Credits and Other Liabilities, Current | $ 43.9 |
Revenue - Sales and Percentage
Revenue - Sales and Percentage of Total Net Sales by Significant Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 04, 2019 | May 05, 2018 | ||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,547.7 | $ 1,785.8 | |
New Video Game Hardware | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 233.5 | 359.2 |
New Video Game Software | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 446.4 | 466.7 | |
Pre-Owned Video Game Products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 395.3 | 495.7 | |
Video Game Accessories | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 200.2 | 199.1 | |
Digital | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 38.1 | 43 | |
Collectibles | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 157.3 | 142.4 | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 76.9 | $ 79.7 | |
[1] | Includes sales of hardware bundles, in which physical hardware and digital or physical software are sold together as a single SKU. |
Revenue - Change In Contract Li
Revenue - Change In Contract Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 04, 2019 | Feb. 02, 2019 | ||
Change in Contract Liabilities [Line Items] | |||
Balance at February 2, 2019 | $ 376.9 | ||
Increase to Contract Liabilities | [1] | $ 215.2 | |
Decrease to Contract Liabilities | [2] | (239.9) | |
Other Adjustments | [3] | (2) | |
Balance at May 4, 2019 | 350.2 | ||
GiftCardsTradeInCredits [Member] | |||
Change in Contract Liabilities [Line Items] | |||
Contract with Customer, Liability, Revenue Recognized | $ 28.3 | ||
[1] | Includes issuances of gift cards, trade-in credits and loyalty points, new reservation deposits, new subscriptions to Game Informer and extended warranties sold. | ||
[2] | Includes redemptions of gift cards, trade-in credits, loyalty points and reservation deposits as well as revenues recognized for Game Informer and extended warranties. During the 13 weeks ended May 4, 2019, there were $28.3 million of gift cards redeemed that were outstanding as of February 2, 2019. | ||
[3] | Primarily includes foreign currency translation adjustments. |
Fair Value Measurements and F_3
Fair Value Measurements and Financial Instruments - Narrative (Detail) - USD ($) $ in Millions | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 | Mar. 09, 2016 | Sep. 24, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-term Debt | $ 468.9 | $ 820.8 | $ 818.6 | ||
Notional value of foreign currency derivatives gross | 259.7 | $ 240 | $ 342.2 | ||
Unsecured Debt [Member] | Senior Notes 5.5% due 2019 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | ||||
Unsecured Debt [Member] | Senior Notes 6.75% due 2021 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | ||||
Long-term Debt | 468.9 | ||||
Long-term Debt, Fair Value | $ 476.6 |
Fair Value Measurements and F_4
Fair Value Measurements and Financial Instruments - Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Inputs, Level 2 [Member] - Fair Value, Measurements, Recurring - USD ($) $ in Millions | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 | |
Assets | ||||
Foreign Currency Contracts | [1] | $ 3.5 | $ 1 | $ 7.7 |
Company-owned life insurance | [2] | 15.1 | 14.6 | 14.6 |
Total assets | 18.6 | 15.6 | 22.3 | |
Liabilities | ||||
Foreign Currency Contracts | [3] | 2 | 1.2 | 3.2 |
Nonqualified deferred compensation | [3] | 1.2 | 1.1 | 1.1 |
Total liabilities | $ 3.2 | $ 2.3 | $ 4.3 | |
[1] | Recognized in prepaid expenses and other current assets in our unaudited condensed consolidated balance sheets. | |||
[2] | Recognized in other non-current assets in our unaudited condensed consolidated balance sheets. | |||
[3] | Recognized in accrued liabilities in our unaudited condensed consolidated balance sheets. |
Fair Value Measurements and F_5
Fair Value Measurements and Financial Instruments - Gains and Losses on Derivative Instruments and Foreign Currency Transaction (Detail) - Selling, General and Administrative Expense - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Fair Value Derivative Contract Assets and Liabilities Measured On Recurring Basis Gain Loss Included In Earnings [Line Items] | ||
Gains (losses) on the changes in fair value of derivative instruments | $ 2.4 | $ 4.7 |
Gains (losses) on the re-measurement of related intercompany loans and foreign currency assets and liabilities | (2.4) | (3) |
Total | $ 0 | $ 1.7 |
Leases - Rent expense (Details)
Leases - Rent expense (Details) $ in Millions | 3 Months Ended | |
May 04, 2019USD ($) | ||
Leases [Abstract] | ||
Operating Lease, Cost | $ 86.2 | |
Variable Lease, Cost | 24.3 | [1] |
Lease, Cost | $ 110.5 | |
[1] | Variable lease cost includes percentage rentals and variable executory costs. |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended |
May 04, 2019USD ($) | |
Leases [Abstract] | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 38.6 |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 7 months 15 days |
Operating Lease, Weighted Average Discount Rate, Percent | 4.60% |
Operating Lease, Payments | $ 84.3 |
Leases - Minimum Lease Obligati
Leases - Minimum Lease Obligations for Operating Lease Liabilities (ASC 842) (Details) - USD ($) $ in Millions | May 04, 2019 | Feb. 03, 2019 | ||
Leases [Abstract] | ||||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | [1] | $ 224.5 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | [1] | 218.5 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | [1] | 153.5 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | [1] | 107.6 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | [1] | 73.5 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | [1] | 118.9 | ||
Total remaining lease payments | [1] | 896.5 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | [1] | (93.9) | ||
Present value of lease liabilities | $ 802.6 | [1] | $ 850 | |
[1] | Operating lease payments exclude legally binding lease payments for leases signed but not yet commenced. |
Leases - Future Minimum Lease O
Leases - Future Minimum Lease Obligations (ASC 840) (Details) $ in Millions | Feb. 02, 2019USD ($) |
Leases [Abstract] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 296.2 |
Operating Leases, Future Minimum Payments, Due in Two Years | 208.7 |
Operating Leases, Future Minimum Payments, Due in Three Years | 149.1 |
Operating Leases, Future Minimum Payments, Due in Four Years | 105.4 |
Operating Leases, Future Minimum Payments, Due in Five Years | 71.4 |
Operating Leases, Future Minimum Payments, Due Thereafter | 116.2 |
Operating Leases, Future Minimum Payments Due | $ 947 |
Debt - Narrative (Detail)
Debt - Narrative (Detail) $ in Millions | Apr. 04, 2019 | Nov. 21, 2017 | Sep. 25, 2014USD ($) | Sep. 30, 2007USD ($) | Jun. 04, 2019USD ($) | May 04, 2019USD ($) | May 05, 2018USD ($) | Feb. 02, 2019USD ($) | Nov. 20, 2017USD ($) | Mar. 09, 2016USD ($) | Sep. 24, 2014USD ($) |
Debt Disclosure [Line Items] | |||||||||||
Long-term Debt | $ 468.9 | $ 818.6 | $ 820.8 | ||||||||
Long-term debt | 468.9 | 818.6 | $ 471.6 | ||||||||
Debt Instrument, Repurchase Amount | 3.1 | ||||||||||
Borrowings from the revolver | 0 | ||||||||||
Repayments of revolver borrowings | 353.1 | $ 0 | |||||||||
Outstanding balance under revolving credit Facility | 0 | ||||||||||
Total availability under the revolver | 337.4 | ||||||||||
Letters of credit outstanding | $ 7.2 | ||||||||||
Minimum | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 99.60% | ||||||||||
Maximum | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 101.00% | ||||||||||
Unsecured Debt [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Debt Instrument, Cash Dividend Restriction, Maximum Ratio of Indenture Life-to-date Dividend Paid to Net Income | 50.00% | ||||||||||
Debt Instrument, Cash Dividend Restriction, Maximum Ratio of Indenture Life-to-date Dividend Paid to Stock Sale Proceeds | 100.00% | ||||||||||
Debt Instrument, Cash Dividend Restriction, Fiscal Year Maximum | $ 175 | ||||||||||
Pro Forma, Fixed Charge Coverage Ratio | 1 | ||||||||||
LUXEMBOURG | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Line of credit, current borrowing capacity | $ 20 | ||||||||||
Credit agreement, date | 2007-09 | ||||||||||
Cash overdrafts outstanding | $ 0 | ||||||||||
Bank guarantees outstanding | $ 9.3 | ||||||||||
Five Year Revolving Credit Facility | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Line of credit facility maturity date | 2022-03 | ||||||||||
Line of credit facility, asset restrictions | Borrowing availability under the Amended Revolver is limited to a borrowing base which allows us to borrow up to 90% of the appraisal value of the inventory, plus 90% of eligible credit card receivables, net of certain reserves. The borrowing base provides for borrowing of up to 92.5% of the appraisal value during the period between July 15 and October 15 of each year. Letters of credit reduce the amount available to borrow under the Amended Revolver by an amount equal to the face value of the letters of credit. | ||||||||||
Line of credit facility, dividend restrictions | Our ability to pay cash dividends, redeem options and repurchase shares is generally permitted, except under certain circumstances, including if either 1) excess availability under the Amended Revolver is less than 20%, or is projected to be within six months after such payment or 2) excess availability under the Amended Revolver is less than 15%, or is projected to be within six months after such payment, and the fixed charge coverage ratio, as calculated on a pro-forma basis for the prior 12 months, is 1.0:1.0 or less. | ||||||||||
Line of credit facility, covenant terms | In the event that excess availability under the Amended Revolver is at any time less than the greater of (1) $30 million or (2) 10% of the lesser of the total commitment or the borrowing base, we will be subject to a fixed charge coverage ratio covenant of 1.0:1.0. | ||||||||||
Amended Five Year Revolving Credit Facility | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Line of credit, current borrowing capacity | $ 420 | ||||||||||
IncrementalFILOfacility | 50 | ||||||||||
Line of credit facility additional borrowing capacity | $ 200 | ||||||||||
Line of credit facility, maximum borrowing capacity percentage | 90.00% | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity, Credit Card Receivables, Percentage | 90.00% | ||||||||||
Line of Credit Facility, Remaining Borrowing Capacity, Expected Percentage | 92.50% | ||||||||||
Threshold for revolver excess availability | 20.00% | ||||||||||
Projected revolver usage percentage of the borrowing base during the prospective 12-month period, which is subject to meeting a fixed charge coverage ratio | 15.00% | ||||||||||
Pro Forma, Fixed Charge Coverage Ratio | 1 | ||||||||||
Fixed charge coverage ratio | 1 | ||||||||||
Commitment or the borrowing base, amount | $ 30 | ||||||||||
Lesser of the total commitment or the borrowing base, percentage | 10.00% | ||||||||||
Line of credit facility unused capacity commitment fee percentage | 0.25% | ||||||||||
Amended Five Year Revolving Credit Facility | Secured Debt | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Line of credit, maximum borrowing capacity | $ 1,000 | ||||||||||
Amended Five Year Revolving Credit Facility | Unsecured Debt [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Line of credit, maximum borrowing capacity | 250 | ||||||||||
Line Of Credit facility, for general unsecured obligations | 750 | ||||||||||
Line Of credit facility, available for finance acquisitions | 500 | ||||||||||
Amended Five Year Revolving Credit Facility | Letter of Credit, sublimit | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Line of credit, maximum borrowing capacity | $ 50 | ||||||||||
London Interbank Offered Rate (LIBOR) | Amended Five Year Revolving Credit Facility | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Percentage in addition to the effective rate | 1.00% | ||||||||||
Applicable margin rate | 1.25% | ||||||||||
London Interbank Offered Rate (LIBOR) | Amended Five Year Revolving Credit Facility | Minimum | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Interest Rate Margin | 1.25% | ||||||||||
London Interbank Offered Rate (LIBOR) | Amended Five Year Revolving Credit Facility | Maximum | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Interest Rate Margin | 1.50% | ||||||||||
Prime Rate | Amended Five Year Revolving Credit Facility | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Applicable margin rate | 0.25% | ||||||||||
Prime Rate | Amended Five Year Revolving Credit Facility | Minimum | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Interest Rate Margin | 0.25% | ||||||||||
Prime Rate | Amended Five Year Revolving Credit Facility | Maximum | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Interest Rate Margin | 0.50% | ||||||||||
Federal Funds Rate | Amended Five Year Revolving Credit Facility | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Percentage in addition to the effective rate | 0.50% | ||||||||||
Senior Notes 5.5% due 2019 [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Debt Issuance Costs, Gross | $ 6.3 | ||||||||||
Senior Notes 5.5% due 2019 [Member] | Unsecured Debt [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.00% | ||||||||||
Debt Instrument, Face Amount | $ 350 | ||||||||||
Debt Instrument, Covenant Description | The indentures governing the 2019 Senior Notes and the 2021 Senior Notes (together, the "Senior Notes") do not contain financial covenants but do contain covenants which place certain restrictions on us and our subsidiaries, including limitations on asset sales, additional liens, investments, stock repurchases, the incurrence of additional debt and the repurchase of debt that is junior to the Senior Notes. | ||||||||||
Debt Instrument, Dividend Restrictions | In addition, the indentures restrict payments of dividends to stockholders (other than dividends payable in shares of capital stock) if one of the following conditions exist: (i) an event of default has occurred, (ii) we could not incur additional debt under the general debt covenant of the indentures or (iii) the sum of the proposed dividend and all other dividends and other restricted payments made under the indentures from the date of the indentures governing the Senior Notes exceeds the sum of 50% of consolidated net income plus 100% of net proceeds from capital stock sales and other amounts set forth in and determined as provided in the indentures. These restrictions are subject to exceptions and qualifications, including that we can pay up to $175 million in dividends to stockholders in each fiscal year and we can pay dividends and make other restricted payments in an unlimited amount if our leverage ratio on a pro forma basis after giving effect to the dividend payment and other restricted payments would be less than or equal to 1.0:1.0. | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | ||||||||||
Senior Notes 6.75% due 2021 [Member] | Unsecured Debt [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Long-term Debt | $ 468.9 | ||||||||||
Debt Instrument, Face Amount | $ 475 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | ||||||||||
Debt Issuance Costs, Gross | $ 8.1 | ||||||||||
Subsequent Event [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Debt Instrument, Repurchase Amount | $ 35.6 | ||||||||||
Subsequent Event [Member] | Minimum | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.90% | ||||||||||
Subsequent Event [Member] | Maximum | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 101.50% |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Debt Instrument [Line Items] | |||
Debt Issuance Costs, Net | $ (3) | ||
Debt Issuance Costs, Noncurrent, Net | $ (4.2) | $ (6.4) | |
Long-term Debt | 468.9 | 820.8 | 818.6 |
Current portion of debt, net | 0 | (349.2) | 0 |
Long-term debt, net | 468.9 | 471.6 | 818.6 |
Unsecured Debt [Member] | Senior Notes 5.5% due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 0 | 350 | 350 |
Unsecured Debt [Member] | Senior Notes 6.75% due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 471.9 | $ 475 | $ 475 |
Long-term Debt | $ 468.9 |
Debt - Senior Notes and Credit
Debt - Senior Notes and Credit Facility Terms and Restrictions (Details) | 3 Months Ended |
May 04, 2019 | |
Five Year Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Asset Restrictions | Borrowing availability under the Amended Revolver is limited to a borrowing base which allows us to borrow up to 90% of the appraisal value of the inventory, plus 90% of eligible credit card receivables, net of certain reserves. The borrowing base provides for borrowing of up to 92.5% of the appraisal value during the period between July 15 and October 15 of each year. Letters of credit reduce the amount available to borrow under the Amended Revolver by an amount equal to the face value of the letters of credit. |
Line of Credit Facility, Dividend Restrictions | Our ability to pay cash dividends, redeem options and repurchase shares is generally permitted, except under certain circumstances, including if either 1) excess availability under the Amended Revolver is less than 20%, or is projected to be within six months after such payment or 2) excess availability under the Amended Revolver is less than 15%, or is projected to be within six months after such payment, and the fixed charge coverage ratio, as calculated on a pro-forma basis for the prior 12 months, is 1.0:1.0 or less. |
Line of Credit Facility, Covenant Terms | In the event that excess availability under the Amended Revolver is at any time less than the greater of (1) $30 million or (2) 10% of the lesser of the total commitment or the borrowing base, we will be subject to a fixed charge coverage ratio covenant of 1.0:1.0. |
Senior Notes 5.5% due 2019 [Member] | Unsecured Debt [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Covenant Description | The indentures governing the 2019 Senior Notes and the 2021 Senior Notes (together, the "Senior Notes") do not contain financial covenants but do contain covenants which place certain restrictions on us and our subsidiaries, including limitations on asset sales, additional liens, investments, stock repurchases, the incurrence of additional debt and the repurchase of debt that is junior to the Senior Notes. |
Debt Instrument, Dividend Restrictions | In addition, the indentures restrict payments of dividends to stockholders (other than dividends payable in shares of capital stock) if one of the following conditions exist: (i) an event of default has occurred, (ii) we could not incur additional debt under the general debt covenant of the indentures or (iii) the sum of the proposed dividend and all other dividends and other restricted payments made under the indentures from the date of the indentures governing the Senior Notes exceeds the sum of 50% of consolidated net income plus 100% of net proceeds from capital stock sales and other amounts set forth in and determined as provided in the indentures. These restrictions are subject to exceptions and qualifications, including that we can pay up to $175 million in dividends to stockholders in each fiscal year and we can pay dividends and make other restricted payments in an unlimited amount if our leverage ratio on a pro forma basis after giving effect to the dividend payment and other restricted payments would be less than or equal to 1.0:1.0. |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Common Shares Used in Calculating Basic and Diluted Net Income (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
May 04, 2019 | May 05, 2018 | ||
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||
Net income from continuing operations | $ 7.5 | $ 20.4 | |
(Loss) income from discontinued operations, net of tax | (0.7) | 7.8 | |
Net income | $ 6.8 | $ 28.2 | |
Weighted-average common shares outstanding | 102.4 | 101.8 | |
Dilutive effect of stock options and restricted stock awards | 0.1 | 0.2 | |
Weighted-average diluted common shares outstanding | 102.5 | 102 | |
Basic earnings (loss) per share: | |||
Income (Loss) from Continuing Operations, Per Basic Share | [1] | $ 0.07 | $ 0.20 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | [1] | (0.01) | 0.08 |
Basic earnings per share | [1] | 0.07 | 0.28 |
Diluted earnings (loss) per share: | |||
Income (Loss) from Continuing Operations, Per Diluted Share | [1] | 0.07 | 0.20 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | [1] | (0.01) | 0.08 |
Diluted earnings per share | [1] | $ 0.07 | $ 0.28 |
[1] | (1) The components of basic and diluted earnings per share may not sum to the total earnings per share due to rounding. |
Earnings Per Share - Restricted
Earnings Per Share - Restricted Shares and Options to Purchase Shares of Class A Common Stock Excluded from Computation of Diluted Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Common Class A [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive stock options and restricted stock awards | 0.8 | 1.6 |
Segment Information - Narrative
Segment Information - Narrative (Detail) | 3 Months Ended | |
May 04, 2019USD ($)LocationCountry | May 05, 2018USD ($) | |
Segment Reporting Disclosure [Line Items] | ||
Number of Reportable Segments | 4 | |
Net sales | $ 1,547,700,000 | $ 1,785,800,000 |
Retail Site | ||
Segment Reporting Disclosure [Line Items] | ||
Number of countries in which the entity operates | Country | 14 | |
Intersegment Eliminations [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Net sales | $ 0 | |
Europe | Retail Site | ||
Segment Reporting Disclosure [Line Items] | ||
Number of countries in which the entity operates | Location | 10 | |
United States | ||
Segment Reporting Disclosure [Line Items] | ||
Number of states the entity operates | Location | 50 | |
United States | United States Segment [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Net sales | $ 1,143,200,000 | $ 1,293,200,000 |
Segment Information - Sales by
Segment Information - Sales by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,547.7 | $ 1,785.8 |
Operating Income (Loss) | 17.5 | 46.5 |
CANADA | Canada Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 72.6 | 81.9 |
Operating Income (Loss) | (5.3) | (0.3) |
Australia And New Zealand [Member] | Australia Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 101.6 | 122.1 |
Operating Income (Loss) | (8.2) | (7.6) |
Europe | Europe Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 230.3 | 288.6 |
Operating Income (Loss) | (21.2) | (12.9) |
United States | United States Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,143.2 | 1,293.2 |
Operating Income (Loss) | $ 52.2 | $ 67.3 |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended |
Jul. 10, 2019shares | |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Tender Offer Share Amount | 12,000,000 |