Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 28, 2017 | Nov. 27, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | Ulta Beauty, Inc. | |
Entity Central Index Key | 1,403,568 | |
Document Type | 10-Q | |
Document Period End Date | Oct. 28, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-03 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 60,992,388 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 28, 2017 | Jan. 28, 2017 | Oct. 29, 2016 |
Current assets: | |||
Cash and cash equivalents | $ 46,787 | $ 385,010 | $ 133,108 |
Short-term investments | 60,000 | 30,000 | 110,000 |
Receivables, net | 82,934 | 88,631 | 65,708 |
Merchandise inventories, net | 1,349,714 | 943,975 | 1,137,023 |
Prepaid expenses and other current assets | 101,403 | 88,621 | 85,611 |
Prepaid income taxes | 5,450 | 7,015 | |
Total current assets | 1,646,288 | 1,536,237 | 1,538,465 |
Property and equipment, net | 1,172,682 | 1,004,358 | 1,001,938 |
Deferred compensation plan and other assets | 15,903 | 11,283 | 10,798 |
Total assets | 2,834,873 | 2,551,878 | 2,551,201 |
Current liabilities: | |||
Accounts payable | 447,293 | 259,518 | 425,071 |
Accrued liabilities | 266,435 | 260,854 | 229,569 |
Accrued income taxes | 984 | 8,971 | |
Total current liabilities | 714,712 | 529,343 | 654,640 |
Deferred rent | 400,477 | 366,191 | 361,667 |
Deferred income taxes | 78,647 | 86,498 | 62,669 |
Other long-term liabilities | 24,986 | 19,628 | 20,141 |
Total liabilities | 1,218,822 | 1,001,660 | 1,099,117 |
Commitments and contingencies (Note 3) | |||
Stockholders' equity: | |||
Common stock, $0.01 par value, 400,000 shares authorized; 61,693, 62,733 and 62,920 shares issued; 61,074, 62,129 and 62,316 shares outstanding; at October 28, 2017 (unaudited), January 28, 2017 and October 29, 2016 (unaudited), respectively | 617 | 627 | 629 |
Treasury stock-common, at cost | (18,732) | (14,524) | (14,427) |
Additional paid-in capital | 691,075 | 658,330 | 653,036 |
Retained earnings | 943,091 | 905,785 | 812,846 |
Total stockholders' equity | 1,616,051 | 1,550,218 | 1,452,084 |
Total liabilities and stockholders' equity | $ 2,834,873 | $ 2,551,878 | $ 2,551,201 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 28, 2017 | Jan. 28, 2017 | Oct. 29, 2016 |
Consolidated Balance Sheets | |||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 | 400,000,000 |
Common stock, shares issued | 61,693,000 | 62,733,000 | 62,920,000 |
Common stock, shares outstanding | 61,074,000 | 62,129,000 | 62,316,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Consolidated Statements of Income | ||||
Net sales | $ 1,342,181 | $ 1,131,232 | $ 3,946,914 | $ 3,274,163 |
Cost of sales | 849,053 | 704,179 | 2,508,452 | 2,071,842 |
Gross profit | 493,128 | 427,053 | 1,438,462 | 1,202,321 |
Selling, general and administrative expenses | 320,729 | 280,464 | 887,601 | 757,568 |
Pre-opening expenses | 9,732 | 6,928 | 19,989 | 14,159 |
Operating income | 162,667 | 139,661 | 530,872 | 430,594 |
Interest income, net | (316) | (211) | (1,209) | (774) |
Income before income taxes | 162,983 | 139,872 | 532,081 | 431,368 |
Income tax expense | 58,338 | 52,310 | 185,020 | 161,826 |
Net income | $ 104,645 | $ 87,562 | $ 347,061 | $ 269,542 |
Net income per common share: | ||||
Basic | $ 1.71 | $ 1.40 | $ 5.62 | $ 4.30 |
Diluted | $ 1.70 | $ 1.40 | $ 5.58 | $ 4.28 |
Weighted average common shares outstanding: | ||||
Basic | 61,299 | 62,371 | 61,778 | 62,625 |
Diluted | 61,630 | 62,692 | 62,198 | 62,932 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 28, 2017 | Oct. 29, 2016 | |
Operating activities | ||
Net income | $ 347,061 | $ 269,542 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 187,710 | 151,014 |
Deferred income taxes | (7,851) | 3,142 |
Non-cash stock compensation charges | 17,898 | 14,203 |
Excess tax benefits from stock-based compensation | (9,001) | |
Loss on disposal of property and equipment | 5,707 | 6,822 |
Change in operating assets and liabilities: | ||
Receivables | 5,697 | (716) |
Merchandise inventories | (405,739) | (375,230) |
Prepaid expenses and other current assets | (12,782) | (13,063) |
Income taxes | (13,437) | (10,716) |
Accounts payable | 187,775 | 228,897 |
Accrued liabilities | (18,721) | 11,247 |
Deferred rent | 34,286 | 39,878 |
Other assets and liabilities | 1,489 | 6,999 |
Net cash provided by operating activities | 329,093 | 323,018 |
Investing activities | ||
Purchases of short-term investments | (240,000) | (60,000) |
Proceeds from short-term investments | 210,000 | 80,000 |
Purchases of property and equipment | (337,639) | (281,203) |
Net cash used in investing activities | (367,639) | (261,203) |
Financing activities | ||
Repurchase of common shares | (309,767) | (296,994) |
Stock options exercised | 14,849 | 16,188 |
Excess tax benefits from stock-based compensation | 9,001 | |
Purchase of treasury shares | (4,208) | (2,742) |
Debt issuance costs | (551) | |
Net cash used in financing activities | (299,677) | (274,547) |
Net decrease in cash and cash equivalents | (338,223) | (212,732) |
Cash and cash equivalents at beginning of period | 385,010 | 345,840 |
Cash and cash equivalents at end of period | 46,787 | 133,108 |
Supplemental cash flow information | ||
Cash paid for income taxes (net of refunds) | 205,863 | 168,471 |
Non-cash investing activities: | ||
Change in property and equipment included in accrued liabilities | $ 24,302 | $ 30,971 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - 9 months ended Oct. 28, 2017 - USD ($) shares in Thousands, $ in Thousands | Common Stock | Treasury - Common Stock | Additional Paid-in Capital | Retained Earnings | Total |
Balance at Jan. 28, 2017 | $ 627 | $ (14,524) | $ 658,330 | $ 905,785 | $ 1,550,218 |
Balance, shares at Jan. 28, 2017 | 62,733 | (604) | 62,733 | ||
Stock options exercised and other awards | $ 2 | 14,847 | $ 14,849 | ||
Stock options exercised and other awards, shares | 198 | ||||
Purchase of treasury shares | $ (4,208) | (4,208) | |||
Purchase of treasury shares, Shares | (15) | ||||
Net income | 347,061 | 347,061 | |||
Stock compensation charge | 17,898 | 17,898 | |||
Repurchase of common shares | $ (12) | (309,755) | (309,767) | ||
Repurchase of common shares, Shares | (1,238) | ||||
Balance at Oct. 28, 2017 | $ 617 | $ (18,732) | $ 691,075 | $ 943,091 | $ 1,616,051 |
Balance, shares at Oct. 28, 2017 | 61,693 | (619) | 61,693 |
Business and basis of presentat
Business and basis of presentation | 9 Months Ended |
Oct. 28, 2017 | |
Business and basis of presentation | |
Business and basis of presentation | 1. On January 29, 2017, Ulta Salon, Cosmetics & Fragrance, Inc. implemented a holding company reorganization pursuant to which Ulta Beauty, Inc., which was incorporated as a Delaware corporation in December 2016, became the successor to Ulta Salon, Cosmetics & Fragrance, Inc., the former publicly traded company and now a wholly owned subsidiary of Ulta Beauty, Inc. As used in these notes and throughout this Quarterly Report on Form 10‑Q, all references to “we,” “us,” “our,” “Ulta Beauty” or the “Company” refer to Ulta Beauty, Inc. and its consolidated subsidiaries. The Company was originally founded in 1990 to operate specialty retail stores selling cosmetics, fragrance, haircare and skincare products, and related accessories and services. The stores also feature full-service salons. As of October 28, 2017, the Company operated 1,058 stores in 48 states and the District of Columbia, as shown in the table below. Number of Number of Location stores Location stores Alabama 17 Montana 6 Alaska 3 Nebraska 5 Arizona 25 Nevada 14 Arkansas 9 New Hampshire 7 California 134 New Jersey 27 Colorado 24 New Mexico 6 Connecticut 13 New York 40 Delaware 3 North Carolina 28 District of Columbia 1 North Dakota 3 Florida 71 Ohio 40 Georgia 33 Oklahoma 18 Idaho 8 Oregon 12 Illinois 52 Pennsylvania 40 Indiana 21 Rhode Island 3 Iowa 9 South Carolina 15 Kansas 11 South Dakota 2 Kentucky 11 Tennessee 20 Louisiana 16 Texas 97 Maine 3 Utah 13 Maryland 18 Virginia 25 Massachusetts 15 Washington 25 Michigan 44 West Virginia 6 Minnesota 15 Wisconsin 20 Mississippi 9 Wyoming 2 Missouri 19 Total 1,058 The accompanying unaudited consolidated financial statements and related notes have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10‑Q and the U.S. Securities and Exchange Commission’s Article 10, Regulation S-X. These consolidated financial statements were prepared on a consolidated basis to include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts, transactions and unrealized profit were eliminated in consolidation. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary to fairly state the financial position and results of operations and cash flows for the interim periods presented. The Company’s business is subject to seasonal fluctuation. Significant portions of the Company’s net sales and net income are realized during the fourth quarter of the fiscal year due to the holiday selling season. The results for the 13 and 39 weeks ended October 28, 2017 are not necessarily indicative of the results to be expected for the fiscal year ending February 3, 2018, or for any other future interim period or for any future year. These interim consolidated financial statements and the related notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10‑K for the year ended January 28, 2017. All amounts are stated in thousands, with the exception of per share amounts and number of stores. |
Summary of significant accounti
Summary of significant accounting policies | 9 Months Ended |
Oct. 28, 2017 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2. Information regarding the Company’s significant accounting policies is contained in Note 2, “Summary of significant accounting policies,” to the consolidated financial statements in the Company’s Annual Report on Form 10‑K for the year ended January 28, 2017. Presented below and in the following notes is supplemental information that should be read in conjunction with “Notes to Consolidated Financial Statements” in the Annual Report. Fiscal quarter The Company’s quarterly periods are the 13 weeks ending on the Saturday closest to April 30, July 31, October 31, and January 31. The Company’s third quarter in fiscal 2017 and 2016 ended on October 28, 2017 and October 29, 2016, respectively. Share-based compensation The Company measures share-based compensation cost on the grant date, based on the fair value of the award, and recognizes the expense on a straight-line method over the requisite service period for awards expected to vest. The Company estimated the grant date fair value of stock options using a Black-Scholes valuation model using the following weighted-average assumptions for the periods indicated: 39 Weeks Ended October 28, October 29, 2017 2016 Volatility rate Average risk-free interest rate Average expected life (in years) Dividend yield None None The Company granted 106 and 109 stock options during the 39 weeks ended October 28, 2017 and October 29, 2016, respectively. The compensation cost that has been charged against operating income for stock option grants was $2,212 and $1,983 for the 13 weeks ended October 28, 2017 and October 29, 2016, respectively. The compensation cost that has been charged against operating income for stock option grants was $6,589 and $5,965 for the 39 weeks ended October 28, 2017 and October 29, 2016, respectively. The weighted-average grant date fair value of these options was $69.61 and $52.95 for the 39 weeks ended October 28, 2017 and October 29, 2016, respectively. At October 28, 2017, there was approximately $20,562 of unrecognized compensation expense related to unvested stock options. The Company issued 45 and 52 restricted stock units during the 39 weeks ended October 28, 2017 and October 29, 2016, respectively. The compensation cost that has been charged against operating income for restricted stock units was $2,419 and $1,890 for the 13 weeks ended October 28, 2017 and October 29, 2016, respectively. The compensation cost that has been charged against operating income for restricted stock units was $6,872 and $5,335 for the 39 weeks ended October 28, 2017 and October 29, 2016, respectively. At October 28, 2017, there was approximately $16,199 of unrecognized compensation expense related to restricted stock units. The Company issued 21 and 24 performance-based restricted stock units during the 39 weeks ended October 28, 2017 and October 29, 2016, respectively. The compensation cost that has been charged against operating income for performance-based restricted stock units was $1,618 and $1,468 for the 13 weeks ended October 28, 2017 and October 29, 2016, respectively. The compensation cost that has been charged against operating income for performance-based restricted stock units was $4,437 and $2,903 for the 39 weeks ended October 28, 2017 and October 29, 2016, respectively. At October 28, 2017, there was approximately $9,708 of unrecognized compensation expense related to performance-based restricted stock units. Recent accounting pronouncements not yet adopted Revenue Recognition from Contracts with Customers In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014‑09, Revenue from Contracts with Customers, issued as a new Topic, Accounting Standards Codification Topic 606 (ASU 2014‑09). The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that the Company will recognize revenue when the transfer of promised goods or services to customers occurs in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015‑14, Revenue from Contracts with Customers (Topic 606), which delayed the effective date of ASU 2014‑09 by one year. With the deferral, the revenue recognition standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods, with early adoption permitted. In March 2016, the FASB issued ASU 2016‑08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (ASU 2016‑08), which further clarifies how to implement revenue recognition guidance related to determining whether an entity is a principal or an agent in a revenue transaction. In April 2016, the FASB issued ASU 2016‑10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (ASU 2016‑10), which further clarifies the aspects of (a) identifying performance obligations and (b) the licensing implementation guidance. The effective date and transition requirements for ASU 2016‑08 and ASU 2016‑10 are the same as the effective date and transition requirements of ASU 2014‑09. These standards allow for either full retrospective or modified retrospective adoption. The Company will adopt the new guidance in fiscal 2018 using the modified retrospective method. The Company’s project team has reached conclusions on key accounting policies based on the assessment of the effects of the standard. ASU 2014‑09 will impact the recognition timing or classification of revenues and expenses for the loyalty program (by using the deferred revenue method instead of the incremental cost method), private label credit card and co-branded credit card programs, gift card breakage (by including breakage within net sales instead of selling, general and administrative expenses under the proportional model), and sales refund reserve (by grossing up the balance sheet to record a refund obligation and right of return asset instead of recognizing revenue net of returns). The adoption of ASU 2014-09 will not have a material impact on the Company’s consolidated financial position, results of operations or cash flows. Upon adoption, the Company will recognize the cumulative effect of adopting this guidance as an adjustment to the opening balance of retained earnings. Prior periods will not be retrospectively adjusted. In addition, the Company does not expect significant changes to its internal control over financial reporting due to the adoption. Leases In February 2016, the FASB issued ASU 2016‑02, Leases (Topic 842). This standard will change the way all leases of one year or more are treated. Under this guidance, lessees will be required to capitalize virtually all leases on the balance sheet as a right-of-use asset and recognize an associated financing lease liability or capital lease liability. The right-of-use asset represents the lessee’s right to use, or control the use of, a specified asset for the specified lease term. The lease liability represents the lessee’s obligation to make lease payments arising from the lease, measured on a discounted basis. Based on certain characteristics, leases are classified as financing leases or operating leases. Financing lease liabilities, those that contain provisions similar to capitalized leases, are amortized like capital leases under current GAAP as amortization expense and interest expense in the statement of operations. Operating lease liabilities are amortized on a straight-line basis over the life of the lease as lease expense in the statement of operations. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and have the option to use certain relief. ASU 2016‑02 is effective for public companies for annual reporting periods beginning after December 15, 2018, including interim reporting periods. Early adoption is permitted. After further evaluation, the Company will adopt the new standard in fiscal 2019. The Company’s ability to adopt depends on system readiness, including software procured from third-party providers, and completing an analysis of information necessary to quantify the financial statement impact. The Company formed a project team to review the current accounting policies and practices and assess the effect of the standard on the consolidated financial statements. The team completed a preliminary assessment of the potential impact of adopting ASU 2016‑02 on the consolidated financial statements. The adoption of ASU 2016‑02 will have a material impact on the Company’s consolidated financial position, but the Company is not able to quantify the difference at this time. The Company does not believe adoption of this standard will have a material impact on the Company’s consolidated results of operations or cash flows. Liabilities – Extinguishments of Liabilities In March 2016, the FASB issued ASU 2016‑04, Liabilities – Extinguishments of Liabilities (Subtopic 405‑20): Recognition of Breakage for Certain Prepaid Stored – Value Products. This update entitles a company to derecognize amounts related to expected breakage to the extent that it is probable a significant reversal of the recognized breakage amount will not subsequently occur. ASU 2016‑04 should be applied either using a modified retrospective transition method or retrospectively. ASU 2016‑04 is effective for annual and interim periods beginning after December 15, 2017, and early adoption is permitted. The adoption of ASU 2016‑04 is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. Statement of Cash Flows In August 2016, the FASB issued ASU 2016‑15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). ASU 2016‑15 provides classification guidance on certain cash receipts and cash payments, including, but not limited to, debt prepayment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of bank-owned life insurance policies and distributions received from equity method investees. The adoption of ASU 2016‑15 requires a retrospective transition method applied to each period presented. ASU 2016‑15 is effective for annual periods and interim periods beginning after December 15, 2017, and early adoption is permitted. The adoption of ASU 2016‑15 is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. In November 2016, the FASB issued ASU 2016‑18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the Emerging Issues Task Force) , which amends ASU Topic 230. ASU 2016‑18 requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer be required to present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. Entities will also have to disclose the nature of their restricted cash and restricted cash equivalent balances. ASU 2016‑18 is effective for fiscal years beginning after December 15, 2017 and interim periods within those years, and early adoption is permitted. Entities are required to apply the guidance retrospectively. The adoption of ASU 2016‑18 is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. Compensation – Stock Compensation: Scope of Modification Accounting In May 2017, the FASB issued ASU 2017‑09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting, which provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. ASU 2017‑09 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, and early adoption is permitted. The adoption of ASU 2017‑09 is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. Recently adopted accounting pronouncements Compensation – Stock Compensation In March 2016, the FASB issued ASU 2016‑09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This guidance changed how companies account for certain aspects of share-based payments to employees. Companies have to recognize all income tax effects of awards in the income statement when the awards vest or are settled, and additional paid-in capital pools were eliminated. The guidance on employer’s accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation and for forfeitures changed, and two practical expedients for non-public entities were added. ASU 2016‑09 was effective for annual and interim reporting periods beginning after December 15, 2016. The Company adopted the new guidance prospectively in the first quarter of fiscal 2017. The adoption resulted in a decrease in the provision for income taxes of $781 and $9,921 for the 13 weeks and 39 weeks ended October 28, 2017, respectively, due to the recognition of excess tax benefits for options exercised and the vesting of equity awards. The extent of excess tax benefits or deficiencies is subject to variation in the Company’s stock price and timing/extent of restricted stock units vesting and employee stock option exercises. Additionally, the consolidated statements of cash flows now present such tax benefits or deficiencies as an operating activity on a prospective basis. Based on the adoption methodology applied, the statement of cash flows classification of prior periods has not been adjusted. As allowed under the new guidance, the Company did not change its accounting principles relative to elements of this standard and continued its existing practice of estimating the number of awards that will be forfeited. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Oct. 28, 2017 | |
Commitments and contingencies | |
Commitments and contingencies | 3. and contingencies Leases – The Company leases retail stores, distribution and office facilities and certain equipment. Original non-cancelable lease terms range from three to ten years, and store leases generally contain renewal options for additional years. Total rent expense under operating leases was $60,687 and $51,580 for the 13 weeks ended October 28, 2017 and October 29, 2016, respectively. Total rent expense under operating leases was $175,282 and $150,424 for the 39 weeks ended October 28, 2017 and October 29, 2016, respectively. General litigation – The Company is involved in various legal proceedings that are incidental to the conduct of the business. In the opinion of management, the amount of any liability with respect to these proceedings, either individually or in the aggregate, will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
Notes payable
Notes payable | 9 Months Ended |
Oct. 28, 2017 | |
Notes payable | |
Notes payable | 4. On August 23, 2017, the Company entered into a Second Amended and Restated Loan Agreement (the Loan Agreement) with Wells Fargo Bank, National Association, as Administrative Agent, Collateral Agent and a Lender thereunder, Wells Fargo Bank, National Association and JPMorgan Chase Bank, N.A., as Lead Arrangers and Bookrunners, JPMorgan Chase Bank, N.A., as Syndication Agent and a Lender, PNC Bank, National Association, as Documentation Agent and a Lender, and the other lenders party thereto. The Loan Agreement matures on August 23, 2022, provides maximum revolving loans equal to the lesser of $400,000 or a percentage of eligible owned inventory (which borrowing base may, at the election of the Company and satisfaction of certain conditions, include a percentage of eligible owned receivables and qualified cash), contains a $20,000 subfacility for letters of credit and allows the Company to increase the revolving facility by an additional $50,000, subject to the consent by each lender and other conditions. The Loan Agreement contains a requirement to maintain a fixed charge coverage ratio of not less than 1.0 to 1.0 during such periods when availability under the Loan Agreement falls below a specified threshold. Substantially all of the Company’s assets are pledged as collateral for outstanding borrowings under the Loan Agreement. Outstanding borrowings will bear interest at either a base rate or the London Interbank Offered Rate plus 1.25%, and the unused line fee is 0.20% per annum. As of October 28, 2017, January 28, 2017 and October 29, 2016, the Company had no borrowings outstanding under the credit facility and the Company was in compliance with all terms and covenants of the Loan Agreement. |
Fair value measurements
Fair value measurements | 9 Months Ended |
Oct. 28, 2017 | |
Fair value measurements | |
Fair value measurements | 5. The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximates their estimated fair values due to the short maturities of these instruments. Fair value is measured using inputs from the three levels of the fair value hierarchy, which are described as follows: · Level 1 – observable inputs such as quoted prices for identical instruments in active markets. · Level 2 – inputs other than quoted prices in active markets that are observable either directly or indirectly through corroboration with observable market data. · Level 3 – unobservable inputs in which there is little or no market data, which would require the Company to develop its own assumptions. As of October 28, 2017, January 28, 2017 and October 29, 2016, the Company held financial liabilities of $16,143, $10,474 and $10,955, respectively, related to its non-qualified deferred compensation plan. The liabilities have been categorized as Level 2 as they are based on third-party reported values which are based primarily on quoted market prices of underlying assets of the funds within the plan. |
Investments
Investments | 9 Months Ended |
Oct. 28, 2017 | |
Investments | |
Investments | 6. The Company’s short-term investments as of October 28, 2017, January 28, 2017 and October 29, 2016 consist of $60,000, $30,000 and $110,000, respectively, in certificates of deposit. These short-term investments are carried at cost, which approximates fair value and are recorded in the Consolidated Balance Sheets in Short-term investments. The contractual maturity of the Company’s investments was less than twelve months at October 28, 2017 . |
Net Income per Common Share
Net Income per Common Share | 9 Months Ended |
Oct. 28, 2017 | |
Net income per common share | |
Net income per common share | 7. The following is a reconciliation of net income and the number of shares of common stock used in the computation of net income per basic and diluted share: 13 Weeks Ended 39 Weeks Ended October 28, October 29, October 28, October 29, (In thousands, except per share data) 2017 2016 2017 2016 Numerator for diluted net income per share – net income $ 104,645 $ 87,562 $ 347,061 $ 269,542 Denominator for basic net income per share – weighted-average common shares 61,299 62,371 61,778 62,625 Dilutive effect of stock options and non-vested stock 331 321 420 307 Denominator for diluted net income per share 61,630 62,692 62,198 62,932 Net income per common share: Basic $ 1.71 $ 1.40 $ 5.62 $ 4.30 Diluted $ 1.70 $ 1.40 $ 5.58 $ 4.28 The denominator for diluted net income per common share for the 13 weeks ended October 28, 2017 and October 29, 2016 excludes 259 and 21 employee stock options, respectively, due to their anti-dilutive effects. The denominator for diluted net income per common share for the 39 weeks ended October 28, 2017 and October 29, 2016 excludes 172 and 184 employee stock options, respectively, due to their anti-dilutive effects. Outstanding performance-based restricted stock units are included in the computation of dilutive shares only to the extent that the underlying performance conditions are satisfied prior to the end of the reporting period or would be considered satisfied if the end of the reporting period were the end of the related contingency period and the results would be dilutive under the treasury stock method. |
Share Repurchase Program
Share Repurchase Program | 9 Months Ended |
Oct. 28, 2017 | |
Share repurchase program | |
Share repurchase program | 8. On March 10, 2016, the Company announced that the Board of Directors authorized a share repurchase program (the 2016 Share Repurchase Program) pursuant to which the Company may repurchase up to $425,000 of the Company’s common stock. The 2016 Share Repurchase Program authorization revoked the previously authorized, but unused amounts of $172,386 from the earlier share repurchase program. The 2016 Share Repurchase Program did not have an expiration date, but provided for suspension or discontinuation at any time. As part of the 2016 Share Repurchase Program, the Company entered into an Accelerated Share Repurchase (ASR) agreement with Goldman, Sachs & Co. to repurchase $200,000 of the Company’s common stock. Under the ASR agreement, the Company paid $200,000 to Goldman, Sachs & Co. and received an initial delivery of 852 shares in the first quarter of 2016, which were retired and represented 80% of the total shares the Company expected to receive based on the market price at the time of the initial delivery. In May 2016, the ASR settled and an additional 153 shares were delivered to the Company and retired. The final number of shares delivered upon settlement was determined with reference to the average price of the Company’s common stock over the term of the agreement. The transaction was accounted for as an equity transaction. The par value of shares received was recorded as a reduction to common stock with the remainder recorded as a reduction to additional paid-in capital and retained earnings. Upon receipt of the shares, there was an immediate reduction in the weighted average common shares calculation for basic and diluted earnings per share. On March 9, 2017, the Company announced that the Board of Directors authorized a new share repurchase program (the 2017 Share Repurchase Program) pursuant to which the Company may repurchase up to $425,000 of the Company’s common stock. The 2017 Share Repurchase Program authorization revokes the previously authorized but unused amount of $79,863 from the 2016 Share Repurchase Program. The 2017 Share Repurchase Program does not have an expiration date and may be suspended or discontinued at any time. During the 39 weeks ended October 28, 2017, the Company purchased 1,23 8 shares of common stock for $309,767. During the 39 weeks ended October 29, 2016, excluding the shares repurchased under the ASR, the Company purchased 445 shares of common stock for $96,994. |
Summary of significant accoun15
Summary of significant accounting policies (Policies) | 9 Months Ended |
Oct. 28, 2017 | |
Summary of significant accounting policies | |
Fiscal quarter | Fiscal quarter The Company’s quarterly periods are the 13 weeks ending on the Saturday closest to April 30, July 31, October 31, and January 31. The Company’s third quarter in fiscal 2017 and 2016 ended on October 28, 2017 and October 29, 2016, respectively. |
Share-based compensation | Share-based compensation The Company measures share-based compensation cost on the grant date, based on the fair value of the award, and recognizes the expense on a straight-line method over the requisite service period for awards expected to vest. The Company estimated the grant date fair value of stock options using a Black-Scholes valuation model using the following weighted-average assumptions for the periods indicated: 39 Weeks Ended October 28, October 29, 2017 2016 Volatility rate Average risk-free interest rate Average expected life (in years) Dividend yield None None The Company granted 106 and 109 stock options during the 39 weeks ended October 28, 2017 and October 29, 2016, respectively. The compensation cost that has been charged against operating income for stock option grants was $2,212 and $1,983 for the 13 weeks ended October 28, 2017 and October 29, 2016, respectively. The compensation cost that has been charged against operating income for stock option grants was $6,589 and $5,965 for the 39 weeks ended October 28, 2017 and October 29, 2016, respectively. The weighted-average grant date fair value of these options was $69.61 and $52.95 for the 39 weeks ended October 28, 2017 and October 29, 2016, respectively. At October 28, 2017, there was approximately $20,562 of unrecognized compensation expense related to unvested stock options. The Company issued 45 and 52 restricted stock units during the 39 weeks ended October 28, 2017 and October 29, 2016, respectively. The compensation cost that has been charged against operating income for restricted stock units was $2,419 and $1,890 for the 13 weeks ended October 28, 2017 and October 29, 2016, respectively. The compensation cost that has been charged against operating income for restricted stock units was $6,872 and $5,335 for the 39 weeks ended October 28, 2017 and October 29, 2016, respectively. At October 28, 2017, there was approximately $16,199 of unrecognized compensation expense related to restricted stock units. The Company issued 21 and 24 performance-based restricted stock units during the 39 weeks ended October 28, 2017 and October 29, 2016, respectively. The compensation cost that has been charged against operating income for performance-based restricted stock units was $1,618 and $1,468 for the 13 weeks ended October 28, 2017 and October 29, 2016, respectively. The compensation cost that has been charged against operating income for performance-based restricted stock units was $4,437 and $2,903 for the 39 weeks ended October 28, 2017 and October 29, 2016, respectively. At October 28, 2017, there was approximately $9,708 of unrecognized compensation expense related to performance-based restricted stock units. |
Recent accounting pronouncements not yet adopted and Recently adopted accounting pronouncements | Recent accounting pronouncements not yet adopted Revenue Recognition from Contracts with Customers In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014‑09, Revenue from Contracts with Customers, issued as a new Topic, Accounting Standards Codification Topic 606 (ASU 2014‑09). The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that the Company will recognize revenue when the transfer of promised goods or services to customers occurs in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015‑14, Revenue from Contracts with Customers (Topic 606), which delayed the effective date of ASU 2014‑09 by one year. With the deferral, the revenue recognition standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods, with early adoption permitted. In March 2016, the FASB issued ASU 2016‑08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (ASU 2016‑08), which further clarifies how to implement revenue recognition guidance related to determining whether an entity is a principal or an agent in a revenue transaction. In April 2016, the FASB issued ASU 2016‑10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (ASU 2016‑10), which further clarifies the aspects of (a) identifying performance obligations and (b) the licensing implementation guidance. The effective date and transition requirements for ASU 2016‑08 and ASU 2016‑10 are the same as the effective date and transition requirements of ASU 2014‑09. These standards allow for either full retrospective or modified retrospective adoption. The Company will adopt the new guidance in fiscal 2018 using the modified retrospective method. The Company’s project team has reached conclusions on key accounting policies based on the assessment of the effects of the standard. ASU 2014‑09 will impact the recognition timing or classification of revenues and expenses for the loyalty program (by using the deferred revenue method instead of the incremental cost method), private label credit card and co-branded credit card programs, gift card breakage (by including breakage within net sales instead of selling, general and administrative expenses under the proportional model), and sales refund reserve (by grossing up the balance sheet to record a refund obligation and right of return asset instead of recognizing revenue net of returns). The adoption of ASU 2014-09 will not have a material impact on the Company’s consolidated financial position, results of operations or cash flows. Upon adoption, the Company will recognize the cumulative effect of adopting this guidance as an adjustment to the opening balance of retained earnings. Prior periods will not be retrospectively adjusted. In addition, the Company does not expect significant changes to its internal control over financial reporting due to the adoption. Leases In February 2016, the FASB issued ASU 2016‑02, Leases (Topic 842). This standard will change the way all leases of one year or more are treated. Under this guidance, lessees will be required to capitalize virtually all leases on the balance sheet as a right-of-use asset and recognize an associated financing lease liability or capital lease liability. The right-of-use asset represents the lessee’s right to use, or control the use of, a specified asset for the specified lease term. The lease liability represents the lessee’s obligation to make lease payments arising from the lease, measured on a discounted basis. Based on certain characteristics, leases are classified as financing leases or operating leases. Financing lease liabilities, those that contain provisions similar to capitalized leases, are amortized like capital leases under current GAAP as amortization expense and interest expense in the statement of operations. Operating lease liabilities are amortized on a straight-line basis over the life of the lease as lease expense in the statement of operations. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and have the option to use certain relief. ASU 2016‑02 is effective for public companies for annual reporting periods beginning after December 15, 2018, including interim reporting periods. Early adoption is permitted. After further evaluation, the Company will adopt the new standard in fiscal 2019. The Company’s ability to adopt depends on system readiness, including software procured from third-party providers, and completing an analysis of information necessary to quantify the financial statement impact. The Company formed a project team to review the current accounting policies and practices and assess the effect of the standard on the consolidated financial statements. The team completed a preliminary assessment of the potential impact of adopting ASU 2016‑02 on the consolidated financial statements. The adoption of ASU 2016‑02 will have a material impact on the Company’s consolidated financial position, but the Company is not able to quantify the difference at this time. The Company does not believe adoption of this standard will have a material impact on the Company’s consolidated results of operations or cash flows. Liabilities – Extinguishments of Liabilities In March 2016, the FASB issued ASU 2016‑04, Liabilities – Extinguishments of Liabilities (Subtopic 405‑20): Recognition of Breakage for Certain Prepaid Stored – Value Products. This update entitles a company to derecognize amounts related to expected breakage to the extent that it is probable a significant reversal of the recognized breakage amount will not subsequently occur. ASU 2016‑04 should be applied either using a modified retrospective transition method or retrospectively. ASU 2016‑04 is effective for annual and interim periods beginning after December 15, 2017, and early adoption is permitted. The adoption of ASU 2016‑04 is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. Statement of Cash Flows In August 2016, the FASB issued ASU 2016‑15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). ASU 2016‑15 provides classification guidance on certain cash receipts and cash payments, including, but not limited to, debt prepayment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of bank-owned life insurance policies and distributions received from equity method investees. The adoption of ASU 2016‑15 requires a retrospective transition method applied to each period presented. ASU 2016‑15 is effective for annual periods and interim periods beginning after December 15, 2017, and early adoption is permitted. The adoption of ASU 2016‑15 is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. In November 2016, the FASB issued ASU 2016‑18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the Emerging Issues Task Force) , which amends ASU Topic 230. ASU 2016‑18 requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer be required to present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. Entities will also have to disclose the nature of their restricted cash and restricted cash equivalent balances. ASU 2016‑18 is effective for fiscal years beginning after December 15, 2017 and interim periods within those years, and early adoption is permitted. Entities are required to apply the guidance retrospectively. The adoption of ASU 2016‑18 is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. Compensation – Stock Compensation: Scope of Modification Accounting In May 2017, the FASB issued ASU 2017‑09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting, which provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. ASU 2017‑09 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, and early adoption is permitted. The adoption of ASU 2017‑09 is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. Recently adopted accounting pronouncements Compensation – Stock Compensation In March 2016, the FASB issued ASU 2016‑09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This guidance changed how companies account for certain aspects of share-based payments to employees. Companies have to recognize all income tax effects of awards in the income statement when the awards vest or are settled, and additional paid-in capital pools were eliminated. The guidance on employer’s accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation and for forfeitures changed, and two practical expedients for non-public entities were added. ASU 2016‑09 was effective for annual and interim reporting periods beginning after December 15, 2016. The Company adopted the new guidance prospectively in the first quarter of fiscal 2017. The adoption resulted in a decrease in the provision for income taxes of $781 and $9,921 for the 13 weeks and 39 weeks ended October 28, 2017, respectively, due to the recognition of excess tax benefits for options exercised and the vesting of equity awards. The extent of excess tax benefits or deficiencies is subject to variation in the Company’s stock price and timing/extent of restricted stock units vesting and employee stock option exercises. Additionally, the consolidated statements of cash flows now present such tax benefits or deficiencies as an operating activity on a prospective basis. Based on the adoption methodology applied, the statement of cash flows classification of prior periods has not been adjusted. As allowed under the new guidance, the Company did not change its accounting principles relative to elements of this standard and continued its existing practice of estimating the number of awards that will be forfeited. |
Business and basis of present16
Business and basis of presentation (Tables) | 9 Months Ended |
Oct. 28, 2017 | |
Business and basis of presentation | |
Schedule of stores operated by geographic area | As of October 28, 2017, the Company operated 1,058 stores in 48 states and the District of Columbia, as shown in the table below. Number of Number of Location stores Location stores Alabama 17 Montana 6 Alaska 3 Nebraska 5 Arizona 25 Nevada 14 Arkansas 9 New Hampshire 7 California 134 New Jersey 27 Colorado 24 New Mexico 6 Connecticut 13 New York 40 Delaware 3 North Carolina 28 District of Columbia 1 North Dakota 3 Florida 71 Ohio 40 Georgia 33 Oklahoma 18 Idaho 8 Oregon 12 Illinois 52 Pennsylvania 40 Indiana 21 Rhode Island 3 Iowa 9 South Carolina 15 Kansas 11 South Dakota 2 Kentucky 11 Tennessee 20 Louisiana 16 Texas 97 Maine 3 Utah 13 Maryland 18 Virginia 25 Massachusetts 15 Washington 25 Michigan 44 West Virginia 6 Minnesota 15 Wisconsin 20 Mississippi 9 Wyoming 2 Missouri 19 Total 1,058 |
Summary of significant accoun17
Summary of significant accounting policies (Tables) | 9 Months Ended |
Oct. 28, 2017 | |
Summary of significant accounting policies | |
Schedule of weighted average assumptions to estimate grant date fair value of stock options | 39 Weeks Ended October 28, October 29, 2017 2016 Volatility rate Average risk-free interest rate Average expected life (in years) Dividend yield None None |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 9 Months Ended |
Oct. 28, 2017 | |
Net income per common share | |
Schedule of reconciliation of net income and number of shares of common stock used in computation of net income per basic and diluted share | 13 Weeks Ended 39 Weeks Ended October 28, October 29, October 28, October 29, (In thousands, except per share data) 2017 2016 2017 2016 Numerator for diluted net income per share – net income $ 104,645 $ 87,562 $ 347,061 $ 269,542 Denominator for basic net income per share – weighted-average common shares 61,299 62,371 61,778 62,625 Dilutive effect of stock options and non-vested stock 331 321 420 307 Denominator for diluted net income per share 61,630 62,692 62,198 62,932 Net income per common share: Basic $ 1.71 $ 1.40 $ 5.62 $ 4.30 Diluted $ 1.70 $ 1.40 $ 5.58 $ 4.28 |
Business and Basis of Present19
Business and Basis of Presentation - Store Locations (Details) | Oct. 28, 2017storestate |
Stores by state | |
Number of stores operated | 1,058 |
Number of states in which entity operates | state | 48 |
Alabama | |
Stores by state | |
Number of stores operated | 17 |
Alaska | |
Stores by state | |
Number of stores operated | 3 |
Arizona | |
Stores by state | |
Number of stores operated | 25 |
Arkansas | |
Stores by state | |
Number of stores operated | 9 |
California | |
Stores by state | |
Number of stores operated | 134 |
Colorado | |
Stores by state | |
Number of stores operated | 24 |
Connecticut | |
Stores by state | |
Number of stores operated | 13 |
Delaware | |
Stores by state | |
Number of stores operated | 3 |
District of Columbia | |
Stores by state | |
Number of stores operated | 1 |
Florida | |
Stores by state | |
Number of stores operated | 71 |
Georgia | |
Stores by state | |
Number of stores operated | 33 |
Idaho | |
Stores by state | |
Number of stores operated | 8 |
Illinois | |
Stores by state | |
Number of stores operated | 52 |
Indiana | |
Stores by state | |
Number of stores operated | 21 |
Iowa | |
Stores by state | |
Number of stores operated | 9 |
Kansas | |
Stores by state | |
Number of stores operated | 11 |
Kentucky | |
Stores by state | |
Number of stores operated | 11 |
Louisiana | |
Stores by state | |
Number of stores operated | 16 |
Maine | |
Stores by state | |
Number of stores operated | 3 |
Maryland | |
Stores by state | |
Number of stores operated | 18 |
Massachusetts | |
Stores by state | |
Number of stores operated | 15 |
Michigan | |
Stores by state | |
Number of stores operated | 44 |
Minnesota | |
Stores by state | |
Number of stores operated | 15 |
Mississippi | |
Stores by state | |
Number of stores operated | 9 |
Missouri | |
Stores by state | |
Number of stores operated | 19 |
Montana | |
Stores by state | |
Number of stores operated | 6 |
Nebraska | |
Stores by state | |
Number of stores operated | 5 |
Nevada | |
Stores by state | |
Number of stores operated | 14 |
New Hampshire | |
Stores by state | |
Number of stores operated | 7 |
New Jersey | |
Stores by state | |
Number of stores operated | 27 |
New Mexico | |
Stores by state | |
Number of stores operated | 6 |
New York | |
Stores by state | |
Number of stores operated | 40 |
North Carolina | |
Stores by state | |
Number of stores operated | 28 |
North Dakota | |
Stores by state | |
Number of stores operated | 3 |
Ohio | |
Stores by state | |
Number of stores operated | 40 |
Oklahoma | |
Stores by state | |
Number of stores operated | 18 |
Oregon | |
Stores by state | |
Number of stores operated | 12 |
Pennsylvania | |
Stores by state | |
Number of stores operated | 40 |
Rhode Island | |
Stores by state | |
Number of stores operated | 3 |
South Carolina | |
Stores by state | |
Number of stores operated | 15 |
South Dakota | |
Stores by state | |
Number of stores operated | 2 |
Tennessee | |
Stores by state | |
Number of stores operated | 20 |
Texas | |
Stores by state | |
Number of stores operated | 97 |
Utah | |
Stores by state | |
Number of stores operated | 13 |
Virginia | |
Stores by state | |
Number of stores operated | 25 |
Washington | |
Stores by state | |
Number of stores operated | 25 |
West Virginia | |
Stores by state | |
Number of stores operated | 6 |
Wisconsin | |
Stores by state | |
Number of stores operated | 20 |
Wyoming | |
Stores by state | |
Number of stores operated | 2 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies - Fiscal Quarter (Details) | 3 Months Ended | |
Oct. 28, 2017 | Oct. 29, 2016 | |
Summary of significant accounting policies | ||
Fiscal period | 91 days | 91 days |
Summary of Significant Accoun21
Summary of Significant Accounting Policies - Assumptions to Estimate Fair Value of Stock Options (Details) - Stock options | 9 Months Ended | |
Oct. 28, 2017 | Oct. 29, 2016 | |
Weighted-average assumptions to estimate fair value | ||
Volatility rate (as a percent) | 30.90% | 35.00% |
Average risk-free interest rate (as a percent) | 1.60% | 1.20% |
Average expected life | 3 years 6 months | 3 years 6 months |
Dividend yield (as a percent) | 0.00% | 0.00% |
Summary of Significant Accoun22
Summary of Significant Accounting Policies - Share-based Compensation - Stock Options (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Stock options | ||||
Granted (in shares) | 106 | 109 | ||
Compensation expense | $ 2,212 | $ 1,983 | $ 6,589 | $ 5,965 |
Weighted-average grant date fair value of options granted (in dollars per share) | $ 69.61 | $ 52.95 | ||
Unrecognized compensation expense | $ 20,562 | $ 20,562 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies - Share-based Compensation - Restricted Stock Units (Details) - Restricted stock units - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Restricted stock units | ||||
Issued (in shares) | 45 | 52 | ||
Compensation expense | $ 2,419 | $ 1,890 | $ 6,872 | $ 5,335 |
Unrecognized compensation cost | $ 16,199 | $ 16,199 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Share-based Compensation - Performance-based Restricted Stock Units (Details) - Performance-based restricted stock units - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Performance-based restricted stock units | ||||
Issued (in shares) | 21 | 24 | ||
Compensation expense | $ 1,618 | $ 1,468 | $ 4,437 | $ 2,903 |
Unrecognized compensation cost | $ 9,708 | $ 9,708 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Accounting Change for Income Tax Effects of Stock Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Item effected | ||||
Effect on provision for income tax | $ 58,338 | $ 52,310 | $ 185,020 | $ 161,826 |
ASU 2016 09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting | ||||
Item effected | ||||
Effect on provision for income tax | $ (781) | $ (9,921) |
Commitments and Contingencies -
Commitments and Contingencies - Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Leases | ||||
Total rent expense under operating leases | $ 60,687 | $ 51,580 | $ 175,282 | $ 150,424 |
Minimum | ||||
Leases | ||||
Original non-cancelable lease term | 3 years | |||
Maximum | ||||
Leases | ||||
Original non-cancelable lease term | 10 years |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | Oct. 28, 2017 | Oct. 28, 2017 | Jan. 28, 2017 | Oct. 29, 2016 |
Notes payable | ||||
Outstanding borrowings under credit facility | $ 0 | $ 0 | $ 0 | $ 0 |
Second Amended and Restated Loan Agreement | ||||
Notes payable | ||||
Unused line fee (as a percent) | 0.20% | |||
Second Amended and Restated Loan Agreement | Minimum | ||||
Notes payable | ||||
Fixed charge coverage ratio covenant (as a percent) | 100.00% | |||
Second Amended and Restated Loan Agreement | London Interbank Offered Rate | ||||
Notes payable | ||||
Interest rate margin (as a percent) | 1.25% | |||
Second Amended and Restated Loan Agreement | Revolving loans | ||||
Notes payable | ||||
Maximum borrowing capacity | $ 400,000,000 | 400,000,000 | ||
Contingent increase to revolving facility | 50,000,000 | |||
Second Amended and Restated Loan Agreement | Letters of credit | ||||
Notes payable | ||||
Maximum borrowing capacity | $ 20,000,000 | $ 20,000,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Oct. 28, 2017 | Jan. 28, 2017 | Oct. 29, 2016 |
Level 2 | Non-qualified plan | |||
Fair value measurements | |||
Fair value of financial liabilities | $ 16,143 | $ 10,474 | $ 10,955 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Oct. 28, 2017 | Jan. 28, 2017 | Oct. 29, 2016 |
Investments | |||
Certificates of deposit | $ 60,000 | $ 30,000 | $ 110,000 |
Net Income Per Common Share - R
Net Income Per Common Share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Net income per common share | ||||
Numerator for diluted net income per share - net income | $ 104,645 | $ 87,562 | $ 347,061 | $ 269,542 |
Denominator for basic net income per share - weighted-average common shares | 61,299 | 62,371 | 61,778 | 62,625 |
Dilutive effect of stock options and non-vested stock | 331 | 321 | 420 | 307 |
Denominator for diluted net income per share | 61,630 | 62,692 | 62,198 | 62,932 |
Net income per common share: | ||||
Basic | $ 1.71 | $ 1.40 | $ 5.62 | $ 4.30 |
Diluted | $ 1.70 | $ 1.40 | $ 5.58 | $ 4.28 |
Net Income Per Common Share - A
Net Income Per Common Share - Anti-dilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | |
Net income per common share | ||||
Employee stock options excluded due to their anti-dilutive effects | 259 | 21 | 172 | 184 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) shares in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
May 28, 2016 | Apr. 30, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | Mar. 09, 2017 | Mar. 08, 2017 | Mar. 10, 2016 | Mar. 09, 2016 | |
Share repurchase program | ||||||||
Shares repurchased and retired | $ 309,767,000 | $ 296,994,000 | ||||||
Common Stock | ||||||||
Share repurchase program | ||||||||
Shares repurchased and retired (in shares) | 1,238 | |||||||
2016 Share Repurchase Program | ||||||||
Share repurchase program | ||||||||
Amount remaining of authorized amount | $ 79,863,000 | |||||||
2016 Share Repurchase Program | Maximum | ||||||||
Share repurchase program | ||||||||
Authorized amount of share repurchase program | $ 425,000,000 | |||||||
Accelerated Share Repurchase Agreement (ASR) | ||||||||
Share repurchase program | ||||||||
Authorized amount of share repurchase program | $ 200,000,000 | |||||||
Amount paid upon entering into agreement | $ 200,000,000 | |||||||
Percentage of initial shares received to the total shares expected to be received | 80.00% | |||||||
Accelerated Share Repurchase Agreement (ASR) | Common Stock | ||||||||
Share repurchase program | ||||||||
Shares repurchased and retired (in shares) | 153 | 852 | ||||||
2014 Share Repurchase Program | ||||||||
Share repurchase program | ||||||||
Amount remaining of authorized amount | $ 172,386,000 | |||||||
2017 Share Repurchase Program | Maximum | ||||||||
Share repurchase program | ||||||||
Authorized amount of share repurchase program | $ 425,000,000 | |||||||
Share Repurchase Programs | ||||||||
Share repurchase program | ||||||||
Shares repurchased and retired | $ 309,767,000 | |||||||
Share Repurchase Programs | Common Stock | ||||||||
Share repurchase program | ||||||||
Shares repurchased and retired (in shares) | 1,238 | |||||||
Share repurchase programs, excluding Accelerated Share Repurchase | ||||||||
Share repurchase program | ||||||||
Shares repurchased and retired | $ 96,994,000 | |||||||
Share repurchase programs, excluding Accelerated Share Repurchase | Common Stock | ||||||||
Share repurchase program | ||||||||
Shares repurchased and retired (in shares) | 445 |