Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 30, 2021 | Mar. 22, 2021 | Jul. 24, 2020 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Jan. 30, 2021 | ||
Entity File Number | 001-37849 | ||
Entity Registrant Name | AT HOME GROUP INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 45-3229563 | ||
Entity Address, Address Line One | 1600 East Plano Parkway | ||
Entity Address, City or Town | Plano | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75074 | ||
City Area Code | 972 | ||
Local Phone Number | 265-6227 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | HOME | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 65,400,065 | ||
Entity Public Float | $ 459,884,503 | ||
Current Fiscal Year End Date | --01-30 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001646228 | ||
Amendment Flag | false | ||
ICFR Auditor Attestation Flag | true |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 30, 2021 | Jan. 25, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 125,842 | $ 12,082 |
Inventories, net | 364,473 | 417,763 |
Prepaid expenses | 13,456 | 10,693 |
Income tax receivable | 22,223 | 1,672 |
Other current assets | 11,619 | 5,962 |
Total current assets | 537,613 | 448,172 |
Operating lease right-of-use assets | 1,289,991 | 1,176,920 |
Property and equipment, net | 688,295 | 714,188 |
Goodwill | 319,732 | |
Trade name | 1,458 | 1,458 |
Debt issuance costs, net | 5,264 | 1,218 |
Restricted cash | 35 | 3 |
Noncurrent deferred tax asset | 16,815 | |
Other assets | 2,257 | 1,041 |
Total assets | 2,524,913 | 2,679,547 |
Current liabilities: | ||
Accounts payable | 130,327 | 119,191 |
Accrued and other current liabilities | 184,850 | 112,804 |
Revolving line of credit | 235,670 | |
Current portion of operating lease liabilities | 78,634 | 65,188 |
Current portion of long-term debt | 4,563 | 4,862 |
Total current liabilities | 398,374 | 537,715 |
Operating lease liabilities | 1,315,625 | 1,195,564 |
Long-term debt | 314,300 | 334,251 |
Deferred income taxes | 9,716 | |
Other long-term liabilities | 2,738 | 3,406 |
Total liabilities | 2,040,753 | 2,070,936 |
Stockholders' Equity | ||
Common stock; $0.01 par value; 500,000,000 shares authorized; 65,342,489 and 64,106,061 shares issued and outstanding, respectively | 653 | 641 |
Additional paid-in capital | 682,304 | 657,038 |
Accumulated deficit | (198,797) | (49,068) |
Total stockholders' equity | 484,160 | 608,611 |
Total liabilities and stockholders' equity | $ 2,524,913 | $ 2,679,547 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 30, 2021 | Jan. 25, 2020 |
Condensed Consolidated Balance Sheets | ||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 65,342,489 | 64,106,061 |
Common stock, outstanding shares | 65,342,489 | 64,106,061 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 | |
Condensed Consolidated Statements of Operations | |||
Net sales | $ 1,737,063 | $ 1,365,035 | $ 1,165,899 |
Cost of sales | 1,135,450 | 977,083 | 780,048 |
Gross profit | 601,613 | 387,952 | 385,851 |
Operating expenses | |||
Selling, general and administrative expenses | 348,203 | 302,300 | 303,453 |
Impairment charges | 319,732 | 255,230 | |
Depreciation and amortization | 8,775 | 7,626 | 6,363 |
Total operating expenses | 676,710 | 565,156 | 309,816 |
(Loss) gain on sale-leaseback | (115) | 17,742 | |
Operating (loss) income | (75,212) | (159,462) | 76,035 |
Interest expense, net | 28,493 | 31,801 | 27,056 |
Loss on extinguishment of debt | 3,179 | ||
(Loss) income before income taxes | (106,884) | (191,263) | 48,979 |
Income tax provision (benefit) | 42,845 | 23,172 | (17) |
Net (loss) income | $ (149,729) | $ (214,435) | $ 48,996 |
Net (loss) income per common share: | |||
Basic | $ (2.32) | $ (3.35) | $ 0.78 |
Diluted | $ (2.32) | $ (3.35) | $ 0.74 |
Weighted average shares outstanding: | |||
Basic | 64,426,355 | 63,975,633 | 62,936,959 |
Diluted | 64,426,355 | 63,975,633 | 66,299,646 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common StockAs adjusted | Common Stock | Additional Paid-in CapitalAs adjusted | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit)Adoption of ASU | Retained Earnings (Accumulated Deficit)As adjusted | Retained Earnings (Accumulated Deficit) | Adoption of ASU | As adjusted | Total |
Balance - Stockholder's Equity at Jan. 27, 2018 | $ 614 | $ 572,488 | $ 17,777 | $ 590,879 | ||||||
Balance - Stockholder's Equity (in shares) at Jan. 27, 2018 | 61,423,398 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Stock-based compensation | 49,526 | 49,526 | ||||||||
Exercise of stock options and other awards | $ 22 | 21,663 | 21,685 | |||||||
Exercise of stock options and other awards (in shares) | 2,186,286 | |||||||||
Net income (loss) | 48,996 | 48,996 | ||||||||
Balance - Stockholder's Equity at Jan. 26, 2019 | $ 636 | $ 636 | $ 643,677 | 643,677 | $ 98,594 | $ 165,367 | 66,773 | $ 98,594 | $ 809,680 | 711,086 |
Balance - Stockholder's Equity (in shares) at Jan. 26, 2019 | 63,609,684 | 63,609,684 | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Stock-based compensation | 7,423 | 7,423 | ||||||||
Exercise of stock options and other awards | $ 5 | 5,938 | 5,943 | |||||||
Exercise of stock options and other awards (in shares) | 496,377 | |||||||||
Net income (loss) | (214,435) | (214,435) | ||||||||
Balance - Stockholder's Equity at Jan. 25, 2020 | $ 641 | 657,038 | (49,068) | 608,611 | ||||||
Balance - Stockholder's Equity (in shares) at Jan. 25, 2020 | 64,106,061 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Retained earnings | (49,068) | |||||||||
Stock-based compensation | 12,155 | 12,155 | ||||||||
Exercise of stock options and other awards | $ 12 | 13,111 | 13,123 | |||||||
Exercise of stock options and other awards (in shares) | 1,236,428 | |||||||||
Net income (loss) | (149,729) | (149,729) | ||||||||
Balance - Stockholder's Equity at Jan. 30, 2021 | $ 653 | $ 682,304 | $ (198,797) | 484,160 | ||||||
Balance - Stockholder's Equity (in shares) at Jan. 30, 2021 | 65,342,489 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Retained earnings | $ (198,797) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Thousands | Jan. 26, 2019USD ($) |
Adoption of ASU | |
Deferred tax assets | $ 32,743 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 | |
Operating Activities | |||
Net (loss) income | $ (149,729) | $ (214,435) | $ 48,996 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 71,441 | 69,418 | 56,529 |
Non-cash lease expense | 79,435 | 68,009 | |
Impairment charges | 319,732 | 255,230 | |
Loss on extinguishment of debt | 3,179 | ||
Non-cash interest expense | 4,004 | 2,251 | 2,181 |
Loss (gain) on sale-leaseback | 115 | (17,742) | |
Amortization of deferred gain on sale-leaseback | (8,751) | ||
Deferred income taxes | 26,531 | 3,247 | (19,244) |
Stock-based compensation | 12,155 | 7,423 | 49,526 |
Other non-cash losses, net | 2,059 | 1,398 | 553 |
Changes in operating assets and liabilities: | |||
Inventories | 53,290 | (35,740) | (112,179) |
Prepaid expenses and other current assets | (29,396) | (1,619) | 989 |
Other assets | (1,216) | (96) | (629) |
Accounts payable | 18,166 | 4,149 | 29,261 |
Accrued liabilities | 71,970 | 3,356 | 19,156 |
Operating lease liabilities | (59,000) | (39,252) | |
Deferred rent | 19,946 | ||
Net cash provided by operating activities | 422,736 | 105,597 | 86,334 |
Investing Activities | |||
Purchase of property and equipment | (72,286) | (246,758) | (357,521) |
Net proceeds from sale of property and equipment | 32,545 | 123,294 | 148,398 |
Net cash used in investing activities | (39,741) | (123,464) | (209,123) |
Financing Activities | |||
Payments under lines of credit | (465,370) | (876,510) | (721,177) |
Proceeds from lines of credit | 229,700 | 891,170 | 780,187 |
Payment of Term Loan | (335,982) | (3,518) | (3,000) |
Payment of debt issuance costs | (18,255) | (160) | (1,009) |
Payments on long-term debt | (3,083) | (439) | (316) |
Proceeds from issuance of long-term debt | 310,664 | 50,000 | |
Payments on financing obligations | (265) | ||
Proceeds from financing obligations | 1,625 | ||
Proceeds from stock, including tax | 13,123 | 5,943 | 21,685 |
Net cash (used in) provided by financing activities | (269,203) | 16,486 | 127,730 |
Increase (decrease) in cash, cash equivalents and restricted cash | 113,792 | (1,381) | 4,941 |
Cash, cash equivalents and restricted cash, beginning of period | 12,085 | 13,466 | 8,525 |
Cash, cash equivalents and restricted cash, end of period | 125,877 | 12,085 | 13,466 |
Supplemental Cash Flow Information | |||
Cash paid for interest | 18,712 | 29,964 | 23,297 |
Cash paid for income taxes | 37,171 | 29,246 | 17,013 |
Supplemental Information for Non-cash Investing and Financing Activities | |||
(Decrease) increase in current liabilities of property and equipment | (7,195) | $ (10,415) | 14,297 |
Property and equipment acquired under finance lease | $ 15,177 | ||
Property and equipment reduction due to sale-leaseback | 111,932 | ||
Property and equipment additions due to build-to-suit lease transactions | $ 13,679 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 30, 2021 | |
Summary of Significant Accounting Policies | |
Nature of Operations and Summary of Significant Accounting Policies | 1. N ature of Operations and Summary of Significant Accounting Policies Description of Business At Home is a home décor superstore focused exclusively on providing a broad assortment of everyday and seasonal products for any room, in any style, for any budget. As of January 30, 2021, we operated 219 home décor superstores in 40 states, primarily in the South Central, Southeastern, Mid-Atlantic and Midwestern regions of the United States. At Home is owned and operated by At Home Group Inc. and its wholly-owned subsidiaries. All references to “we”, “us”, “our” and the “Company” and similar expressions are references to At Home Group Inc. and our consolidated, wholly-owned subsidiaries, unless otherwise expressly stated or the context otherwise requires. Fiscal Year We report on the basis of a 52- or 53-week fiscal year, which ends on the last Saturday in January. References to a fiscal year mean the year in which that fiscal year ends. References herein to “fiscal year 2021” relate to the 53 weeks ended January 30, 2021, references herein to “fiscal year 2020” relate to the 52 weeks ended January 25, 2020, and references herein to “fiscal year 2019” relate to the 52 weeks ended January 26, 2019. Consolidation The accompanying consolidated financial statements include the accounts of At Home Group Inc. (“At Home Group”) and its consolidated wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company does not have any components of other comprehensive income recorded within its consolidated financial statements, and, therefore, does not separately present a statement of comprehensive income in its consolidated financial statements. Use of Estimates Preparing financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of certain assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Because of the use of estimates inherent in the financial reporting process, actual results may differ from these estimates. Reclassification Certain prior period amounts have been reclassified to conform with the current period presentation within the consolidated financial statements and the accompanying notes, including that the repayment of Term Loan is now separated from payments on long-term debt within financing activities on the consolidated statements of cash flows. This reclassification had no effect on previously reported results of operations or retained earnings. Segment Information Management has determined that we have one operating segment, and therefore, one reportable segment. Our chief operating decision maker (“CODM”) is our Chief Executive Officer; our CODM reviews financial performance and allocates resources at a consolidated level on a recurring basis. All of our assets are located in and all of our revenue is derived in the United States. Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less as well as credit card receivables. At January 30, 2021, our cash and cash equivalents were comprised primarily of cash from operations and credit card receivables. At January 25, 2020, our cash and cash equivalents were comprised primarily of credit card receivables. Restricted Cash Restricted cash consists of cash and cash equivalents reserved for a specific purpose that is not readily available for immediate or general business use. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows (in thousands): January 30, 2021 January 25, 2020 Cash and cash equivalents $ 125,842 $ 12,082 Restricted cash 35 3 Cash, cash equivalents and restricted cash $ 125,877 $ 12,085 Inventories Inventories are comprised of finished merchandise and are stated at the lower of cost or net realizable value with cost determined using the weighted-average method. The cost of inventories include the actual landed cost of an item at the time it is received in our distribution center, or at the point of shipment for certain international shipments, as well as transportation costs to our distribution center and to our retail stores, if applicable. Net inventory cost is recognized through cost of sales when the inventory is sold. Physical inventory counts are typically performed for all of our stores at least once per year by a third-party inventory counting service. Due to the COVID-19 pandemic, a majority of stores, but not all, were counted during fiscal year 2021. Inventory records are adjusted to reflect actual inventory counts and any resulting shortage (“shrinkage”) is recognized. Reserves for shrinkage are estimated and recorded throughout the fiscal year as a percentage of sales based on the most recent physical inventory, in combination with historical experience. We also evaluate our merchandise to ensure that the expected net realizable value of the merchandise held at the end of a fiscal year exceeds cost. In the event that the expected net realizable value is less than cost, we reduce the value of that inventory accordingly. Consideration Received from Vendors We receive vendor support in the form of cash payments or allowances for a variety of vendor-sponsored programs, such as volume rebates, markdown allowances and advertising. We also receive consideration for certain compliance programs. We have agreements in place with each vendor setting forth the specific conditions for each allowance. We generally earn vendor allowances as a percentage of certain merchandise purchases with no minimum purchase requirements. Typically, our vendor allowance programs extend for a period of twelve months. Vendor support reduces our inventory costs based on the underlying provisions of the agreement. Vendor compliance charges are recorded as a reduction of the cost of merchandise inventories and a subsequent reduction in cost of sales when the inventory is sold. Property and Equipment Property and equipment is recorded at cost less accumulated depreciation and amortization. Depreciation of property and equipment other than leasehold improvements is recorded on a straight-line basis over the estimated useful lives of the assets ranging from 3 to 40 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the remaining lease term, including renewals determined to be reasonably assured, or the estimated useful life of the related improvement. Amortization of property under finance leases is on a straight-line basis over the lease term and is included in depreciation expense. We expense all costs for internal-use software and hosting arrangements related to a service contract incurred in the preliminary project stage. Certain direct costs incurred at later stages and associated with the development and purchase of internal-use software and hosting arrangements related to a service contract, including external costs for services and internal payroll costs related to the software project, are capitalized within property and equipment in the accompanying consolidated balance sheets. Capitalized costs are amortized on a straight-line basis over the estimated useful lives of the asset, generally between three We capitalize major replacements and improvements and expense routine maintenance and repairs as incurred. We remove the cost of assets sold or retired and the related accumulated depreciation or amortization from the consolidated balance sheets and include any resulting gain or loss in the accompanying consolidated statements of operations. Capitalized Interest We capitalize interest on borrowings during the active construction period of major capital projects. Capitalized interest is added to the cost of the underlying assets and is amortized over the useful lives of the assets. Our capitalized interest cost was approximately $1.9 million, $2.1 million and $3.1 million for the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019, respectively. Fair Value Measurements We follow the provisions of Accounting Standards Codification (“ASC”) 820 (Topic 820, “ Fair Value Measurements and Disclosures ● Level 1 - Unadjusted quoted market prices for identical assets or liabilities in active markets that we have the ability to access. ● Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable ( e.g. , interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data. ● Level 3 - Valuations based on models where significant inputs are not observable. The unobservable inputs reflect our own assumptions about the assumptions that market participants would use. ASC 820 requires us to maximize the use of observable inputs and minimize the use of unobservable inputs. If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument is categorized based upon the lowest level of input that is significant to the fair value calculation. The fair value of all current financial instruments, including cash and cash equivalents and accounts payable, approximates carrying value because of the short-term nature of these instruments. We have variable and fixed rates on our long-term debt. The fair value of long-term debt with variable rates approximates carrying value as the interest rates of these amounts approximate market rates. We determine fair value on our fixed rate debt by using quoted market prices and current interest rates. At January 30, 2021, the fair value of our $275.0 million aggregate principal amount of 8.750% Senior Secured Notes maturing on September 1, 2025 (the “Notes”) was $301.1 million, which was approximately $26.1 million above the carrying value of $275.0 million. Fair value for the Notes was determined using Level 2 inputs. At January 30, 2021, the fair value of our fixed rate mortgage due August 22, 2022 approximated the carrying value of $5.7 million. Fair value for the fixed rate mortgage was determined using Level 2 inputs. Goodwill Goodwill is tested for impairment at the operating segment level at least annually or more frequently if events occur which indicate a potential reduction in the fair value of a reporting unit's net assets below its carrying value. Our regular annual goodwill impairment testing has historically been performed during the fourth quarter of the fiscal year, with effect from the beginning of the fourth quarter. We have only one operating segment and we do not have a reporting unit that exists below our operating segment. If the fair value of the operating segment is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down for this difference. We measure the fair value of the operating segment using a combination of the income approach and market approach to determine the fair value of the Company to be compared against the carrying value of net assets. The income approach, using the discounted cash flow method, includes key factors used in the valuation of the Company (a Level 3 valuation) which include, but are not limited to, management's plans for future operations, recent operating results, income tax rates and discounted projected future cash flows. The projected cash flows used in the income approach for assessing goodwill valuation include numerous assumptions such as, sales projections assuming positive comparable store sales growth, operating margins, store count and capital expenditures; all of which are derived from our long-term forecasts. Additionally, the assumptions regarding weighted average cost of capital used information from comparable companies and management's judgment related to risks associated with the operations of our reporting unit. The market approach includes market multiples of peer companies and recent transactions (a Level 3 input). We have the option to perform a qualitative assessment of goodwill rather than completing the quantitative assessment to determine whether it is more likely than not that the fair value of an operating segment is less than its carrying amount, including goodwill and other intangible assets. If we conclude that this is the case, we must perform the quantitative assessment. Otherwise, we may forego the quantitative assessment and do not need to perform any further testing. During the first fiscal quarter of fiscal year 2021, because we continued to experience a decline in operating performance and a sustained decline in our market capitalization substantially driven by the global outbreak of COVID-19, coupled with a decision to further reduce our near-term growth model, we conducted an interim impairment testing of goodwill. Based on the results of that test, we concluded that goodwill was fully impaired and we recognized a non-cash impairment charge of $319.7 million, which is presented on the consolidated statement of operations for the fiscal year ended January 30, 2021. The projected cash flows used in the income approach for assessing goodwill valuation include numerous assumptions such as, sales projections assuming positive comparable store sales growth, operating margins, store count and capital expenditures; all of which are derived from our long-term forecasts. Additionally, the assumptions regarding weighted average cost of capital used information from comparable companies and management's judgment related to risks associated with the operations of our reporting unit. During the fourth quarter of fiscal year 2020, because we experienced a decline in operating performance, a sustained decline in our market capitalization and a downgrade of our Term Loan by certain rating agencies, we conducted an interim impairment testing of goodwill. Based on the results of our impairment test performed, we recognized a goodwill impairment charge of $250.0 million for the fiscal year ended January 25, 2020. No impairment of goodwill was recognized during the fiscal year ended January 26, 2019. Impairment of Long-Lived and Indefinite-Lived Assets We evaluate the recoverability of the carrying value of long-lived assets whenever events or changes in circumstances indicate their carrying amount may not be recoverable. Our evaluation compares the carrying value of the assets with their estimated future undiscounted cash flows expected to result from the use and eventual disposition of the assets. We evaluate long-lived intangible assets at an individual store level, which is the lowest level of identifiable cash flows. We evaluate corporate assets or other long-lived assets that are not store-specific at the consolidated level. To estimate store-specific future cash flows, we make assumptions about key store variables, including sales, growth rate, gross margin, payroll and other controllable expenses. Stores that are owned by us are further evaluated taking into consideration the fair market value of the property compared to the carrying value of the assets. Furthermore, management considers other factors when evaluating stores for impairment, including the individual store's execution of its operating plan and other local market conditions. Our estimates are subject to uncertainty and may be affected by a number of factors outside our control, including general economic conditions and the competitive environment. An impairment is recognized once all the factors noted above are taken into consideration and it is determined that the carrying amount of the store's assets are not recoverable. The impairment loss would be recognized in the amount by which the carrying amount of a long-lived asset exceeds its fair value, excluding assets that can be redeployed. No impairment of long-term assets was recognized during the fiscal years ended January 30, 2021 and January 26, 2019. During the fiscal year ended January 25, 2020, we recognized a non-cash impairment charge of $5.2 million in connection with store closure and relocation decisions. We test our indefinite-lived trade name intangible asset annually for impairment or more frequently if impairment indicators arise. If the fair value of the indefinite-lived intangible asset is lower than its carrying amount, the asset is written down to its fair value. The fair value of our trade name (a Level 3 valuation) was calculated using a relief-from-royalty approach, which assumes the value of the trade name is the discounted cash flows of the amount that would be paid by a hypothetical market participant had they not owned the trade name and instead licensed the trade name from another company. The carrying value of the At Home trade name as of January 30, 2021 is approximately $1.5 million. No impairment of our indefinite-lived trade name intangible asset was recognized during the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019. Debt Issuance Costs Debt issuance costs are costs incurred in connection with obtaining or modifying financing arrangements. These costs are capitalized as a direct deduction from the carrying value of the debt, other than costs incurred in conjunction with our line of credit, which are capitalized as an asset, and amortized over the term of the respective debt agreements. Total amortization expense related to debt issuance costs was approximately $3.9 million, $2.2 million and $1.8 million for the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019, respectively. Insurance Liabilities We were fully insured for commercial general liability claims during the fiscal year ended January 30, 2021. We were fully insured for workers’ compensation claims through November 30, 2020 and purchased insurance coverage that limited our aggregate exposure for individual claims to $250,000 per claim beginning on December 1, 2020. We utilize a combination of commercial insurance and self-insurance for employee-related health care plans. The cost of our health care plan is borne in part by our employees. We purchase insurance coverage that limits our aggregate exposure for individual claims to $175,000 per employee-related health care claim. Health care reserves are based on actual claims experience and an estimate of claims incurred but not reported. Reserves for workers' compensation are determined through the use of actuarial studies. Due to the judgments and estimates utilized in determining these reserves, they are subject to a high degree of variability. In the event our insurance carriers are unable to pay claims submitted to them, we would record a liability for such estimated payments we expect to incur. Revenue Recognition Revenue from sales of our merchandise is recognized when the customer takes possession of the merchandise. Revenue is presented net of sales taxes collected. We allow for merchandise to be returned within 60 days from the purchase date and provide a reserve for estimated returns. See “ Note 8—Revenue Recognition Cost of Sales Cost of sales are included in merchandise inventories and expensed as the merchandise is sold. We include the following expenses in cost of sales: ● cost of merchandise, net of inventory shrinkage, damages and vendor allowances; ● inbound freight and internal transportation costs such as distribution center-to-store freight costs; ● costs of operating our distribution center, including labor, occupancy costs, supplies and depreciation; and ● store occupancy costs including rent, insurance, taxes, common area maintenance, utilities, repairs, maintenance and depreciation. Selling, General and Administrative Expenses Selling, general and administrative expenses include payroll, benefits and other personnel expenses for corporate and store employees, including stock-based compensation expense, consulting, legal and other professional services expenses, advertising expenses, occupancy costs for our corporate headquarters and various other expenses. Store Pre-Opening Costs We expense pre-opening costs for new stores as they are incurred. During the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019, store pre-opening costs were approximately $17.6 million, $26.7 million and $21.7 million, respectively. Store pre-opening costs, such as occupancy expenses, advertising and labor are primarily included in selling, general and administrative expenses. Marketing and Advertising Marketing and advertising costs, exclusive of store pre-opening marketing and advertising expenses discussed above, include billboard, newspaper, radio, digital and other advertising mediums. Marketing and advertising costs are expensed when first run and included in selling, general and administrative expenses. Total marketing and advertising expenses were approximately $42.7 million, $44.9 million and $34.9 million for the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019, respectively. Stock-Based Compensation We account for stock-based compensation in accordance with ASC 718 (Topic 718, “ Compensation—Stock Compensation We estimate fair value of each stock option grant on the date of grant based upon the Black-Scholes option pricing model, with the exception of a special one-time initial public offering transaction bonus grant which was valued on the date of grant using the Monte Carlo simulation method. For restricted stock unit awards and performance stock unit awards, grant date fair value is determined based upon the closing trading value of our common stock on the New York Stock Exchange (the “NYSE”) on the date of grant and our forfeiture assumptions are estimated based on historical experience. The Black-Scholes option pricing model requires various significant judgmental assumptions in order to derive a final fair value determination for each type of award including the following: ● Expected term —The expected term of the options represents the period of time between the grant date of the options and the date the options are either exercised or canceled. ● Expected volatility —The expected volatility is calculated based partially on the historical volatility of our common stock and partially on the historical volatility of the common stock of comparable companies. ● Expected dividend yield —The expected dividend yield is based on our expectation of not paying dividends on its common stock for the foreseeable future. ● Risk-free interest rate —The risk-free interest rate is the average U.S. Treasury rate in effect at the time of grant and with a maturity that approximates the expected term. All grants of our stock options have an exercise price equal to or greater than the fair market value of our common stock on the date of grant. Income Taxes The provision for income taxes is accounted for under the asset and liability method prescribed by ASC 740 (Topic 740, “ Income Taxes in the period the tax rate changes are enacted. When necessary, a valuation allowance may be recorded against deferred tax assets in order to properly reflect the amount that is more likely than not to be realized. We recognize the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 30, 2021 | |
Property and Equipment | |
Property and Equipment | 2. Property and Equipment Property and equipment consists of the following (in thousands): January 30, 2021 January 25, 2020 Land $ 58,271 $ 67,674 Buildings 110,606 119,302 Computer hardware and software 80,141 67,508 Equipment, furniture and fixtures 202,508 190,568 Leasehold improvements 495,896 464,791 Construction in progress 59,336 52,364 1,006,758 962,207 Less: accumulated depreciation and amortization (318,463) (248,019) Property and equipment, net $ 688,295 $ 714,188 Depreciation and amortization expense for the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019 totaled approximately $71.4 million, $69.4 million and $56.5 million, respectively. Approximately $62.7 million, $61.8 million and $50.2 million of depreciation and amortization expense is included in cost of sales for the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019, respectively. In addition, we recorded $5.2 million in impairment charges in connection with store closure and relocation decisions for the fiscal year ended January 25, 2020. |
Sale-Leaseback Transactions
Sale-Leaseback Transactions | 12 Months Ended |
Jan. 30, 2021 | |
Sale-Leaseback Transactions | |
Sale-Leaseback Transactions | 3 . Sale-Leaseback Transactions In July 2020, we sold three of our properties in Cincinnati, Ohio; Grand Chute, Wisconsin; and Lutz, Florida for a total of $33.2 million, resulting in a net loss of $0.1 million. Contemporaneously with the closing of the sales, we entered into leases pursuant to which we leased back the properties for cumulative initial annual rent of $2.9 million, subject to annual escalations. The leases are being accounted for as operating leases. In September 2019, we sold four of our properties in Tempe, Arizona; Avon, Indiana; Mount Juliet, Tennessee; and Cypress, Texas for a total of $50.5 million, resulting in a net gain of $1.1 million. Contemporaneously with the closing of the sale, we entered into a lease pursuant to which we leased back the properties for cumulative initial annual rent of $3.7 million, subject to annual escalations. The lease is being accounted for as an operating lease. In March 2019, we sold five of our properties in Frederick, Maryland; Live Oak, Texas; Mansfield, Texas; Plano, Texas; and Whitehall, Pennsylvania for a total of $74.7 million, resulting in a net gain of $16.6 million. Contemporaneously with the closing of the sale, we entered into a lease pursuant to which we leased back the properties for cumulative initial annual rent of $5.0 million, subject to annual escalations. The lease is being accounted for as an operating lease. In October 2018, we sold four of our properties in Gilbert, Arizona; Pearland, Texas; Richmond, Texas; and Rogers, Arkansas for a total of $56.5 million, resulting in a net gain of $3.1 million. Contemporaneously with the closing of the sale, we entered into two leases pursuant to which we leased back the properties for cumulative initial annual rent of $3.8 million, subject to annual escalations. The leases are being accounted for as operating leases. Prior to the adoption of ASC 842, we deferred the net gain on the sale of the properties and included the deferred rent liabilities on our consolidated balance sheet. We amortized the gain to rent expense on a straight line basis. Upon adoption of ASC 842, the remaining deferred net gain has been recognized as a cumulative-effect adjustment to opening retained earnings for fiscal year 2020. In July 2018, we sold three of our properties in Clarksville, Tennessee; Shreveport, Louisiana; and Wixom, Michigan for a total of $43.6 million, resulting in a net gain of $10.7 million. Contemporaneously with the closing of the sale, we entered into a lease pursuant to which we leased back the properties for cumulative initial annual rent of $3.0 million, subject to annual escalations. The lease is being accounted for as an operating lease. Prior to the adoption of ASC 842, we deferred the net gain on the sale of the properties and included the deferred rent liabilities on our consolidated balance sheet. We amortized the gain to rent expense on a straight line basis. Upon adoption of ASC 842, the remaining deferred net gain has been recognized as a cumulative-effect adjustment to opening retained earnings for fiscal year 2020. In February 2018, we sold four of our properties in Blaine, Minnesota; Fort Worth, Texas; Jackson, Mississippi; and Memphis, Tennessee for a total of $50.3 million, resulting in a net gain of $22.6 million. Contemporaneously with the closing of the sale, we entered into a lease pursuant to which we leased back the properties for cumulative initial annual rent of $3.4 million, subject to annual escalations. The lease is being accounted for as an operating lease. Prior to the adoption of ASC 842, we deferred the net gain on the sale of the properties and included the deferred rent liabilities on our consolidated balance sheet. We amortized the gain to rent expense on a straight line basis. Upon adoption of ASC 842, the remaining deferred net gain has been recognized as a cumulative-effect adjustment to opening retained earnings for fiscal year 2020. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Jan. 30, 2021 | |
Accrued Liabilities | |
Accrued and Other Current Liabilities | 4. Accrued Liabilities Accrued liabilities consist of the following (in thousands): January 30, 2021 January 25, 2020 Inventory in-transit $ 30,553 $ 21,047 Accrued payroll and other employee-related liabilities 42,592 12,002 Accrued taxes, other than income 25,124 17,220 Accrued interest 11,304 5,346 Insurance liabilities 1,344 1,174 Gift card liability 10,732 9,224 Construction costs 5,231 7,090 Accrued inbound freight 27,511 19,803 Sales returns reserve 3,790 2,975 Accrued marketing 5,831 1,670 Accrued utilities 1,145 1,443 Other 19,693 13,810 Total accrued liabilities $ 184,850 $ 112,804 |
Revolving Line of Credit
Revolving Line of Credit | 12 Months Ended |
Jan. 30, 2021 | |
Revolving Line of Credit | |
Revolving Line of Credit | 5. R evolving Line of Credit In October 2011, we entered into a senior secured asset-based lending credit facility (the “ABL Facility”), which originally provided for cash borrowings or issuances of letters of credit of up to $80.0 million based on defined percentages of eligible inventory and credit card receivable balances. We have subsequently amended the credit agreement that governs the ABL Facility (the “ABL Agreement”) from time to time to, among other things, increase the aggregate revolving commitments available thereunder. After giving effect to prior amendments to the ABL Agreement, the ABL Agreement currently provides for (i) aggregate revolving commitments of $425.0 million, with a sublimit for the issuance of letters of credit of $50.0 million and a sublimit for the issuance of swingline loans of $20.0 million and (ii) a tranche of term loans in a principal amount of $35.0 million on a “first-in, last out” basis (the “FILO Loans”). The ABL Agreement was recently further amended to extend the maturity date of the revolving credit loans under the ABL Facility as described below. For more information on the FILO Loans, see “ Note 6 – Long-Term Debt On August 28, 2020, At Home Holding III Inc. (“At Home III” or the “Issuer”), and At Home Stores LLC (collectively, the “ABL Borrowers”) and the guarantors under the ABL Facility entered into an amendment to the ABL Agreement (the “Ninth Amendment”) with Bank of America, N.A., which amended the ABL Agreement to, among other things, extend the maturity of revolving credit loans provided thereunder to the earlier of (i) August 28, 2025 and (ii) the date of termination of the commitments under such revolving credit facility pursuant to the terms of the ABL Agreement. As of January 30, 2021, we had no borrowings outstanding in respect of the revolving credit loans under the ABL Facility, approximately $1.2 million in face amount of letters of credit had been issued and we had availability of approximately $312.6 million. Revolving credit loans outstanding under the ABL Facility bear interest at a rate per annum equal to, at our option: (x) the higher of (i) the Federal Funds Rate plus 1/2 of 1.00% plus each applicable margin The ABL Facility contains a number of covenants that, among other things, restrict the ability of the ABL Borrowers, subject to specified exceptions, to incur additional debt; incur additional liens and contingent liabilities; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve ourselves; engage in businesses that are not in a related line of business; make loans, advances or guarantees; pay dividends; engage in transactions with affiliates; and make investments. In addition, the ABL Agreement contains certain cross-default provisions. The ABL Agreement includes a minimum availability covenant whereby the ABL Borrowers and their restricted subsidiaries must maintain at all times availability (i.e., an amount equal to (i) the lesser of (A) the aggregate revolving credit commitments at such time and (B) the revolving borrowing base minus (ii) the total revolving credit loans outstanding) in excess of the greater of (x) $35.0 million and 10.0% of the combined loan cap specified in the ABL Agreement (i.e., the sum of (i) the lesser of (A) the aggregate revolving credit commitments at such time and (B) the revolving borrowing base and (ii) the total outstanding amount of FILO Loans). As of January 30, 2021, the minimum availability required by the covenant was $35.0 million. The ABL Agreement includes a mandatory prepayment provision requiring the ABL Borrowers to prepay any outstanding revolving credit loans to the extent the total amount of cash and cash equivalents of At Home Holding II Inc. (“At Home II”), the ABL Borrowers and their restricted subsidiaries (subject to certain exclusions) exceeds $35.0 million. As of January 30, 2021 and January 25, 2020, we were in compliance with all covenants prescribed in the ABL Facility. The ABL Facility is secured (a) on a first-priority basis by substantially all of the cash, cash equivalents, deposit accounts, accounts receivables, other receivables, inventory and certain related assets of the ABL Borrowers and the guarantors party to the ABL Agreement (collectively, the “ABL Priority Collateral”) of the ABL Borrowers and the guarantors party to the ABL Facility and (b) on a second-priority basis by substantially all of the assets of the ABL Borrowers and the guarantors party to the ABL Agreement other than the ABL Priority Collateral (collectively, “Notes Priority Collateral”), in each case subject to certain exceptions (collectively, “Collateral”); provided, however, that since our amendment of the ABL Facility in July 2017, real property that may secure the Notes from time to time does not form part of the collateral under the ABL Facility. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 30, 2021 | |
Long-Term Debt | |
Long-Term Debt | 6. L ong-Term Debt Long-term debt consists of the following (in thousands): January 30, 2021 January 25, 2020 Senior Secured Notes $ 275,000 $ — Term Loan — 335,982 FILO Loans 33,250 — Note payable, bank (a) 5,675 5,825 Obligations under finance leases 16,260 1,533 Total debt 330,185 343,340 Less: current maturities 4,563 4,862 Less: unamortized deferred debt issuance costs 11,322 4,227 Long-term debt $ 314,300 $ 334,251 (a) Matures August 22, 2022; $34.5 payable monthly, including interest at 4.50% with the remaining balance due at maturity; secured by the location’s land and building. Aggregate annual maturities of long-term debt, excluding finance lease obligations, are as follows (in thousands): January 30, 2021 2022 $ 3,658 2023 35,267 2024 — 2025 — 2026 275,000 Thereafter — $ 313,925 Term Loan Facility On June 5, 2015, our indirect wholly owned subsidiary, At Home III, entered into the first lien credit agreement (as amended from time to time), by and among At Home III, At Home II, certain indirect subsidiaries of At Home II, various lenders and Bank of America, N.A., as administrative agent and collateral agent, which provided for a term loan in an aggregate principal amount of $350 million (the “Term Loan”) maturing on June 3, 2022. On August 20, 2020, in connection with the issuance of the Notes, we used the net proceeds of the issuance of the Notes together with cash on our balance sheet to repay in full the principal amount of indebtedness outstanding under the Term Loan. The repayment resulted in a loss on extinguishment of debt in the amount of $3.2 million, which was recognized during the third fiscal quarter 2021. Asset-Based Lending Credit Facility On June 12, 2020, we entered into the Eighth Amendment to the ABL Agreement to provide for the FILO Loans, subject to a borrowing base. The net proceeds of the FILO Loans were used to repay a portion of the outstanding revolving credit loans under the ABL Facility. The FILO Loans bear interest at the LIBOR offered for deposits for an interest period of 3 months (with a 1.00% LIBOR floor, the “FILO Rate”) plus 9.00%, (with such interest rate switching to Base Rate plus 8.00% only if the FILO Rate cannot be determined) and amortizes at 10.00% per annum in equal quarterly installments of $875,000 commencing on September 30, 2020, with the remaining balance due at maturity. The FILO Loans will mature on the earlier of (i) the maturity date of the ABL Facility and (ii) July 27, 2022 (the “FILO Maturity Date”). The FILO Loans are prepayable at our option, in whole or in part, subject to a prepayment premium on the principal amount of the FILO Loans prepaid or required to be prepaid. 8.750% Senior Secured Notes due 2025 On August 20, 2020, At Home III completed the offering (the “Notes Offering”) of $275.0 million aggregate principal amount of the Notes. The Notes Offering was conducted pursuant to Rule 144A and Regulation S promulgated under the Securities Act, and the Notes have not been registered under the Securities Act or applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The Notes are governed by an indenture dated August 20, 2020 (the “Indenture”), by and among At Home III, the guarantors from time to time party thereto, and Wells Fargo Bank, National Association, as trustee (the “Trustee) and as collateral agent (the “Collateral Agent”). Net proceeds of the issuance of the Notes were used, together with cash on our balance sheet, to repay all amounts outstanding under the Term Loan. The Notes bear interest at a fixed rate of 8.750% per annum, payable semi-annually in arrears on March 1 and September 1 of each year, commencing on March 1, 2021, and will mature on September 1, 2025. The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by (i) At Home II, a Delaware corporation and direct parent of At Home III and (ii) certain of At Home III’s existing and future wholly owned domestic restricted subsidiaries (collectively, the “Guarantors”), all of which also guarantee the ABL Facility. The Notes and the related guarantees are secured (i) on a first-priority basis by the Notes Priority Collateral and (ii) on a second-priority basis by the ABL Priority Collateral, in each case subject to certain exceptions. The restricted net assets of At Home Group's consolidated subsidiaries was $484.2 million as of January 30, 2021. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 30, 2021 | |
Related Party Transactions | |
Related Party Transactions | 7. Related Party Transactions 360 Holdings III Corp (“360 Holdings”) is a related party to us by virtue of common ownership through funds of AEA Investors LP, one of our significant stockholders. We are parties to a royalty agreement with 360 Holdings whereby we develop and sell branded product that incorporates intellectual property of 360 Holdings. Additionally, MerchSource LLC is a direct subsidiary of 360 Holdings (and together with 360 Holdings, “360 Brands”) from which we purchase inventory. On November 5, 2020, AEA Investors LP sold the remainder of its stockholdings and ceased to be a stockholder of the Company and 360 Brands is no longer a related party. For the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019, we paid 360 Brands $2.5 million, $1.3 million and $0.5 million, respectively. Merry Mabbett Inc. (“MMI”) is owned by Merry Mabbett Dean, who is the mother of Lewis L. Bird III, our Chairman and Chief Executive Officer. During the fiscal years ended January 25, 2020 and January 26, 2019, through MMI, we purchased certain fixtures, furniture and equipment that is now owned and used by us in our home office, new store offices or in the product vignettes in the stores. In addition, Ms. Dean, through MMI, provided certain design services to us, including design for our home office, as well as design in our stores. We paid MMI approximately $0.3 million and $0.6 million for the fiscal years ended January 25, 2020 and January 26, 2019, respectively, primarily for fixtures, furniture and equipment. During the fourth quarter of fiscal year 2020, we made the decision to no longer utilize the services of or purchase fixtures, furniture and equipment from MMI. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jan. 30, 2021 | |
Revenue Recognition | |
Revenue Recognition | 8. R evenue Recognition We sell a broad assortment of home décor, including home furnishings and accent décor, and recognize revenue when the customer takes possession or control of goods at the time the sale is completed at the store register. Accordingly, we implicitly enter into a contract with customers at the point of sale. In addition to retail store sales, we also generate revenue through the sale of gift cards and through incentive arrangements associated with our credit card program. As noted in “ Note 1 – Nature of Operations and Summary of Significant Accounting Policies Fiscal Year Ended January 30, 2021 January 25, 2020 January 26, 2019 Home furnishings 42 % 43 % 44 % Accent décor 53 53 52 Other 5 4 4 Total 100 % 100 % 100 % Contract liabilities are recognized primarily for gift card sales. Cash received from the sale of gift cards is recorded as a contract liability in accrued and other current liabilities, and we recognize revenue upon the customer’s redemption of the gift card. Gift card breakage is recognized as revenue in proportion to the pattern of customer redemptions by applying an estimated breakage rate that takes into account historical patterns of redemptions and deactivations of gift cards. We recognized approximately $16.2 million, $16.3 million and $16.3 million in gift card redemption revenue for the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019, respectively, and recognized an immaterial amount in gift card breakage revenue for each of the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019. Of the total gift card redemption revenue, $3.4 million, $3.6 million and $3.0 million for the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019, respectively, related to gift cards issued in prior periods. We had outstanding gift card liabilities of $10.7 million and $9.2 million as of January 30, 2021 and January 25, 2020, respectively, which are included in accrued and other current liabilities. In fiscal year 2018, we launched a credit card program by which credit is extended to eligible customers through At Home branded credit cards with Synchrony Bank (“Synchrony”). Through the launch of the credit card program, we received reimbursement of costs associated with the launch of the credit card program as well as a one-time payment which has been deferred over the initial seven-year term of the agreement with Synchrony. We receive ongoing payments from Synchrony based on sales transacted on our credit cards and for reimbursement of joint marketing and advertising activities. During the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019, we recognized approximately $3.1 million, $3.7 million and $3.2 million, respectively, in revenue from our credit card program within net sales when earned. Customers may return purchased items for an exchange or refund. We utilize the expected value methodology in which different scenarios, including current sales return data and historical quarterly sales return rates, are used to develop an estimated sales return rate. We present the sales returns reserve within other current liabilities and the estimated value of the inventory that will be returned within other current assets in the consolidated balance sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 30, 2021 | |
Income Taxes | |
Income Taxes | 9. I ncome Taxes Our income tax provision is as follows (in thousands): Fiscal Year Ended January 30, 2021 January 25, 2020 January 26, 2019 Current income tax expense Federal $ 12,572 $ 16,867 $ 16,620 State 3,743 3,058 2,607 Deferred income tax expense (benefit) Federal 24,574 4,156 (16,343) State 1,956 (909) (2,901) Income tax provision (benefit) $ 42,845 $ 23,172 $ (17) Deferred tax assets and liabilities are determined based on the estimated future tax effects of the difference between the financial statement and tax basis of asset and liability balances using statutory tax rates. Tax effects of temporary differences that give rise to significant components of the deferred tax assets and liabilities are as follows (in thousands): January 30, 2021 January 25, 2020 Deferred tax assets Inventory $ 9,536 $ 12,566 Accruals 3,201 4,257 Net operating losses 377 109 Deferred compensation 7,854 7,370 Deferred revenue 829 986 Prepaid rent 1,376 1,452 Operating lease liabilities 311,184 310,817 Intangible assets 1,239 1,338 Other, net 653 722 Total deferred tax assets 336,249 339,617 Deferred tax liabilities Property and equipment (57,828) (33,153) Operating lease right-of-use assets (288,001) (289,537) Trade name (136) (112) Total deferred tax liabilities (345,965) (322,802) Net deferred tax (liability) asset $ (9,716) $ 16,815 We are required to assess the available positive and negative evidence to estimate if sufficient future income will be generated to utilize deferred tax assets. We believe the cumulative pre-tax income is a significant piece of positive evidence that allows us to consider other subjective evidence such as future forecasted pre-tax income. For the fiscal years ended January 30, 2021 and January 25, 2020 after excluding impairment charges, and the fiscal year ended January 26, 2019, we continued to have three years of cumulative pre-tax income. In addition, taxable income exceeded pre-tax income for the fiscal years ended January 30, 2021 and January 25, 2020. We concluded that because of this positive evidence, as well as cumulative pre-tax income in recent fiscal years, it was more likely than not that our deferred tax assets would be realized in future years. Accordingly, during fiscal year 2021, we determined no valuation allowance was required. We had approximately $15.1 million and $3.0 million of state net operating loss carryforwards at January 30, 2021 and January 25, 2020, respectively. The state net operating losses begin to expire in fiscal year 2024. During fiscal year 2018, we determined that the valuation allowance for state net operating losses was no longer necessary as we expect to fully utilize all net operating loss carryforward prior to expiration. The reconciliation between the actual income tax provision and the income tax provision calculated at the federal statutory tax rate is as follows (dollars in thousands): Fiscal Year Ended January 30, 2021 January 25, 2020 January 26, 2019 Income tax provision at the federal statutory rate $ (22,445) $ (40,165) $ 10,286 Permanent differences 865 399 340 Impairment charges 67,144 52,500 — State income taxes, net of federal income tax effect 4,541 1,843 (112) Change in unrecognized tax benefits (108) (249) (495) Net operating loss carryback (6,793) — — Effect of the Tax Act — — (524) Executive compensation limitation 485 — — Equity-based compensation (553) 9,115 (9,293) Tax credits (291) (319) (278) Deferred adjustment — 48 59 Income tax provision (benefit) $ 42,845 $ 23,172 $ (17) Effective tax rate (40.1) % (12.1) % (0.0) % Uncertain Tax Positions We operate in a number of tax jurisdictions and are subject to examination of its income tax returns by tax authorities in those jurisdictions who may challenge any item on these returns. Because the tax matters challenged by tax authorities are typically complex, the ultimate outcome of these challenges is uncertain. In accordance with ASC 740 (Topic 740, “ Income Taxes The total amount of unrecognized tax benefits as of January 30, 2021 was $0.6 million, $0.5 million of which would favorably impact the effective tax rate if resolved in our favor. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): January 30, 2021 January 25, 2020 Balance, beginning of period $ 551 $ 716 Additions based on tax positions related to the current year 337 102 Additions based on tax positions related to the prior year 132 249 Subtractions based on tax positions related to the prior year (10) — Settlements (85) (69) Expiration of statute of limitations (325) (447) Balance, end of period $ 600 $ 551 We recognize accrued interest and penalties related to unrecognized tax benefits in our provision for income taxes. As of January 30, 2021 and January 25, 2020, there was an immaterial amount in accrued penalties. As of January 30, 2021 and January 25, 2020, there was a nominal amount of accrued interest. In addition, we released a nominal amount in interest expense and penalties during fiscal year ended January 30, 2021 and $0.1 million during each of the fiscal years ended January 25, 2020 and January 26, 2019. In the normal course of business, we are subject to examination by taxing authorities in U.S. Federal and U.S. state jurisdictions. The period subject to examination for our federal return is fiscal year 2018 and later and fiscal year 2017 and later for all major state tax returns. We believe that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are resolved in a manner not consistent with management's expectations, we could be required to adjust the provision for income tax in the period such resolution occurs. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 10. Commitments and Contingencies Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02 “Leases” “Leases” We adopted the provisions of ASC 842 effective January 27, 2019, using the modified retrospective adoption method, which resulted in an adjustment to opening retained earnings of $98.6 million, net of $32.7 million in deferred taxes. We utilized the simplified transition option available in ASC 842, which allows entities to continue to apply the legacy guidance in ASC 840, including its disclosure requirements, in the comparative periods presented in the year of adoption. Related to the adoption of ASC 842, our policy elections were as follows: Package of practical expedients ● We have elected to not reassess whether any expired or existing contracts are or contain leases. ● We did not reassess initial direct costs for any existing leases. ● All existing operating and capital leases under ASC 840 were recorded as operating and financing leases, respectively, under ASC 842. Separation of lease and non-lease components ● We have elected to account for lease and non-lease components as a single component for our entire population of real estate portfolio assets. Short-term leases ● We have elected the short-term lease recognition exemption for all applicable classes of underlying assets. ● Short-term leases include only those leased assets with a term greater than one month but less than 12 months in duration and expense is recognized on a straight-line basis over the lease term. ● Leases with an initial term of 12 months or less, that do not include an option to purchase the underlying asset that we are reasonably certain to exercise, are not recorded on the balance sheet. In addition, ASC 842 eliminated the previous sale-leaseback and build-to-suit lease accounting guidance, which resulted in the derecognition of the following (in thousands): Balance Sheet Derecognition as of Classification January 27, 2019 Deferred gains on sale-leasebacks Deferred rent $ 121,874 Financing obligations (a) Financing Obligations 35,241 Build-to-suit assets (a) Property and equipment, net (22,777) Deferred tax asset Noncurrent deferred tax asset (32,743) Other Several (3,001) Adjustment to retained earnings Retained earnings $ (98,594) (a) Build-to-suit assets and related financing obligation liabilities that remained on the balance sheet after the end of the construction period. For leases with terms of 12 months and greater, an asset and liability are initially recorded at an amount equal to the present value of the unpaid lease payments over the lease term. In determining the lease term for each lease, we include options to extend the lease when it is reasonably certain that we will exercise that option. We use the interest rate implicit in the lease, when known, or its estimated incremental borrowing rate, which is derived from information available at the lease commencement date including prevailing financial market conditions, in determining the present value of the unpaid lease payments. We assess whether a contract contains a lease on its execution date. If the contract contains a lease, lease classification is assessed upon its commencement date under ASC 842. For leases that are determined to qualify for treatment as operating leases, rent expense is recognized on a straight-line basis over the lease term. Leases that are determined to qualify for treatment as finance leases recognize interest expense as determined using the effective interest method with corresponding amortization of the right-of-use assets. We enter into leases primarily for real estate assets to support our operations in the normal course of business. As of January 30, 2021, our material operating leases consist of our corporate headquarters, distribution centers and the majority of our store properties. We also have four real estate leases for store properties that qualify for treatment as finance leases. Our leases generally have terms of 5 to 20 years , with renewal options that generally range from 5 to 20 years in the aggregate and are subject to escalating rent increases. Our leases may include variable charges at the discretion of the lessor. Certain of our leases include rent escalations based on inflation indexes and/or contingent rental provisions that include a fixed base rent plus an additional percentage of the respective stores’ sales in excess of stipulated amounts. Operating lease liabilities are calculated using the prevailing index or rate at the commencement of the lease. Subsequent escalations in the index or rate and contingent rental payments are recognized as variable lease expenses. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease cost were as follows (in thousands): Fiscal Year Ended January 30, 2021 January 25, 2020 Operating lease cost (a) $ 161,060 $ 142,508 Variable lease cost 24,351 23,086 Finance lease cost: Amortization of right-of-use assets 472 298 Interest on lease liabilities 707 129 Total lease cost (b) $ 186,590 $ 166,021 (a) Net of an immaterial amount of sublease income. (b) Short-term lease cost for the fiscal years ended January 30, 2021 and January 25, 2020 was immaterial. The table below presents additional information related to our leases as of January 30, 2021. Weighted average remaining lease term Operating leases 11.5 years Finance leases 13.2 years Weighted average discount rate Operating leases 5.93 % Finance leases 6.50 % Supplemental disclosures of cash flow information related to leases were as follows (in thousands): Fiscal Year Ended January 30, 2021 January 25, 2020 Cash paid for operating lease liabilities (a) $ 130,976 $ 126,511 Right-of-use assets obtained in exchange for operating lease liabilities $ 192,506 $ 310,818 Cash paid for finance lease liabilities $ 519 $ 294 (a) During the fiscal year ended January 30, 2021, we had negotiated rent deferral or abatement with certain lessors. Maturities of lease liabilities were as follows as of January 30, 2021 (in thousands): Operating Leases Finance Leases Total 2022 $ 160,665 $ 1,981 $ 162,646 2023 164,839 1,854 166,693 2024 163,514 1,732 165,246 2025 164,843 1,766 166,609 2026 165,366 1,715 167,081 Thereafter 1,162,547 15,500 1,178,047 Total lease payments 1,981,774 24,548 2,006,322 Amount representing interest (587,515) (8,288) (595,803) Present value of lease liabilities 1,394,259 16,260 1,410,519 Less current obligations (78,634) (905) (79,539) Long-term lease obligations $ 1,315,625 $ 15,355 $ 1,330,980 As of January 30, 2021, operating lease payments excluded approximately $105.5 million of legally binding minimum lease payments for leases signed but not yet commenced. In response to the COVID-19 pandemic, we began renegotiating certain store lease agreements in the first and second fiscal quarters 2021 to obtain rent relief in an effort to partially offset the negative financial impacts. On April 10, 2020, the FASB staff issued a question-and-answer document outlining guidance for lease concessions provided to lessees in response to the effects of the COVID-19 pandemic. This guidance allows lessees to make an election not to evaluate whether a lease concession provided by a lessor should be accounted for as a lease modification in the event the concession does not result in a substantial increase in the rights of the lessor or the obligations of the lessee. We elected this practical expedient in our accounting for any lease concessions provided in connection with our renegotiated lease agreements that did not result in a substantial increase in the rights of the lessor or obligations to the lessee. As a result of this election, we recognized rent abatement credits of approximately $2.3 million within variable lease costs for the fiscal year ended January 30, 2021 in our consolidated statements of operations and we have deferred the payment of approximately $13.9 million in operating lease costs as of January 30, 2021 with payback periods generally beginning in February 2021. Litigation We are subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on our consolidated financial position, results of operations or liquidity. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Jan. 30, 2021 | |
Employee Benefit Plan | |
Employee Benefit Plan | 11. Employee Benefit Plan Effective October 1, 2014, we sponsor a 401(k) Savings Plan for eligible employees. Participation in the 401(k) Savings Plan is voluntary and available to any employee who is at least 18 years of age and has completed six months of service. Participants may elect to contribute up to 100% of their compensation on a pre-tax basis subject to Internal Revenue Service (“IRS”) limitations. In accordance with the provisions of the 401(k) Savings Plan, we make a safe harbor matching cash contribution to the account of each participant in an amount equal to 100% of the participant's pre-tax contributions that do not exceed 3% of the participant's considered annual compensation plus 50% of the participant's pre-tax contributions between 3% and 5% of the participant's considered annual compensation, which are also subject to regulatory limits. Matching contributions, and any actual earnings thereon, vest to the participants immediately. Our matching contribution expenses were $1.5 million, $1.6 million and $1.3 million for the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019, respectively. |
Capital Stock
Capital Stock | 12 Months Ended |
Jan. 30, 2021 | |
Capital Stock | |
Capital Stock | 12. Capital Stock As of January 30, 2021, we had 500,000,000 shares of common stock authorized with a par value of $0.01, of which 65,342,489 were issued and outstanding . Additionally, as of January 30, 2021, we had 50,000,000 shares of preferred stock authorized with a par value of $0.01, of which no shares were issued and outstanding . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 30, 2021 | |
Earnings Per Share | |
Earnings Per Share | 13. Earnings Per Share In accordance with ASC 260, (Topic 260, “ Earnings Per Share The following table sets forth the calculation of basic and diluted earnings per share as follows (dollars in thousands, except share and per share data): Fiscal Year Ended January 30, 2021 January 25, 2020 January 26, 2019 Numerator: Net (loss) income $ (149,729) $ (214,435) $ 48,996 Denominator: Weighted average common shares outstanding-basic 64,426,355 63,975,633 62,936,959 Effect of dilutive securities: Stock options and restricted stock units — — 3,362,687 Weighted average common shares outstanding-diluted 64,426,355 63,975,633 66,299,646 Net (loss) income per common share: Basic $ (2.32) $ (3.35) $ 0.78 Diluted $ (2.32) $ (3.35) $ 0.74 For the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019, approximately 4,929,579, 7,695,386 and 2,029,602, respectively, of stock options and restricted diluted income stock options RSU |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 30, 2021 | |
Stock-Based Compensation | |
Stock-Based Compensation | 14. S tock-Based Compensation We account for stock-based compensation in accordance with ASC 718 (Topic 718, “ Compensation—Stock Compensation We have two equity compensation plans (the “Equity Plans”) under which we grant equity awards: the GRD Holding I Corporation Stock Option Plan, as may be amended from time to time (the “2012 Option Plan”), and the At Home Group Inc. Equity Incentive Plan, which was subsequently amended and restated and approved by the Board in July 2016 (the “2016 Equity Plan”). Pursuant to the 2012 Option Plan, 5,648,525 shares of common stock were initially authorized for the issuance of stock options to purchase shares of our common stock. Any shares issued under the 2012 Option Plan that expire, are cancelled, or otherwise terminate without issuance of the shares shall again be available for issuance. At January 30, 2021, there were 29,333 shares available for future grant under the 2012 Option Plan. In September 2015, we adopted the 2016 Equity Plan, which was subsequently amended and restated and approved by the Board in July 2016. Under the 2016 Equity Plan, subject to any adjustment as provided in the 2016 Equity Plan, equity awards in respect of up to 6,196,755 shares of our common stock were initially authorized for issuance, consisting of (i) up to 2,478,702 shares (the “IPO Bonus Pool”) issuable pursuant to awards granted under the 2016 Equity Plan to senior executives of the Company in connection with the consummation of our initial public offering and (ii) up to 3,718,053 shares pursuant to awards granted under the 2016 Equity Plan (other than the IPO Bonus Pool) (the “Post-IPO Share Pool”). In June 2018, the 2016 Equity Plan was amended to increase the number of shares authorized to be granted within the Post-IPO Share Pool (as defined below) by 3,500,000 shares, resulting in an aggregate of up to 9,696,755 shares of common stock being authorized for issuance under the 2016 Equity Plan, of which 7,218,053 were under the Post-IPO Share Pool. At January 30, 2021, there were 2,175,888 shares available for future grant under the 2016 Plan, of which all are part of the Post-IPO Share Pool. On September 12, 2019, we made grants of 165,650 stock options and 125,250 performance share units (“PSUs”, and collectively with RSUs, “Awards”) . On June 22, 2020, we made grants of 2,165,000 stock options to members of our senior management team, 130,400 RSUs to our independent directors and 80,000 PSUs to our Chief Executive Officer under the 2016 Equity Plan. Non-cash, stock-based compensation expense associated with the grant of stock options is approximately $9.2 million, which will be expensed over the requisite service period of three years. Non-cash, stock-based compensation expense associated with the grant of RSUs is approximately $1.0 million, which will be expensed over the requisite service period of one year. Non-cash, stock-based compensation expense associated with the grant of the PSUs is approximately $0.6 million, which will be expensed over the requisite service period ending January 29, 2022. The PSUs have the same terms as the PSU grant made on September 12, 2019. Forfeiture assumptions for the grants were estimated based on historical experience. Stock option awards are granted with an exercise price equal to the fair market value of our common stock at the date of grant. Certain option and share awards provide for accelerated vesting if there is a change in control (as defined in the Equity Plans). We estimate the fair value of each service condition stock option grant under the Equity Plans on the date of grant based upon the Black-Scholes option-pricing model which includes the following variables: 1) exercise price of the instrument, 2) fair market value of the underlying stock on date of grant, 3) expected term, 4) expected volatility and 5) the risk-free interest rate. We utilized the following assumptions in estimating the fair value of the option grants: January 30, 2021 January 25, 2020 January 26, 2019 Weighted-average expected volatility 87.3 % 60.9 % 58.6 % Expected dividend yield — % — % — % Weighted-average expected term (in years) 4.0 4.2 5.0 Weighted-average risk-free interest rate 0.5 % 2.1 % 2.8 % A summary of option activity under the Equity Plans as of January 30, 2021, and changes during the fiscal year then ended, is presented below: Weighted- Weighted- Average Aggregate Average Remaining Intrinsic Stock Exercise Contractual Value Options Price Term (in thousands) Outstanding, beginning of year 5,825,516 $ 14.80 Granted 2,223,975 7.84 Exercised (1,040,716) 12.79 Forfeited or expired (23,383) 21.31 Outstanding, end of year 6,985,392 $ 12.86 4.09 $ 10,908 Exercisable, end of year 3,733,307 $ 13.04 2.51 $ 2,602 The total grant date fair value of stock options that vested during the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019 was $2.6 million, $1.3 million and $52.4 million, respectively. The intrinsic value for stock options exercised during the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019 was $10.9 million, $3.4 million and $51.3 million, respectively. The weighted-average fair value of stock options granted during the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019 was $4.88, $6.87 and $19.03, respectively. Awards are issued at a value not less than the fair market value of the common stock on the date of the grant. RSUs granted to date vest ratably over one A summary of the Company’s Awards activity and related information as of January 30, 2021, and changes during the fiscal year then ended, is presented below: Weighted- Average Number of Grant Date Shares Fair Value Nonvested, beginning of year 748,512 $ 14.90 Granted 598,160 12.96 Vested (215,521) 17.69 Forfeited (86,364) 15.34 Nonvested, end of year 1,044,787 $ 13.18 We recognized stock-based compensation expense related to stock options and Awards of approximately $12.2 million, $7.4 million and $49.5 million during the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019, respectively. As of January 30, 2021, there was approximately $21.2 million of total unrecognized compensation expense related to nonvested share-based compensation arrangements grated under the Plans that is expected to be recognized over a weighted-average period of 2.0 years and 2.1 years for stock options and Awards, respectively. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Jan. 30, 2021 | |
Quarterly Results of Operations (Unaudited) | |
Quarterly Results of Operations (Unaudited) | 15. Quarterly Results of Operations (Unaudited) Unaudited quarterly results of operations for the fiscal years ended January 30, 2021 and January 25, 2020 were as follows (in thousands, except per share data): Fiscal Year 2021 First Quarter Second Quarter Third Quarter Fourth Quarter (1) Net sales $ 189,846 $ 515,244 $ 469,986 $ 561,987 Gross profit 16,350 196,127 170,708 218,428 Operating (loss) income (2) (372,061) 125,247 71,319 100,283 Loss on extinguishment of debt — — 3,179 — Net (loss) income (358,942) 89,423 47,077 72,713 Basic net (loss) income per common share (5.60) 1.39 0.73 1.12 Diluted net (loss) income per common share $ (5.60) $ 1.39 $ 0.71 $ 1.08 Fiscal Year 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 306,264 $ 342,321 $ 318,734 $ 397,716 Gross profit (3) 88,051 100,398 85,413 114,091 Operating income (loss) (3)(4) 25,889 21,813 1,986 (209,149) Net income (loss) 13,883 10,382 (14,647) (224,053) Basic net income (loss) per common share 0.22 0.16 (0.23) (3.50) Diluted net income (loss) per common share (3) $ 0.21 $ 0.16 $ (0.23) $ (3.50) (1) The fourth quarter of fiscal year 2021 contained 14 weeks, as compared to the fourth quarter of fiscal year 2020, which contained 13 weeks. (2) Includes $319.7 million of non-cash impairment charges related to our goodwill in the first fiscal quarter 2021. (3) The sum of the quarters does not equal the total fiscal year due to rounding. (4) Includes $250.0 million of non-cash impairment charges related to our goodwill in the fourth fiscal quarter 2020. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended |
Jan. 30, 2021 | |
Condensed Financial Information of Registrant | |
Condensed Financial Information of Registrant | Schedule I – Condensed Financial Information of Registrant AT HOME GROUP INC. (parent company only) Condensed Balance Sheets (in thousands, except share and per share data) January 30, 2021 January 25, 2020 Assets Current assets: Receivable from subsidiaries $ — $ — Income taxes receivable 22,223 1,672 Total current assets 22,223 1,672 Investment in subsidiaries 484,160 608,611 Total assets $ 506,383 $ 610,283 Liabilities and Stockholders' Equity Current liabilities: Payable to subsidiaries $ 22,223 $ 1,672 Total current liabilities 22,223 1,672 Noncurrent liabilities — — Total liabilities 22,223 1,672 Stockholders' Equity Common stock; $0.01 par value; 500,000,000 shares authorized; 65,342,489 and 64,106,061 shares issued and outstanding , respectively 653 641 Additional paid-in capital 682,304 657,038 Accumulated deficit (198,797) (49,068) Total stockholders' equity 484,160 608,611 Total liabilities and stockholders' equity $ 506,383 $ 610,283 See Notes to Condensed Financial Statements. Schedule I – Condensed Financial Information of Registrant AT HOME GROUP INC. (parent company only) Condensed Statements of Operations (in thousands) Fiscal Year Ended January 30, 2021 January 25, 2020 January 26, 2019 Net sales $ — $ — $ — Cost of sales — — — Gross profit — — — Operating expenses Selling, general and administrative expenses — — — Depreciation and amortization — — — Total operating expenses — — — Operating income — — — Interest expense, net — — — Income before income taxes — — — Income tax provision — — — Income before equity in net income of subsidiaries — — — Net (loss) income from subsidiaries (149,729) (214,435) 48,996 Net (loss) income $ (149,729) $ (214,435) $ 48,996 See Notes to Condensed Financial Statements. 1. Basis of Presentation In the parent-company-only financial statements, At Home Group Inc.'s (“Parent”) investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since the date of acquisition. The parent-company-only financial statements should be read in conjunction with the Company's consolidated financial statements. A condensed statement of cash flows was not presented because At Home Group Inc.'s net operating activities have no cash impact and there were no investing or financing cash flow activities during the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019. 2. Guarantees and Restrictions At Home Holding III Inc. (“At Home III”), a subsidiary of the Parent, and its indirect wholly-owned subsidiary, At Home Stores LLC, are co-borrowers (in such capacities, the “ABL Borrowers”) under the ABL Facility. As of January 30, 2021, we had $125.8 million of cash and cash equivalents and $312.6 million in borrowing availability under our ABL Facility, which provides commitments of up to $425.0 million for revolving loans and letters of credit, as of January 30, 2021. At Home Holding II Inc. (“Holdings”), the direct parent of At Home III, and its direct and indirect domestic subsidiaries (other than the ABL Borrowers and certain immaterial subsidiaries)(the “ABL Subsidiary Guarantors” and, together with Holdings, the “ABL Guarantors”) have guaranteed all obligations of the ABL Borrowers under the ABL Facility. In the event of a default under the ABL Facility, the ABL Borrowers and the Guarantors will be directly liable to the lenders under the ABL Facility. The ABL Facility matures on the earlier of (i) August 28, 2025 and (ii) the date of termination of the commitments under such revolving credit facility pursuant to the terms of the ABL Agreement. The ABL Facility contains a number of covenants that, among other things, restrict the ability of the ABL Borrowers, subject to specified exceptions, to incur additional debt; incur additional liens and contingent liabilities; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve ourselves; engage in businesses that are not in a related line of business; make loans, advances or guarantees; pay dividends; engage in transactions with affiliates; and make investments. In addition, the ABL Agreement contains certain cross-default provisions. The ABL Agreement includes a minimum availability covenant whereby the ABL Borrowers and their restricted subsidiaries must maintain at all times availability (i.e., an amount equal to (i) the lesser of (A) the aggregate revolving credit commitments at such time and (B) the revolving borrowing base minus (ii) the total revolving credit loans outstanding) in excess of the greater of (x) $35.0 million and 10.0% of the combined loan cap specified in the ABL Agreement (i.e., the sum of (i) the lesser of (A) the aggregate revolving credit commitments at such time and (B) the revolving borrowing base and (ii) the total outstanding amount of FILO Loans). The ABL Agreement includes a mandatory prepayment provision requiring the ABL Borrowers to prepay any outstanding revolving credit loans to the extent the total amount of cash and cash equivalents of At Home Holding II Inc. (“At Home II”), the ABL Borrowers and their restricted subsidiaries (subject to certain exclusions) exceeds $35.0 million. As of January 30, 2021 and January 25, 2020, we were in compliance with all covenants under the ABL Facility. On June 5, 2015, our indirect wholly owned subsidiary, At Home III, entered into the first lien credit agreement (as amended from time to time), by and among At Home III, At Home II, certain indirect subsidiaries of At Home II, various lenders and Bank of America, N.A., as administrative agent and collateral agent, which provided for a term loan in an aggregate principal amount of $350 million (the “Term Loan”) maturing on June 3, 2022. On August 20, 2020, in connection with the issuance of the Notes, we used the net proceeds of the issuance of the Notes together with cash on our balance sheet to repay in full the principal amount of indebtedness outstanding under the Term Loan. The repayment resulted in a loss on extinguishment of debt in the amount of $3.2 million, which was recognized during the third fiscal quarter 2021. On June 12, 2020, we entered into the Eighth Amendment to the ABL Agreement to provide for the FILO Loans, subject to a borrowing base. The net proceeds of the FILO Loans were used to repay a portion of the outstanding revolving credit loans under the ABL Facility. The FILO Loans bear interest at the LIBOR offered for deposits for an interest period of 3 months (with a 1.00% LIBOR floor, the “FILO Rate”) plus 9.00%, (with such interest rate switching to Base Rate plus 8.00% only if the FILO Rate cannot be determined) and amortizes at 10.00% per annum in equal quarterly installments of $875,000 commencing on September 30, 2020, with the remaining balance due at maturity. The FILO Loans will mature on the earlier of (i) the maturity date of the ABL Facility and (ii) July 27, 2022 (the “FILO Maturity Date”). The FILO Loans are prepayable at our option, in whole or in part, subject to a prepayment premium on the principal amount of the FILO Loans prepaid or required to be prepaid. On August 20, 2020, At Home III completed the offering (the “Notes Offering”) of $275.0 million aggregate principal amount of the Notes. The Notes Offering was conducted pursuant to Rule 144A and Regulation S promulgated under the Securities Act, and the Notes have not been registered under the Securities Act or applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The Notes are governed by an indenture dated August 20, 2020 (the “Indenture”), by and among At Home III, the guarantors from time to time party thereto, and Wells Fargo Bank, National Association, as trustee (the “Trustee) and as collateral agent (the “Collateral Agent”). Net proceeds of the issuance of the Notes were used, together with cash on our balance sheet, to repay all amounts outstanding under the Term Loan. The Notes bear interest at a fixed rate of 8.750% per annum, payable semi-annually in arrears on March 1 and September 1 of each year, commencing on March 1, 2021, and will mature on September 1, 2025. The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by (i) At Home II, a Delaware corporation and direct parent of At Home III and (ii) certain of At Home III’s existing and future wholly owned domestic restricted subsidiaries (collectively, the “Guarantors”), all of which also guarantee the ABL Facility. The Notes and the related guarantees are secured (i) on a first-priority basis by substantially all of the assets of At Home III and the Guarantors other than the ABL Priority Collateral (as defined below) (such assets, the “Notes Priority Collateral”) and (ii) on a second-priority basis by substantially all of the cash, cash equivalents, deposit accounts, accounts receivables, other receivables, tax refunds and inventory, and certain related assets of At Home III and the Guarantors that secure the ABL Facility on a first priority basis (such assets, the “ABL Priority Collateral”), in each case subject to certain exceptions. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 30, 2021 | |
Summary of Significant Accounting Policies | |
Description of Business | Description of Business At Home is a home décor superstore focused exclusively on providing a broad assortment of everyday and seasonal products for any room, in any style, for any budget. As of January 30, 2021, we operated 219 home décor superstores in 40 states, primarily in the South Central, Southeastern, Mid-Atlantic and Midwestern regions of the United States. At Home is owned and operated by At Home Group Inc. and its wholly-owned subsidiaries. All references to “we”, “us”, “our” and the “Company” and similar expressions are references to At Home Group Inc. and our consolidated, wholly-owned subsidiaries, unless otherwise expressly stated or the context otherwise requires. |
Fiscal Year | Fiscal Year We report on the basis of a 52- or 53-week fiscal year, which ends on the last Saturday in January. References to a fiscal year mean the year in which that fiscal year ends. References herein to “fiscal year 2021” relate to the 53 weeks ended January 30, 2021, references herein to “fiscal year 2020” relate to the 52 weeks ended January 25, 2020, and references herein to “fiscal year 2019” relate to the 52 weeks ended January 26, 2019. |
Consolidation | Consolidation The accompanying consolidated financial statements include the accounts of At Home Group Inc. (“At Home Group”) and its consolidated wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company does not have any components of other comprehensive income recorded within its consolidated financial statements, and, therefore, does not separately present a statement of comprehensive income in its consolidated financial statements. |
Use of Estimates | Use of Estimates Preparing financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of certain assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Because of the use of estimates inherent in the financial reporting process, actual results may differ from these estimates. |
Reclassification | Reclassification Certain prior period amounts have been reclassified to conform with the current period presentation within the consolidated financial statements and the accompanying notes, including that the repayment of Term Loan is now separated from payments on long-term debt within financing activities on the consolidated statements of cash flows. This reclassification had no effect on previously reported results of operations or retained earnings. |
Segment Information | Segment Information Management has determined that we have one operating segment, and therefore, one reportable segment. Our chief operating decision maker (“CODM”) is our Chief Executive Officer; our CODM reviews financial performance and allocates resources at a consolidated level on a recurring basis. All of our assets are located in and all of our revenue is derived in the United States. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less as well as credit card receivables. At January 30, 2021, our cash and cash equivalents were comprised primarily of cash from operations and credit card receivables. At January 25, 2020, our cash and cash equivalents were comprised primarily of credit card receivables. |
Restricted Cash | Restricted Cash Restricted cash consists of cash and cash equivalents reserved for a specific purpose that is not readily available for immediate or general business use. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows (in thousands): January 30, 2021 January 25, 2020 Cash and cash equivalents $ 125,842 $ 12,082 Restricted cash 35 3 Cash, cash equivalents and restricted cash $ 125,877 $ 12,085 |
Inventories | Inventories Inventories are comprised of finished merchandise and are stated at the lower of cost or net realizable value with cost determined using the weighted-average method. The cost of inventories include the actual landed cost of an item at the time it is received in our distribution center, or at the point of shipment for certain international shipments, as well as transportation costs to our distribution center and to our retail stores, if applicable. Net inventory cost is recognized through cost of sales when the inventory is sold. Physical inventory counts are typically performed for all of our stores at least once per year by a third-party inventory counting service. Due to the COVID-19 pandemic, a majority of stores, but not all, were counted during fiscal year 2021. Inventory records are adjusted to reflect actual inventory counts and any resulting shortage (“shrinkage”) is recognized. Reserves for shrinkage are estimated and recorded throughout the fiscal year as a percentage of sales based on the most recent physical inventory, in combination with historical experience. We also evaluate our merchandise to ensure that the expected net realizable value of the merchandise held at the end of a fiscal year exceeds cost. In the event that the expected net realizable value is less than cost, we reduce the value of that inventory accordingly. |
Consideration Received from Vendors | Consideration Received from Vendors We receive vendor support in the form of cash payments or allowances for a variety of vendor-sponsored programs, such as volume rebates, markdown allowances and advertising. We also receive consideration for certain compliance programs. We have agreements in place with each vendor setting forth the specific conditions for each allowance. We generally earn vendor allowances as a percentage of certain merchandise purchases with no minimum purchase requirements. Typically, our vendor allowance programs extend for a period of twelve months. Vendor support reduces our inventory costs based on the underlying provisions of the agreement. Vendor compliance charges are recorded as a reduction of the cost of merchandise inventories and a subsequent reduction in cost of sales when the inventory is sold. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost less accumulated depreciation and amortization. Depreciation of property and equipment other than leasehold improvements is recorded on a straight-line basis over the estimated useful lives of the assets ranging from 3 to 40 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the remaining lease term, including renewals determined to be reasonably assured, or the estimated useful life of the related improvement. Amortization of property under finance leases is on a straight-line basis over the lease term and is included in depreciation expense. We expense all costs for internal-use software and hosting arrangements related to a service contract incurred in the preliminary project stage. Certain direct costs incurred at later stages and associated with the development and purchase of internal-use software and hosting arrangements related to a service contract, including external costs for services and internal payroll costs related to the software project, are capitalized within property and equipment in the accompanying consolidated balance sheets. Capitalized costs are amortized on a straight-line basis over the estimated useful lives of the asset, generally between three We capitalize major replacements and improvements and expense routine maintenance and repairs as incurred. We remove the cost of assets sold or retired and the related accumulated depreciation or amortization from the consolidated balance sheets and include any resulting gain or loss in the accompanying consolidated statements of operations. |
Capitalized Interest | Capitalized Interest We capitalize interest on borrowings during the active construction period of major capital projects. Capitalized interest is added to the cost of the underlying assets and is amortized over the useful lives of the assets. Our capitalized interest cost was approximately $1.9 million, $2.1 million and $3.1 million for the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019, respectively. |
Fair Value Measurements | Fair Value Measurements We follow the provisions of Accounting Standards Codification (“ASC”) 820 (Topic 820, “ Fair Value Measurements and Disclosures ● Level 1 - Unadjusted quoted market prices for identical assets or liabilities in active markets that we have the ability to access. ● Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable ( e.g. , interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data. ● Level 3 - Valuations based on models where significant inputs are not observable. The unobservable inputs reflect our own assumptions about the assumptions that market participants would use. ASC 820 requires us to maximize the use of observable inputs and minimize the use of unobservable inputs. If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument is categorized based upon the lowest level of input that is significant to the fair value calculation. The fair value of all current financial instruments, including cash and cash equivalents and accounts payable, approximates carrying value because of the short-term nature of these instruments. We have variable and fixed rates on our long-term debt. The fair value of long-term debt with variable rates approximates carrying value as the interest rates of these amounts approximate market rates. We determine fair value on our fixed rate debt by using quoted market prices and current interest rates. At January 30, 2021, the fair value of our $275.0 million aggregate principal amount of 8.750% Senior Secured Notes maturing on September 1, 2025 (the “Notes”) was $301.1 million, which was approximately $26.1 million above the carrying value of $275.0 million. Fair value for the Notes was determined using Level 2 inputs. At January 30, 2021, the fair value of our fixed rate mortgage due August 22, 2022 approximated the carrying value of $5.7 million. Fair value for the fixed rate mortgage was determined using Level 2 inputs. |
Goodwill | Goodwill Goodwill is tested for impairment at the operating segment level at least annually or more frequently if events occur which indicate a potential reduction in the fair value of a reporting unit's net assets below its carrying value. Our regular annual goodwill impairment testing has historically been performed during the fourth quarter of the fiscal year, with effect from the beginning of the fourth quarter. We have only one operating segment and we do not have a reporting unit that exists below our operating segment. If the fair value of the operating segment is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down for this difference. We measure the fair value of the operating segment using a combination of the income approach and market approach to determine the fair value of the Company to be compared against the carrying value of net assets. The income approach, using the discounted cash flow method, includes key factors used in the valuation of the Company (a Level 3 valuation) which include, but are not limited to, management's plans for future operations, recent operating results, income tax rates and discounted projected future cash flows. The projected cash flows used in the income approach for assessing goodwill valuation include numerous assumptions such as, sales projections assuming positive comparable store sales growth, operating margins, store count and capital expenditures; all of which are derived from our long-term forecasts. Additionally, the assumptions regarding weighted average cost of capital used information from comparable companies and management's judgment related to risks associated with the operations of our reporting unit. The market approach includes market multiples of peer companies and recent transactions (a Level 3 input). We have the option to perform a qualitative assessment of goodwill rather than completing the quantitative assessment to determine whether it is more likely than not that the fair value of an operating segment is less than its carrying amount, including goodwill and other intangible assets. If we conclude that this is the case, we must perform the quantitative assessment. Otherwise, we may forego the quantitative assessment and do not need to perform any further testing. During the first fiscal quarter of fiscal year 2021, because we continued to experience a decline in operating performance and a sustained decline in our market capitalization substantially driven by the global outbreak of COVID-19, coupled with a decision to further reduce our near-term growth model, we conducted an interim impairment testing of goodwill. Based on the results of that test, we concluded that goodwill was fully impaired and we recognized a non-cash impairment charge of $319.7 million, which is presented on the consolidated statement of operations for the fiscal year ended January 30, 2021. The projected cash flows used in the income approach for assessing goodwill valuation include numerous assumptions such as, sales projections assuming positive comparable store sales growth, operating margins, store count and capital expenditures; all of which are derived from our long-term forecasts. Additionally, the assumptions regarding weighted average cost of capital used information from comparable companies and management's judgment related to risks associated with the operations of our reporting unit. During the fourth quarter of fiscal year 2020, because we experienced a decline in operating performance, a sustained decline in our market capitalization and a downgrade of our Term Loan by certain rating agencies, we conducted an interim impairment testing of goodwill. Based on the results of our impairment test performed, we recognized a goodwill impairment charge of $250.0 million for the fiscal year ended January 25, 2020. No impairment of goodwill was recognized during the fiscal year ended January 26, 2019. |
Impairment of Long-Lived and Indefinite-Lived Assets | Impairment of Long-Lived and Indefinite-Lived Assets We evaluate the recoverability of the carrying value of long-lived assets whenever events or changes in circumstances indicate their carrying amount may not be recoverable. Our evaluation compares the carrying value of the assets with their estimated future undiscounted cash flows expected to result from the use and eventual disposition of the assets. We evaluate long-lived intangible assets at an individual store level, which is the lowest level of identifiable cash flows. We evaluate corporate assets or other long-lived assets that are not store-specific at the consolidated level. To estimate store-specific future cash flows, we make assumptions about key store variables, including sales, growth rate, gross margin, payroll and other controllable expenses. Stores that are owned by us are further evaluated taking into consideration the fair market value of the property compared to the carrying value of the assets. Furthermore, management considers other factors when evaluating stores for impairment, including the individual store's execution of its operating plan and other local market conditions. Our estimates are subject to uncertainty and may be affected by a number of factors outside our control, including general economic conditions and the competitive environment. An impairment is recognized once all the factors noted above are taken into consideration and it is determined that the carrying amount of the store's assets are not recoverable. The impairment loss would be recognized in the amount by which the carrying amount of a long-lived asset exceeds its fair value, excluding assets that can be redeployed. No impairment of long-term assets was recognized during the fiscal years ended January 30, 2021 and January 26, 2019. During the fiscal year ended January 25, 2020, we recognized a non-cash impairment charge of $5.2 million in connection with store closure and relocation decisions. We test our indefinite-lived trade name intangible asset annually for impairment or more frequently if impairment indicators arise. If the fair value of the indefinite-lived intangible asset is lower than its carrying amount, the asset is written down to its fair value. The fair value of our trade name (a Level 3 valuation) was calculated using a relief-from-royalty approach, which assumes the value of the trade name is the discounted cash flows of the amount that would be paid by a hypothetical market participant had they not owned the trade name and instead licensed the trade name from another company. The carrying value of the At Home trade name as of January 30, 2021 is approximately $1.5 million. No impairment of our indefinite-lived trade name intangible asset was recognized during the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs are costs incurred in connection with obtaining or modifying financing arrangements. These costs are capitalized as a direct deduction from the carrying value of the debt, other than costs incurred in conjunction with our line of credit, which are capitalized as an asset, and amortized over the term of the respective debt agreements. Total amortization expense related to debt issuance costs was approximately $3.9 million, $2.2 million and $1.8 million for the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019, respectively. |
Insurance Liabilities | Insurance Liabilities We were fully insured for commercial general liability claims during the fiscal year ended January 30, 2021. We were fully insured for workers’ compensation claims through November 30, 2020 and purchased insurance coverage that limited our aggregate exposure for individual claims to $250,000 per claim beginning on December 1, 2020. We utilize a combination of commercial insurance and self-insurance for employee-related health care plans. The cost of our health care plan is borne in part by our employees. We purchase insurance coverage that limits our aggregate exposure for individual claims to $175,000 per employee-related health care claim. Health care reserves are based on actual claims experience and an estimate of claims incurred but not reported. Reserves for workers' compensation are determined through the use of actuarial studies. Due to the judgments and estimates utilized in determining these reserves, they are subject to a high degree of variability. In the event our insurance carriers are unable to pay claims submitted to them, we would record a liability for such estimated payments we expect to incur. |
Revenue Recognition | Revenue Recognition Revenue from sales of our merchandise is recognized when the customer takes possession of the merchandise. Revenue is presented net of sales taxes collected. We allow for merchandise to be returned within 60 days from the purchase date and provide a reserve for estimated returns. See “ Note 8—Revenue Recognition |
Cost of Sales | Cost of Sales Cost of sales are included in merchandise inventories and expensed as the merchandise is sold. We include the following expenses in cost of sales: ● cost of merchandise, net of inventory shrinkage, damages and vendor allowances; ● inbound freight and internal transportation costs such as distribution center-to-store freight costs; ● costs of operating our distribution center, including labor, occupancy costs, supplies and depreciation; and ● store occupancy costs including rent, insurance, taxes, common area maintenance, utilities, repairs, maintenance and depreciation. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses include payroll, benefits and other personnel expenses for corporate and store employees, including stock-based compensation expense, consulting, legal and other professional services expenses, advertising expenses, occupancy costs for our corporate headquarters and various other expenses. |
Store Pre-Opening Costs | Store Pre-Opening Costs We expense pre-opening costs for new stores as they are incurred. During the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019, store pre-opening costs were approximately $17.6 million, $26.7 million and $21.7 million, respectively. Store pre-opening costs, such as occupancy expenses, advertising and labor are primarily included in selling, general and administrative expenses. |
Marketing and Advertising | Marketing and Advertising Marketing and advertising costs, exclusive of store pre-opening marketing and advertising expenses discussed above, include billboard, newspaper, radio, digital and other advertising mediums. Marketing and advertising costs are expensed when first run and included in selling, general and administrative expenses. Total marketing and advertising expenses were approximately $42.7 million, $44.9 million and $34.9 million for the fiscal years ended January 30, 2021, January 25, 2020 and January 26, 2019, respectively. |
Stock-Based Compensation | Stock-Based Compensation We account for stock-based compensation in accordance with ASC 718 (Topic 718, “ Compensation—Stock Compensation We estimate fair value of each stock option grant on the date of grant based upon the Black-Scholes option pricing model, with the exception of a special one-time initial public offering transaction bonus grant which was valued on the date of grant using the Monte Carlo simulation method. For restricted stock unit awards and performance stock unit awards, grant date fair value is determined based upon the closing trading value of our common stock on the New York Stock Exchange (the “NYSE”) on the date of grant and our forfeiture assumptions are estimated based on historical experience. The Black-Scholes option pricing model requires various significant judgmental assumptions in order to derive a final fair value determination for each type of award including the following: ● Expected term —The expected term of the options represents the period of time between the grant date of the options and the date the options are either exercised or canceled. ● Expected volatility —The expected volatility is calculated based partially on the historical volatility of our common stock and partially on the historical volatility of the common stock of comparable companies. ● Expected dividend yield —The expected dividend yield is based on our expectation of not paying dividends on its common stock for the foreseeable future. ● Risk-free interest rate —The risk-free interest rate is the average U.S. Treasury rate in effect at the time of grant and with a maturity that approximates the expected term. All grants of our stock options have an exercise price equal to or greater than the fair market value of our common stock on the date of grant. |
Income Taxes | Income Taxes The provision for income taxes is accounted for under the asset and liability method prescribed by ASC 740 (Topic 740, “ Income Taxes in the period the tax rate changes are enacted. When necessary, a valuation allowance may be recorded against deferred tax assets in order to properly reflect the amount that is more likely than not to be realized. We recognize the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Summary of Significant Accounting Policies | |
Schedule of cash, cash equivalents and restricted cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows (in thousands): January 30, 2021 January 25, 2020 Cash and cash equivalents $ 125,842 $ 12,082 Restricted cash 35 3 Cash, cash equivalents and restricted cash $ 125,877 $ 12,085 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Property and Equipment | |
Schedule of property and equipment | Property and equipment consists of the following (in thousands): January 30, 2021 January 25, 2020 Land $ 58,271 $ 67,674 Buildings 110,606 119,302 Computer hardware and software 80,141 67,508 Equipment, furniture and fixtures 202,508 190,568 Leasehold improvements 495,896 464,791 Construction in progress 59,336 52,364 1,006,758 962,207 Less: accumulated depreciation and amortization (318,463) (248,019) Property and equipment, net $ 688,295 $ 714,188 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Accrued Liabilities | |
Schedule of accrued and other current liabilities | Accrued liabilities consist of the following (in thousands): January 30, 2021 January 25, 2020 Inventory in-transit $ 30,553 $ 21,047 Accrued payroll and other employee-related liabilities 42,592 12,002 Accrued taxes, other than income 25,124 17,220 Accrued interest 11,304 5,346 Insurance liabilities 1,344 1,174 Gift card liability 10,732 9,224 Construction costs 5,231 7,090 Accrued inbound freight 27,511 19,803 Sales returns reserve 3,790 2,975 Accrued marketing 5,831 1,670 Accrued utilities 1,145 1,443 Other 19,693 13,810 Total accrued liabilities $ 184,850 $ 112,804 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Long-Term Debt | |
Schedule of long-term debt | Long-term debt consists of the following (in thousands): January 30, 2021 January 25, 2020 Senior Secured Notes $ 275,000 $ — Term Loan — 335,982 FILO Loans 33,250 — Note payable, bank (a) 5,675 5,825 Obligations under finance leases 16,260 1,533 Total debt 330,185 343,340 Less: current maturities 4,563 4,862 Less: unamortized deferred debt issuance costs 11,322 4,227 Long-term debt $ 314,300 $ 334,251 (a) Matures August 22, 2022; $34.5 payable monthly, including interest at 4.50% with the remaining balance due at maturity; secured by the location’s land and building. |
Schedule of aggregate annual maturities of long-term debt, excluding finance lease obligations | Aggregate annual maturities of long-term debt, excluding finance lease obligations, are as follows (in thousands): January 30, 2021 2022 $ 3,658 2023 35,267 2024 — 2025 — 2026 275,000 Thereafter — $ 313,925 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Revenue Recognition | |
Schedule of disaggregation of revenue | In accordance with ASC 606, we disaggregate net sales into the following product categories: Fiscal Year Ended January 30, 2021 January 25, 2020 January 26, 2019 Home furnishings 42 % 43 % 44 % Accent décor 53 53 52 Other 5 4 4 Total 100 % 100 % 100 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Income Taxes | |
Schedule of income tax provision | Our income tax provision is as follows (in thousands): Fiscal Year Ended January 30, 2021 January 25, 2020 January 26, 2019 Current income tax expense Federal $ 12,572 $ 16,867 $ 16,620 State 3,743 3,058 2,607 Deferred income tax expense (benefit) Federal 24,574 4,156 (16,343) State 1,956 (909) (2,901) Income tax provision (benefit) $ 42,845 $ 23,172 $ (17) |
Schedule of tax effects of temporary differences give rise to significant components of deferred tax assets and liabilities | Tax effects of temporary differences that give rise to significant components of the deferred tax assets and liabilities are as follows (in thousands): January 30, 2021 January 25, 2020 Deferred tax assets Inventory $ 9,536 $ 12,566 Accruals 3,201 4,257 Net operating losses 377 109 Deferred compensation 7,854 7,370 Deferred revenue 829 986 Prepaid rent 1,376 1,452 Operating lease liabilities 311,184 310,817 Intangible assets 1,239 1,338 Other, net 653 722 Total deferred tax assets 336,249 339,617 Deferred tax liabilities Property and equipment (57,828) (33,153) Operating lease right-of-use assets (288,001) (289,537) Trade name (136) (112) Total deferred tax liabilities (345,965) (322,802) Net deferred tax (liability) asset $ (9,716) $ 16,815 |
Schedule of reconciliation between the actual income tax provision and the income tax provision calculated at the federal statutory tax rate | The reconciliation between the actual income tax provision and the income tax provision calculated at the federal statutory tax rate is as follows (dollars in thousands): Fiscal Year Ended January 30, 2021 January 25, 2020 January 26, 2019 Income tax provision at the federal statutory rate $ (22,445) $ (40,165) $ 10,286 Permanent differences 865 399 340 Impairment charges 67,144 52,500 — State income taxes, net of federal income tax effect 4,541 1,843 (112) Change in unrecognized tax benefits (108) (249) (495) Net operating loss carryback (6,793) — — Effect of the Tax Act — — (524) Executive compensation limitation 485 — — Equity-based compensation (553) 9,115 (9,293) Tax credits (291) (319) (278) Deferred adjustment — 48 59 Income tax provision (benefit) $ 42,845 $ 23,172 $ (17) Effective tax rate (40.1) % (12.1) % (0.0) % |
Schedule of reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): January 30, 2021 January 25, 2020 Balance, beginning of period $ 551 $ 716 Additions based on tax positions related to the current year 337 102 Additions based on tax positions related to the prior year 132 249 Subtractions based on tax positions related to the prior year (10) — Settlements (85) (69) Expiration of statute of limitations (325) (447) Balance, end of period $ 600 $ 551 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Commitments and Contingencies | |
Schedule of derecognition of sale-leaseback and build-to-suit lease accounting guidance 842 | In addition, ASC 842 eliminated the previous sale-leaseback and build-to-suit lease accounting guidance, which resulted in the derecognition of the following (in thousands): Balance Sheet Derecognition as of Classification January 27, 2019 Deferred gains on sale-leasebacks Deferred rent $ 121,874 Financing obligations (a) Financing Obligations 35,241 Build-to-suit assets (a) Property and equipment, net (22,777) Deferred tax asset Noncurrent deferred tax asset (32,743) Other Several (3,001) Adjustment to retained earnings Retained earnings $ (98,594) (a) Build-to-suit assets and related financing obligation liabilities that remained on the balance sheet after the end of the construction period. |
Schedule of lease costs | The components of lease cost were as follows (in thousands): Fiscal Year Ended January 30, 2021 January 25, 2020 Operating lease cost (a) $ 161,060 $ 142,508 Variable lease cost 24,351 23,086 Finance lease cost: Amortization of right-of-use assets 472 298 Interest on lease liabilities 707 129 Total lease cost (b) $ 186,590 $ 166,021 (a) Net of an immaterial amount of sublease income. (b) Short-term lease cost for the fiscal years ended January 30, 2021 and January 25, 2020 was immaterial. |
Schedule of weighted average remaining lease term and discount rate | The table below presents additional information related to our leases as of January 30, 2021. Weighted average remaining lease term Operating leases 11.5 years Finance leases 13.2 years Weighted average discount rate Operating leases 5.93 % Finance leases 6.50 % |
Schedule of supplemental cash flow information | Supplemental disclosures of cash flow information related to leases were as follows (in thousands): Fiscal Year Ended January 30, 2021 January 25, 2020 Cash paid for operating lease liabilities (a) $ 130,976 $ 126,511 Right-of-use assets obtained in exchange for operating lease liabilities $ 192,506 $ 310,818 Cash paid for finance lease liabilities $ 519 $ 294 (a) During the fiscal year ended January 30, 2021, we had negotiated rent deferral or abatement with certain lessors. |
Schedule of maturities of lease liabilities | Maturities of lease liabilities were as follows as of January 30, 2021 (in thousands): Operating Leases Finance Leases Total 2022 $ 160,665 $ 1,981 $ 162,646 2023 164,839 1,854 166,693 2024 163,514 1,732 165,246 2025 164,843 1,766 166,609 2026 165,366 1,715 167,081 Thereafter 1,162,547 15,500 1,178,047 Total lease payments 1,981,774 24,548 2,006,322 Amount representing interest (587,515) (8,288) (595,803) Present value of lease liabilities 1,394,259 16,260 1,410,519 Less current obligations (78,634) (905) (79,539) Long-term lease obligations $ 1,315,625 $ 15,355 $ 1,330,980 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Earnings Per Share | |
Schedule of calculation of basic and diluted earnings per share | The following table sets forth the calculation of basic and diluted earnings per share as follows (dollars in thousands, except share and per share data): Fiscal Year Ended January 30, 2021 January 25, 2020 January 26, 2019 Numerator: Net (loss) income $ (149,729) $ (214,435) $ 48,996 Denominator: Weighted average common shares outstanding-basic 64,426,355 63,975,633 62,936,959 Effect of dilutive securities: Stock options and restricted stock units — — 3,362,687 Weighted average common shares outstanding-diluted 64,426,355 63,975,633 66,299,646 Net (loss) income per common share: Basic $ (2.32) $ (3.35) $ 0.78 Diluted $ (2.32) $ (3.35) $ 0.74 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Stock-Based Compensation | |
Schedule of assumptions in estimating the fair value of option grants | We utilized the following assumptions in estimating the fair value of the option grants: January 30, 2021 January 25, 2020 January 26, 2019 Weighted-average expected volatility 87.3 % 60.9 % 58.6 % Expected dividend yield — % — % — % Weighted-average expected term (in years) 4.0 4.2 5.0 Weighted-average risk-free interest rate 0.5 % 2.1 % 2.8 % |
Schedule of option activity under Equity Plans | A summary of option activity under the Equity Plans as of January 30, 2021, and changes during the fiscal year then ended, is presented below: Weighted- Weighted- Average Aggregate Average Remaining Intrinsic Stock Exercise Contractual Value Options Price Term (in thousands) Outstanding, beginning of year 5,825,516 $ 14.80 Granted 2,223,975 7.84 Exercised (1,040,716) 12.79 Forfeited or expired (23,383) 21.31 Outstanding, end of year 6,985,392 $ 12.86 4.09 $ 10,908 Exercisable, end of year 3,733,307 $ 13.04 2.51 $ 2,602 |
Schedule of RSU activity and related information | A summary of the Company’s Awards activity and related information as of January 30, 2021, and changes during the fiscal year then ended, is presented below: Weighted- Average Number of Grant Date Shares Fair Value Nonvested, beginning of year 748,512 $ 14.90 Granted 598,160 12.96 Vested (215,521) 17.69 Forfeited (86,364) 15.34 Nonvested, end of year 1,044,787 $ 13.18 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Quarterly Results of Operations (Unaudited) | |
Schedule of quarterly financial information | Unaudited quarterly results of operations for the fiscal years ended January 30, 2021 and January 25, 2020 were as follows (in thousands, except per share data): Fiscal Year 2021 First Quarter Second Quarter Third Quarter Fourth Quarter (1) Net sales $ 189,846 $ 515,244 $ 469,986 $ 561,987 Gross profit 16,350 196,127 170,708 218,428 Operating (loss) income (2) (372,061) 125,247 71,319 100,283 Loss on extinguishment of debt — — 3,179 — Net (loss) income (358,942) 89,423 47,077 72,713 Basic net (loss) income per common share (5.60) 1.39 0.73 1.12 Diluted net (loss) income per common share $ (5.60) $ 1.39 $ 0.71 $ 1.08 Fiscal Year 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 306,264 $ 342,321 $ 318,734 $ 397,716 Gross profit (3) 88,051 100,398 85,413 114,091 Operating income (loss) (3)(4) 25,889 21,813 1,986 (209,149) Net income (loss) 13,883 10,382 (14,647) (224,053) Basic net income (loss) per common share 0.22 0.16 (0.23) (3.50) Diluted net income (loss) per common share (3) $ 0.21 $ 0.16 $ (0.23) $ (3.50) (1) The fourth quarter of fiscal year 2021 contained 14 weeks, as compared to the fourth quarter of fiscal year 2020, which contained 13 weeks. (2) Includes $319.7 million of non-cash impairment charges related to our goodwill in the first fiscal quarter 2021. (3) The sum of the quarters does not equal the total fiscal year due to rounding. (4) Includes $250.0 million of non-cash impairment charges related to our goodwill in the fourth fiscal quarter 2020. |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended | ||||
Apr. 25, 2020USD ($) | Jan. 25, 2020USD ($) | Jan. 30, 2021USD ($)statestoresegment | Jan. 25, 2020USD ($) | Jan. 26, 2019USD ($) | Aug. 20, 2020USD ($) | |
Number of home decor superstores | store | 219 | |||||
Number of states operated | state | 40 | |||||
Number of operating segments | segment | 1 | |||||
Number of reportable segment | segment | 1 | |||||
Capitalized interest cost | $ 1,900,000 | $ 2,100,000 | $ 3,100,000 | |||
Carrying value of debt | 313,925,000 | |||||
Goodwill | $ 319,732,000 | 319,732,000 | ||||
Impairment charges | $ 319,700,000 | $ 250,000,000 | 319,700,000 | 250,000,000 | 0 | |
Impairment charges | 319,732,000 | 255,230,000 | ||||
Impairment charges in connection with store closure and relocation decisions | 5,200,000 | |||||
Impairment of long lived asset | 0 | 0 | ||||
Carrying value of trade name | 1,500,000 | |||||
Impairment of indefinite-lived asset, trade name | 0 | 0 | 0 | |||
Amortization of debt issuance cost | 3,900,000 | 2,200,000 | 1,800,000 | |||
Aggregate exposure for individual claims per workers' compensation and commercial general liability claim | 250,000 | |||||
Aggregate exposure for individual claims per employee-related health care claim | 175,000 | |||||
Store pre-operating cost | 17,600,000 | 26,700,000 | 21,700,000 | |||
Advertising expense | $ 42,700,000 | 44,900,000 | 34,900,000 | |||
Minimum | ||||||
Estimated useful life | 3 years | |||||
Maximum | ||||||
Estimated useful life | 40 years | |||||
Fixed rate mortgage | Level 2 | ||||||
Carrying value of debt | $ 5,700,000 | |||||
Internal use software | ||||||
Capitalized computer software, additions | 5,400,000 | 9,700,000 | 3,100,000 | |||
Amortization expense related to capitalized software costs | $ 6,800,000 | $ 6,000,000 | $ 4,900,000 | |||
Internal use software | Minimum | ||||||
Capitalized cost amortization period of software | 3 years | |||||
Internal use software | Maximum | ||||||
Capitalized cost amortization period of software | 5 years | |||||
Senior Secured Notes | Level 2 | ||||||
Principal amount | $ 275,000,000 | |||||
Carrying value of debt | $ 275,000,000 | |||||
Interest rate, stated percentage | 8.75% | |||||
Notes payable | $ 301,100,000 | |||||
Excess of carrying amount | $ 26,100,000 | |||||
8.750 Senior Notes | ||||||
Principal amount | $ 275,000,000 | |||||
Interest rate, stated percentage | 8.75% |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 | Jan. 27, 2018 |
Summary of Significant Accounting Policies | ||||
Cash and cash equivalents | $ 125,842 | $ 12,082 | ||
Restricted cash | 35 | 3 | ||
Cash, cash equivalents and restricted cash | $ 125,877 | $ 12,085 | $ 13,466 | $ 8,525 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,006,758 | $ 962,207 | |
Less: accumulated depreciation and amortization | (318,463) | (248,019) | |
Property and equipment, net | 688,295 | 714,188 | |
Depreciation and amortization expense | 71,441 | 69,418 | $ 56,529 |
Impairment charges in connection with store closure and relocation decisions | 5,200 | ||
Impairment charges | 0 | 0 | |
Cost of Sales | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | 62,700 | 61,800 | $ 50,200 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 58,271 | 67,674 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 110,606 | 119,302 | |
Computer hardware and software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 80,141 | 67,508 | |
Equipment, furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 202,508 | 190,568 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 495,896 | 464,791 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 59,336 | $ 52,364 |
Sale-Leaseback Transactions (De
Sale-Leaseback Transactions (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Jul. 25, 2020USD ($)property | Sep. 30, 2019USD ($)property | Mar. 31, 2019USD ($)property | Oct. 31, 2018USD ($)leaseproperty | Jul. 31, 2018USD ($)property | Feb. 28, 2018USD ($)property | Jan. 30, 2021USD ($) | Jan. 25, 2020USD ($) | |
Sale-Leaseback Transactions | ||||||||
Number of properties sold | property | 3 | 4 | 5 | 4 | 3 | 4 | ||
Proceeds from sale of properties | $ 33,200 | $ 50,500 | $ 74,700 | |||||
Proceeds from sale of properties | $ 56,500 | $ 43,600 | $ 50,300 | |||||
(Loss) gain on sale-leaseback | 100 | 1,100 | 16,600 | $ (115) | $ 17,742 | |||
Net gain | $ 3,100 | 10,700 | 22,600 | |||||
Number of leases | lease | 2 | |||||||
Cumulative initial annual rent | $ 2,900 | $ 3,700 | $ 5,000 | |||||
Cumulative initial annual rent | $ 3,800 | $ 3,000 | $ 3,400 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Jan. 25, 2020 |
Accrued Liabilities | ||
Inventory in-transit | $ 30,553 | $ 21,047 |
Accrued payroll and other employee-related liabilities | 42,592 | 12,002 |
Accrued taxes, other than income | 25,124 | 17,220 |
Accrued interest | 11,304 | 5,346 |
Insurance liabilities | 1,344 | 1,174 |
Gift card liability | 10,732 | 9,224 |
Construction costs | 5,231 | 7,090 |
Accrued inbound freight | 27,511 | 19,803 |
Sales returns reserve | 3,790 | 2,975 |
Accrued marketing | 5,831 | 1,670 |
Accrued utilities | 1,145 | 1,443 |
Other | 19,693 | 13,810 |
Total accrued liabilities | $ 184,850 | $ 112,804 |
Revolving Line of Credit (Detai
Revolving Line of Credit (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 | Oct. 31, 2011 | |
Revolving Line of Credit | ||||
Outstanding under the ABL credit agreement | $ 235,670 | |||
ABL Credit Facility | ||||
Revolving Line of Credit | ||||
Maximum borrowing capacity | $ 425,000 | $ 80,000 | ||
Principal amount | $ 35,000 | |||
Effective interest rate (as a percent) | 2.60% | 4.00% | 3.80% | |
Outstanding under the ABL credit agreement | $ 0 | |||
Available borrowing capacity | $ 312,600 | |||
Floor interest rate | 1.00% | |||
Financial covenants, minimum loan cap, amount | $ 35,000 | |||
Loan cap rate | 10.00% | |||
Minimum capacity currently available under the terms of credit facility | $ 35,000 | |||
ABL Credit Facility | Maximum | ||||
Revolving Line of Credit | ||||
Cash limit for prepayment provision | $ 35,000 | |||
ABL Credit Facility | Federal Funds Rate | ||||
Revolving Line of Credit | ||||
Basis spread on variable rate | 0.50% | |||
ABL Credit Facility | Federal Funds Rate | Minimum | ||||
Revolving Line of Credit | ||||
Applicable margin | 0.75% | |||
ABL Credit Facility | Federal Funds Rate | Maximum | ||||
Revolving Line of Credit | ||||
Applicable margin | 1.25% | |||
ABL Credit Facility | LIBOR | ||||
Revolving Line of Credit | ||||
Basis spread on variable rate | 1.00% | |||
ABL Credit Facility | LIBOR | Minimum | ||||
Revolving Line of Credit | ||||
Applicable margin | 0.75% | |||
Applicable margin on bank's LIBOR | 1.75% | |||
ABL Credit Facility | LIBOR | Maximum | ||||
Revolving Line of Credit | ||||
Applicable margin | 1.25% | |||
Applicable margin on bank's LIBOR | 2.25% | |||
ABL Credit Facility | Bank's Prime rate | Minimum | ||||
Revolving Line of Credit | ||||
Applicable margin | 0.75% | |||
ABL Credit Facility | Bank's Prime rate | Maximum | ||||
Revolving Line of Credit | ||||
Applicable margin | 1.25% | |||
Letters of Credit | ||||
Revolving Line of Credit | ||||
Maximum borrowing capacity | $ 50,000 | |||
Outstanding under the ABL credit agreement | 1,200 | |||
Swingline loan | ||||
Revolving Line of Credit | ||||
Maximum borrowing capacity | $ 20,000 |
Long-Term Debt - Summary (Detai
Long-Term Debt - Summary (Details) - USD ($) | 12 Months Ended | ||
Jan. 30, 2021 | Aug. 20, 2020 | Jan. 25, 2020 | |
Long-Term Debt | |||
Total debt | $ 330,185,000 | $ 343,340,000 | |
Obligations under finance leases | 16,260,000 | ||
Less: current maturities | 4,563,000 | 4,862,000 | |
Less: unamortized deferred debt issuance costs | 11,322,000 | 4,227,000 | |
Long-term debt | 314,300,000 | 334,251,000 | |
Senior Secured Notes | |||
Long-Term Debt | |||
Total debt | 275,000,000 | ||
Term Loan | |||
Long-Term Debt | |||
Total debt | 335,982,000 | ||
FILO Loans | |||
Long-Term Debt | |||
Total debt | 33,250,000 | ||
Note payable, bank | |||
Long-Term Debt | |||
Total debt | 5,675,000 | 5,825,000 | |
Installment payable | $ 34,500 | ||
Interest rate, stated percentage | 4.50% | ||
Obligations under finance leases | |||
Long-Term Debt | |||
Total debt | $ 16,260,000 | $ 1,533,000 | |
8.750 Senior Notes | |||
Long-Term Debt | |||
Interest rate, stated percentage | 8.75% |
Long-Term Debt - First Lien and
Long-Term Debt - First Lien and Second Lien Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Oct. 24, 2020 | Jan. 30, 2021 | Jun. 05, 2015 | |
Long-Term Debt | |||
Loss on extinguishment of debt | $ 3,179 | $ 3,179 | |
First Lien Agreement | |||
Long-Term Debt | |||
Loss on extinguishment of debt | $ 3,200 | ||
First Lien Agreement | Term Loan | |||
Long-Term Debt | |||
Debt instrument, face value | $ 350,000 |
Long-Term Debt - Maturities (De
Long-Term Debt - Maturities (Details) $ in Thousands | Jan. 30, 2021USD ($) |
Aggregate annual maturities of long-term debt | |
2022 | $ 3,658 |
2023 | 35,267 |
2026 | 275,000 |
Total | $ 313,925 |
Long-Term Debt - Senior Notes (
Long-Term Debt - Senior Notes (Details) - USD ($) | Jun. 12, 2020 | Jan. 30, 2021 | Aug. 20, 2020 |
Long-term Debt, by Current and Noncurrent [Abstract] | |||
Restricted net assets | $ 484,200,000 | ||
8.750 Senior Notes | |||
Long-term Debt, by Current and Noncurrent [Abstract] | |||
Debt instrument, face value | $ 275,000,000 | ||
Interest rate, stated percentage | 8.75% | ||
FILO Loans | |||
Long-term Debt, by Current and Noncurrent [Abstract] | |||
Amortization percentage | 10.00% | ||
Installment payable | $ 875,000 | ||
FILO Loans | LIBOR | |||
Long-term Debt, by Current and Noncurrent [Abstract] | |||
LIBOR floor rate | 1.00% | ||
Basis spread on variable rate | 9.00% | ||
FILO Loans | Base rate | |||
Long-term Debt, by Current and Noncurrent [Abstract] | |||
Basis spread on variable rate | 8.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 | |
MMI | |||
Related Party Transactions | |||
Payments to related party | $ 0.3 | $ 0.6 | |
360 Holdings III Corp | |||
Related Party Transactions | |||
Payments to related party | $ 2.5 | $ 1.3 | $ 0.5 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of revenue (Details) - USD ($) | 12 Months Ended | ||
Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 | |
Revenue Recognition | |||
Number of reportable segments | 1 | ||
Revenue percentage | 100.00% | 100.00% | 100.00% |
Home furnishings | |||
Revenue Recognition | |||
Revenue percentage | 42.00% | 43.00% | 44.00% |
Accent decor | |||
Revenue Recognition | |||
Revenue percentage | 53.00% | 53.00% | 52.00% |
Other | |||
Revenue Recognition | |||
Revenue percentage | 5.00% | 4.00% | 4.00% |
Revenue Recognition - Narrative
Revenue Recognition - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2021 | Oct. 24, 2020 | Jul. 25, 2020 | Apr. 25, 2020 | Jan. 25, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 27, 2019 | Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 | |
Revenue Recognition | |||||||||||
Revenue | $ 561,987 | $ 469,986 | $ 515,244 | $ 189,846 | $ 397,716 | $ 318,734 | $ 342,321 | $ 306,264 | $ 1,737,063 | $ 1,365,035 | $ 1,165,899 |
Gift card liability | $ 10,732 | $ 9,224 | $ 10,732 | 9,224 | |||||||
Amortization period of capitalized contract costs | 7 years | 7 years | |||||||||
Gift Card Redemption | |||||||||||
Revenue Recognition | |||||||||||
Revenue | $ 16,200 | 16,300 | 16,300 | ||||||||
Revenue recognized | 3,400 | 3,600 | 3,000 | ||||||||
Credit Card Program | |||||||||||
Revenue Recognition | |||||||||||
Revenue | $ 3,100 | $ 3,700 | $ 3,200 |
Income Taxes - Provision (Detai
Income Taxes - Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 | |
Current income tax expense | |||
Federal | $ 12,572 | $ 16,867 | $ 16,620 |
State | 3,743 | 3,058 | 2,607 |
Deferred income tax expense (benefit) | |||
Federal | 24,574 | 4,156 | (16,343) |
State | 1,956 | (909) | (2,901) |
Income tax provision (benefit) | $ 42,845 | $ 23,172 | $ (17) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Jan. 25, 2020 |
Deferred tax assets | ||
Inventory | $ 9,536 | $ 12,566 |
Accruals | 3,201 | 4,257 |
Net operating losses | 377 | 109 |
Deferred compensation | 7,854 | 7,370 |
Deferred revenue | 829 | 986 |
Prepaid rent | 1,376 | 1,452 |
Operating lease liabilities | 311,184 | 310,817 |
Intangible assets | 1,239 | 1,338 |
Other, net | 653 | 722 |
Total deferred tax assets | 336,249 | 339,617 |
Deferred tax liabilities | ||
Property and equipment | (57,828) | (33,153) |
Operating lease right-of-use asset | (288,001) | (289,537) |
Trade name | (136) | (112) |
Total deferred tax liabilities | (345,965) | (322,802) |
Net deferred tax liabilities | $ (9,716) | |
Net deferred tax (liability) asset | $ 16,815 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Jan. 30, 2021 | Jan. 25, 2020 |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 0 | |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | $ 15,100,000 | $ 3,000,000 |
Income Taxes - Federal Statutor
Income Taxes - Federal Statutory Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 | |
Reconciliation between the actual income tax provision (benefit) and income tax provision (benefit) calculated at federal statutory tax rate: | |||
Income tax provision at the federal statutory rate | $ (22,445) | $ (40,165) | $ 10,286 |
Permanent differences | 865 | 399 | 340 |
Impairment charges | 67,144 | 52,500 | |
State income taxes, net of federal income tax effect | 4,541 | 1,843 | (112) |
Change in unrecognized tax benefits | (108) | (249) | (495) |
Net operating loss carryback | (6,793) | ||
Effect of the Tax Act | (524) | ||
Executive compensation limitation | 485 | ||
Equity-based compensation | (553) | 9,115 | (9,293) |
Tax credits | (291) | (319) | (278) |
Deferred adjustment | 48 | 59 | |
Income tax provision (benefit) | $ 42,845 | $ 23,172 | $ (17) |
Effective tax rate (as a percent) | (40.10%) | (12.10%) | 0.00% |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 30, 2021 | Jan. 25, 2020 | Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 | |
Income Taxes | |||||
Unrecognized Tax Benefits | $ 600 | $ 716 | $ 600 | $ 551 | $ 716 |
Unrecognized tax benefits, which would favorably impact the effective tax rate | $ 500 | ||||
Reconciliation unrecognized tax benefits: | |||||
Balance, beginning of period | 551 | 716 | |||
Additions based on tax positions related to the current year | 337 | 102 | |||
Additions based on tax positions related to the prior year | 132 | 249 | |||
Subtractions based on tax positions related to the prior year | (10) | ||||
Settlements | (85) | (69) | |||
Expiration of statue of limitations | (325) | (447) | |||
Balance, end of period | $ 600 | $ 551 | |||
Accrued penalties and interest | |||||
Interest expense and penalties | $ 100 | $ 100 |
Commitments and Contingencies -
Commitments and Contingencies - Derecognition (Details) - USD ($) $ in Thousands | Jan. 27, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Feb. 28, 2018 |
Sale Leaseback Transaction [Line Items] | ||||
Deferred gains on sale-leasebacks | $ 3,100 | $ 10,700 | $ 22,600 | |
As adjusted | ASU 2016-02 | ||||
Sale Leaseback Transaction [Line Items] | ||||
Deferred gains on sale-leasebacks | $ 121,874 | |||
Financing obligations | 35,241 | |||
Build-to-suit assets | (22,777) | |||
Deferred tax asset | (32,743) | |||
Other | (3,001) | |||
Adjustment to retained earnings | $ (98,594) |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended | |
Jan. 30, 2021USD ($)lease | Jan. 25, 2020USD ($) | |
Retained earnings | $ (198,797) | $ (49,068) |
Number of real estate leases for store properties that qualify for treatment as finance leases | lease | 4 | |
Option to extend leases | true | |
Weighted average remaining lease term -Operating leases (years) | 11 years 6 months | |
Weighted average remaining lease term - Finance leases (years) | 13 years 2 months 12 days | |
Weighted average discount rate - Operating leases | 5.93% | |
Weighted average discount rate - Finance leases | 6.50% | |
Lease cost | ||
Operating lease cost | $ 161,060 | 142,508 |
Variable lease cost | 24,351 | 23,086 |
Amortization of right-of-use assets | 472 | 298 |
Interest on lease liabilities | 707 | 129 |
Total lease cost | 186,590 | 166,021 |
Supplemental disclosures of cash flow information related to leases | ||
Cash paid for operating lease liabilities | 130,976 | 126,511 |
Right-of-use assets obtained in exchange for operating lease liabilities | 192,506 | 310,818 |
Cash paid for finance lease liabilities | 519 | $ 294 |
Minimum lease payments for leases signed but not yet commenced | 105,500 | |
Lease rent abatement credit | 2,300 | |
Deferred operating lease costs | $ 13,900 | |
Minimum | ||
Lease term | 5 years | |
Renewal term | 5 years | |
Maximum | ||
Lease term | 20 years | |
Renewal term | 20 years |
Commitments and Contingencies_3
Commitments and Contingencies - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Jan. 25, 2020 |
Operating Leases | ||
2022 | $ 160,665 | |
2023 | 164,839 | |
2024 | 163,514 | |
2025 | 164,843 | |
2026 | 165,366 | |
Thereafter | 1,162,547 | |
Total lease payments | 1,981,774 | |
Amount representing interest | (587,515) | |
Present value of lease liabilities | 1,394,259 | |
Less current obligations | (78,634) | $ (65,188) |
Long-term lease obligations | 1,315,625 | $ 1,195,564 |
Finance Leases | ||
2022 | 1,981 | |
2023 | 1,854 | |
2024 | 1,732 | |
2025 | 1,766 | |
2026 | 1,715 | |
Thereafter | 15,500 | |
Total lease payments | 24,548 | |
Amount representing interest | (8,288) | |
Present value of lease liabilities | 16,260 | |
Less current obligations | (905) | |
Long-term lease obligations | 15,355 | |
Total | ||
2022 | 162,646 | |
2023 | 166,693 | |
2024 | 165,246 | |
2025 | 166,609 | |
2026 | 167,081 | |
Thereafter | 1,178,047 | |
Total lease payments | 2,006,322 | |
Amount representing interest | (595,803) | |
Present value of lease liabilities | 1,410,519 | |
Less current obligations | (79,539) | |
Long-term lease obligations | $ 1,330,980 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | Oct. 01, 2014 | Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 |
Defined Contribution Plan Disclosure [Line Items] | ||||
Minimum age limit | 18 years | |||
Minimum service period | 6 months | |||
Participants contribution (as a percent) | 100.00% | |||
Matching contribution expense | $ 1.5 | $ 1.6 | $ 1.3 | |
Matching on up to first 3% of participant's annual compensation | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer's matching percentage | 100.00% | |||
Matching on up to first 3% of participant's annual compensation | Maximum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of eligible employee compensation matched | 3.00% | |||
Matching between 3% and 5% of participant's annual compensation | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer's matching percentage | 50.00% | |||
Matching between 3% and 5% of participant's annual compensation | Minimum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of eligible employee compensation matched | 3.00% | |||
Matching between 3% and 5% of participant's annual compensation | Maximum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of eligible employee compensation matched | 5.00% |
Capital Stock (Details)
Capital Stock (Details) - $ / shares | Jan. 30, 2021 | Jan. 25, 2020 |
Capital Stock | ||
Common stock, authorized | 500,000,000 | 500,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, issued | 65,342,489 | 64,106,061 |
Common stock, outstanding | 65,342,489 | 64,106,061 |
Preferred stock, authorized | 50,000,000 | |
Preferred stock, par value | $ 0.01 | |
Preferred stock, issued | 0 | |
Preferred stock, outstanding | 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2021 | Oct. 24, 2020 | Jul. 25, 2020 | Apr. 25, 2020 | Jan. 25, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 27, 2019 | Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 | |
Numerator: | |||||||||||
Net (loss) income | $ 72,713 | $ 47,077 | $ 89,423 | $ (358,942) | $ (224,053) | $ (14,647) | $ 10,382 | $ 13,883 | $ (149,729) | $ (214,435) | $ 48,996 |
Denominator: | |||||||||||
Weighted average common shares outstanding-basic | 64,426,355 | 63,975,633 | 62,936,959 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock options and restricted stock units | 3,362,687 | ||||||||||
Weighted average common shares outstanding-diluted | 64,426,355 | 63,975,633 | 66,299,646 | ||||||||
Net (loss) income per common share: | |||||||||||
Basic | $ 1.12 | $ 0.73 | $ 1.39 | $ (5.60) | $ (3.50) | $ (0.23) | $ 0.16 | $ 0.22 | $ (2.32) | $ (3.35) | $ 0.78 |
Diluted | $ 1.08 | $ 0.71 | $ 1.39 | $ (5.60) | $ (3.50) | $ (0.23) | $ 0.16 | $ 0.21 | $ (2.32) | $ (3.35) | $ 0.74 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 | |
Antidilutive securities excluded from computation of earnings per share | |||
Stock options and restricted stock units | 3,362,687 | ||
Stock option | |||
Antidilutive securities excluded from computation of earnings per share | |||
Antidilutive shares excluded from calculation of diluted net income per common share | 4,929,579 | 7,695,386 | 2,029,602 |
Stock options and restricted stock units | 436,569 | 601,672 | |
RSUs | |||
Antidilutive securities excluded from computation of earnings per share | |||
Antidilutive shares excluded from calculation of diluted net income per common share | 4,929,579 | 7,695,386 | 2,029,602 |
Stock options and restricted stock units | 436,569 | 601,672 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) $ in Millions | Jan. 29, 2022 | Jun. 22, 2020USD ($)shares | Sep. 12, 2019USD ($)shares | Jun. 30, 2018shares | Jan. 30, 2021USD ($)planshares | Jan. 25, 2020USD ($) | Jan. 26, 2019USD ($) | Jul. 31, 2016shares |
Stock-Based Compensation | ||||||||
Number of equity compensation plans | plan | 2 | |||||||
Stock-based compensation expense | $ | $ 12.2 | $ 7.4 | $ 49.5 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 21.2 | |||||||
2012 stock option plan | ||||||||
Stock-Based Compensation | ||||||||
Common stock initially authorized for issuance | 5,648,525 | |||||||
Options granted | 29,333 | |||||||
2016 Equity Plan | ||||||||
Stock-Based Compensation | ||||||||
Common stock initially authorized for issuance | 9,696,755 | 6,196,755 | ||||||
Options granted | 2,175,888 | |||||||
Additional number of shares authorized to be granted | 3,500,000 | |||||||
Comparable Store Sales Growth | 50.00% | |||||||
Percentage expansion of Adjusted Net Income | 50.00% | |||||||
Granted (in shares) | 2,223,975 | |||||||
2016 Equity Plan | Achievement of threshold performance levels | ||||||||
Stock-Based Compensation | ||||||||
Percentage of Settlement on Target | 50.00% | |||||||
2016 Equity Plan | Achievement of target performance levels | ||||||||
Stock-Based Compensation | ||||||||
Percentage of Settlement on Target | 100.00% | |||||||
2016 Equity Plan | Achievement at or above maximum performance levels | ||||||||
Stock-Based Compensation | ||||||||
Percentage of Settlement on Target | 200.00% | |||||||
2016 Equity Plan | IPO Bonus Pool | ||||||||
Stock-Based Compensation | ||||||||
Common stock initially authorized for issuance | 2,478,702 | |||||||
2016 Equity Plan | Post IPO Share Pool | ||||||||
Stock-Based Compensation | ||||||||
Common stock initially authorized for issuance | 7,218,053 | 3,718,053 | ||||||
Stock option | ||||||||
Stock-Based Compensation | ||||||||
Expense period | 2 years | |||||||
Stock option | 2016 Equity Plan | ||||||||
Stock-Based Compensation | ||||||||
Stock-based compensation expense | $ | $ 9.2 | $ 0.8 | ||||||
Service period | 3 years | |||||||
Granted (in shares) | 165,650 | |||||||
Stock option | 2016 Equity Plan | Senior management | ||||||||
Stock-Based Compensation | ||||||||
Granted (in shares) | 2,165,000 | |||||||
RSUs | ||||||||
Stock-Based Compensation | ||||||||
Expense period | 2 years 1 month 6 days | |||||||
RSUs | Minimum | ||||||||
Stock-Based Compensation | ||||||||
Vesting period (in years) | 1 year | |||||||
RSUs | Maximum | ||||||||
Stock-Based Compensation | ||||||||
Vesting period (in years) | 4 years | |||||||
RSUs | 2016 Equity Plan | ||||||||
Stock-Based Compensation | ||||||||
Stock-based compensation expense | $ | $ 1 | |||||||
Service period | 1 year | |||||||
RSUs | 2016 Equity Plan | Independent Directors | ||||||||
Stock-Based Compensation | ||||||||
Granted (in shares) | 130,400 | |||||||
PSU | 2016 Equity Plan | ||||||||
Stock-Based Compensation | ||||||||
Stock-based compensation expense | $ | $ 0.6 | $ 1 | ||||||
Cliff vesting percentage | 100.00% | |||||||
Granted (in shares) | 125,250 | |||||||
PSU | 2016 Equity Plan | Chief Executive Officer | ||||||||
Stock-Based Compensation | ||||||||
Granted (in shares) | 80,000 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions (Details) - 2016 Equity Plan | 12 Months Ended | ||
Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 | |
Assumptions: | |||
Weighted-average expected volatility (as a percent) | 87.30% | 60.90% | 58.60% |
Weighted-average expected term (in years) | 4 years | 4 years 2 months 12 days | 5 years |
Weighted-average risk-free interest rate (as a percent) | 0.50% | 2.10% | 2.80% |
Stock-Based Compensation - Acti
Stock-Based Compensation - Activity (Details) - 2016 Equity Plan $ / shares in Units, $ in Thousands | 12 Months Ended |
Jan. 30, 2021USD ($)$ / sharesshares | |
Options | |
Outstanding, beginning of year (in shares) | shares | 5,825,516 |
Granted (in shares) | shares | 2,223,975 |
Exercised (in shares) | shares | (1,040,716) |
Forfeited or expired (in shares) | shares | (23,383) |
Outstanding, end of year (in shares) | shares | 6,985,392 |
Exercisable, end of year (in shares) | shares | 3,733,307 |
Weighted Average Exercise Price | |
Outstanding, beginning of year (in dollars per share) | $ / shares | $ 14.80 |
Granted (in dollars per share) | $ / shares | 7.84 |
Exercised (in dollars per share) | $ / shares | 12.79 |
Forfeited or expired (in dollars per share) | $ / shares | 21.31 |
Outstanding, end of year (in dollars per share) | $ / shares | 12.86 |
Exercisable, end of year (in dollars per share) | $ / shares | $ 13.04 |
Weighted Average Remaining Contractual Term | |
Outstanding, end of year (in years) | 4 years 1 month 2 days |
Exercisable, end of year (in years) | 2 years 6 months 3 days |
Aggregate Intrinsic Value | |
Outstanding, end of year, aggregate intrinsic value | $ | $ 10,908 |
Exercisable, end of year, aggregate intrinsic value | $ | $ 2,602 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair value options (Details) - 2016 Equity Plan - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value of options | $ 2.6 | $ 1.3 | $ 52.4 |
Intrinsic fair value of options exercised | $ 10.9 | $ 3.4 | $ 51.3 |
Weighted-average fair value of options granted (in dollars per share) | $ 4.88 | $ 6.87 | $ 19.03 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock (Details) | 12 Months Ended |
Jan. 30, 2021$ / sharesshares | |
Number of Shares | |
Nonvested, beginning of year (in shares) | shares | 748,512 |
Granted (in shares) | shares | 598,160 |
Vested (in shares) | shares | (215,521) |
Forfeited (in shares) | shares | (86,364) |
Nonvested, end of year (in shares) | shares | 1,044,787 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning of year (in dollars per share) | $ / shares | $ 14.90 |
Granted (in dollars per share) | $ / shares | 12.96 |
Vested (in dollars per share) | $ / shares | 17.69 |
Forfeited (in dollars per share) | $ / shares | 15.34 |
Nonvested, end of year (in dollars per share) | $ / shares | $ 13.18 |
RSUs | Minimum | |
Vesting period (in years) | 1 year |
RSUs | Maximum | |
Vesting period (in years) | 4 years |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2021 | Oct. 24, 2020 | Jul. 25, 2020 | Apr. 25, 2020 | Jan. 25, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 27, 2019 | Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 | |
Quarterly Results of Operations (Unaudited) | |||||||||||
Net sales | $ 561,987 | $ 469,986 | $ 515,244 | $ 189,846 | $ 397,716 | $ 318,734 | $ 342,321 | $ 306,264 | $ 1,737,063 | $ 1,365,035 | $ 1,165,899 |
Gross profit | 218,428 | 170,708 | 196,127 | 16,350 | 114,091 | 85,413 | 100,398 | 88,051 | 601,613 | 387,952 | 385,851 |
Operating income (loss) | 100,283 | 71,319 | 125,247 | (372,061) | (209,149) | 1,986 | 21,813 | 25,889 | (75,212) | (159,462) | 76,035 |
Loss on extinguishment of debt | 3,179 | 3,179 | |||||||||
Net income (loss) | $ 72,713 | $ 47,077 | $ 89,423 | $ (358,942) | $ (224,053) | $ (14,647) | $ 10,382 | $ 13,883 | $ (149,729) | $ (214,435) | $ 48,996 |
Basic net income (loss) per common share | $ 1.12 | $ 0.73 | $ 1.39 | $ (5.60) | $ (3.50) | $ (0.23) | $ 0.16 | $ 0.22 | $ (2.32) | $ (3.35) | $ 0.78 |
Diluted net income (loss) per common share | $ 1.08 | $ 0.71 | $ 1.39 | $ (5.60) | $ (3.50) | $ (0.23) | $ 0.16 | $ 0.21 | $ (2.32) | $ (3.35) | $ 0.74 |
Goodwill, Impairment Loss | $ 319,700 | $ 250,000 | $ 319,700 | $ 250,000 | $ 0 | ||||||
Stock-based compensation expense | $ 12,200 | $ 7,400 | $ 49,500 |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of Registrant (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 | Jan. 27, 2018 |
Condensed Balance Sheets | ||||
Income tax receivable | $ 22,223 | $ 1,672 | ||
Other current assets | 11,619 | 5,962 | ||
Total current assets | 537,613 | 448,172 | ||
Total assets | 2,524,913 | 2,679,547 | ||
Current liabilities: | ||||
Total current liabilities | 398,374 | 537,715 | ||
Total liabilities | 2,040,753 | 2,070,936 | ||
Stockholders' Equity | ||||
Common stock; $0.01 par value; 500,000,000 shares authorized; 65,342,489 and 64,106,061 shares issued and outstanding, respectively | 653 | 641 | ||
Additional paid-in capital | 682,304 | 657,038 | ||
Accumulated deficit | (198,797) | (49,068) | ||
Total stockholders' equity | 484,160 | 608,611 | $ 711,086 | $ 590,879 |
Total liabilities and stockholders' equity | 2,524,913 | 2,679,547 | ||
Parent company | ||||
Condensed Balance Sheets | ||||
Income tax receivable | 22,223 | 1,672 | ||
Total current assets | 22,223 | 1,672 | ||
Investment in subsidiaries | 484,160 | 608,611 | ||
Total assets | 506,383 | 610,283 | ||
Current liabilities: | ||||
Payable to subsidiaries | 22,223 | 1,672 | ||
Total current liabilities | 22,223 | 1,672 | ||
Total liabilities | 22,223 | 1,672 | ||
Stockholders' Equity | ||||
Common stock; $0.01 par value; 500,000,000 shares authorized; 65,342,489 and 64,106,061 shares issued and outstanding, respectively | 653 | 641 | ||
Additional paid-in capital | 682,304 | 657,038 | ||
Accumulated deficit | (198,797) | (49,068) | ||
Total stockholders' equity | 484,160 | 608,611 | ||
Total liabilities and stockholders' equity | $ 506,383 | $ 610,283 |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of Registrant (Parenthetical) (Details) - $ / shares | Jan. 30, 2021 | Jan. 25, 2020 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 65,342,489 | 64,106,061 |
Common stock, outstanding shares | 65,342,489 | 64,106,061 |
Parent company | ||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 65,342,489 | 64,106,061 |
Common stock, outstanding shares | 65,342,489 | 64,106,061 |
Schedule I - Condensed Financ_4
Schedule I - Condensed Financial Information of Registrant (Condensed Statements of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2021 | Oct. 24, 2020 | Jul. 25, 2020 | Apr. 25, 2020 | Jan. 25, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 27, 2019 | Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 | |
Net sales | $ 561,987 | $ 469,986 | $ 515,244 | $ 189,846 | $ 397,716 | $ 318,734 | $ 342,321 | $ 306,264 | $ 1,737,063 | $ 1,365,035 | $ 1,165,899 |
Cost of sales | 1,135,450 | 977,083 | 780,048 | ||||||||
Gross profit | 218,428 | 170,708 | 196,127 | 16,350 | 114,091 | 85,413 | 100,398 | 88,051 | 601,613 | 387,952 | 385,851 |
Operating expenses | |||||||||||
Selling, general and administrative expenses | 348,203 | 302,300 | 303,453 | ||||||||
Depreciation and amortization | 8,775 | 7,626 | 6,363 | ||||||||
Operating (loss) income | 100,283 | 71,319 | 125,247 | (372,061) | (209,149) | 1,986 | 21,813 | 25,889 | (75,212) | (159,462) | 76,035 |
Interest expense, net | 28,493 | 31,801 | 27,056 | ||||||||
Income tax provision (benefit) | 42,845 | 23,172 | (17) | ||||||||
Net (loss) income | $ 72,713 | $ 47,077 | $ 89,423 | $ (358,942) | $ (224,053) | $ (14,647) | $ 10,382 | $ 13,883 | (149,729) | (214,435) | 48,996 |
Parent company | |||||||||||
Operating expenses | |||||||||||
Net (loss) income from subsidiaries | (149,729) | (214,435) | 48,996 | ||||||||
Net (loss) income | $ (149,729) | $ (214,435) | $ 48,996 |
Schedule I - Condensed Financ_5
Schedule I - Condensed Financial Information of Registrant (Notes to Condensed Financial Statements) (Details) - USD ($) | Jun. 12, 2020 | Oct. 24, 2020 | Jan. 30, 2021 | Jan. 25, 2020 | Jan. 26, 2019 | Aug. 20, 2020 | Jun. 05, 2015 | Oct. 31, 2011 |
Basis of Presentation | ||||||||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | $ 422,736,000 | $ 105,597,000 | $ 86,334,000 | |||||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (39,741,000) | (123,464,000) | (209,123,000) | |||||
Net Cash Provided by (Used in) Financing Activities, Continuing Operations | (269,203,000) | 16,486,000 | 127,730,000 | |||||
Guarantees and Restrictions | ||||||||
Cash and cash equivalents | 125,842,000 | 12,082,000 | ||||||
Loss on extinguishment of debt | $ 3,179,000 | 3,179,000 | ||||||
Outstanding principal amount | 330,185,000 | 343,340,000 | ||||||
First Lien Agreement | ||||||||
Guarantees and Restrictions | ||||||||
Loss on extinguishment of debt | 3,200,000 | |||||||
Term Loan | First Lien Agreement | ||||||||
Guarantees and Restrictions | ||||||||
Debt instrument, face value | $ 350,000,000 | |||||||
ABL Credit Facility | ||||||||
Guarantees and Restrictions | ||||||||
Debt instrument, face value | 35,000,000 | |||||||
Available borrowing capacity | 312,600,000 | |||||||
Maximum borrowing capacity | 425,000,000 | $ 80,000,000 | ||||||
Financial covenants, minimum loan cap, amount | $ 35,000,000 | |||||||
Loan cap rate | 10.00% | |||||||
ABL Credit Facility | Maximum | ||||||||
Guarantees and Restrictions | ||||||||
Cash limit for prepayment provision | $ 35,000,000 | |||||||
ABL Credit Facility | LIBOR | ||||||||
Guarantees and Restrictions | ||||||||
Basis spread (as a percent) | 1.00% | |||||||
Term Loan | ||||||||
Guarantees and Restrictions | ||||||||
Outstanding principal amount | 335,982,000 | |||||||
8.750 Senior Notes | ||||||||
Guarantees and Restrictions | ||||||||
Debt instrument, face value | $ 275,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.75% | |||||||
FILO Loans | ||||||||
Guarantees and Restrictions | ||||||||
Installment payable | $ 875,000 | |||||||
Amortization percentage | 10.00% | |||||||
FILO Loans | LIBOR | ||||||||
Guarantees and Restrictions | ||||||||
Basis spread (as a percent) | 9.00% | |||||||
LIBOR floor rate | 1.00% | |||||||
FILO Loans | Base rate | ||||||||
Guarantees and Restrictions | ||||||||
Basis spread (as a percent) | 8.00% | |||||||
Senior Secured Notes | ||||||||
Guarantees and Restrictions | ||||||||
Outstanding principal amount | $ 275,000,000 | |||||||
Parent company | ||||||||
Basis of Presentation | ||||||||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 0 | 0 | 0 | |||||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | 0 | 0 | 0 | |||||
Net Cash Provided by (Used in) Financing Activities, Continuing Operations | 0 | $ 0 | $ 0 | |||||
Guarantees and Restrictions | ||||||||
Cash and cash equivalents | 125,800,000 | |||||||
Parent company | Second Lien Agreement | ||||||||
Guarantees and Restrictions | ||||||||
Loss on extinguishment of debt | $ 3,200,000 | |||||||
Parent company | ABL Credit Facility | ||||||||
Guarantees and Restrictions | ||||||||
Available borrowing capacity | 312,600,000 | |||||||
Maximum borrowing capacity | 425,000,000 | |||||||
Financial covenants, minimum loan cap, amount | $ 35,000,000 | |||||||
Loan cap rate | 10.00% | |||||||
Parent company | ABL Credit Facility | Maximum | ||||||||
Guarantees and Restrictions | ||||||||
Cash limit for prepayment provision | $ 35,000,000 | |||||||
Parent company | Term Loan | First Lien Agreement | ||||||||
Guarantees and Restrictions | ||||||||
Debt instrument, face value | $ 350,000,000 | |||||||
Parent company | FILO Loans | ||||||||
Guarantees and Restrictions | ||||||||
Installment payable | $ 875,000 | |||||||
Amortization percentage | 10.00% | |||||||
Parent company | FILO Loans | LIBOR | ||||||||
Guarantees and Restrictions | ||||||||
Basis spread (as a percent) | 9.00% | |||||||
LIBOR floor rate | 1.00% | |||||||
Parent company | FILO Loans | Base rate | ||||||||
Guarantees and Restrictions | ||||||||
Basis spread (as a percent) | 8.00% | |||||||
Parent company | Senior Secured Notes | ||||||||
Guarantees and Restrictions | ||||||||
Debt instrument, face value | $ 275,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.75% |