Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Mar. 13, 2020 | Aug. 03, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 1, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 1-3083 | ||
Entity Registrant Name | Genesco Inc | ||
Entity Incorporation, State or Country Code | TN | ||
Entity Tax Identification Number | 62-0211340 | ||
Entity Address, Address Line One | 1415 Murfreesboro Pike | ||
Entity Address, City or Town | Nashville, | ||
Entity Address, State or Province | TN | ||
Entity Address, Postal Zip Code | 37217-2895 | ||
City Area Code | 615 | ||
Local Phone Number | 367-7000 | ||
Title of 12(b) Security | Common Stock, $1.00 par value | ||
Trading Symbol | GCO | ||
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 | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 579,000,000 | ||
Entity Common Stock, Shares Outstanding | 14,691,257 | ||
Documents Incorporated by Reference | Portions of the proxy statement for the June 25, 2020 annual meeting of shareholders are incorporated into Part III by reference. | ||
Entity Central Index Key | 0000018498 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --02-01 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 81,418 | $ 167,355 |
Accounts receivable, net of allowances of $2,940 at February 1, 2020 and $2,894 at February 2, 2019 | 29,195 | 132,390 |
Inventories | 365,269 | 366,667 |
Prepaids and other current assets | 32,301 | 64,634 |
Total current assets | 508,183 | 731,046 |
Property and equipment: | ||
Land | 7,360 | 7,953 |
Buildings and building equipment | 63,493 | 82,621 |
Computer hardware, software and equipment | 140,503 | 138,147 |
Furniture and fixtures | 128,542 | 129,625 |
Construction in progress | 9,593 | 5,920 |
Improvements to leased property | 342,592 | 341,134 |
Property and equipment, at cost | 692,083 | 705,400 |
Accumulated depreciation | (453,763) | (428,025) |
Property and equipment, net | 238,320 | 277,375 |
Deferred income taxes | 19,475 | 21,335 |
Operating lease right of use asset | 735,044 | |
Goodwill | 122,184 | 93,081 |
Trademarks, net of accumulated amortization of zero at both February 1, 2020 and February 2, 2019 | 31,023 | 30,904 |
Other intangibles, net of accumulated amortization of $1,988 at February 1, 2020 and $4,680 at February 2, 2019 | 5,341 | 943 |
Other noncurrent assets | 20,908 | 26,397 |
Total Assets | 1,680,478 | 1,181,081 |
Current Liabilities: | ||
Accounts payable | 135,784 | 158,603 |
Accrued employee compensation | 31,579 | 43,246 |
Accrued other taxes | 11,583 | 17,389 |
Accrued income taxes | 190 | 2,133 |
Current portion – long-term debt | 0 | 8,992 |
Current portion - operating lease liability | 142,695 | |
Other accrued liabilities | 39,609 | 45,313 |
Provision for discontinued operations | 495 | 553 |
Total current liabilities | 361,935 | 276,229 |
Long-term debt | 14,393 | 56,751 |
Long-term operating lease liability | 647,949 | |
Other long-term liabilities | 35,177 | 108,704 |
Provision for discontinued operations | 1,681 | 1,846 |
Total liabilities | 1,061,135 | 443,530 |
Commitments and contingent liabilities | ||
Equity | ||
Non-redeemable preferred stock | 1,009 | 1,060 |
Common equity: | ||
Common stock, $1 par value: Authorized: 80,000,000 shares Issued/Outstanding: February 1, 2020 – 15,185,670/14,697,206 and February 2, 2019 – 19,591,048/19,102,584 | 15,186 | 19,591 |
Additional paid-in capital | 274,101 | 264,138 |
Retained earnings | 378,572 | 508,555 |
Accumulated other comprehensive loss | (31,668) | (37,936) |
Treasury shares, at cost (488,464 shares) | (17,857) | (17,857) |
Total equity | 619,343 | 737,551 |
Total Liabilities and Equity | $ 1,680,478 | $ 1,181,081 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Current Assets: | ||
Allowances on accounts receivable | $ 2,940 | $ 2,894 |
Accumulated amortization on trademarks | 0 | 0 |
Accumulated amortization on other intangibles | $ 1,988 | $ 4,680 |
Common equity: | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 15,185,670 | 19,591,048 |
Common stock, shares outstanding (in shares) | 14,697,206 | 19,102,584 |
Treasury shares, at cost (in shares) | 488,464 | 488,464 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 2,197,066 | $ 2,188,553 | $ 2,127,547 |
Cost of sales | 1,133,951 | 1,141,497 | 1,116,164 |
Gross margin | 1,063,115 | 1,047,056 | 1,011,383 |
Selling and administrative expenses | 966,423 | 962,076 | 929,238 |
Asset impairments and other, net | 13,374 | 3,163 | 7,773 |
Operating income | 83,318 | 81,817 | 74,372 |
Loss on early retirement of debt | 0 | 597 | 0 |
Other components of net periodic benefit cost | (395) | (380) | (29) |
Interest expense, net: | |||
Interest expense | 3,339 | 4,115 | 5,420 |
Interest income | (2,061) | (774) | (8) |
Total interest expense, net | 1,278 | 3,341 | 5,412 |
Earnings from continuing operations before income taxes | 82,435 | 78,259 | 68,989 |
Income tax expense | 20,678 | 27,035 | 32,281 |
Earnings from continuing operations | 61,757 | 51,224 | 36,708 |
Loss from discontinued operations, net of tax of $0.1 million, $27.5 million and $22.7 million for Fiscal 2020, 2019 and 2018, respectively | (373) | (103,154) | (148,547) |
Net Earnings (Loss) | $ 61,384 | $ (51,930) | $ (111,839) |
Basic weighted average common shares | 15,544 | 19,351 | 19,218 |
Basic earnings (loss) per common share: | |||
Continuing operations (in dollars per share) | $ 3.97 | $ 2.65 | $ 1.91 |
Discontinued operations (in dollars per share) | (0.02) | (5.33) | (7.73) |
Net earnings (loss) (in dollars per share) | $ 3.95 | $ (2.68) | $ (5.82) |
Diluted weighted average common shares | 15,671 | 19,495 | 19,282 |
Diluted earnings (loss) per common share: | |||
Continuing operations (in dollars per share) | $ 3.94 | $ 2.63 | $ 1.90 |
Discontinued operations (in dollars per share) | (0.02) | (5.29) | (7.70) |
Net earnings (loss) (in dollars per share) | $ 3.92 | $ (2.66) | $ (5.80) |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Statement [Abstract] | |||
Loss from discontinued operations tax expense (benefit) | $ (0.1) | $ (27.5) | $ (22.7) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings (loss) | $ 61,384 | $ (51,930) | $ (111,839) |
Other comprehensive income (loss): | |||
Pension liability adjustment net of tax of $2.1 million, $0.0 million and $1.9 million for 2020, 2019 and 2018, respectively | 6,035 | 123 | 5,189 |
Postretirement liability adjustment net of tax of $1.0 million, $1.6 million and $0.1 million for 2020, 2019 and 2018, respectively | (2,697) | 4,077 | (376) |
Stranded tax effect from tax reform | 0 | 0 | (2,234) |
Foreign currency translation adjustments | 2,930 | (12,944) | 19,521 |
Total other comprehensive income (loss) | 6,268 | (8,744) | 22,100 |
Comprehensive Income (Loss) | $ 67,652 | $ (60,674) | $ (89,739) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Other comprehensive income (loss): | |||
Pension liability adjustment, tax | $ 2.1 | $ 0 | $ 1.9 |
Postretirement liability adjustment, tax | $ 1 | $ 1.6 | $ 0.1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net earnings (loss) | $ 61,384 | $ (51,930) | $ (111,839) | |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 49,574 | 76,939 | 78,326 | |
Amortization of deferred note expense and debt discount | 404 | 593 | 747 | |
Deferred income taxes | 660 | 272 | (15,584) | |
Provision for accounts receivable | 133 | 116 | 853 | |
Impairment of intangible assets | 269 | 5,736 | 182,211 | |
Impairment of long-lived assets | 2,827 | 5,823 | 2,670 | |
Restricted stock expense | 10,077 | 13,437 | 13,505 | |
Provision for discontinued operations | 425 | 743 | 552 | |
Loss on sale of business | 86 | 126,321 | 0 | |
Loss on pension plan termination | 11,510 | 0 | 0 | |
Other | 31 | 1,751 | 1,857 | |
Effect on cash from changes in working capital and other assets and liabilities, net of acquisitions/dispositions: | ||||
Accounts receivable | 656 | 6,312 | 835 | |
Inventories | 1,930 | 2,684 | 31,606 | |
Prepaids and other current assets | 16,228 | (9,116) | (4,025) | |
Accounts payable | (10,333) | 43,028 | (7,337) | |
Other accrued liabilities | (20,787) | 20,713 | (22,339) | |
Other assets and liabilities | (7,904) | (6,279) | 12,553 | |
Net cash provided by operating activities | 117,170 | 237,143 | 164,591 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Capital expenditures | (29,767) | (57,230) | (127,853) | |
Other investing activities | 171 | 1,505 | 0 | |
Acquisitions, net of cash acquired | (33,524) | 0 | 0 | |
Proceeds from (payments for) sale of businesses | 98,677 | (1,088) | 0 | |
Proceeds from asset sales | 17,751 | 310 | 252 | |
Net cash provided by (used in) investing activities | 53,308 | (56,503) | (127,601) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Payments of long-term debt | (9,133) | (1,650) | (9,289) | |
Borrowings under revolving credit facility | 93,328 | 284,473 | 515,560 | |
Payments on revolving credit facility | (135,403) | (299,606) | (508,875) | |
Shares repurchased related to share repurchase plan | (190,384) | (44,935) | (16,163) | |
Restricted shares withheld for taxes | (2,355) | (2,853) | (1,716) | |
Change in overdraft balances | (12,557) | 15,494 | (22,498) | |
Additions to deferred note cost | (7) | (359) | (1,429) | |
Other | 0 | (3,322) | (3,000) | |
Net cash used in financing activities | (256,511) | (52,758) | (47,410) | |
Effect of foreign exchange rate fluctuations on cash | 96 | (464) | 2,056 | |
Net Increase (Decrease) in Cash and Cash Equivalents | (85,937) | 127,418 | (8,364) | |
Cash and cash equivalents at beginning of year | [1] | 167,355 | 39,937 | 48,301 |
Cash and cash equivalents at end of year | [1] | 81,418 | 167,355 | 39,937 |
Supplemental information: | ||||
Interest paid | 3,005 | 3,338 | 5,350 | |
Income taxes paid | 4,899 | $ 12,451 | $ 37,471 | |
Cash paid for amounts included in measurement of operating lease liabilities | 188,247 | |||
Operating leased assets obtained in exhange for new operating lease liabilities | $ 80,078 | |||
[1] | (1) The cash flows related to discontinued operations in Fiscal 2019 and 2018 have not been segregated, and are included in th e Consolidated Statements of Cash Flows. |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Non-Redeemable Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Shares | Non Controlling Interest Non-Redeemable |
Beginning balance at Jan. 28, 2017 | $ 922,521 | $ 1,060 | $ 20,354 | $ 237,677 | $ 731,111 | $ (51,292) | $ (17,857) | $ 1,468 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings (loss) | (111,839) | (111,839) | ||||||
Other comprehensive income (loss) | 22,100 | 22,100 | ||||||
Employee and non-employee restricted stock | 13,505 | 13,505 | ||||||
Restricted stock issuance | 0 | 357 | (357) | |||||
Restricted shares withheld for taxes | (1,716) | (51) | 51 | (1,716) | ||||
Shares repurchased | (16,163) | (275) | (15,888) | |||||
Stranded tax effect from tax reform | 2,234 | 2,234 | ||||||
Other | 0 | (8) | 7 | 1 | ||||
Noncontrolling interest – gain (loss) | 62 | 62 | ||||||
Ending balance at Feb. 03, 2018 | 830,704 | 1,052 | 20,392 | 250,877 | 603,902 | (29,192) | (17,857) | 1,530 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings (loss) | (51,930) | (51,930) | ||||||
Other comprehensive income (loss) | (8,744) | (8,744) | ||||||
Employee and non-employee restricted stock | 13,437 | 13,437 | ||||||
Restricted stock issuance | 0 | 390 | (390) | |||||
Restricted shares withheld for taxes | (2,853) | (70) | 70 | (2,853) | ||||
Shares repurchased | (45,945) | (968) | (44,977) | |||||
Other | (1) | 8 | (153) | 144 | ||||
Noncontrolling interest – gain (loss) | (1,530) | (1,530) | ||||||
Ending balance at Feb. 02, 2019 | 737,551 | 1,060 | 19,591 | 264,138 | 508,555 | (37,936) | (17,857) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings (loss) | 61,384 | 61,384 | ||||||
Other comprehensive income (loss) | 6,268 | 6,268 | ||||||
Employee and non-employee restricted stock | 10,077 | 10,077 | ||||||
Restricted stock issuance | 0 | 285 | (285) | |||||
Restricted shares withheld for taxes | (2,355) | (56) | 56 | (2,355) | ||||
Shares repurchased | (189,374) | (4,570) | (184,804) | |||||
Other | 0 | (51) | (64) | 115 | ||||
Ending balance at Feb. 01, 2020 | $ 619,343 | $ 1,009 | $ 15,186 | $ 274,101 | $ 378,572 | $ (31,668) | $ (17,857) | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations Genesco Inc. and its subsidiaries (collectively the "Company", "we", "our", or "us") business includes the sourcing and design, marketing and distribution of footwear and accessories through retail stores in the U.S., Puerto Rico and Canada primarily under the Journeys, Journeys Kidz, Little Burgundy and Johnston & Murphy banners and under the Schuh banner in the United Kingdom and the Republic of Ireland; through catalogs and e-commerce websites including the following: journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com, trask.com and littleburgundyshoes.com and at wholesale, primarily under our Johnston & Murphy brand, the Trask brand, the licensed Dockers brand, the licensed Levi's brand, the licensed Bass brand and other brands that we license for footwear. At February 1, 2020, we operated 1,480 retail stores in the U.S., Puerto Rico, Canada, the United Kingdom and the Republic of Ireland. Effective January 1, 2020, we completed the acquisition of Togast, which specializes in the the design, sourcing and sale of licensed footwear. We also entered into a new U.S. footwear license agreement with Levi Strauss & Co. for the license of Levi's ® footwear for men, women, and children in the U.S. The acquisition expands our portfolio to include footwear licenses for Bass ® , ADIO and FUBU, among others. Togast operates in our Licensed Brands segment. On February 2, 2019, we completed the sale of our Lids Sports Group business. As a result, we reported the operating results of this business in loss from discontinued operations, net in our Consolidated Statements of Operations for Fiscal 2019 and 2018. The cash flows related to discontinued operations have not been segregated, and are included in our Consolidated Statements of Cash Flows for Fiscal 2019 and 2018. Unless otherwise noted, discussion within these notes to our consolidated financial statements relates to continuing operations. See Note 16 for additional information related to discontinued operations. During Fiscal 2020, we operated four reportable business segments (not including corporate): (i) Journeys Group, comprised of the Journeys, Journeys Kidz and Little Burgundy retail footwear chains, e-commerce and catalog operations; (ii) Schuh Group, comprised of the Schuh retail footwear chain and e-commerce operations; (iii) Johnston & Murphy Group, comprised of Johnston & Murphy retail operations, e-commerce operations, catalog, Trask e-commerce operations and wholesale distribution of products under the Johnston & Murphy ® and H.S. Trask ® brands; and (iv) Licensed Brands, comprised of the licensed Dockers ® , Levi's ® , and Bass ® brands, as well as other brands we license for footwear. Principles of Consolidation All subsidiaries are consolidated in our Consolidated Financial Statements. All significant intercompany transactions and accounts have been eliminated. Fiscal Year Our fiscal year ends on the Saturday closest to January 31. As a result, Fiscal 2020 was a 52-week year with 364 days, Fiscal 2019 was a 52-week year with 364 days and Fiscal 2018 was a 53-week year with 371 days. Fiscal 2020 ended on February 1, 2020, Fiscal 2019 ended on February 2, 2019 and Fiscal 2018 ended on February 3, 2018. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Our foreign subsidiaries held cash of approximately $8.9 million and $20.8 million as of February 1, 2020 and February 2, 2019, respectively, which is included in cash and cash equivalents on the Consolidated Balance Sheets. Our strategic plan does not require the repatriation of foreign cash in order to fund our operations in the U.S., and it is our current intention to indefinitely reinvest our foreign cash and cash equivalents outside of the U.S. If we were to repatriate foreign cash to the U.S., we would be required to accrue and pay U.S. taxes in accordance with applicable U.S. tax rules and regulations as a result of the repatriation. Note 1 Summary of Significant Accounting Policies, Continued There were $59.6 million and $127.2 million of cash equivalents at February 1, 2020 and February 2, 2019, respectively. Cash equivalents are primarily institutional money market funds. Our $59.6 million of cash equivalents was invested in institutional money market funds which invest exclusively in highly rated, short-term securities that are issued, guaranteed or collateralized by the U.S. government or by U.S. government agencies and instrumentalities. The majority of payments due from banks for domestic customer credit card transactions process within 24 - 48 hours and are accordingly classified as cash and cash equivalents in our Consolidated Balance Sheets. At February 1, 2020 and February 2, 2019, outstanding checks drawn on zero-balance accounts at certain domestic banks exceeded book cash balances at those banks by approximately $17.1 million and $29.6 million , respectively. These amounts are included in accounts payable in our Consolidated Balance Sheets. Concentration of Credit Risk and Allowances on Accounts Receivable Our wholesale businesses sell primarily to independent retailers and department stores across the United States. Receivables arising from these sales are not collateralized. Customer credit risk is affected by conditions or occurrences within the economy and the retail industry as well as by customer specific factors. In the wholesale businesses, one customer accounted for 26% , three customers each accounted for 9% and one customer accounted for 6% of our total trade receivables balance, while no other customer accounted for more than 5% of our total trade receivables balance as of February 1, 2020. We establish an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information, as well as customer specific factors. We also establish allowances for sales returns, customer deductions and co-op advertising based on specific circumstances, historical trends and projected probable outcomes. Inventory Valuation In our footwear wholesale operations and our Schuh Group segment, cost for inventory that we own is determined using the first-in, first-out ("FIFO") method. Net realizable value is determined using a system of analysis which evaluates inventory at the stock number level based on factors such as inventory turn, average selling price, inventory level, and selling prices reflected in future orders for footwear wholesale. We provide a valuation allowance when the inventory has not been marked down to net realizable value based on current selling prices or when the inventory is not turning and is not expected to turn at satisfactory levels. In our retail operations, other than the Schuh Group segment, we employ the retail inventory method, applying average cost-to-retail ratios to the retail value of inventories. Under the retail inventory method, valuing inventory at the lower of cost or market is achieved as markdowns are taken or accrued as a reduction of the retail value of inventories. Inherent in the retail inventory method are subjective judgments and estimates, including merchandise mark-on, markups, markdowns and shrinkage. These judgments and estimates, coupled with the fact that the retail inventory method is an averaging process, could produce a range of cost figures. To reduce the risk of inaccuracy and to ensure consistent presentation, we employ the retail inventory method in multiple subclasses of inventory with similar gross margins, and analyze markdown requirements at the stock number level based on factors such as inventory turn, average selling price and inventory age. In addition, we accrue markdowns as necessary. These additional markdown accruals reflect all of the above factors as well as current agreements to return products to vendors and vendor agreements to provide markdown support. In addition to markdown allowances, we maintain reserves for shrinkage and damaged goods based on historical rates. Inherent in the analysis of both wholesale and retail inventory valuation are subjective judgments about current market conditions, fashion trends and overall economic conditions. Failure to make appropriate conclusions regarding these factors may result in an overstatement or understatement of inventory value. Note 1 Summary of Significant Accounting Policies, Continued Property and Equipment Property and equipment are recorded at cost and depreciated or amortized over the estimated useful life of related assets. Depreciation and amortization expense are computed principally by the straight-line method over the following estimated useful lives: Buildings and building equipment 20-45 years Computer hardware, software and equipment 3-10 years Furniture and fixtures 10 years Depreciation expense related to property and equipment was approximately $49.4 million , $52.1 million and $51.5 million for Fiscal 2020, 2019 and 2018, respectively. Leases We recognize lease assets and corresponding lease liabilities for all operating leases on the Consolidated Balance Sheets as described under ASC 842. We evaluate renewal options and break options at lease inception and on an ongoing basis, and include renewal options and break options that we are reasonably certain to exercise in our expected lease terms for calculations of the right-of-use assets and liabilities. Approximately 2% of our leases contain renewal options. To determine the present value of lease payments not yet paid, we estimate incremental borrowing rates corresponding to the reasonably certain lease term. As most of our leases do not provide a determinable implicit rate, we estimate our collateralized incremental borrowing rate based upon a synthetic credit rating and yield curve analysis at the lease commencement or modification date in determining the present value of lease payments. For lease payments in foreign currencies, the incremental borrowing rate is adjusted to be reflective of the risk associated with the respective currency. Operating lease assets represent our right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment, if any, of operating lease assets. We test right-of-use assets for impairment in the same manner as long-lived assets. Net lease costs are included within selling and administrative expenses on the Consolidated Statements of Operations. Asset Retirement Obligations An asset retirement obligation represents a legal obligation associated with the retirement of a tangible long-lived asset that is incurred upon the acquisition, construction, development, or normal operation of that long-lived asset. Our asset retirement obligations are primarily associated with leasehold improvements that we are contractually obligated to remove at the end of a lease to comply with the lease agreement. We recognize asset retirement obligations at the inception of a lease with such conditions if a reasonable estimate of fair value can be made. Asset retirement obligations are recorded in accrued expenses and other accrued liabilities and deferred rent and other long-term liabilities in our Consolidated Balance Sheets and are subsequently adjusted for changes in estimated asset retirement obligations. The associated estimated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and depreciated over its useful life. Our Consolidated Balance Sheets include asset retirement obligations related to leases of $11.1 million and $10.9 million as of February 1, 2020 and February 2, 2019, respectively. Impairment of Long-Lived Assets We periodically assess the realizability of our long-lived assets, other than goodwill, and evaluate such assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Asset impairment is determined to exist if estimated future cash flows, undiscounted and without interest charges, are less than the carrying amount. Inherent in the analysis of impairment are subjective judgments about future cash flows. Failure to make appropriate conclusions regarding these judgments may result in an overstatement or understatement of the value of long-lived assets. Note 1 Summary of Significant Accounting Policies, Continued We annually assess our goodwill and indefinite lived trade names for impairment and on an interim basis if indicators of impairment are present. Our annual assessment date of goodwill and indefinite lived trade names is the first day of the fourth quarter. In accordance with ASC 350, we have the option first to assess qualitative factors to determine whether events and circumstances indicate that it is more likely than not that goodwill is impaired. If, after such assessment, we conclude that the asset is not impaired, no further action is required. However, if we conclude otherwise, we are required to determine the fair value of the asset using a quantitative impairment test. The quantitative impairment test for goodwill compares the fair value of each reporting unit with the carrying value of the reporting unit with which the goodwill is associated. If the fair value of the reporting unit is less than the carrying value of the reporting unit, an impairment charge would be recorded for the amount, if any, in which the carrying value exceeds the reporting unit's fair value. We estimate fair value using the best information available, and compute the fair value derived by a combination of the market and income approach. The market approach is based on observed market data of comparable companies to determine fair value. The income approach utilizes a projection of a reporting unit’s estimated operating results and cash flows that are discounted using a weighted-average cost of capital that reflects current market conditions. A key assumption in our fair value estimate is the weighted average cost of capital utilized for discounting our cash flow projections in our income approach. The projection uses our best estimates of economic and market conditions over the projected period including growth rates in sales, costs, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, future estimates of capital expenditures and changes in future working capital requirements. Fair Value The Fair Value Measurements and Disclosures Topic of the Codification defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements. This Topic defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Revenue Recognition Revenue is recognized upon satisfaction of all contractual performance obligations and transfer of control to the customer. Revenue is measured as the amount of consideration we expect to be entitled to in exchange for corresponding goods. The majority of our sales are single performance obligation arrangements for retail sale transactions for which the transaction price is equivalent to the stated price of the product, net of any stated discounts applicable at a point in time. Each sales transaction results in an implicit contract with the customer to deliver a product at the point of sale. Revenue from retail sales is recognized at the point of sale, is net of estimated returns, and excludes sales and value added taxes. Revenue from catalog and internet sales is recognized at estimated time of delivery to the customer, is net of estimated returns, and excludes sales and value added taxes. Wholesale revenue is recorded net of estimated returns and allowances for markdowns, damages and miscellaneous claims when the related goods have been shipped and legal title has passed to the customer. Actual Note 1 Summary of Significant Accounting Policies, Continued amounts of markdowns have not differed materially from estimates. Shipping and handling costs charged to customers are included in net sales. We exclude sales and value added tax collected on behalf of third parties from transaction price. A provision for estimated returns is provided through a reduction of sales and cost of goods sold in the period that the related sales are recorded. Estimated returns are based on historical returns and claims. Actual returns and claims in any future period may differ from historical experience. Revenue from gift cards is deferred and recognized upon the redemption of the cards. These cards have no expiration date. Income from unredeemed cards is recognized on the Consolidated Statements of Operations within net sales in proportion to the pattern of rights exercised by the customer in future periods. We perform an evaluation of historical redemption patterns from the date of original issuance to estimate future period redemption activity. Our Consolidated Balance Sheets include an accrued liability for gift cards of $5.0 million and $5.1 million at February 1, 2020 and February 2, 2019, respectively. Gift card breakage recognized as revenue was $1.0 million , $0.8 million and $0.4 million for Fiscal 2020, 2019 and 2018, respectively. During Fiscal 2020, we recognized $3.7 million of gift card redemptions and gift card breakage revenue that were included in the gift card liability as of February 2, 2019. Cost of Sales For our retail operations, the cost of sales includes actual product cost, the cost of transportation to our warehouses from suppliers, the cost of transportation from our warehouses to the stores and the cost of transportation from our warehouses to the customer. Additionally, the cost of our distribution facilities allocated to our retail operations is included in cost of sales. For our wholesale operations, the cost of sales includes the actual product cost and the cost of transportation to the Company’s warehouses from suppliers. Selling and Administrative Expenses Selling and administrative expenses include all operating costs excluding (i) those related to the transportation of products from the supplier to the warehouse, (ii) for our retail operations, those related to the transportation of products from the warehouse to the store and from the warehouse to the customer and (iii) costs of our distribution facilities which are allocated to our retail operations. Wholesale costs of distribution are included in selling and administrative expenses on our Consolidated Statements of Operations in the amounts of $5.6 million , $5.6 million and $5.8 million for Fiscal 2020, 2019 and 2018, respectively. We record buying, merchandising and occupancy costs in selling and administrative expense. Because we do not include these costs in cost of sales, our gross margin may not be comparable to other retailers that include these costs in the calculation of gross margin. Retail occupancy costs recorded in selling and administrative expense were $334.4 million , $334.3 million and $333.8 million for Fiscal 2020, 2019 and 2018, respectively. Shipping and Handling Costs Shipping and handling costs related to inventory purchased from suppliers are included in the cost of inventory and are charged to cost of sales in the period that the inventory is sold. All other shipping and handling costs are charged to cost of sales in the period incurred except for wholesale costs of distribution and shipping costs for product shipped from stores, which are included in selling and administrative expenses in our Consolidated Statements of Operations. Advertising Costs Advertising costs are predominantly expensed as incurred. Advertising costs were $72.3 million , $68.3 million and $68.6 million for Fiscal 2020, 2019 and 2018, respectively. Consideration to Resellers In our wholesale businesses, we do not have any written buy-down programs with retailers, but we have provided certain retailers with markdown allowances for obsolete and slow moving products that are in the retailer’s inventory. We estimate these allowances and provide for them as reductions to revenues at the time revenues are recorded. Markdowns are negotiated Note 1 Summary of Significant Accounting Policies, Continued with retailers and changes are made to the estimates as agreements are reached. Actual amounts for markdowns have not differed materially from estimates. Cooperative Advertising Cooperative advertising funds are made available to most of our wholesale footwear customers. In order for retailers to receive reimbursement under such programs, the retailer must meet specified advertising guidelines and provide appropriate documentation of expenses to be reimbursed. Our cooperative advertising agreements require that wholesale customers present documentation or other evidence of specific advertisements or display materials used for our products by submitting the actual print advertisements presented in catalogs, newspaper inserts or other advertising circulars, or by permitting physical inspection of displays. Additionally, our cooperative advertising agreements require that the amount of reimbursement requested for such advertising or materials be supported by invoices or other evidence of the actual costs incurred by the retailer. Vendor Allowances From time to time, we negotiate allowances from our vendors for markdowns taken or expected to be taken. These markdowns are typically negotiated on specific merchandise and for specific amounts. These specific allowances are recognized as a reduction in cost of sales in the period in which the markdowns are taken. Markdown allowances not attached to specific inventory on hand or already sold are applied to concurrent or future purchases from each respective vendor. We receive support from some of our vendors in the form of reimbursements for cooperative advertising and catalog costs for the launch and promotion of certain products. The reimbursements are agreed upon with vendors and represent specific, incremental, identifiable costs incurred by us to sell the vendor’s specific products. Such costs and the related reimbursements are accumulated and monitored on an individual vendor basis, pursuant to the respective cooperative advertising agreements with vendors. Such cooperative advertising reimbursements are recorded as a reduction of selling and administrative expenses in the same period in which the associated expense is incurred. If the amount of cash consideration received exceeds the costs being reimbursed, such excess amount would be recorded as a reduction of cost of sales. Vendor reimbursements of cooperative advertising costs recognized as a reduction of selling and administrative expenses were $8.0 million , $7.8 million and $8.7 million for Fiscal 2020, 2019 and 2018, respectively. During Fiscal 2020, 2019 and 2018, our vendor reimbursements of cooperative advertising received were not in excess of the costs incurred. Foreign Currency Translation |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements New Accounting Pronouncements Recently Adopted We adopted ASU 2016-02, " Leases (Topic 842)", ("ASC 842"), as of February 3, 2019, using the optional transition method provided by ASU 2018-11, "Leases (Topic 842): Targeted Improvements". The optional transition approach provides a method for recording existing leases at adoption by allowing a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption, as opposed to the modified or full retrospective transition methods that require restating prior comparative periods. Additionally, we elected the “package of practical expedients”, which permits us to not reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. We also elected the practical expedient to not separate lease and non-lease components for its store and equipment leases. Adoption of the new standard resulted in the recording of additional net operating lease right of use assets and operating lease liabilities of $795.6 million and $855.3 million, respectively, as of February 3, 2019. The operating lease right of use asset is inclusive of the impairments recorded upon adoption for store operating lease right of use assets, which totaled $4.8 million and resulted in a decrease to retained earnings of $4.2 million, net of tax. Right of use assets are recorded based upon the present value of the remaining operating lease payments, discounted using an incremental borrowing rate based on the initial lease term, adjusted for deferred rent, including tenant allowances from landlords. ASC 842 did not materially impact net earnings or liquidity and did not have an impact on covenant compliance under our current debt agreements. Financial results for reporting periods beginning after February 3, 2019 are presented in accordance with ASC 842, while prior periods will continue to be reported in accordance with our historical accounting for leases under ASC 840: "Leases (Topic 840)" and therefore have not been adjusted to conform to Topic 842. For additional information regarding leases, see Note 8. In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract", (ASU 2018-15"). The standard requires that issuers follow the internal-use software guidance in ASC 350-40 to determine which costs to capitalize as assets or expense as incurred. The ASC 350-40 guidance requires that certain costs incurred during the application development stage be capitalized and other costs incurred during the preliminary project and post-implementation stages be expensed as they are incurred. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019. We adopted this standard effective August 4, 2019 and elected to apply the prospective transition approach with no material impact on our Consolidated Financial Statements. We did not capitalize any material implementation costs incurred in a cloud computing arrangement service contract during Fiscal 2020. In February 2018, the FASB issued ASU 2013-02, "Comprehensive Income (Topic 220)" ("ASC 220"), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Act. This guidance is effective for all entities for fiscal years, and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. The amendments in ASC 220 should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Act is recognized. We adopted ASC 220 in the fourth quarter of Fiscal 2018 and reclassified $2.2 million to retained earnings for the impact of stranded tax effects resulting from the Act. In March 2016, the FASB issued ASU 2014-12, "Compensation - Stock Compensation (Topic 718)" ("ASC 718"). The update addresses several aspects of the accounting for share-based compensation transactions including: (a) income tax consequences when awards vest or are settled, (b) classification of awards as either equity or liabilities, (c) a policy election to account for forfeitures as they occur rather than on an estimated basis and (d) classification of excess tax impacts on the statement of cash flows. The inclusion of excess tax benefits and deficiencies as a component of our income tax expense will increase volatility within its provision for income taxes as the amount of excess tax benefits or deficiencies from share-based compensation awards is dependent on our stock price at the date the awards are exercised or settled which is primarily in the second quarter of each fiscal year. We adopted ASC 718 in the first quarter of Fiscal 2018. We recorded an excess tax deficiency of $2.2 million as an increase in income tax expense related to share-based compensation for vested awards in Fiscal 2018. Earnings per share decreased $0.11 per share for Fiscal 2018 due to the impact of ASC 718. Note 2 New Accounting Pronouncements, Continued We adopted ASC 606 in the first quarter of Fiscal 2019 using the modified retrospective method by recognizing the cumulative effect of $4.4 million as an adjustment to the opening balance of retained earnings at February 4, 2018. The adoption of this standard did not have a material impact on our Consolidated Financial Statements and related disclosures. New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, " Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments " , which requires entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. This guidance will be effective for us in the first quarter of the year ending January 30, 2021 ("Fiscal 2021") with early adoption permitted. We do not expect this guidance to have a material impact on our Consolidated Financial Statements. However, we are also evaluating how COVID-19 will impact this standard. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Feb. 01, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The fair value of the assets acquired and liabilities assumed are recorded based on their estimated fair values at acquisition. In connection with acquisitions, we record goodwill on our Consolidated Balance Sheets. This asset is not amortized but is subject to an impairment test at least annually, based on current market information as well as projected future cash flows from the acquired business discounted at a rate commensurate with the risk we consider to be inherent in our current business model. We perform the impairment test annually at the beginning of our fourth quarter, or more frequently if events or circumstances indicate that the value of the asset might be impaired. Our identifiable intangible assets with finite lives are trademarks, customer lists, backlog and a vendor contract. They are subject to amortization based upon their estimated useful lives. Finite-lived intangible assets are evaluated for impairment using a process similar to that used to evaluate other definite-lived long-lived assets, a comparison of the fair value of the intangible asset with its carrying amount. An impairment loss is recognized for the amount by which the carrying value exceeds the fair value of the asset. No significant impairment charges for ongoing operations were recognized in Fiscal 2020, 2019 or 2018. Impairment charges, if recognized, are included in asset impairments and other, net on the Consolidated Statements of Operations. Goodwill Effective January 1, 2020, we completed the acquisition of substantially all of the assets, and assumption of certain liabilities, of Togast for an aggregate base purchase price of $33.5 million, which was paid in full in cash at the closing, with an additional two-part earnout provision of up to an additional $17.0 million in cash following our Fiscal 2022 and an additional $17.0 million in cash following our Fiscal 2024, contingent upon the acquired business achieving certain earnings targets over multi-year periods, plus a potential further payment following Fiscal 2022 of 10% of earnings in excess of the earnings target. The two-part earnout provision is largely subject to the payees' post acquisition service requirement and therefore will be recorded as compensation expense and not reported as a component of the purchase price for the acquisition. Togast specializes in the design, sourcing and sale of licensed footwear. We also entered into a new U.S. footwear license agreement with Levi Strauss & Co. for the license of Levi's ® footwear for men, women, and children in the U.S. The Togast purchase includes footwear licenses for Bass ® , ADIO and FUBU, among others. Togast operates within the Licensed Brands segment. Note 3 Goodwill and Other Intangible Assets, Continued The changes in the carrying amount of goodwill by segment were as follows: (In thousands) Schuh Group Journeys Group Licensed Brands Group Total Goodwill Balance, February 2, 2019 $83,243 $9,838 $ — $93,081 Acquisition — — 28,385 28,385 Effect of foreign currency exchange rates 826 (108 ) — 718 Balance, February 1, 2020 $84,069 $9,730 $28,385 $122,184 Given the Schuh Group reporting unit has continued to perform below our projected operating results, as part of our annual impairment assessment as of the first day of the fourth quarter, we performed a quantitative assessment to determine if an impairment existed. We found that the result of the impairment test, which valued the business at approximately $8.2 million in excess of our carrying value, indicated no impairment at that time. Holding all other assumptions constant as of the measurement date, we noted that an increase in the weighted average cost of capital of 100 basis points would reduce the fair value of the Schuh Group business by $10.0 million . Furthermore, we noted that a decrease in projected annual revenue growth by one percent would reduce the fair value of the Schuh Group business by $6.9 million . However, if other assumptions do not remain constant, the fair value of the Schuh Group business may decrease by a greater amount. Other Intangible Assets Other intangibles by major classes were as follows: Leases Customer Lists (1) Other (2) Total (In thousands) Feb. 1, 2020 Feb. 2, 2019 Feb. 1, 2020 Feb. 2, 2019 Feb. 1, 2020 Feb. 2, 2019 Feb. 1, 2020 Feb. 2, 2019 Gross other intangibles $ — $ 3,532 $ 6,562 $ 1,450 $ 767 $ 641 $ 7,329 $ 5,623 Accumulated amortization — (2,916 ) (1,509 ) (1,450 ) (479 ) (314 ) (1,988 ) (4,680 ) Net Other Intangibles $ — $ 616 $ 5,053 $ — $ 288 $ 327 $ 5,341 $ 943 (1) Includes $5.1 million for the Togast acquisition. (2) Includes backlog and vendor contract. The amortization of intangibles was $0.2 million for Fiscal 2020 and less than $0.1 million for Fiscal 2019 and 2018. Currently, amortization of intangibles is expected to be $0.9 million for Fiscal 2021 and $0.6 million for each of the next four years. |
Asset Impairments and Other Cha
Asset Impairments and Other Charges | 12 Months Ended |
Feb. 01, 2020 | |
Asset Impairment Charges [Abstract] | |
Asset Impairments and Other Charges | Asset Impairments and Other Charges Asset impairment charges are reflected as a reduction of the net carrying value of property and equipment, and in asset impairment and other, net in the accompanying Consolidated Statements of Operations. We recorded a pretax charge to earnings of $13.4 million in Fiscal 2020, including $11.5 million pension settlement expense and $3.1 million for retail store asset impairments, partially offset by a $(0.6) million gain on the sale of the Lids Sports Group headquarters building, a $(0.4) million gain for lease terminations and a $(0.2) million gain related to Hurricane Maria. Note 4 Asset Impairments and Other Charges, Continued We recorded a pretax charge to earnings of $3.2 million in Fiscal 2019, including $4.2 million for retail store asset impairments, $0.3 million for legal and other matters and $0.1 for hurricane losses, partially offset by a $(1.4) million gain related to Hurricane Maria. We recorded a pretax charge to earnings of $7.8 million in Fiscal 2018, including a $5.2 million licensing termination expense, $1.7 million for retail store asset impairments and $0.9 million for hurricane losses. |
Inventories
Inventories | 12 Months Ended |
Feb. 01, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (In thousands) February 1, 2020 February 2, 2019 Wholesale finished goods $ 34,271 $ 45,679 Retail merchandise 330,998 320,988 Total Inventories $ 365,269 $ 366,667 |
Fair Value
Fair Value | 12 Months Ended |
Feb. 01, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The carrying amounts and fair values of our financial instruments at February 1, 2020 and February 2, 2019 are: (In thousands) February 1, 2020 February 2, 2019 Carrying Amount Fair Value Carrying Amount Fair Value U.S. Revolver Borrowings $ 14,393 $ 14,056 $ 56,773 $ 56,861 UK Term Loans — — 8,970 9,063 UK Revolver Borrowings — — — — Debt fair values were determined using a discounted cash flow analysis based on current market interest rates for similar types of financial instruments and would be classified in Level 2 as defined in Note 1. Carrying amounts reported on our Consolidated Balance Sheets for cash, cash equivalents, receivables and accounts payable approximate fair value due to the short-term maturity of these instruments. The following table presents our assets and liabilities measured at fair value on a nonrecurring basis as of February 1, 2020 aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands): Long-Lived Assets Held and Used Level 1 Level 2 Level 3 Impairment Charges Measured as of May 4, 2019 $ 906 $ — $ — $ 906 $ 307 Measured as of August 3, 2019 63 — — 63 731 Measured as of November 2, 2019 263 — — 263 799 Measured as of February 1, 2020 — — — — 1,258 Total Asset Impairment Fiscal 2020 $ 3,095 Note 6 Fair Value, Continued We recorded $3.1 million of impairment charges as a result of the fair value measurement of its long-lived assets held and used and tested on a nonrecurring basis during the year ended February 1, 2020. These charges are reflected in asset impairments and other, net in our Consolidated Statements of Operations. We used a discounted cash flow model to estimate the fair value of these long-lived assets. Discount rate and growth rate assumptions are derived from current economic conditions, expectations of management and projected trends of current operating results. As a result, we have determined that the majority of the inputs used to value our long-lived assets held and used are unobservable inputs that fall within Level 3 of the fair value hierarchy. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Feb. 01, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Credit Facility On February 1, 2019, we entered into a First Amendment to the Fourth Amended and Restated Credit Agreement, (the "Amendment") amending the Fourth Amended and Restated Credit Agreement, dated as of January 31, 2018 between us and the lenders party thereto and Bank of America, N.A., as agent (as amended, the "Credit Facility" or the "Credit Agreement"). The Amendment modified the Credit Facility to, among other things, decrease each of the Domestic Total Commitments and the Total Commitments from $400.0 million to $275.0 million and to permit the sale of Lids Sports Group. The Credit Facility matures January 31, 2023. Deferred financing costs incurred of $1.7 million related to the Credit Facility were capitalized and are being amortized over five years . In connection with the Amendment to the Credit Facility, deferred financing costs of $0.6 million were written off. These costs are included in loss on early retirement of debt on the Consolidated Statements of Operations. The remaining balance of deferred financing costs incurred related to the Credit Facility are being amortized over the remaining four years of the agreement. These costs are included in other non-current assets on the Consolidated Balance Sheets. The Credit Facility is a revolving credit facility in the aggregate principal amount of $275.0 million , including (i) for the Company and other borrowers formed in the U.S., a $70.0 million sublimit for the issuance of letters of credit and a domestic swingline subfacility of up to $45.0 million, (ii) for GCO Canada, Inc., a revolving credit subfacility in an amount not to exceed $70.0 million, which includes a $5.0 million sublimit for the issuance of letters of credit and a swingline subfacility of up to $5.0 million, and (iii) for Genesco (UK) Limited, a revolving credit subfacility in an aggregate amount not to exceed $100.0 million, which includes a $10.0 million sublimit for the issuance of letters of credit and a swingline subfacility of up to $10.0 million . Any swingline loans and any letters of credit and borrowings under the Canadian and U.K. subfacilities will reduce the availability under the Credit Facility on a dollar for dollar basis. We have the option, from time to time, to increase the availability under the Credit Facility by an aggregate amount of up to $200.0 million subject to, among other things, the receipt of commitments for the increased amount. In connection with this increased facility, the Canadian revolving credit subfacility may be increased by no more than $15.0 million and the UK revolving credit subfacility may be increased by no more than $100.0 million. The aggregate amount of the loans made and letters of credit issued under the Credit Facility are limited to the lesser of the facility amount ( $275.0 million or, if increased as described above, up to $475.0 million ) or the "Borrowing Base", as defined in the Credit Agreement. The Credit Facility is secured by certain assets of the Company and certain subsidiaries of the Company, including accounts receivable, inventory, payment intangibles, and deposit accounts and specifically excludes intellectual property, equity interests, equipment, real estate and leaseholds interests. We are required to pay a commitment fee on the actual daily unused portions of the Credit Facility at a rate of 0.25% per annum. The Credit Facility also permits us to incur senior debt in an amount up to the greater of $500.0 million or an amount that would not cause our ratio of consolidated total indebtedness to consolidated EBITDA to exceed 5.0 :1.0 provided that certain terms and conditions are met. Note 7 Long-Term Debt, Continued In addition, the Credit Facility contains certain covenants that, among other things, restrict additional indebtedness, liens and encumbrances, loans and investments, acquisitions, dividends and other restricted payments, transactions with affiliates, asset dispositions, mergers and consolidations, prepayments or material amendments to certain material documents and other matters customarily restricted in such agreements. The Credit Facility does not require us to comply with any financial covenants unless Excess Availability, as defined in the Credit Agreement, is less than the greater of $17.5 million or 10.0% of the Loan Cap. If and during such time as Excess Availability is less than the greater of $17.5 million or 10.0% of the Loan Cap, the Credit Facility requires us to meet a minimum fixed charge coverage ratio. Excess Availability was $199.9 million at February 1, 2020. See Note 18 for subsequent events related to the Credit Facility. The Credit Facility contains customary events of default, which if any of them occurs, would permit or require the principal of and interest on the Credit Facility to be declared due and payable as applicable. U.K. Credit Agreements On November 15, 2019, Schuh Limited ("Schuh") entered into an Amendment and Restatement Agreement (the “2019 Restatement Agreement”) with Lloyds Bank plc (“Lloyds”) which amended and restated the Amendment and Restatement Agreement dated April 26, 2017. Schuh Limited replaced Schuh Group Limited as Parent under the 2019 Restatement Agreement. The 2019 Restatement Agreement contains certain covenants at the Schuh level, including a minimum interest coverage covenant of 4.50 x and a maximum leverage covenant of 1.75 x. The 2019 Restatement Agreement is secured by a pledge of all the assets of Schuh and Schuh (ROI) Limited. Pursuant to a Guarantee in favor of Lloyds, Genesco Inc. has guaranteed the obligations of Schuh under the 2019 Restatement Agreement on an unsecured basis. We were in compliance with all the covenants at February 1, 2020. The 2019 Restatement Agreement includes a Facility B of £6.25 million, a Facility C revolving credit agreement of £19.0 million, a working capital facility of £2.5 million and a Facility D revolving credit facility of €7.2 million for its operations in Ireland. The Facility B loan bears interest at LIBOR plus 2.5% per annum and was paid off in January 2020. The Facility C bears interest at LIBOR plus 2.2% per annum and expired January 31, 2020. The Facility D bears interest at EURIBOR plus 2.2% per annum and expired January 31, 2020. There were no UK term loans or UK revolver loans outstanding at February 1, 2020. In March of 2020, Schuh entered into an Amendment and Restatement Agreement, amending the 2019 Restatement Agreement (the "U.K. A&R Agreement") with Lloyds. The U.K. A&R Agreement includes only a Facility C revolving credit agreement of £19.0 million,bears interest at 2.2% per annum and expires in September 2020. (In thousands) February 1, 2020 February 2, 2019 U.S. Revolver borrowings $ 14,393 $ 56,773 UK term loans — 8,992 UK revolver borrowings — — Deferred note expense on term loans — (22 ) Total long-term debt 14,393 65,743 Current portion — 8,992 Total Noncurrent Portion of Long-Term Debt $ 14,393 $ 56,751 The long-term debt balance of $14.4 million bears interest at 2.13% and matures in January 2023. The revolver borrowings outstanding under the Credit Facility at February 1, 2020 included $14.4 million ( £10.9 million ) related to Genesco (UK) Limited. We had outstanding letters of credit of $9.3 million under the Credit Facility at February 1, 2020. These letters of credit support lease and insurance indemnifications. |
Leases
Leases | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Leases | Leases We lease our office space and all of our retail store locations, transportation equipment and other equipment under various noncancelable operating leases. The leases have varying terms and expire at various dates through 2034. The store leases in the United States, Puerto Rico and Canada typically have initial terms of approximately 10 years . The store leases in the United Kingdom and the Republic of Ireland typically have initial terms of between 10 and 15 years . Our lease portfolio includes leases with fixed base rental payments, rental payments based on a percentage of retail sales over contractual amounts and others with predetermined fixed escalations of the minimum rentals based on a defined consumer price index or percentage. Generally, most of the leases require us to pay taxes, insurance, maintenance costs and contingent rentals based on sales. We evaluate renewal options and break options at lease inception and on an ongoing basis, and include renewal options and break options that we are reasonably certain to exercise in our expected lease terms for calculations of our right-of-use assets and liabilities. Approximately 2% of our leases contain renewal options. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The lease on our Nashville office expires in April 2022. On February 10, 2020, we announced plans for our new corporate headquarters in Nashville, Tennessee. We entered into a lease agreement for approximately 199,000 square feet of office space which will replace our current corporate headquarters office lease. The term of the lease is 15 years , with two options to extend for an additional period of five years each. Under ASC 842, for store, office and equipment leases beginning in Fiscal 2020 and later, we have elected to not separate fixed lease components and non-lease components. Accordingly, we include fixed rental payments, common area maintenance costs, promotional advertising costs and other fixed costs in our measurement of lease liabilities. Our leases do not provide an implicit rate, so the incremental borrowing rate, based on the information available at commencement or modification date, is used in determining the present value of lease payments. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular currency environment. For operating leases that commenced prior to the date of adoption of the new lease accounting guidance, we used the incremental borrowing rate that corresponded to the initial lease term as of the date of adoption. Net lease costs are included within selling and administrative expenses on the Consolidated Statements of Operations. The table below presents the components of lease cost for operating leases for the year ended February 1, 2020. (In thousands) Fiscal 2020 Operating lease cost $184,428 Variable lease cost 12,176 Less: Sublease income (307 ) Net Lease Cost $196,297 Note 8 Leases, Continued The following table reconciles the maturities of undiscounted cash flows to our operating lease liabilities recorded on the Consolidated Balance Sheets at February 1, 2020: Fiscal Years (In thousands) 2021 $180,314 2022 171,483 2023 151,141 2024 127,544 2025 103,668 Thereafter 192,246 Total undiscounted future minimum lease payments 926,396 Less: Amounts representing interest (135,752) Total Present Value of Operating Lease Liabilities $790,644 Our weighted-average remaining lease term and weighted-average discount rate for operating leases as of February 1, 2020 are: February 1, 2020 Weighted-average remaining lease term (years) 6.2 years Weighted-average discount rate 5.2% Prior Period Comparative Disclosures Under the optional transition method, for leases that existed prior to and at the adoption of the new standard, we continue to present comparative prior period lease amounts in accordance with ASC 840, "Leases". As of February 2, 2019 future minimum rental commitments were: Fiscal Years (In thousands) 2020 $183,432 2021 171,584 2022 159,155 2023 140,889 2024 119,023 Thereafter 323,638 Total Minimum Rental Commitments $1,097,721 Leasehold improvements are recorded at their gross costs including items reimbursed by landlords. The reimbursements are recorded as deferred rent and amortized as a reduction of rent expense over the initial lease term. Tenant allowances of $22.5 million and deferred rent of $48.6 million at February 2, 2019 are included in other long-term liabilities on the Consolidated Balance Sheets. Total rent expense was $202.6 million and $203.1 million for Fiscal 2019 and 2018, respectively. Total contingent rent was not material for Fiscal 2019 and 2018. |
Equity
Equity | 12 Months Ended |
Feb. 01, 2020 | |
Equity [Abstract] | |
Equity | Equity Non-Redeemable Preferred Stock Shares Authorized Number of Shares Amounts in Thousands Class 2020 2019 2018 2020 2019 2018 Employees’ Subordinated Convertible Preferred 5,000,000 34,440 36,147 36,671 $ 1,033 $ 1,084 $ 1,100 Stated Value of Issued Shares 1,033 1,084 1,100 Employees’ Preferred Stock Purchase Accounts (24 ) (24 ) (48 ) Total Non-Redeemable Preferred Stock $ 1,009 $ 1,060 $ 1,052 Subordinated Serial Preferred Stock: Our charter permits the Board of Directors to issue Subordinated Serial Preferred Stock ( 3,000,000 shares, in aggregate, are authorized) in as many series, each with as many shares and such rights and preferences as the board may designate. We have shares authorized for $2.30 Series 1, $4.75 Series 3, $4.75 Series 4, Series 6 and $1.50 Subordinated Cumulative Preferred stocks in amounts of 64,368 shares, 40,449 shares, 53,764 shares, 800,000 shares and 5,000,000 shares, respectively. All of these preferred stocks were mandatorily redeemed by us in Fiscal 2014. As a result, there are no outstanding shares for any preferred issues of stock other than Employees' Subordinated Convertible Preferred stock shown in the table above. Employees’ Subordinated Convertible Preferred Stock: Stated and liquidation values are 88 times the average quarterly per share dividend paid on common stock for the previous eight quarters (if any), but in no event less than $30 per share. Each share of this issue of preferred stock is convertible into one share of common stock and has one vote per share. Common Stock: Common stock- $1 par value. Authorized: 80,000,000 shares; issued: February 1, 2020 – 15,185,670 shares; February 2, 2019 – 19,591,048 shares. There were 488,464 shares held in treasury at February 1, 2020 and February 2, 2019. Each outstanding share is entitled to one vote. At February 1, 2020, common shares were reserved as follows: 34,440 shares for conversion of preferred stock and 916,680 shares for the Second Amended and Restated 2009 Genesco Inc. Equity Incentive Plan (the "2009 Plan"). For the year ended February 1, 2020, 270,173 shares of common stock were issued as restricted shares as part of the 2009 Plan; 25,368 shares were issued to directors in exchange for their services; 55,598 shares were withheld for taxes on restricted stock vested in Fiscal 2020; 77,013 shares of restricted stock were forfeited in Fiscal 2020; and 1,707 shares were issued in miscellaneous conversions of Employees’ Subordinated Convertible Preferred Stock. In addition, the Company repurchased and retired 4,570,015 shares of common stock at an average weighted market price of $41.44 for a total of $189.4 million . We have $89.7 million remaining under our current $100.0 million share repurchase authorization. For the year ended February 2, 2019, 353,633 shares of common stock were issued as restricted shares as part of the 2009 Plan; 36,421 shares were issued to directors in exchange for their services; 69,762 shares were withheld for taxes on restricted stock vested in Fiscal 2019; 153,646 shares of restricted stock were forfeited in Fiscal 2019; and 524 shares were issued in miscellaneous conversions of Employees’ Subordinated Convertible Preferred Stock. In addition, the Company repurchased and retired 968,375 shares of common stock at an average weighted market price of $47.45 for a total of $45.9 million . Note 9 Equity, Continued For the year ended February 3, 2018, 356,224 shares of common stock were issued as restricted shares as part of the 2009 Plan; 30,620 shares were issued to directors in exchange for their services; 50,957 shares were withheld for taxes on restricted stock vested in Fiscal 2018; 23,581 shares of restricted stock were forfeited in Fiscal 2018; and 975 shares were issued in miscellaneous conversions of Employees’ Subordinated Convertible Preferred Stock. In addition, the Company repurchased and retired 275,300 shares of common stock at an average weighted market price of $58.71 for a total of $16.2 million . Restrictions on Dividends and Redemptions of Capital Stock: Our charter provides that no dividends may be paid and no shares of capital stock acquired for value if there are dividend or redemption arrearages on any senior or equally ranked stock. Exchanges of subordinated serial preferred stock for common stock or other stock junior to such exchanged stock are permitted. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted in the United States. The Act includes a number of changes to existing U.S. tax laws that impact us including the reduction of the U.S. corporate income tax rate from 35% to 21% for tax years beginning after December 31, 2017. The Act also provides for a one-time transition tax on indefinitely reinvested foreign earnings and the acceleration of depreciation for certain assets placed into service after September 27, 2017, as well as prospective changes beginning in 2018, including the elimination of certain domestic deductions and credits and additional limitations on the deductibility of executive compensation. Our Fiscal 2020 and 2019 financial results reflected all tax effects from the Act. The changes to existing U.S. tax laws as a result of the Act, which have the most significant impact on our provision for income taxes as of February 1, 2020 and February 2, 2019 are as follows: Reduction of the U.S. Corporate Income Tax Rate We measure deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Accordingly, our deferred tax assets and liabilities were adjusted to reflect the reduction in the U.S. corporate income tax rate from 35% to 21%, resulting in a $5.3 million increase in income tax expense for the year ended February 3, 2018 and a corresponding $5.3 million decrease in net deferred tax assets as of February 3, 2018. Transition Tax on Foreign Earnings We recognized a provisional income tax expense of $4.5 million for the year ended February 3, 2018 related to the one-time transition tax on indefinitely reinvested foreign earnings. The adjustments to the deferred tax assets and liabilities and the liability for the transition tax on indefinitely reinvested foreign earnings, including the analysis of our ability to fully utilize foreign tax credits associated with the transition tax, were provisional amounts estimated based on information reviewed as of February 3, 2018. We recorded an additional expense of $1.3 million in Fiscal 2019, as the one-time transition tax of $5.8 million was finalized. Global Intangible Low-Taxed Income ("GILTI") The Act established new tax rules designed to tax U.S. companies on GILTI earned by foreign subsidiaries. We elected to treat any future GILTI tax liabilities as period costs and will expense those liabilities in the period incurred. Therefore, we will not record deferred taxes associated with the GILTI provision for the Act. Because of tax losses in foreign jurisdictions, there was no liability for GILTI in any period. Note 10 Income Taxes, Continued The components of earnings from continuing operations before income taxes is comprised of the following: (In thousands) 2020 2019 2018 United States $ 83,871 $ 84,807 $ 58,137 Foreign (1,436 ) (6,548 ) 10,852 Total Earnings from Continuing Operations before Income Taxes $ 82,435 $ 78,259 $ 68,989 Income tax expense from continuing operations is comprised of the following: (In thousands) 2020 2019 2018 Current U.S. federal $ 16,313 $ 13,657 $ 25,093 International 322 1,649 5,421 State 3,383 4,029 3,828 Total Current Income Tax Expense 20,018 19,335 34,342 Deferred U.S. federal (463 ) 3,632 1,491 International 1,145 2,594 (3,498 ) State (22 ) 1,474 (54 ) Total Deferred Income Tax Expense (Benefit) 660 7,700 (2,061 ) Total Income Tax Expense – Continuing Operations $ 20,678 $ 27,035 $ 32,281 Reconciliation of the United States federal statutory rate to our effective tax rate from continuing operations is as follows: 2020 2019 2018 U. S. federal statutory rate of tax 21.00 % 21.00 % 33.72 % State taxes (net of federal tax benefit) 3.62 5.67 3.58 Foreign rate differential (2.21 ) (2.56 ) (5.66 ) Change in valuation allowance 3.64 11.51 1.95 Impact of statutory rate change — — 7.74 Credits (0.93 ) (2.65 ) (1.80 ) Permanent items 1.72 2.27 2.77 Uncertain federal, state and foreign tax positions (2.01 ) (1.68 ) (1.36 ) Transition tax — 2.23 6.47 Other 0.25 (1.24 ) (0.62 ) Effective Tax Rate 25.08 % 34.55 % 46.79 % Note 10 Income Taxes, Continued Deferred tax assets and liabilities are comprised of the following: February 1, February 2, (In thousands) 2020 2019 Pensions $ 332 $ — Lease obligation 188,590 11,081 Book over tax depreciation 4,558 2,739 Expense accruals 7,386 5,061 Uniform capitalization costs 7,292 7,938 Provisions for discontinued operations and restructurings 674 730 Inventory valuation 810 908 Tax net operating loss and credit carryforwards 11,972 15,766 Allowances for bad debts and notes 181 318 Deferred compensation and restricted stock 3,344 3,814 Other 144 39 Gross deferred tax assets 225,283 48,394 Deferred tax asset valuation allowance (23,333 ) (20,354 ) Deferred tax asset net of valuation allowance 201,950 28,040 Identified intangibles (3,616 ) (3,265 ) Prepaids (1,929 ) (1,638 ) Right of use asset (176,930 ) — Pensions — (1,802 ) Gross deferred tax liabilities (182,475 ) (6,705 ) Net Deferred Tax Assets $ 19,475 $ 21,335 The deferred tax balances have been classified in our Consolidated Balance Sheets as follows: 2020 2019 Net non-current asset $ 19,475 $ 21,335 Net Deferred Tax Assets $ 19,475 $ 21,335 As of February 1, 2020 and February 2, 2019, we had state net operating loss carryforwards of $3.4 million and $5.7 million , respectively. We provided a valuation allowance against these attributes of $3.2 million and $3.3 million, respectively, as of February 1, 2020 and February 2, 2019. The attributes expire in fiscal years 2022 through 2039 . As of February 1, 2020 and February 2, 2019, we had state tax credits of $0.6 million and $0.4 million, respectively. These credits expire in fiscal years 2021 through 2026 . As of February 1, 2020 and February 2, 2019, we had foreign net operating loss carryforwards of $29.5 million and $28.4 million , respectively, which expire in 20 years. As of February 1, 2020, we have provided a total valuation allowance of approximately $23.3 million on deferred tax assets associated primarily with foreign and state net operating losses for which management has determined it is more likely than not that the deferred tax assets will not be realized. The $2.9 million net increase in valuation allowance during Fiscal 2020 from the $20.4 million provided for as of February 2, 2019 relates to increases of $0.5 million related to state tax attributes and $2.4 million related to foreign tax attributes. Management believes that it is more likely than not that the remaining deferred tax assets will be fully realized. Note 10 Income Taxes, Continued As of February 1, 2020, no deferred taxes have been provided on the accumulated undistributed earnings of our foreign operations beyond the amounts recorded for deemed repatriation of such earnings, as required by U.S. Tax Reform. An actual repatriation of earnings from our foreign operations could still be subject to additional foreign withholding and U.S. state taxes. Based upon evaluation of our foreign operations, undistributed earnings are intended to remain permanently reinvested to finance anticipated future growth and expansion, and accordingly, deferred taxes have not been provided. If undistributed earnings of our foreign operations were not considered permanently reinvested as of February 1, 2020, an immaterial amount of additional deferred taxes would have been provided. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for Fiscal 2020, 2019 and 2018. (In thousands) 2020 2019 2018 Unrecognized Tax Benefit – Beginning of Period $ 1,835 $ 3,701 $ 5,622 Gross Increases (Decreases) – Tax Positions in a Prior Period — — (15 ) Gross Increases (Decreases) – Tax Positions in a Current Period 178 (638 ) (166 ) Settlements (931 ) — — Lapse of Statutes of Limitations (904 ) (1,228 ) (1,740 ) Unrecognized Tax Benefit – End of Period $ 178 $ 1,835 $ 3,701 The amount of unrecognized tax benefits as of February 1, 2020, February 2, 2019 and February 3, 2018 which would impact the annual effective rate if recognized were $0.2 million , $0.6 million and $0.6 million , respectively. The amount of unrecognized tax benefits may change during the next twelve months but we do not believe the change, if any, will be material to our consolidated financial position or results of operations. We recognize interest expense and penalties related to the above unrecognized tax benefits within income tax expense on the Consolidated Statements of Operations and it was not material for Fiscal 2020, 2019 or 2018. We file income tax returns in federal and in many state and local jurisdictions as well as foreign jurisdictions. With few exceptions, our state and local income tax returns for fiscal years ended January 31, 2017 and beyond remain subject to examination. In addition, we have subsidiaries in various foreign jurisdictions that have statutes of limitation generally ranging from two to six years |
Defined Benefit Pension Plans a
Defined Benefit Pension Plans and Other Postretirement Benefit Plans | 12 Months Ended |
Feb. 01, 2020 | |
Retirement Benefits [Abstract] | |
Defined Benefit Pension Plans and Other Postretirement Benefit Plans | Defined Benefit Pension Plans and Other Postretirement Benefit Plans Defined Benefit Pension Plans We previously sponsored a non-contributory, defined benefit pension plan. As of January 1, 1996, we amended the plan to change the pension benefit formula to a cash balance formula from the then existing benefit calculation based upon years of service and final average pay. The benefits accrued under the old formula were frozen as of December 31, 1995. Effective January 1, 2005, we froze the defined benefit cash balance plan. In March 2019, our board of directors authorized the termination of the defined benefit pension plan. The termination was completed in January 2020. Other Postretirement Benefit Plans We provide health care benefits for early retirees that meet certain age and years of service criteria and life insurance benefits for certain retirees. Under the health care plan, early retirees are eligible for benefits until age 65 . Employees who met certain requirements are eligible for life insurance benefits. We accrue such benefits during the period in which the employee renders service. Obligations and Funded Status The measurement date of the assets and liabilities for the defined benefit pension plan and postretirement medical and life insurance plans is the month-end date that is closest to our fiscal year end. Change in Plan Assets Pension Benefits Other Benefits (In thousands) 2020 2019 2020 2019 Fair value of plan assets at beginning of year $ 82,632 $ 85,730 $ — $ — Actual gain on plan assets 8,470 892 — — Employer contributions — 3,500 480 105 Plan participants’ contributions — — 111 126 Benefits paid (26,363 ) (7,490 ) (591 ) (231 ) Asset transfer (64,739 ) — — — Fair Value of Plan Assets at End of Year $ — $ 82,632 — — Change in Benefit Obligation Pension Benefits Other Benefits (In thousands) 2020 2019 2020 2019 Benefit obligation at beginning of year $ 78,322 $ 85,035 $ 4,525 $ 10,584 Service cost - ongoing operations 596 450 89 409 Service cost - discontinued operations — — — 300 Interest cost - ongoing operations 2,771 3,022 151 214 Interest cost - discontinued operations — — — 80 Plan participants’ contributions — — 111 126 Effect of plan change — — — (3,658 ) Asset transfer (64,739 ) — — — Benefits paid (26,363 ) (7,490 ) (591 ) (231 ) Actuarial (gain) loss 9,413 (2,695 ) 2,740 (3,299 ) Benefit Obligation at End of Year $ — $ 78,322 $ 7,025 $ 4,525 Funded Status at End of Year $ — $ 4,310 $ (7,025 ) $ (4,525 ) Note 11 Defined Benefit Pension Plans and Other Postretirement Benefit Plans, Continued Amounts recognized in the Consolidated Balance Sheets consist of: Pension Benefits Other Benefits (In thousands) 2020 2019 2020 2019 Noncurrent assets $ — $ 4,310 $ — $ — Current liabilities — — (603 ) (391 ) Noncurrent liabilities — — (6,422 ) (4,134 ) Net Amount Recognized $ — $ 4,310 $ (7,025 ) $ (4,525 ) Amounts recognized in accumulated other comprehensive income consist of: Pension Benefits Other Benefits (In thousands) 2020 2019 2020 2019 Prior service cost $ — $ — $ (1,244 ) $ (2,165 ) Net loss (gain) — 8,148 2,384 (334 ) Total Recognized in Accumulated Other Comprehensive Loss $ — $ 8,148 $ 1,140 $ (2,499 ) Amounts for projected and accumulated benefit obligation and fair value of plan assets are as follows: (In thousands) February 1, 2020 February 2, 2019 Projected benefit obligation $ — $ 78,322 Accumulated benefit obligation — 78,322 Fair value of plan assets — 82,632 Components of Net Periodic Benefit Cost Net Periodic Benefit Cost Pension Benefits Other Benefits (In thousands) 2020 2019 2018 2020 2019 2018 Service cost $ 596 $ 450 $ 550 $ 89 $ 409 $ 507 Interest cost 2,771 3,022 3,277 151 214 251 Expected return on plan assets (2,676 ) (4,198 ) (4,505 ) — — — Amortization: Prior service cost — — — (921 ) (231 ) — Losses 258 776 834 22 37 114 Net amortization 258 776 834 (899 ) (194 ) 114 Other components of net periodic benefit cost $ 353 $ (400 ) $ (394 ) $ (748 ) $ 20 $ 365 Net Periodic Benefit Cost - Ongoing Operations $ 949 $ 50 $ 156 $ (659 ) $ 429 $ 872 Net Periodic Benefit Cost - Discontinued Operations $ — $ — $ — $ — $ (877 ) $ 524 Note 11 Defined Benefit Pension Plans and Other Postretirement Benefit Plans, Continued Reconciliation of Accumulated Other Comprehensive Income Pension Benefits Other Benefits (In thousands) 2020 2020 Net (gain) loss $ 3,620 $ 2,740 Amortization of prior service cost — 921 Settlement charge (11,510 ) — Amortization of net actuarial loss (258 ) (22 ) Total Recognized in Other Comprehensive Income $ (8,148 ) $ 3,639 Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income $ (7,199 ) $ 2,980 Weighted-average assumptions used to determine benefit obligations Pension Benefits Other Benefits 2020 2019 2020 2019 Discount rate NA 4.05 % 2.21 % 3.48 % Rate of compensation increase NA NA NA NA For Fiscal 2020 and 2019, the discount rate was based on a yield curve of high quality corporate bonds with cash flows matching our planned expected benefit payments. Weighted-average assumptions used to determine net periodic benefit costs Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Discount rate 4.05 % 3.70 % 3.95 % 3.48 % 3.67 % 3.98 % Expected long-term rate of return on plan assets 3.85 % 5.65 % 6.05 % NA NA NA Rate of compensation increase NA NA NA NA NA NA Assumed health care cost trend rates 2020 2019 Health care cost trend rate assumed for next year 7.25 % 7.25 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 6.25 % 6.75 % Year that the rate reaches the ultimate trend rate 2024 2022 The effect on disclosed information of one percentage point change in the assumed health care cost trend rate for each future year is shown below. (In thousands) 1% Increase in Rates 1% Decrease in Rates Aggregated service and interest cost $ 20 $ 18 Accumulated postretirement benefit obligation $ 526 $ 480 Note 11 Defined Benefit Pension Plans and Other Postretirement Benefit Plans, Continued Cash Flows Return of Assets The plan did not return any assets from the plan to Genesco in Fiscal 2020. Contributions No minimum funding was required under the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), for the plan in 2019. Estimated Future Benefit Payments Expected benefit payments for other postretirement benefits, paid from the employee benefit trust, are as follows: Estimated future payments Other Benefits ($ in millions) 2020 $ 0.6 2021 0.6 2022 0.6 2023 0.6 2024 0.5 2025 – 2029 2.8 Section 401(k) Savings Plan We have a Section 401(k) Savings Plan available to all employees, including retail employees who have completed 500 hours of service within the first six months of employment, and are age 18 or older. Since January 1, 2005, we have matched 100% of each employee’s contribution of up to 3% of salary and 50% of the next 2% of salary. In addition, for those employees hired before December 31, 2004, who were eligible for our cash balance retirement plan before it was frozen, we annually make an additional contribution of 2 1/2 % of salary to each employee’s account. Participants are immediately vested in their contributions and our matching contribution plus actual earnings thereon. Our contribution expense for the matching program was approximately $5.3 million for Fiscal 2020, $5.6 million for Fiscal 2019 and $5.1 million for Fiscal 2018. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Feb. 01, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities to issue common stock were exercised or converted to common stock. Weighted-average number of shares used for earnings per share is as follows: Fiscal Year (Shares in thousands) 2020 2019 2018 Weighted-average number of shares - basic 15,544 19,351 19,218 Common stock equivalents 127 144 64 Weighted-average number of shares - diluted 15,671 19,495 19,282 |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation Plans | Share-Based Compensation Plans We have share-based compensation covering certain members of management and non-employee directors. The fair value of employee restricted stock is determined based on the closing price of our stock on the date of grant. Forfeitures for restricted stock are recognized as they occur. Stock Incentive Plan Under the 2009 Plan, which was originally effective June 22, 2011, we may grant options, restricted shares, performance awards and other stock-based awards to our employees, consultants and directors for up to 2.6 million shares of common stock. Under the 2009 Plan, the exercise price of each option equals the market price of our stock on the date of grant, and an option’s maximum term is 10 years. Options granted under the plan primarily vest 25% per year over four years . Restricted share grants deplete the shares available for future grants at a ratio of 2.0 shares per restricted share grant. For Fiscal 2020, 2019 and 2018, we did not recognize any stock option related share-based compensation for our stock incentive plan as all such amounts were fully recognized in earlier periods. We did no t capitalize any share-based compensation cost. As of February 1, 2020, we do no t have any options outstanding under our stock incentive plan. As of February 1, 2020, there was no unrecognized compensation costs related to stock options under the 2009 Plan. On February 5, 2020, our new chief executive officer was issued a one-time grant of stock options under the 2009 Plan with a grant date fair value of $500,000 . Compensation costs related to these stock options will begin in the first quarter of our Fiscal 2021 since the grant was made on the first day on Fiscal 2021. Restricted Stock Incentive Plans Director Restricted Stock The 2009 Plan permits grants to non-employee directors on such terms as the Board of Directors may approve. Restricted stock awards were made to independent directors on the date of the annual meeting of shareholders in each of Fiscal 2020, 2019 and 2018. The shares granted in each award vested on the first anniversary of the grant date, subject to the director's continued service through that date. In all cases, the director is restricted from selling, transferring, pledging or assigning the shares for three years from the grant date unless he or she earlier leaves the board. Note 13 Share-Based Compensation Plans, Continued The Fiscal 2020 grant was valued at $91,375 for the year, per director, the Fiscal 2019 grant was valued at $91,375 for the year, per director, with the exception of two new directors with a grant valued at $106,605 each, and the Fiscal 2018 grant was valued at $107,500 for the year, per director, based on the average closing price of the stock for the first five trading days of the month in which they were granted and vested on the first anniversary of the grant date. For Fiscal 2020, 2019 and 2018, we issued 14,455 shares, 22,042 shares and 22,185 shares, respectively, of director restricted stock. In addition, the 2009 Plan permits an outside director to elect irrevocably to receive all or a specified portion of his annual retainers for board membership and any committee chairmanship for the following fiscal year in a number of shares of restricted stock (the "Retainer Stock"). Shares of the Retainer Stock are granted as of the first business day of the fiscal year as to which the election is effective, subject to forfeiture to the extent not earned upon the outside director's ceasing to serve as a director or committee chairman during such fiscal year. Once the shares are earned, the director is restricted from selling, transferring, pledging or assigning the shares for an additional three years . For Fiscal 2020, 2019 and 2018, we issued 10,913 shares, 14,379 shares and 8,435 shares, respectively, of Retainer Stock. We recognized $1.3 million of director restricted stock related share-based compensation in each of Fiscal 2020, 2019 and 2018 in selling and administrative expenses in the accompanying Consolidated Statements of Operations. Employee Restricted Stock Under the 2009 Plan, we issued 269,816 shares, 352,060 shares and 356,224 shares of employee restricted stock in Fiscal 2020, 2019 and 2018, respectively. Shares of employee restricted stock issued in Fiscal 2020, 2019 and 2018 primarily vest 25% per year over four years , provided that on such date the grantee has remained continuously employed by the Company since the date of grant. In addition, we issued 1,800 , 4,388 and 4,947 restricted stock units in Fiscal 2020, 2019 and 2018, respectively, to certain employees at no cost that vest over three years . The fair value of employee restricted stock is charged against income as compensation cost over the vesting period. Compensation cost recognized in selling and administrative expenses in the accompanying Consolidated Statements of Operations for these shares was $8.8 million , $12.1 million and $12.2 million for Fiscal 2020, 2019 and 2018, respectively, and is inclusive of discontinued operations of $2.0 million and $1.7 million in Fiscal 2019 and 2018, respectively. Note 13 Share-Based Compensation Plans, Continued A summary of the status of our nonvested shares of our employee restricted stock as of February 1, 2020 is presented below: Nonvested Restricted Shares Shares Weighted-Average Grant-Date Fair Value Nonvested at January 28, 2017 484,002 $68.27 Granted 356,224 32.00 Vested (125,190 ) 68.94 Withheld for federal taxes (50,957 ) 68.87 Forfeited (23,999 ) 55.90 Nonvested at February 3, 2018 640,080 48.37 Granted 352,060 40.90 Vested (177,394 ) 54.12 Withheld for federal taxes (69,762 ) 54.26 Forfeited (153,646 ) 42.66 Nonvested at February 2, 2019 591,338 42.99 Granted 269,816 42.48 Vested (138,765 ) 47.56 Withheld for federal taxes (55,598 ) 46.51 Forfeited (77,013 ) 42.19 Nonvested at February 1, 2020 589,778 $41.46 As of February 1, 2020, we had $19.0 million of total unrecognized compensation costs related to nonvested share-based compensation arrangements for restricted stock discussed above. That cost is expected to be recognized over a weighted average period of 1.79 years. |
Legal Proceedings and Other Mat
Legal Proceedings and Other Matters | 12 Months Ended |
Feb. 01, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings and Other Matters | Legal Proceedings and Other Matters Environmental Matters New York State Environmental Matters In August 1997, the New York State Department of Environmental Conservation (“NYSDEC”) and the Company entered into a consent order whereby we assumed responsibility for conducting a remedial investigation and feasibility study and implementing an interim remedial measure with regard to the site of a knitting mill operated by a former subsidiary of ours from 1965 to 1969. The United States Environmental Protection Agency (“EPA”), which assumed primary regulatory responsibility for the site from NYSDEC, issued a Record of Decision in September 2007. The Record of Decision specified a remedy of a combination of groundwater extraction and treatment and in-situ chemical oxidation. In September 2015, the EPA adopted an amendment to the Record of Decision eliminating the separate ground-water extraction and treatment systems and the use of in-situ oxidation from the remedy adopted in the Record of Decision. The amendment provides for the continued operation and maintenance of the existing wellhead treatment systems on wells operated by the Village of Garden City, New York (the "Village"). It also requires us to perform certain ongoing monitoring, operation and maintenance activities and to reimburse EPA's future oversight cost, involving future costs to us estimated to be between $1.7 million and $2.0 million , and to reimburse EPA for approximately $1.25 million of interim oversight costs. On August 15, 2016, the Court entered a Consent Judgment implementing the remedy provided for by the amendment. Note 14 Legal Proceedings and Other Matters, Continued The Village additionally asserted that we are liable for the costs associated with enhanced treatment required by the impact of the groundwater plume from the site on two public water supply wells, including historical total costs ranging from approximately $1.8 million to in excess of $2.5 million , and future operation and maintenance costs which the Village estimated at $126,400 annually while the enhanced treatment continues. On December 14, 2007, the Village filed a complaint (the "Village Lawsuit") against us and the owner of the property under the Resource Conservation and Recovery Act (“RCRA”), the Safe Drinking Water Act, and the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) as well as a number of state law theories in the U.S. District Court for the Eastern District of New York, seeking an injunction requiring the defendants to remediate contamination from the site and to establish their liability for future costs that may be incurred in connection with it. In June 2016 we reached an agreement with the Village providing for the Village to continue to operate and maintain the well head treatment systems in accordance with the Record of Decision and to release its claims against us asserted in the Village Lawsuit in exchange for a lump-sum payment of $10.0 million by us. On August 25, 2016, the Village Lawsuit was dismissed with prejudice. The cost of the settlement with the Village and the estimated costs associated with our compliance with the Consent Judgment were covered by our existing provision for the site. The settlement with the Village did not have, and we expect that the Consent Judgment will not have, a material effect on our financial condition or results of operations. In April 2015, we received from EPA a Notice of Potential Liability and Demand for Costs (the "Notice") pursuant to CERCLA regarding the site in Gloversville, New York of a former leather tannery operated by us and by other, unrelated parties. The Notice demanded payment of approximately $2.2 million of response costs claimed by EPA to have been incurred to conduct assessments and removal activities at the site. In February 2017, we entered into a settlement agreement with EPS resolving their claim for past response costs in exchange for a payment by us of $1.5 million which was paid in May 2017. Our environmental insurance carrier has reimbursed us for 75% of the settlement amount, subject to a $500,000 self-insured retention. We do not expect any additional cost related to the matter. Whitehall Environmental Matters We have performed sampling and analysis of soil, sediments, surface water, groundwater and waste management areas at our former Volunteer Leather Company facility in Whitehall, Michigan. In October 2010, we entered into a Consent Decree with the Michigan Department of Natural Resources and Environment providing for implementation of a remedial Work Plan for the facility site designed to bring the site into compliance with applicable regulatory standards. The Work Plan's implementation is substantially complete and we expect, based on our present understanding of the condition of the site, that our future obligations with respect to the site will be limited to periodic monitoring and that future costs related to the site should not have a material effect on our financial condition or results of operations. Accrual for Environmental Contingencies Related to all outstanding environmental contingencies, we had accrued $1.5 million as of February 1, 2020, $1.8 million as of February 2, 2019 and $3.0 million as of February 3, 2018. All such provisions reflect our estimates of the most likely cost (undiscounted, including both current and noncurrent portions) of resolving the contingencies, based on facts and circumstances as of the time they were made. There is no assurance that relevant facts and circumstances will not change, necessitating future changes to the provisions. Such contingent liabilities are included in the liability arising from provision for discontinued operations on the accompanying Consolidated Balance Sheets because it relates to former facilities operated by us. We have made pretax accruals for certain of these contingencies, including approximately $0.4 million in Fiscal 2020, $0.7 million in Fiscal 2019 and $0.6 million in Fiscal 2018. These charges are included in loss from discontinued operations, net in the Consolidated Statements of Operations and represent changes in estimates. Note 14 Legal Proceedings and Other Matters, Continued Other Legal Matters On May 19, 2017, two former employees of our former Hat World subsidiary filed a putative class and collective action, Chen and Salas v. Genesco Inc., et al. , in the U.S. District Court for the Northern District of Illinois alleging violations of the FLSA and certain Illinois and New York wages and hours laws, including, among others, failure to pay overtime to store managers, and also seeking back pay, damages, statutory penalties, and declaratory and injunctive relief. On March 8, 2018, the court granted us a motion to transfer venue to the U.S. District Court for the Southern District of Indiana. On March 9, 2018, a former employee of our former Hat World subsidiary filed a putative class action in the Superior Court of the Commonwealth of Massachusetts claiming violations of the Massachusetts Overtime Law, M.G.L.C. 151§1A, by failing to pay overtime to employees classified as store managers, and seeking restitution, an incentive award, treble damages, interest, attorneys fees and costs. We reached an agreement in principle to settle the Chen and Salas and Massachusetts matters for payment of attorneys' fees and administrative costs totaling $0.4 million plus total payments to members of the plaintiff class who opt to participate in the settlement of up to $0.8 million . The proposed settlement has been approved by the court and the distribution of relief to class members is in process. We do not expect that the proposed settlement will have a material adverse effect on our financial condition or results of operations. Other Matters In the fourth quarter of Fiscal 2020, the IRS notified us on Letter 226-J, that we may be liable for an Employer Shared Responsibility Payment (“ESRP”) in the amount of $4.2 million for the year ended December 31, 2017. The ESRP is applicable to employers that had 50 or more full-time equivalent employees, did not offer minimum essential coverage (“MEC”) to at least 95% of full-time employees (and their dependents) or did offer MEC to at least 95% of full time-employees (and their dependents), which did not meet the affordable or minimum value criteria and had one or more employees who claimed the Employee Premium Tax Credit (“PTC”) pursuant to the Affordable Care Act (the “ACA”). The IRS determines which employers receive Letter 226-J and the amount of the proposed ESRP from information that the employers complete on their information returns (IRS Forms 1094-C and 1095-C) and from the income tax returns of their employees. Since the inception of the ACA, it has been our policy to offer MEC to all full-time employees and their dependents. Based on our analysis, we responded to the IRS on January 15, 2020 asserting that we did offer MEC to at least 95% of our full-time employees for each month of 2017 and noting that the discrepancy was caused by errors in the electronic files uploaded through the ACA information return system. We are awaiting a response from the IRS and do not believe we have a liability. As a result, we did not make an accrual for this matter for the year ended February 1, 2020. In addition to the matters specifically described in this Note, we are a party to other legal and regulatory proceedings and claims arising in the ordinary course of our business. While management does not believe that our liability with respect to any of these other matters is likely to have a material effect on our financial statements, legal proceedings are subject to inherent uncertainties and unfavorable rulings could have a material adverse impact on our financial statements. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Feb. 01, 2020 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Our reportable segments are based on management's organization of the segments in order to make operating decisions and assess performance along types of products sold. Journeys Group and Schuh Group sell primarily branded products from other companies while Johnston & Murphy Group and Licensed Brands sell primarily our owned and licensed brands. Corporate assets include cash, domestic prepaid rent expense, prepaid income taxes, pension asset, deferred income taxes, deferred note expense on revolver debt and corporate fixed assets, including the former Lids Sports Group headquarters building in Fiscal 2019 and Fiscal 2018, and miscellaneous investments. We do not allocate certain costs to each segment in order to make decisions and assess performance. These costs include corporate overhead, bank fees, interest expense, interest income, asset impairment charges and other, including a pension settlement charge, major litigation and major lease terminations. Fiscal 2020 Journeys Group Schuh Group Johnston & Murphy Group Licensed Brands Corporate & Other Consolidated (In thousands) Sales $ 1,460,253 $ 373,930 $ 300,850 $ 61,859 $ 174 $ 2,197,066 Intercompany sales — — — — — — Net sales to external customers $ 1,460,253 $ 373,930 $ 300,850 $ 61,859 $ 174 $ 2,197,066 Segment operating income (loss) $ 114,945 $ 4,659 $ 17,702 $ (698 ) $ (39,916 ) $ 96,692 Asset impairments and other (1) — — — — (13,374 ) (13,374 ) Operating income 114,945 4,659 17,702 (698 ) (53,290 ) 83,318 Other components of net periodic benefit cost — — — — 395 395 Interest expense — — — — (3,339 ) (3,339 ) Interest income — — — — 2,061 2,061 Earnings from continuing operations before income taxes $ 114,945 $ 4,659 $ 17,702 $ (698 ) $ (54,173 ) $ 82,435 Total assets (2) $ 908,312 $ 363,205 $ 197,670 $ 63,385 $ 147,906 $ 1,680,478 Depreciation and amortization 29,122 11,466 6,091 660 2,235 49,574 Capital expenditures 17,920 4,890 5,540 428 989 29,767 (1) Asset Impairments and other includes an $11.5 million pension settlement expense and a $3.1 million charge for asset impairments, of which $1.2 million is in the Johnston & Murphy Group, $1.2 million is in the Schuh Group and $0.7 million is in the Journeys Group, partially offset by a $(0.6) million gain on the sale of the Lids Sports Group headquarters building, a $(0.4) million gain for lease terminations and a $(0.2) million gain related to Hurricane Maria. (2) Of the Company's $973.4 million of long-lived assets, $174.4 million and $46.2 million relate to long-lived assets in the United Kingdom and Canada, respectively. Note 15 Business Segment Information, Continued Fiscal 2019 Journeys Group Schuh Group Johnston & Murphy Group Licensed Brands Corporate & Other Consolidated (In thousands) Sales $ 1,419,993 $ 382,591 $ 313,134 $ 72,576 $ 271 $ 2,188,565 Intercompany sales — — — (12 ) — (12 ) Net sales to external customers $ 1,419,993 $ 382,591 $ 313,134 $ 72,564 $ 271 $ 2,188,553 Segment operating income (loss) $ 100,799 $ 3,765 $ 20,385 $ (488 ) $ (39,481 ) $ 84,980 Asset impairments and other (1) — — — — (3,163 ) (3,163 ) Operating income 100,799 3,765 20,385 (488 ) (42,644 ) 81,817 Loss on early retirement of debt — — — — (597 ) (597 ) Other components of net periodic benefit cost — — — — 380 380 Interest expense — — — — (4,115 ) (4,115 ) Interest income — — — — 774 774 Earnings from continuing operations before income taxes $ 100,799 $ 3,765 $ 20,385 $ (488 ) $ (46,202 ) $ 78,259 Total assets (2) $ 425,842 $ 211,983 $ 128,525 $ 24,004 $ 390,727 $ 1,181,081 Depreciation and amortization (3) 28,121 14,193 6,517 637 2,693 52,161 Capital expenditures (4) 26,114 7,226 6,526 162 1,752 41,780 (1) Asset Impairments and other includes a $4.2 million charge for asset impairments, of which $2.4 million is in the Schuh Group, $1.6 million is in the Journeys Group and $0.2 million is in the Johnston & Murphy Group, a $0.3 million charge for legal and other matters and a $0.1 million charge for hurricane losses, partially offset by a $(1.4) million gain related to Hurricane Maria. (2) Of our $277.4 million of long-lived assets, $44.6 million and $12.8 million relate to long-lived assets in the United Kingdom and Canada, respectively. (3) Excludes $24.8 million of depreciation and amortization related to Lids Sports Group. This amount is included in depreciation and amortization in our Consolidated Statements of Cash Flows as we did not segregate cash flows related to discontinued operations. (4) Excludes $15.4 million of capital expenditures related to Lids Sports Group. This amount is included in capital expenditures in our Consolidated Statements of Cash Flows as we did not segregate cash flows related to discontinued operations. Note 15 Business Segment Information, Continued Fiscal 2018 Journeys Group Schuh Group Johnston & Murphy Group Licensed Brands Corporate & Other Consolidated (In thousands) Sales $ 1,329,460 $ 403,698 $ 304,160 $ 89,812 $ 420 $ 2,127,550 Intercompany sales — — — (3 ) — (3 ) Net sales to external customers $ 1,329,460 $ 403,698 $ 304,160 $ 89,809 $ 420 $ 2,127,547 Segment operating income (loss) $ 74,114 $ 20,104 $ 19,367 $ (299 ) $ (31,141 ) $ 82,145 Asset impairments and other (1) — — — — (7,773 ) (7,773 ) Operating income 74,114 20,104 19,367 (299 ) (38,914 ) 74,372 Other components of net periodic benefit cost — — — — 29 29 Interest expense — — — — (5,420 ) (5,420 ) Interest income — — — — 8 8 Earnings from continuing operations before income taxes $ 74,114 $ 20,104 $ 19,367 $ (299 ) $ (44,297 ) $ 68,989 Total assets ongoing operations $ 443,066 $ 239,479 $ 127,178 $ 32,331 $ 156,919 $ 998,973 Assets from discontinued operations 316,380 Total assets (2) 1,315,353 Depreciation and amortization (3) 26,490 13,769 6,418 688 4,168 51,533 Capital expenditures (4) 79,532 10,968 6,163 421 1,525 98,609 (1) Asset Impairments and other includes a $5.2 million charge for a licensing termination expense related to Licensed Brands Group and a $1.7 million charge for asset impairments, of which $1.0 million is in the Schuh Group and $0.7 million is in the Journeys Group, and a $0.9 million charge for hurricane losses. (2) Total assets for the Schuh Group and Journeys Group include $89.9 million and $10.4 million of goodwill, respectively. Goodwill for Schuh Group and Journeys Group increased $10.1 million and $0.6 million , respectively, from January 28, 2017 due to foreign currency translation adjustments. Of our $298.5 million of long-lived assets, $55.2 million and $14.8 million relate to long-lived assets in the United Kingdom and Canada, respectively. (3) Excludes $26.8 million of depreciation and amortization related to Lids Sports Group. This amount is included in depreciation and amortization in our Consolidated Statements of Cash Flows as we did not segregate cash flows related to discontinued operations. (4) Excludes $29.2 million of capital expenditures related to Lids Sports Group. This amount is included in capital expenditures in our Consolidated Statements of Cash Flows as we did not segregate cash flows related to discontinued operations. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Feb. 01, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On December 14, 2018, we entered into a definitive agreement for the sale of Lids Sports Group to FanzzLids Holdings, LLC (the "Purchaser"), a holding company controlled and operated by affiliates of Ames Watson Capital, LLC. The sale was completed on February 2, 2019 for $93.8 million cash which consisted of a sales price of $100.0 million and working capital adjustments of $6.2 million. Because the effective date of closing was a Saturday and the cash proceeds were not received by us until February 4, 2019, the purchase price is reflected in accounts receivable at February 2, 2019. We provided various transition services to the Purchaser for a period of up to six months under a separate agreement after the closing. During the fourth quarter of Fiscal 2019, we recorded a loss on the sale of Lids Sports Group of $98.3 million, net of tax, on the sale of these assets, representing the sales price less the value of the Lids Sports Group assets sold and other miscellaneous charges, including divestiture transaction costs, offset by a tax benefit on the loss. Included in the loss on the sale is a $48.7 million write-off of trademarks. The tax benefit associated with discontinued operations differs from the effective rate due to the mix of earnings and loss in the various jurisdictions, the impact of permanent items and other factors. As a result of the sale, we met the requirements of ASC 360 to report the results of Lids Sports Group as discontinued operations. We have presented operating results of Lids Sports Group and the loss on the sale of Lids Sports Group in loss from discontinued operations, net in our Consolidated Statements of Operations for Fiscal 2019 and 2018. Certain corporate overhead costs and other allocated costs previously allocated to the Lids Sports Group business for segment reporting purposes did not qualify for classification within discontinued operations and have been reallocated to continuing operations whereas bank fees and certain legal fees related to the Lids Sports Group business segment previously excluded from segment earnings were reclassified to discontinued operations. The costs of the Lids Sports Group headquarters building, which was not included in the sale, was reclassified to corporate and other in segment earnings. In addition, the third quarter Fiscal 2018 goodwill impairment charge of $182.2 million and the third quarter Fiscal 2019 trademark impairment charge of $5.7 million related to the Lids Sports Group business segment, that were both previously excluded from the calculation of segment earnings, were reclassified to discontinued operations. As part of the Lids Sports Group sales transaction, the Purchaser has agreed to indemnify and hold us harmless in connection with continuing obligations and any guarantees of ours in place as of February 2, 2019 in respect of post-closing or assumed liabilities or obligations of the Lids Sports Group business. The Purchaser has agreed to use commercially reasonable efforts to have any guarantees by, or continuing obligations of, the Company released. However, we are contingently liable in the event of a breach by the Purchaser of any such obligation to a third-party. In addition, we are a guarantor for 36 Lids Sports Group leases with lease expirations through October of 2027 and estimated maximum future payments totaling $20.6 million as of February 1, 2020. We do not believe the fair value of the guarantees is material to our Consolidated Financial Statements. Note 16 Discontinued Operations, Continued Components of amounts reflected in loss from discontinued operations, net of tax on the Consolidated Statements of Operations for the years ended February 2, 2019 and February 3, 2018 are as follows (in thousands): Fiscal Year 2019 2018 Net sales $ 723,125 $ 779,469 Cost of sales 348,038 374,730 Selling and administrative expenses 370,480 391,982 Goodwill and trademark impairment 5,736 182,211 Asset impairments and other, net 2,394 1,068 Loss on sale of Lids Sports Group (126,321 ) — Other components of net periodic benefit cost (23 ) (128 ) Provision for discontinued operations (1) (743 ) (552 ) Loss from discontinued operations before taxes (130,610 ) (171,202 ) Income tax benefit (27,456 ) (22,655 ) Loss from discontinued operations, net of tax $ (103,154 ) $ (148,547 ) (1) Expenses primarily for anticipated costs of environmental remedial alternatives related to former facilities operated by us (see Note 14). The cash flows related to discontinued operations have not been segregated, and are included in our Consolidated Statements of Cash Flows. The following table summarizes depreciation and amortization, capital expenditures and the significant operating noncash items from discontinued operations for each period presented: Fiscal Year (In thousands) 2019 2018 Depreciation and amortization $ 24,778 $ 26,793 Capital expenditures 15,450 29,244 Impairment of intangible assets 5,736 182,211 Impairment of long-lived assets 1,670 1,007 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) (In thousands, 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Fiscal Year except per share amounts) 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 Net sales $ 495,651 $ 486,219 $ 486,573 $ 487,015 $ 537,263 $ 539,828 $ 677,579 $ 675,491 $ 2,197,066 $ 2,188,553 Gross margin 244,908 238,006 236,533 231,469 264,202 261,918 317,472 315,663 1,063,115 1,047,056 Earnings from continuing operations before income taxes 9,336 (1) 2,692 (2) 2,708 (4) 1 25,433 (5) 25,580 44,958 (7) 49,986 (8) 82,435 78,259 Earnings (loss) from continuing operations 6,470 1,856 793 (25 ) 18,979 19,694 35,515 29,699 61,757 51,224 Net earnings (loss) 6,346 (2,331 ) (3) 577 (15 ) 18,899 14,387 (6) 35,562 (63,971 ) (9) 61,384 (51,930 ) Diluted earnings (loss) per common share: Continuing operations 0.36 0.10 0.05 0.00 1.31 1.00 2.49 1.53 3.94 2.63 Net earnings (loss) 0.36 (0.12 ) 0.04 0.00 1.30 0.73 2.49 (3.29 ) 3.92 (2.66 ) (1) Includes a net asset impairment and other gain of $(0.7) million (see Note 4). (2) Includes a net asset impairment and other charge of $1.1 million (see Note 4). (3) Includes a loss of $4.2 million, net of tax, from discontinued operations (see Note 16). (4) Includes a net asset impairment and other charge of $1.8 million (see Note 4). (5) Includes a net asset impairment and other charge of $0.8 million (see Note 4). (6) Includes a loss of $5.3 million, net of tax, from discontinued operations (see Note 16). (7) Includes a net asset impairment and other charge of $11.5 million (see Note 4). (8) Includes a net asset impairment and other charge of $2.1 million (see Note 4) and a loss on early retirement of debt of $0.6 million (see Note 7). (9) Includes a loss of $93.7 million , net of tax, from discontinued operations (see Note 16). |
Subsequent Event
Subsequent Event | 12 Months Ended |
Feb. 01, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 10, 2020, we announced plans for our new corporate headquarters in Nashville, Tennessee. We entered into a lease agreement for approximately 199,000 square feet of office space which will replace our current corporate headquarters office lease. The term of the lease is 15 years , with two options to extend for an additional period of five years each. In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic, which continues to spread throughout the United States. As a result, we temporarily closed our North American retail stores on March 18, 2020, and on March 23, 2020, we closed our stores in the United Kingdom and Ireland. On March 26, 2020, our UK e-commerce business was temporarily closed. These temporary closures will have a negative impact to our sales. While the disruption is currently expected to be temporary, there is uncertainty around the duration. We will continue to evaluate the timing of reopening our stores and our UK e-commerce operations until such time as the stores can be opened safely. Therefore, while we expect this matter to negatively impact our business, results of operations, cash flows and financial position, the related financial impact cannot be reasonably estimated at this time. On March 19, 2020, Schuh Limited ("Schuh") entered into an Amendment and Restatement Agreement (the "U.K. A&R Agreement") with Lloyds Bank which amended and restated the Amendment and Restatement Agreement dated April 26, 2017. The U.K. A&R Agreement includes only a Facility C revolving credit agreement of £19.0 million, bears interest at 2.2% per annum and expires in September 2020. The U.K. A&R Agreement contains certain covenants at the Schuh level, including a minimum interest coverage covenant of 4.50 x and a maximum leverage covenant of 1.75 x. The U.K. A&R Agreement is secured by a pledge of all the assets of Schuh and Schuh (ROI) Limited. Pursuant to a Guarantee in favor of Lloyds, Genesco Inc. has guaranteed the obligations of Schuh under the U.K. A&R Agreement on an unsecured basis. On March 19, 2020, we borrowed $150.0 million under our Credit Facility and we have subsequently borrowed another $34.3 million. We did this as a precautionary measure to ensure funds are available to meet our obligations for a substantial period of time in response to the COVID-19 outbreak that caused public health officials to recommend precautions that would mitigate the spread of the virus, including warning against congregating in heavily populated areas such as malls and shopping centers. As of April 1, 2020, our total remaining available liquidity under our Credit Facility was approximately $50.0 million. In addition, as of March 24, 2020, we have borrowed £19.0 million under the U.K. A&R Agreement as a precautionary measure to ensure funds are available to meet our obligations in the UK for a substantial period of time in response to the COVID-19 outbreak. On March 27, 2020, in response to the current business environment as impacted by COVID-19, we announced that we were taking several precautionary measures and adjusting our operational needs, including a significant reduction of expense, capital and planned inventory receipts. As part of these measures we made the decision to temporarily reduce compensation of certain members of senior management and the Board of Directors. In addition, we have furloughed all of our full-time store employees in North America and our store and distribution center employees in the United Kingdom. As a result of the economic and business impact of COVID-19, we may be required to revise certain accounting estimates and judgments such as, but not limited to, those related to the valuation of goodwill, long-lived assets and deferred tax assets, which could have a material adverse affect on our financial position and results of operations. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Feb. 02, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Valuation and Qualifying Accounts Year Ended February 1, 2020 (In thousands) Beginning Balance Charged to Profit and Loss Additions (Reductions) Ending Balance Allowances deducted from assets in the balance sheet: Accounts Receivable Allowances $ 2,894 $ 133 $ (87 ) $ 2,940 Markdown Allowance (1) $ 7,019 $ 1,579 $ (3,039 ) $ 5,559 Year Ended February 2, 2019 (In thousands) Beginning Balance Charged to Profit and Loss Reductions Ending Balance Allowances deducted from assets in the balance sheet: Accounts Receivable Allowances $ 4,593 $ 40 $ (1,739 ) $ 2,894 Markdown Allowance (1) $ 6,498 $ 4,297 $ (3,776 ) $ 7,019 Year Ended February 3, 2018 (In thousands) Beginning Balance Charged to Profit and Loss Reductions Ending Balance Allowances deducted from assets in the balance sheet: Accounts Receivable Allowances $ 3,073 $ 618 $ 902 $ 4,593 Markdown Allowance (1) $ 5,416 $ 3,491 $ (2,409 ) $ 6,498 (1) Reflects adjustment of merchandise inventories to realizable value. Charged to Profit and Loss column represents increases to the allowance and the Reductions column represents decreases to the allowance based on quarterly assessments of the allowance. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Genesco Inc. and its subsidiaries (collectively the "Company", "we", "our", or "us") business includes the sourcing and design, marketing and distribution of footwear and accessories through retail stores in the U.S., Puerto Rico and Canada primarily under the Journeys, Journeys Kidz, Little Burgundy and Johnston & Murphy banners and under the Schuh banner in the United Kingdom and the Republic of Ireland; through catalogs and e-commerce websites including the following: journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com, trask.com and littleburgundyshoes.com and at wholesale, primarily under our Johnston & Murphy brand, the Trask brand, the licensed Dockers brand, the licensed Levi's brand, the licensed Bass brand and other brands that we license for footwear. At February 1, 2020, we operated 1,480 retail stores in the U.S., Puerto Rico, Canada, the United Kingdom and the Republic of Ireland. Effective January 1, 2020, we completed the acquisition of Togast, which specializes in the the design, sourcing and sale of licensed footwear. We also entered into a new U.S. footwear license agreement with Levi Strauss & Co. for the license of Levi's ® footwear for men, women, and children in the U.S. The acquisition expands our portfolio to include footwear licenses for Bass ® , ADIO and FUBU, among others. Togast operates in our Licensed Brands segment. On February 2, 2019, we completed the sale of our Lids Sports Group business. As a result, we reported the operating results of this business in loss from discontinued operations, net in our Consolidated Statements of Operations for Fiscal 2019 and 2018. The cash flows related to discontinued operations have not been segregated, and are included in our Consolidated Statements of Cash Flows for Fiscal 2019 and 2018. Unless otherwise noted, discussion within these notes to our consolidated financial statements relates to continuing operations. See Note 16 for additional information related to discontinued operations. During Fiscal 2020, we operated four reportable business segments (not including corporate): (i) Journeys Group, comprised of the Journeys, Journeys Kidz and Little Burgundy retail footwear chains, e-commerce and catalog operations; (ii) Schuh Group, comprised of the Schuh retail footwear chain and e-commerce operations; (iii) Johnston & Murphy Group, comprised of Johnston & Murphy retail operations, e-commerce operations, catalog, Trask e-commerce operations and wholesale distribution of products under the Johnston & Murphy ® and H.S. Trask ® brands; and (iv) Licensed Brands, comprised of the licensed Dockers ® , Levi's ® , and Bass ® brands, as well as other brands we license for footwear. |
Principles of Consolidation | Principles of Consolidation All subsidiaries are consolidated in our Consolidated Financial Statements. All significant intercompany transactions and accounts have been eliminated. |
Fiscal Year | Fiscal Year |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Our foreign subsidiaries held cash of approximately $8.9 million and $20.8 million as of February 1, 2020 and February 2, 2019, respectively, which is included in cash and cash equivalents on the Consolidated Balance Sheets. Our strategic plan does not require the repatriation of foreign cash in order to fund our operations in the U.S., and it is our current intention to indefinitely reinvest our foreign cash and cash equivalents outside of the U.S. If we were to repatriate foreign cash to the U.S., we would be required to accrue and pay U.S. taxes in accordance with applicable U.S. tax rules and regulations as a result of the repatriation. Note 1 Summary of Significant Accounting Policies, Continued There were $59.6 million and $127.2 million of cash equivalents at February 1, 2020 and February 2, 2019, respectively. Cash equivalents are primarily institutional money market funds. Our $59.6 million of cash equivalents was invested in institutional money market funds which invest exclusively in highly rated, short-term securities that are issued, guaranteed or collateralized by the U.S. government or by U.S. government agencies and instrumentalities. The majority of payments due from banks for domestic customer credit card transactions process within 24 - 48 hours and are accordingly classified as cash and cash equivalents in our Consolidated Balance Sheets. At February 1, 2020 and February 2, 2019, outstanding checks drawn on zero-balance accounts at certain domestic banks exceeded book cash balances at those banks by approximately $17.1 million and $29.6 million , respectively. These amounts are included in accounts payable in our Consolidated Balance Sheets. |
Concentration of Credit Risk and Allowances on Accounts Receivable | Concentration of Credit Risk and Allowances on Accounts Receivable Our wholesale businesses sell primarily to independent retailers and department stores across the United States. Receivables arising from these sales are not collateralized. Customer credit risk is affected by conditions or occurrences within the economy and the retail industry as well as by customer specific factors. In the wholesale businesses, one customer accounted for 26% , three customers each accounted for 9% and one customer accounted for 6% of our total trade receivables balance, while no other customer accounted for more than 5% of our total trade receivables balance as of February 1, 2020. We establish an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information, as well as customer specific factors. We also establish allowances for sales returns, customer deductions and co-op advertising based on specific circumstances, historical trends and projected probable outcomes. |
Inventory Valuation | Inventory Valuation In our footwear wholesale operations and our Schuh Group segment, cost for inventory that we own is determined using the first-in, first-out ("FIFO") method. Net realizable value is determined using a system of analysis which evaluates inventory at the stock number level based on factors such as inventory turn, average selling price, inventory level, and selling prices reflected in future orders for footwear wholesale. We provide a valuation allowance when the inventory has not been marked down to net realizable value based on current selling prices or when the inventory is not turning and is not expected to turn at satisfactory levels. In our retail operations, other than the Schuh Group segment, we employ the retail inventory method, applying average cost-to-retail ratios to the retail value of inventories. Under the retail inventory method, valuing inventory at the lower of cost or market is achieved as markdowns are taken or accrued as a reduction of the retail value of inventories. Inherent in the retail inventory method are subjective judgments and estimates, including merchandise mark-on, markups, markdowns and shrinkage. These judgments and estimates, coupled with the fact that the retail inventory method is an averaging process, could produce a range of cost figures. To reduce the risk of inaccuracy and to ensure consistent presentation, we employ the retail inventory method in multiple subclasses of inventory with similar gross margins, and analyze markdown requirements at the stock number level based on factors such as inventory turn, average selling price and inventory age. In addition, we accrue markdowns as necessary. These additional markdown accruals reflect all of the above factors as well as current agreements to return products to vendors and vendor agreements to provide markdown support. In addition to markdown allowances, we maintain reserves for shrinkage and damaged goods based on historical rates. Inherent in the analysis of both wholesale and retail inventory valuation are subjective judgments about current market conditions, fashion trends and overall economic conditions. Failure to make appropriate conclusions regarding these factors may result in an overstatement or understatement of inventory value. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated or amortized over the estimated useful life of related assets. Depreciation and amortization expense are computed principally by the straight-line method over the following estimated useful lives: Buildings and building equipment 20-45 years Computer hardware, software and equipment 3-10 years Furniture and fixtures 10 years |
Leases | Leases We recognize lease assets and corresponding lease liabilities for all operating leases on the Consolidated Balance Sheets as described under ASC 842. We evaluate renewal options and break options at lease inception and on an ongoing basis, and include renewal options and break options that we are reasonably certain to exercise in our expected lease terms for calculations of the right-of-use assets and liabilities. Approximately 2% of our leases contain renewal options. To determine the present value of lease payments not yet paid, we estimate incremental borrowing rates corresponding to the reasonably certain lease term. As most of our leases do not provide a determinable implicit rate, we estimate our collateralized incremental borrowing rate based upon a synthetic credit rating and yield curve analysis at the lease commencement or modification date in determining the present value of lease payments. For lease payments in foreign currencies, the incremental borrowing rate is adjusted to be reflective of the risk associated with the respective currency. Operating lease assets represent our right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment, if any, of operating lease assets. We test right-of-use assets for impairment in the same manner as long-lived assets. Net lease costs are included within selling and administrative expenses on the Consolidated Statements of Operations. |
Asset Retirement Obligation | Asset Retirement Obligations An asset retirement obligation represents a legal obligation associated with the retirement of a tangible long-lived asset that is incurred upon the acquisition, construction, development, or normal operation of that long-lived asset. Our asset retirement obligations are primarily associated with leasehold improvements that we are contractually obligated to remove at the end of a lease to comply with the lease agreement. We recognize asset retirement obligations at the inception of a lease with such conditions if a reasonable estimate of fair value can be made. Asset retirement obligations are recorded in accrued expenses and other accrued liabilities and deferred rent and other long-term liabilities in our Consolidated Balance Sheets and are subsequently adjusted for changes in estimated asset retirement obligations. The associated estimated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and depreciated over its useful life. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We periodically assess the realizability of our long-lived assets, other than goodwill, and evaluate such assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Asset impairment is determined to exist if estimated future cash flows, undiscounted and without interest charges, are less than the carrying amount. Inherent in the analysis of impairment are subjective judgments about future cash flows. Failure to make appropriate conclusions regarding these judgments may result in an overstatement or understatement of the value of long-lived assets. Note 1 Summary of Significant Accounting Policies, Continued We annually assess our goodwill and indefinite lived trade names for impairment and on an interim basis if indicators of impairment are present. Our annual assessment date of goodwill and indefinite lived trade names is the first day of the fourth quarter. In accordance with ASC 350, we have the option first to assess qualitative factors to determine whether events and circumstances indicate that it is more likely than not that goodwill is impaired. If, after such assessment, we conclude that the asset is not impaired, no further action is required. However, if we conclude otherwise, we are required to determine the fair value of the asset using a quantitative impairment test. The quantitative impairment test for goodwill compares the fair value of each reporting unit with the carrying value of the reporting unit with which the goodwill is associated. If the fair value of the reporting unit is less than the carrying value of the reporting unit, an impairment charge would be recorded for the amount, if any, in which the carrying value exceeds the reporting unit's fair value. We estimate fair value using the best information available, and compute the fair value derived by a combination of the market and income approach. The market approach is based on observed market data of comparable companies to determine fair value. The income approach utilizes a projection of a reporting unit’s estimated operating results and cash flows that are discounted using a weighted-average cost of capital that reflects current market conditions. A key assumption in our fair value estimate is the weighted average cost of capital utilized for discounting our cash flow projections in our income approach. The projection uses our best estimates of economic and market conditions over the projected period including growth rates in sales, costs, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, future estimates of capital expenditures and changes in future working capital requirements. |
Fair Value | Fair Value The Fair Value Measurements and Disclosures Topic of the Codification defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements. This Topic defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. |
Revenue Recognition | Revenue Recognition Revenue is recognized upon satisfaction of all contractual performance obligations and transfer of control to the customer. Revenue is measured as the amount of consideration we expect to be entitled to in exchange for corresponding goods. The majority of our sales are single performance obligation arrangements for retail sale transactions for which the transaction price is equivalent to the stated price of the product, net of any stated discounts applicable at a point in time. Each sales transaction results in an implicit contract with the customer to deliver a product at the point of sale. Revenue from retail sales is recognized at the point of sale, is net of estimated returns, and excludes sales and value added taxes. Revenue from catalog and internet sales is recognized at estimated time of delivery to the customer, is net of estimated returns, and excludes sales and value added taxes. Wholesale revenue is recorded net of estimated returns and allowances for markdowns, damages and miscellaneous claims when the related goods have been shipped and legal title has passed to the customer. Actual Note 1 Summary of Significant Accounting Policies, Continued amounts of markdowns have not differed materially from estimates. Shipping and handling costs charged to customers are included in net sales. We exclude sales and value added tax collected on behalf of third parties from transaction price. A provision for estimated returns is provided through a reduction of sales and cost of goods sold in the period that the related sales are recorded. Estimated returns are based on historical returns and claims. Actual returns and claims in any future period may differ from historical experience. Revenue from gift cards is deferred and recognized upon the redemption of the cards. These cards have no expiration date. Income from unredeemed cards is recognized on the Consolidated Statements of Operations within net sales in proportion to the pattern of rights exercised by the customer in future periods. We perform an evaluation of historical redemption patterns from the date of original issuance to estimate future period redemption activity. |
Cost of Sales | Cost of Sales For our retail operations, the cost of sales includes actual product cost, the cost of transportation to our warehouses from suppliers, the cost of transportation from our warehouses to the stores and the cost of transportation from our warehouses to the customer. Additionally, the cost of our distribution facilities allocated to our retail operations is included in cost of sales. For our wholesale operations, the cost of sales includes the actual product cost and the cost of transportation to the Company’s warehouses from suppliers. |
Selling and Administrative Expenses | Selling and Administrative Expenses |
Buying, Merchandising and Occupancy Costs | We record buying, merchandising and occupancy costs in selling and administrative expense. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs related to inventory purchased from suppliers are included in the cost of inventory and are charged to cost of sales in the period that the inventory is sold. All other shipping and handling costs are charged to cost of sales in the period incurred except for wholesale costs of distribution and shipping costs for product shipped from stores, which are included in selling and administrative expenses in our Consolidated Statements of Operations. |
Advertising Costs and Cooperative Advertising | Advertising Costs Advertising costs are predominantly expensed as incurred. Advertising costs were $72.3 million , $68.3 million and $68.6 million for Fiscal 2020, 2019 and 2018, respectively. Cooperative Advertising Cooperative advertising funds are made available to most of our wholesale footwear customers. In order for retailers to receive reimbursement under such programs, the retailer must meet specified advertising guidelines and provide appropriate documentation of expenses to be reimbursed. Our cooperative advertising agreements require that wholesale customers present documentation or other evidence of specific advertisements or display materials used for our products by submitting the actual print advertisements presented in catalogs, newspaper inserts or other advertising circulars, or by permitting physical inspection of displays. Additionally, our cooperative advertising agreements require that the amount of reimbursement requested for such advertising or materials be supported by invoices or other evidence of the actual costs incurred by the retailer. |
Consideration to Resellers | Consideration to Resellers In our wholesale businesses, we do not have any written buy-down programs with retailers, but we have provided certain retailers with markdown allowances for obsolete and slow moving products that are in the retailer’s inventory. We estimate these allowances and provide for them as reductions to revenues at the time revenues are recorded. Markdowns are negotiated Note 1 Summary of Significant Accounting Policies, Continued with retailers and changes are made to the estimates as agreements are reached. Actual amounts for markdowns have not differed materially from estimates. |
Vendor Allowances | Vendor Allowances From time to time, we negotiate allowances from our vendors for markdowns taken or expected to be taken. These markdowns are typically negotiated on specific merchandise and for specific amounts. These specific allowances are recognized as a reduction in cost of sales in the period in which the markdowns are taken. Markdown allowances not attached to specific inventory on hand or already sold are applied to concurrent or future purchases from each respective vendor. We receive support from some of our vendors in the form of reimbursements for cooperative advertising and catalog costs for the launch and promotion of certain products. The reimbursements are agreed upon with vendors and represent specific, incremental, identifiable costs incurred by us to sell the vendor’s specific products. Such costs and the related reimbursements are accumulated and monitored on an individual vendor basis, pursuant to the respective cooperative advertising agreements with vendors. Such cooperative advertising reimbursements are recorded as a reduction of selling and administrative expenses in the same period in which the associated expense is incurred. If the amount of cash consideration received exceeds the costs being reimbursed, such excess amount would be recorded as a reduction of cost of sales. |
Foreign Currency Translation | Foreign Currency Translation |
New Accounting Pronouncements Recently Adopted | New Accounting Pronouncements Recently Adopted We adopted ASU 2016-02, " Leases (Topic 842)", ("ASC 842"), as of February 3, 2019, using the optional transition method provided by ASU 2018-11, "Leases (Topic 842): Targeted Improvements". The optional transition approach provides a method for recording existing leases at adoption by allowing a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption, as opposed to the modified or full retrospective transition methods that require restating prior comparative periods. Additionally, we elected the “package of practical expedients”, which permits us to not reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. We also elected the practical expedient to not separate lease and non-lease components for its store and equipment leases. Adoption of the new standard resulted in the recording of additional net operating lease right of use assets and operating lease liabilities of $795.6 million and $855.3 million, respectively, as of February 3, 2019. The operating lease right of use asset is inclusive of the impairments recorded upon adoption for store operating lease right of use assets, which totaled $4.8 million and resulted in a decrease to retained earnings of $4.2 million, net of tax. Right of use assets are recorded based upon the present value of the remaining operating lease payments, discounted using an incremental borrowing rate based on the initial lease term, adjusted for deferred rent, including tenant allowances from landlords. ASC 842 did not materially impact net earnings or liquidity and did not have an impact on covenant compliance under our current debt agreements. Financial results for reporting periods beginning after February 3, 2019 are presented in accordance with ASC 842, while prior periods will continue to be reported in accordance with our historical accounting for leases under ASC 840: "Leases (Topic 840)" and therefore have not been adjusted to conform to Topic 842. For additional information regarding leases, see Note 8. In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract", (ASU 2018-15"). The standard requires that issuers follow the internal-use software guidance in ASC 350-40 to determine which costs to capitalize as assets or expense as incurred. The ASC 350-40 guidance requires that certain costs incurred during the application development stage be capitalized and other costs incurred during the preliminary project and post-implementation stages be expensed as they are incurred. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019. We adopted this standard effective August 4, 2019 and elected to apply the prospective transition approach with no material impact on our Consolidated Financial Statements. We did not capitalize any material implementation costs incurred in a cloud computing arrangement service contract during Fiscal 2020. In February 2018, the FASB issued ASU 2013-02, "Comprehensive Income (Topic 220)" ("ASC 220"), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Act. This guidance is effective for all entities for fiscal years, and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. The amendments in ASC 220 should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Act is recognized. We adopted ASC 220 in the fourth quarter of Fiscal 2018 and reclassified $2.2 million to retained earnings for the impact of stranded tax effects resulting from the Act. In March 2016, the FASB issued ASU 2014-12, "Compensation - Stock Compensation (Topic 718)" ("ASC 718"). The update addresses several aspects of the accounting for share-based compensation transactions including: (a) income tax consequences when awards vest or are settled, (b) classification of awards as either equity or liabilities, (c) a policy election to account for forfeitures as they occur rather than on an estimated basis and (d) classification of excess tax impacts on the statement of cash flows. The inclusion of excess tax benefits and deficiencies as a component of our income tax expense will increase volatility within its provision for income taxes as the amount of excess tax benefits or deficiencies from share-based compensation awards is dependent on our stock price at the date the awards are exercised or settled which is primarily in the second quarter of each fiscal year. We adopted ASC 718 in the first quarter of Fiscal 2018. We recorded an excess tax deficiency of $2.2 million as an increase in income tax expense related to share-based compensation for vested awards in Fiscal 2018. Earnings per share decreased $0.11 per share for Fiscal 2018 due to the impact of ASC 718. Note 2 New Accounting Pronouncements, Continued We adopted ASC 606 in the first quarter of Fiscal 2019 using the modified retrospective method by recognizing the cumulative effect of $4.4 million as an adjustment to the opening balance of retained earnings at February 4, 2018. The adoption of this standard did not have a material impact on our Consolidated Financial Statements and related disclosures. New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, " Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments " , which requires entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. This guidance will be effective for us in the first quarter of the year ending January 30, 2021 ("Fiscal 2021") with early adoption permitted. We do not expect this guidance to have a material impact on our Consolidated Financial Statements. However, we are also evaluating how COVID-19 will impact this standard. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Property and equipment amortized over the estimated useful life of related assets | Depreciation and amortization expense are computed principally by the straight-line method over the following estimated useful lives: Buildings and building equipment 20-45 years Computer hardware, software and equipment 3-10 years Furniture and fixtures 10 years |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | The changes in the carrying amount of goodwill by segment were as follows: (In thousands) Schuh Group Journeys Group Licensed Brands Group Total Goodwill Balance, February 2, 2019 $83,243 $9,838 $ — $93,081 Acquisition — — 28,385 28,385 Effect of foreign currency exchange rates 826 (108 ) — 718 Balance, February 1, 2020 $84,069 $9,730 $28,385 $122,184 |
Other Intangible Assets | Other intangibles by major classes were as follows: Leases Customer Lists (1) Other (2) Total (In thousands) Feb. 1, 2020 Feb. 2, 2019 Feb. 1, 2020 Feb. 2, 2019 Feb. 1, 2020 Feb. 2, 2019 Feb. 1, 2020 Feb. 2, 2019 Gross other intangibles $ — $ 3,532 $ 6,562 $ 1,450 $ 767 $ 641 $ 7,329 $ 5,623 Accumulated amortization — (2,916 ) (1,509 ) (1,450 ) (479 ) (314 ) (1,988 ) (4,680 ) Net Other Intangibles $ — $ 616 $ 5,053 $ — $ 288 $ 327 $ 5,341 $ 943 (1) Includes $5.1 million for the Togast acquisition. (2) Includes backlog and vendor contract. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | (In thousands) February 1, 2020 February 2, 2019 Wholesale finished goods $ 34,271 $ 45,679 Retail merchandise 330,998 320,988 Total Inventories $ 365,269 $ 366,667 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair values of financial instruments | The carrying amounts and fair values of our financial instruments at February 1, 2020 and February 2, 2019 are: (In thousands) February 1, 2020 February 2, 2019 Carrying Amount Fair Value Carrying Amount Fair Value U.S. Revolver Borrowings $ 14,393 $ 14,056 $ 56,773 $ 56,861 UK Term Loans — — 8,970 9,063 UK Revolver Borrowings — — — — |
Assets and liabilities measured at fair value on a nonrecurring basis | The following table presents our assets and liabilities measured at fair value on a nonrecurring basis as of February 1, 2020 aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands): Long-Lived Assets Held and Used Level 1 Level 2 Level 3 Impairment Charges Measured as of May 4, 2019 $ 906 $ — $ — $ 906 $ 307 Measured as of August 3, 2019 63 — — 63 731 Measured as of November 2, 2019 263 — — 263 799 Measured as of February 1, 2020 — — — — 1,258 Total Asset Impairment Fiscal 2020 $ 3,095 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | (In thousands) February 1, 2020 February 2, 2019 U.S. Revolver borrowings $ 14,393 $ 56,773 UK term loans — 8,992 UK revolver borrowings — — Deferred note expense on term loans — (22 ) Total long-term debt 14,393 65,743 Current portion — 8,992 Total Noncurrent Portion of Long-Term Debt $ 14,393 $ 56,751 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Leases [Abstract] | |
Components of lease cost | The table below presents the components of lease cost for operating leases for the year ended February 1, 2020. (In thousands) Fiscal 2020 Operating lease cost $184,428 Variable lease cost 12,176 Less: Sublease income (307 ) Net Lease Cost $196,297 |
Schedule of lease maturity under topic 842 | The following table reconciles the maturities of undiscounted cash flows to our operating lease liabilities recorded on the Consolidated Balance Sheets at February 1, 2020: Fiscal Years (In thousands) 2021 $180,314 2022 171,483 2023 151,141 2024 127,544 2025 103,668 Thereafter 192,246 Total undiscounted future minimum lease payments 926,396 Less: Amounts representing interest (135,752) Total Present Value of Operating Lease Liabilities $790,644 |
Supplemental information related to operating leases | Our weighted-average remaining lease term and weighted-average discount rate for operating leases as of February 1, 2020 are: February 1, 2020 Weighted-average remaining lease term (years) 6.2 years Weighted-average discount rate 5.2% |
Schedule of future minimum rental payments for operating leases under topic 840 | As of February 2, 2019 future minimum rental commitments were: Fiscal Years (In thousands) 2020 $183,432 2021 171,584 2022 159,155 2023 140,889 2024 119,023 Thereafter 323,638 Total Minimum Rental Commitments $1,097,721 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Equity [Abstract] | |
Non redeemable preferred stock | Non-Redeemable Preferred Stock Shares Authorized Number of Shares Amounts in Thousands Class 2020 2019 2018 2020 2019 2018 Employees’ Subordinated Convertible Preferred 5,000,000 34,440 36,147 36,671 $ 1,033 $ 1,084 $ 1,100 Stated Value of Issued Shares 1,033 1,084 1,100 Employees’ Preferred Stock Purchase Accounts (24 ) (24 ) (48 ) Total Non-Redeemable Preferred Stock $ 1,009 $ 1,060 $ 1,052 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of earnings from continuing operations before income taxes | The components of earnings from continuing operations before income taxes is comprised of the following: (In thousands) 2020 2019 2018 United States $ 83,871 $ 84,807 $ 58,137 Foreign (1,436 ) (6,548 ) 10,852 Total Earnings from Continuing Operations before Income Taxes $ 82,435 $ 78,259 $ 68,989 |
Income tax expense from continuing operations | Income tax expense from continuing operations is comprised of the following: (In thousands) 2020 2019 2018 Current U.S. federal $ 16,313 $ 13,657 $ 25,093 International 322 1,649 5,421 State 3,383 4,029 3,828 Total Current Income Tax Expense 20,018 19,335 34,342 Deferred U.S. federal (463 ) 3,632 1,491 International 1,145 2,594 (3,498 ) State (22 ) 1,474 (54 ) Total Deferred Income Tax Expense (Benefit) 660 7,700 (2,061 ) Total Income Tax Expense – Continuing Operations $ 20,678 $ 27,035 $ 32,281 |
Reconciliation of the United States federal statutory rate to the Company's effective tax rate from continuing operations | Reconciliation of the United States federal statutory rate to our effective tax rate from continuing operations is as follows: 2020 2019 2018 U. S. federal statutory rate of tax 21.00 % 21.00 % 33.72 % State taxes (net of federal tax benefit) 3.62 5.67 3.58 Foreign rate differential (2.21 ) (2.56 ) (5.66 ) Change in valuation allowance 3.64 11.51 1.95 Impact of statutory rate change — — 7.74 Credits (0.93 ) (2.65 ) (1.80 ) Permanent items 1.72 2.27 2.77 Uncertain federal, state and foreign tax positions (2.01 ) (1.68 ) (1.36 ) Transition tax — 2.23 6.47 Other 0.25 (1.24 ) (0.62 ) Effective Tax Rate 25.08 % 34.55 % 46.79 % |
Deferred tax assets and liabilities | Deferred tax assets and liabilities are comprised of the following: February 1, February 2, (In thousands) 2020 2019 Pensions $ 332 $ — Lease obligation 188,590 11,081 Book over tax depreciation 4,558 2,739 Expense accruals 7,386 5,061 Uniform capitalization costs 7,292 7,938 Provisions for discontinued operations and restructurings 674 730 Inventory valuation 810 908 Tax net operating loss and credit carryforwards 11,972 15,766 Allowances for bad debts and notes 181 318 Deferred compensation and restricted stock 3,344 3,814 Other 144 39 Gross deferred tax assets 225,283 48,394 Deferred tax asset valuation allowance (23,333 ) (20,354 ) Deferred tax asset net of valuation allowance 201,950 28,040 Identified intangibles (3,616 ) (3,265 ) Prepaids (1,929 ) (1,638 ) Right of use asset (176,930 ) — Pensions — (1,802 ) Gross deferred tax liabilities (182,475 ) (6,705 ) Net Deferred Tax Assets $ 19,475 $ 21,335 |
Deferred tax assets net classification | The deferred tax balances have been classified in our Consolidated Balance Sheets as follows: 2020 2019 Net non-current asset $ 19,475 $ 21,335 Net Deferred Tax Assets $ 19,475 $ 21,335 |
Reconciliation of the total amounts of unrecognized tax benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for Fiscal 2020, 2019 and 2018. (In thousands) 2020 2019 2018 Unrecognized Tax Benefit – Beginning of Period $ 1,835 $ 3,701 $ 5,622 Gross Increases (Decreases) – Tax Positions in a Prior Period — — (15 ) Gross Increases (Decreases) – Tax Positions in a Current Period 178 (638 ) (166 ) Settlements (931 ) — — Lapse of Statutes of Limitations (904 ) (1,228 ) (1,740 ) Unrecognized Tax Benefit – End of Period $ 178 $ 1,835 $ 3,701 |
Defined Benefit Pension Plans_2
Defined Benefit Pension Plans and Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Retirement Benefits [Abstract] | |
Obligations and funded status | Obligations and Funded Status The measurement date of the assets and liabilities for the defined benefit pension plan and postretirement medical and life insurance plans is the month-end date that is closest to our fiscal year end. Change in Plan Assets Pension Benefits Other Benefits (In thousands) 2020 2019 2020 2019 Fair value of plan assets at beginning of year $ 82,632 $ 85,730 $ — $ — Actual gain on plan assets 8,470 892 — — Employer contributions — 3,500 480 105 Plan participants’ contributions — — 111 126 Benefits paid (26,363 ) (7,490 ) (591 ) (231 ) Asset transfer (64,739 ) — — — Fair Value of Plan Assets at End of Year $ — $ 82,632 — — Change in Benefit Obligation Pension Benefits Other Benefits (In thousands) 2020 2019 2020 2019 Benefit obligation at beginning of year $ 78,322 $ 85,035 $ 4,525 $ 10,584 Service cost - ongoing operations 596 450 89 409 Service cost - discontinued operations — — — 300 Interest cost - ongoing operations 2,771 3,022 151 214 Interest cost - discontinued operations — — — 80 Plan participants’ contributions — — 111 126 Effect of plan change — — — (3,658 ) Asset transfer (64,739 ) — — — Benefits paid (26,363 ) (7,490 ) (591 ) (231 ) Actuarial (gain) loss 9,413 (2,695 ) 2,740 (3,299 ) Benefit Obligation at End of Year $ — $ 78,322 $ 7,025 $ 4,525 Funded Status at End of Year $ — $ 4,310 $ (7,025 ) $ (4,525 ) |
Amounts recognized in the consolidated balance sheets | Amounts recognized in the Consolidated Balance Sheets consist of: Pension Benefits Other Benefits (In thousands) 2020 2019 2020 2019 Noncurrent assets $ — $ 4,310 $ — $ — Current liabilities — — (603 ) (391 ) Noncurrent liabilities — — (6,422 ) (4,134 ) Net Amount Recognized $ — $ 4,310 $ (7,025 ) $ (4,525 ) |
Amounts recognized in accumulated other comprehensive income | Amounts recognized in accumulated other comprehensive income consist of: Pension Benefits Other Benefits (In thousands) 2020 2019 2020 2019 Prior service cost $ — $ — $ (1,244 ) $ (2,165 ) Net loss (gain) — 8,148 2,384 (334 ) Total Recognized in Accumulated Other Comprehensive Loss $ — $ 8,148 $ 1,140 $ (2,499 ) |
Pension benefits | Amounts for projected and accumulated benefit obligation and fair value of plan assets are as follows: (In thousands) February 1, 2020 February 2, 2019 Projected benefit obligation $ — $ 78,322 Accumulated benefit obligation — 78,322 Fair value of plan assets — 82,632 |
Components of net periodic benefit cost | Net Periodic Benefit Cost Pension Benefits Other Benefits (In thousands) 2020 2019 2018 2020 2019 2018 Service cost $ 596 $ 450 $ 550 $ 89 $ 409 $ 507 Interest cost 2,771 3,022 3,277 151 214 251 Expected return on plan assets (2,676 ) (4,198 ) (4,505 ) — — — Amortization: Prior service cost — — — (921 ) (231 ) — Losses 258 776 834 22 37 114 Net amortization 258 776 834 (899 ) (194 ) 114 Other components of net periodic benefit cost $ 353 $ (400 ) $ (394 ) $ (748 ) $ 20 $ 365 Net Periodic Benefit Cost - Ongoing Operations $ 949 $ 50 $ 156 $ (659 ) $ 429 $ 872 Net Periodic Benefit Cost - Discontinued Operations $ — $ — $ — $ — $ (877 ) $ 524 |
Reconciliation of accumulated other comprehensive income | Reconciliation of Accumulated Other Comprehensive Income Pension Benefits Other Benefits (In thousands) 2020 2020 Net (gain) loss $ 3,620 $ 2,740 Amortization of prior service cost — 921 Settlement charge (11,510 ) — Amortization of net actuarial loss (258 ) (22 ) Total Recognized in Other Comprehensive Income $ (8,148 ) $ 3,639 Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income $ (7,199 ) $ 2,980 |
Weighted-average assumptions used to determine benefit obligations | Weighted-average assumptions used to determine benefit obligations Pension Benefits Other Benefits 2020 2019 2020 2019 Discount rate NA 4.05 % 2.21 % 3.48 % Rate of compensation increase NA NA NA NA |
Weighted-average assumptions used to determine net periodic benefit costs | Weighted-average assumptions used to determine net periodic benefit costs Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Discount rate 4.05 % 3.70 % 3.95 % 3.48 % 3.67 % 3.98 % Expected long-term rate of return on plan assets 3.85 % 5.65 % 6.05 % NA NA NA Rate of compensation increase NA NA NA NA NA NA |
Assumed health care cost trend rates | Assumed health care cost trend rates 2020 2019 Health care cost trend rate assumed for next year 7.25 % 7.25 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 6.25 % 6.75 % Year that the rate reaches the ultimate trend rate 2024 2022 |
Effect of one percentage point change in the assumed health care cost trend rate | The effect on disclosed information of one percentage point change in the assumed health care cost trend rate for each future year is shown below. (In thousands) 1% Increase in Rates 1% Decrease in Rates Aggregated service and interest cost $ 20 $ 18 Accumulated postretirement benefit obligation $ 526 $ 480 |
Expected benefit payments from the trust, including future service and pay | Expected benefit payments for other postretirement benefits, paid from the employee benefit trust, are as follows: Estimated future payments Other Benefits ($ in millions) 2020 $ 0.6 2021 0.6 2022 0.6 2023 0.6 2024 0.5 2025 – 2029 2.8 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Weighted-Average Number of Shares | Weighted-average number of shares used for earnings per share is as follows: Fiscal Year (Shares in thousands) 2020 2019 2018 Weighted-average number of shares - basic 15,544 19,351 19,218 Common stock equivalents 127 144 64 Weighted-average number of shares - diluted 15,671 19,495 19,282 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of the status of the Company's nonvested shares of its employee restricted stock | A summary of the status of our nonvested shares of our employee restricted stock as of February 1, 2020 is presented below: Nonvested Restricted Shares Shares Weighted-Average Grant-Date Fair Value Nonvested at January 28, 2017 484,002 $68.27 Granted 356,224 32.00 Vested (125,190 ) 68.94 Withheld for federal taxes (50,957 ) 68.87 Forfeited (23,999 ) 55.90 Nonvested at February 3, 2018 640,080 48.37 Granted 352,060 40.90 Vested (177,394 ) 54.12 Withheld for federal taxes (69,762 ) 54.26 Forfeited (153,646 ) 42.66 Nonvested at February 2, 2019 591,338 42.99 Granted 269,816 42.48 Vested (138,765 ) 47.56 Withheld for federal taxes (55,598 ) 46.51 Forfeited (77,013 ) 42.19 Nonvested at February 1, 2020 589,778 $41.46 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Segment Reporting [Abstract] | |
Segment reporting information by segment | Fiscal 2020 Journeys Group Schuh Group Johnston & Murphy Group Licensed Brands Corporate & Other Consolidated (In thousands) Sales $ 1,460,253 $ 373,930 $ 300,850 $ 61,859 $ 174 $ 2,197,066 Intercompany sales — — — — — — Net sales to external customers $ 1,460,253 $ 373,930 $ 300,850 $ 61,859 $ 174 $ 2,197,066 Segment operating income (loss) $ 114,945 $ 4,659 $ 17,702 $ (698 ) $ (39,916 ) $ 96,692 Asset impairments and other (1) — — — — (13,374 ) (13,374 ) Operating income 114,945 4,659 17,702 (698 ) (53,290 ) 83,318 Other components of net periodic benefit cost — — — — 395 395 Interest expense — — — — (3,339 ) (3,339 ) Interest income — — — — 2,061 2,061 Earnings from continuing operations before income taxes $ 114,945 $ 4,659 $ 17,702 $ (698 ) $ (54,173 ) $ 82,435 Total assets (2) $ 908,312 $ 363,205 $ 197,670 $ 63,385 $ 147,906 $ 1,680,478 Depreciation and amortization 29,122 11,466 6,091 660 2,235 49,574 Capital expenditures 17,920 4,890 5,540 428 989 29,767 (1) Asset Impairments and other includes an $11.5 million pension settlement expense and a $3.1 million charge for asset impairments, of which $1.2 million is in the Johnston & Murphy Group, $1.2 million is in the Schuh Group and $0.7 million is in the Journeys Group, partially offset by a $(0.6) million gain on the sale of the Lids Sports Group headquarters building, a $(0.4) million gain for lease terminations and a $(0.2) million gain related to Hurricane Maria. (2) Of the Company's $973.4 million of long-lived assets, $174.4 million and $46.2 million relate to long-lived assets in the United Kingdom and Canada, respectively. Note 15 Business Segment Information, Continued Fiscal 2019 Journeys Group Schuh Group Johnston & Murphy Group Licensed Brands Corporate & Other Consolidated (In thousands) Sales $ 1,419,993 $ 382,591 $ 313,134 $ 72,576 $ 271 $ 2,188,565 Intercompany sales — — — (12 ) — (12 ) Net sales to external customers $ 1,419,993 $ 382,591 $ 313,134 $ 72,564 $ 271 $ 2,188,553 Segment operating income (loss) $ 100,799 $ 3,765 $ 20,385 $ (488 ) $ (39,481 ) $ 84,980 Asset impairments and other (1) — — — — (3,163 ) (3,163 ) Operating income 100,799 3,765 20,385 (488 ) (42,644 ) 81,817 Loss on early retirement of debt — — — — (597 ) (597 ) Other components of net periodic benefit cost — — — — 380 380 Interest expense — — — — (4,115 ) (4,115 ) Interest income — — — — 774 774 Earnings from continuing operations before income taxes $ 100,799 $ 3,765 $ 20,385 $ (488 ) $ (46,202 ) $ 78,259 Total assets (2) $ 425,842 $ 211,983 $ 128,525 $ 24,004 $ 390,727 $ 1,181,081 Depreciation and amortization (3) 28,121 14,193 6,517 637 2,693 52,161 Capital expenditures (4) 26,114 7,226 6,526 162 1,752 41,780 (1) Asset Impairments and other includes a $4.2 million charge for asset impairments, of which $2.4 million is in the Schuh Group, $1.6 million is in the Journeys Group and $0.2 million is in the Johnston & Murphy Group, a $0.3 million charge for legal and other matters and a $0.1 million charge for hurricane losses, partially offset by a $(1.4) million gain related to Hurricane Maria. (2) Of our $277.4 million of long-lived assets, $44.6 million and $12.8 million relate to long-lived assets in the United Kingdom and Canada, respectively. (3) Excludes $24.8 million of depreciation and amortization related to Lids Sports Group. This amount is included in depreciation and amortization in our Consolidated Statements of Cash Flows as we did not segregate cash flows related to discontinued operations. (4) Excludes $15.4 million of capital expenditures related to Lids Sports Group. This amount is included in capital expenditures in our Consolidated Statements of Cash Flows as we did not segregate cash flows related to discontinued operations. Note 15 Business Segment Information, Continued Fiscal 2018 Journeys Group Schuh Group Johnston & Murphy Group Licensed Brands Corporate & Other Consolidated (In thousands) Sales $ 1,329,460 $ 403,698 $ 304,160 $ 89,812 $ 420 $ 2,127,550 Intercompany sales — — — (3 ) — (3 ) Net sales to external customers $ 1,329,460 $ 403,698 $ 304,160 $ 89,809 $ 420 $ 2,127,547 Segment operating income (loss) $ 74,114 $ 20,104 $ 19,367 $ (299 ) $ (31,141 ) $ 82,145 Asset impairments and other (1) — — — — (7,773 ) (7,773 ) Operating income 74,114 20,104 19,367 (299 ) (38,914 ) 74,372 Other components of net periodic benefit cost — — — — 29 29 Interest expense — — — — (5,420 ) (5,420 ) Interest income — — — — 8 8 Earnings from continuing operations before income taxes $ 74,114 $ 20,104 $ 19,367 $ (299 ) $ (44,297 ) $ 68,989 Total assets ongoing operations $ 443,066 $ 239,479 $ 127,178 $ 32,331 $ 156,919 $ 998,973 Assets from discontinued operations 316,380 Total assets (2) 1,315,353 Depreciation and amortization (3) 26,490 13,769 6,418 688 4,168 51,533 Capital expenditures (4) 79,532 10,968 6,163 421 1,525 98,609 (1) Asset Impairments and other includes a $5.2 million charge for a licensing termination expense related to Licensed Brands Group and a $1.7 million charge for asset impairments, of which $1.0 million is in the Schuh Group and $0.7 million is in the Journeys Group, and a $0.9 million charge for hurricane losses. (2) Total assets for the Schuh Group and Journeys Group include $89.9 million and $10.4 million of goodwill, respectively. Goodwill for Schuh Group and Journeys Group increased $10.1 million and $0.6 million , respectively, from January 28, 2017 due to foreign currency translation adjustments. Of our $298.5 million of long-lived assets, $55.2 million and $14.8 million relate to long-lived assets in the United Kingdom and Canada, respectively. (3) Excludes $26.8 million of depreciation and amortization related to Lids Sports Group. This amount is included in depreciation and amortization in our Consolidated Statements of Cash Flows as we did not segregate cash flows related to discontinued operations. (4) Excludes $29.2 million of capital expenditures related to Lids Sports Group. This amount is included in capital expenditures in our Consolidated Statements of Cash Flows as we did not segregate cash flows related to discontinued operations. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Impact of discontinued operations on financial statements | Components of amounts reflected in loss from discontinued operations, net of tax on the Consolidated Statements of Operations for the years ended February 2, 2019 and February 3, 2018 are as follows (in thousands): Fiscal Year 2019 2018 Net sales $ 723,125 $ 779,469 Cost of sales 348,038 374,730 Selling and administrative expenses 370,480 391,982 Goodwill and trademark impairment 5,736 182,211 Asset impairments and other, net 2,394 1,068 Loss on sale of Lids Sports Group (126,321 ) — Other components of net periodic benefit cost (23 ) (128 ) Provision for discontinued operations (1) (743 ) (552 ) Loss from discontinued operations before taxes (130,610 ) (171,202 ) Income tax benefit (27,456 ) (22,655 ) Loss from discontinued operations, net of tax $ (103,154 ) $ (148,547 ) (1) Expenses primarily for anticipated costs of environmental remedial alternatives related to former facilities operated by us (see Note 14). The cash flows related to discontinued operations have not been segregated, and are included in our Consolidated Statements of Cash Flows. The following table summarizes depreciation and amortization, capital expenditures and the significant operating noncash items from discontinued operations for each period presented: Fiscal Year (In thousands) 2019 2018 Depreciation and amortization $ 24,778 $ 26,793 Capital expenditures 15,450 29,244 Impairment of intangible assets 5,736 182,211 Impairment of long-lived assets 1,670 1,007 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Details of quarterly financial information | (In thousands, 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Fiscal Year except per share amounts) 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 Net sales $ 495,651 $ 486,219 $ 486,573 $ 487,015 $ 537,263 $ 539,828 $ 677,579 $ 675,491 $ 2,197,066 $ 2,188,553 Gross margin 244,908 238,006 236,533 231,469 264,202 261,918 317,472 315,663 1,063,115 1,047,056 Earnings from continuing operations before income taxes 9,336 (1) 2,692 (2) 2,708 (4) 1 25,433 (5) 25,580 44,958 (7) 49,986 (8) 82,435 78,259 Earnings (loss) from continuing operations 6,470 1,856 793 (25 ) 18,979 19,694 35,515 29,699 61,757 51,224 Net earnings (loss) 6,346 (2,331 ) (3) 577 (15 ) 18,899 14,387 (6) 35,562 (63,971 ) (9) 61,384 (51,930 ) Diluted earnings (loss) per common share: Continuing operations 0.36 0.10 0.05 0.00 1.31 1.00 2.49 1.53 3.94 2.63 Net earnings (loss) 0.36 (0.12 ) 0.04 0.00 1.30 0.73 2.49 (3.29 ) 3.92 (2.66 ) (1) Includes a net asset impairment and other gain of $(0.7) million (see Note 4). (2) Includes a net asset impairment and other charge of $1.1 million (see Note 4). (3) Includes a loss of $4.2 million, net of tax, from discontinued operations (see Note 16). (4) Includes a net asset impairment and other charge of $1.8 million (see Note 4). (5) Includes a net asset impairment and other charge of $0.8 million (see Note 4). (6) Includes a loss of $5.3 million, net of tax, from discontinued operations (see Note 16). (7) Includes a net asset impairment and other charge of $11.5 million (see Note 4). (8) Includes a net asset impairment and other charge of $2.1 million (see Note 4) and a loss on early retirement of debt of $0.6 million (see Note 7). (9) Includes a loss of $93.7 million , net of tax, from discontinued operations (see Note 16). |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Textual (Details) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020USD ($)segmentstore | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | |
Summary of Accounting Policies [Line Items] | |||
Total number of retail stores operated by company | store | 1,480 | ||
Number of reportable business segments | segment | 4 | ||
Days in fiscal year | 364 days | 364 days | 371 days |
Cash and cash equivalents | $ 81,418 | $ 167,355 | |
Cash equivalents | $ 59,600 | 127,200 | |
Payment processing duration, minimum | 24 hours | ||
Payment processing duration, maximum | 48 hours | ||
Excess of outstanding checks drawn on zero balance accounts at domestic banks exceeded book cash balance | $ 17,100 | 29,600 | |
Depreciation expense | $ 49,400 | 52,100 | $ 51,500 |
Percentage of renewal options | 2.00% | ||
Asset retirement obligations | $ 11,100 | 10,900 | |
Accrued gift card liability | 5,000 | 5,100 | |
Gift card breakage recognized as revenue | 1,000 | 800 | 400 |
Gift card redemptions and breakage revenue | 3,700 | ||
Retail occupancy costs | 1,133,951 | 1,141,497 | 1,116,164 |
Advertising costs | 72,300 | 68,300 | 68,600 |
Vendor reimbursements of cooperative advertising costs | $ 8,000 | 7,800 | 8,700 |
Major Customer One | Customer Concentration Risk | Trade Accounts Receivable | |||
Summary of Accounting Policies [Line Items] | |||
Concentration risk percentage | 26.00% | ||
Major Customer Two | Customer Concentration Risk | Trade Accounts Receivable | |||
Summary of Accounting Policies [Line Items] | |||
Concentration risk percentage | 9.00% | ||
Major Customer Three | Customer Concentration Risk | Trade Accounts Receivable | |||
Summary of Accounting Policies [Line Items] | |||
Concentration risk percentage | 6.00% | ||
Other Major Customers | Customer Concentration Risk | Trade Accounts Receivable | |||
Summary of Accounting Policies [Line Items] | |||
Benchmark percentage | 5.00% | ||
Foreign Subsidiaries | |||
Summary of Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 8,900 | 20,800 | |
Selling and Administrative Expenses | |||
Summary of Accounting Policies [Line Items] | |||
Wholesale costs of distribution | 5,600 | 5,600 | 5,800 |
Occupancy | Selling and Administrative Expenses | |||
Summary of Accounting Policies [Line Items] | |||
Retail occupancy costs | $ 334,400 | $ 334,300 | $ 333,800 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Useful Lives of Property and Equipment (Details) | 12 Months Ended |
Feb. 01, 2020 | |
Buildings and building equipment | Minimum | |
Property and equipment amortized over the estimated useful life of related assets | |
Property and equipment, useful life | 20 years |
Buildings and building equipment | Maximum | |
Property and equipment amortized over the estimated useful life of related assets | |
Property and equipment, useful life | 45 years |
Computer hardware, software and equipment | Minimum | |
Property and equipment amortized over the estimated useful life of related assets | |
Property and equipment, useful life | 3 years |
Computer hardware, software and equipment | Maximum | |
Property and equipment amortized over the estimated useful life of related assets | |
Property and equipment, useful life | 10 years |
Furniture and fixtures | |
Property and equipment amortized over the estimated useful life of related assets | |
Property and equipment, useful life | 10 years |
New Accounting Pronouncements -
New Accounting Pronouncements - Textuals (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Feb. 03, 2018 | Feb. 03, 2018 | Feb. 01, 2020 | Feb. 03, 2019 | Feb. 02, 2019 | Feb. 04, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Operating lease right of use asset | $ 735,044,000 | |||||
Total Present Value of Operating Lease Liabilities | 790,644,000 | |||||
Retained earnings | $ 378,572,000 | $ 508,555,000 | ||||
Stranded tax effect from tax reform | $ 2,234,000 | |||||
Excess tax deficiency | $ 2,200,000 | |||||
Accounting Standards Update 2016-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Operating lease right of use asset | $ 795,600,000 | |||||
Total Present Value of Operating Lease Liabilities | 855,300,000 | |||||
Operating lease right of use impairment | 4,800,000 | |||||
Retained earnings | $ 4,200,000 | |||||
Accounting Standards Update 2016-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Earnings per share, basic and diluted | $ (0.11) | |||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | $ 4,400,000 | |||||
Accounting Standards Update 2018-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Stranded tax effect from tax reform | $ 2,200,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 03, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 93,081 | |
Acquisition | 28,385 | |
Effect of foreign currency exchange rates | 718 | |
Goodwill, ending balance | 122,184 | |
Schuh Group | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 83,243 | |
Acquisition | 0 | |
Effect of foreign currency exchange rates | 826 | $ 10,100 |
Goodwill, ending balance | 84,069 | 89,900 |
Journeys Group | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 9,838 | |
Acquisition | 0 | |
Effect of foreign currency exchange rates | (108) | 600 |
Goodwill, ending balance | 9,730 | $ 10,400 |
Licensed Brands Group | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 0 | |
Acquisition | 28,385 | |
Effect of foreign currency exchange rates | 0 | |
Goodwill, ending balance | $ 28,385 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Textual (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Other Finite-Lived Intangible Assets, Gross | $ 7,329 | $ 5,623 | ||
Amortization of intangible assets | 200 | |||
Amortization expense, 2021 | 900 | |||
Amortization expense, 2022 | 600 | |||
Amortization expense, 2023 | 600 | |||
Amortization expense, 2024 | 600 | |||
Amortization expense, 2025 | 600 | |||
Schuh Group | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amount of fair value in excess of carrying amount | 8,200 | |||
Increase (decrease) in fair value, effect of 100 basis point increase in weighted-average cost of capital | (10,000) | |||
Increase (decrease) in fair value, effect of 1% decrease in projected annual revenue growth | (6,900) | |||
Maximum | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 100 | $ 100 | ||
Togast | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Purchase price | $ 33,500 | |||
Percent of earnings in excess | 10.00% | |||
Fiscal 2022 | Togast | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Earnout provision | $ 17,000 | |||
Fiscal 2024 | Togast | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Earnout provision | $ 17,000 | |||
Customer Lists | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Other Finite-Lived Intangible Assets, Gross | 6,562 | $ 1,450 | ||
Customer Lists | Togast | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Other Finite-Lived Intangible Assets, Gross | $ 5,100 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangibles Assets (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Other intangibles by major classes | ||
Gross other intangibles | $ 7,329 | $ 5,623 |
Accumulated amortization | (1,988) | (4,680) |
Net Other Intangibles | 5,341 | 943 |
Leases | ||
Other intangibles by major classes | ||
Gross other intangibles | 0 | 3,532 |
Accumulated amortization | 0 | (2,916) |
Net Other Intangibles | 0 | 616 |
Customer Lists | ||
Other intangibles by major classes | ||
Gross other intangibles | 6,562 | 1,450 |
Accumulated amortization | (1,509) | (1,450) |
Net Other Intangibles | 5,053 | 0 |
Other | ||
Other intangibles by major classes | ||
Gross other intangibles | 767 | 641 |
Accumulated amortization | (479) | (314) |
Net Other Intangibles | $ 288 | $ 327 |
Asset Impairments and Other C_2
Asset Impairments and Other Charges - Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Asset impairments and other, net | $ 11,500 | $ 800 | $ 1,800 | $ (700) | $ 2,100 | $ 1,100 | $ 13,374 | $ 3,163 | $ 7,773 |
Gain on sale of building | (600) | ||||||||
Pension Settlement Expense | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Asset impairments and other, net | 11,500 | ||||||||
Retail Store Asset Impairments | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Asset impairments and other, net | 3,100 | 4,200 | 1,700 | ||||||
Legal and Other Matters | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Asset impairments and other, net | 300 | ||||||||
Licensing Termination Expense | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Asset impairments and other, net | (400) | 5,200 | |||||||
Hurricane Maria | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
(Gain) loss related to hurricane | $ (200) | (1,400) | |||||||
Hurricane Losses | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
(Gain) loss related to hurricane | $ 100 | $ 900 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Inventories | ||
Wholesale finished goods | $ 34,271 | $ 45,679 |
Retail merchandise | 330,998 | 320,988 |
Total Inventories | $ 365,269 | $ 366,667 |
Fair Value - Fair Values of Fin
Fair Value - Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | $ 14,393 | $ 65,743 |
US Revolver Borrowings | Revolving Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 14,393 | 56,773 |
Fair Value | 14,056 | 56,861 |
UK Term Loans | Line of Credit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 0 | 8,970 |
Fair Value | 0 | 9,063 |
UK Revolver Borrowings | Revolving Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 0 | 0 |
Fair Value | $ 0 | $ 0 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Company's assets and liabilities measured at fair value on a nonrecurring basis | |||||||
Impairment Charges | $ 2,827 | $ 5,823 | $ 2,670 | ||||
Fair Value Measurements Nonrecurring | |||||||
Company's assets and liabilities measured at fair value on a nonrecurring basis | |||||||
Long-Lived Assets Held and Used | $ 0 | $ 263 | $ 63 | $ 906 | 0 | ||
Impairment Charges | 1,258 | 799 | 731 | 307 | 3,095 | ||
Fair Value Measurements Nonrecurring | Level 1 | |||||||
Company's assets and liabilities measured at fair value on a nonrecurring basis | |||||||
Long-Lived Assets Held and Used | 0 | 0 | 0 | 0 | 0 | ||
Fair Value Measurements Nonrecurring | Level 2 | |||||||
Company's assets and liabilities measured at fair value on a nonrecurring basis | |||||||
Long-Lived Assets Held and Used | 0 | 0 | 0 | 0 | 0 | ||
Fair Value Measurements Nonrecurring | Level 3 | |||||||
Company's assets and liabilities measured at fair value on a nonrecurring basis | |||||||
Long-Lived Assets Held and Used | $ 0 | $ 263 | $ 63 | $ 906 | $ 0 |
Fair Value - Textuals (Details)
Fair Value - Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Impairment of long-lived assets | $ 2,827 | $ 5,823 | $ 2,670 | ||||
Nonrecurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Impairment of long-lived assets | $ 1,258 | $ 799 | $ 731 | $ 307 | $ 3,095 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 | Jan. 31, 2018 |
Long-Term Debt | |||
Total long-term debt | $ 14,393 | $ 65,743 | |
Current portion | 0 | 8,992 | |
Total Noncurrent Portion of Long-Term Debt | 14,393 | 56,751 | |
Long-term debt | |||
Long-Term Debt | |||
Deferred note expense on term loans | 0 | (22) | |
U.S. Revolver borrowings | Revolving Credit Facility | |||
Long-Term Debt | |||
Deferred note expense on term loans | $ (1,700) | ||
Total long-term debt | 14,393 | 56,773 | |
UK term loans | Line of Credit | |||
Long-Term Debt | |||
Total long-term debt | 0 | 8,992 | |
UK revolver borrowings | Revolving Credit Facility | |||
Long-Term Debt | |||
Total long-term debt | $ 0 | $ 0 |
Long-Term Debt - Textuals (Deta
Long-Term Debt - Textuals (Details) | Nov. 15, 2019GBP (£) | Jan. 31, 2018USD ($) | Feb. 01, 2020GBP (£) | Mar. 24, 2020GBP (£) | Mar. 19, 2020GBP (£) | Feb. 01, 2020USD ($) | Nov. 15, 2019EUR (€) | Feb. 02, 2019USD ($) | Jan. 30, 2014USD ($) |
Long-Term Debt (Textual) [Abstract] | |||||||||
Long-term debt maturing in year three | $ 14,400,000 | ||||||||
Bearing interest rate | 2.13% | 2.13% | |||||||
Carrying amount | $ 14,393,000 | $ 65,743,000 | |||||||
2019 Restatement Agreement | Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Aggregate principal amount of credit facility | £ | £ 6,250,000 | ||||||||
2019 Restatement Agreement | Working Capital Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Aggregate principal amount of credit facility | £ | 2,500,000 | ||||||||
2019 Restatement Agreement | Revolving Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Aggregate principal amount of credit facility | £ | £ 19,000,000 | ||||||||
UK Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Interest coverage covenant minimum level | 4.50 | ||||||||
Interest coverage covenant maximum level | 1.75 | ||||||||
Revolving Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Commitment fee on the actual daily unused portions of the credit facility one | 0.25% | ||||||||
Revolving Credit Facility | Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Capitalized deferred financing costs of credit facility and amendment | $ 1,700,000 | ||||||||
Capitalized deferred financing costs amortization period | 5 years | ||||||||
Write off of deferred financing costs | 600,000 | ||||||||
Amortization period of deferred financing costs for credit facility and amendment | 4 years | ||||||||
Carrying amount | 14,393,000 | 56,773,000 | |||||||
Revolving Credit Facility | Credit Facility | Genesco (UK) Limited | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Carrying amount | £ 10,900,000 | 14,400,000 | |||||||
Revolving Credit Facility | UK Revolver Borrowings | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Carrying amount | 0 | 0 | |||||||
Revolving Credit Facility | Amended Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Aggregate principal amount of credit facility | $ 400,000,000 | ||||||||
Excess availability under credit facility | 199,900,000 | ||||||||
Revolving Credit Facility | Third Amended and Restated Credit Agreement | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Additional borrowing capacity | 200,000,000 | ||||||||
Financial covenants, excess availability threshold | $ 17,500,000 | ||||||||
Financial covenants, excess availability threshold percentage | 10.00% | 10.00% | |||||||
Revolving Credit Facility | Third Amended and Restated Credit Agreement | Genesco (UK) Limited | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Aggregate amount of loans and letters of credit subject to receipt of commitment | 475,000,000 | ||||||||
Line of Credit | UK term loans | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Carrying amount | $ 0 | 8,992,000 | |||||||
Line of Credit | Letter of Credit | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Carrying amount | 9,300,000 | ||||||||
Line of Credit | Third Amended and Restated Credit Agreement | Letter of Credit | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Aggregate principal amount of credit facility | 70,000,000 | ||||||||
Line of Credit | Third Amended and Restated Credit Agreement | Letter of Credit | GCO Canada Inc | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Aggregate principal amount of credit facility | 5,000,000 | ||||||||
Line of Credit | Third Amended and Restated Credit Agreement | Letter of Credit | Genesco (UK) Limited | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Aggregate principal amount of credit facility | 10,000,000 | ||||||||
Line of Credit | Third Amended and Restated Credit Agreement | Swingline | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Aggregate principal amount of credit facility | $ 45,000,000 | ||||||||
Line of Credit | Third Amended and Restated Credit Agreement | Swingline | GCO Canada Inc | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Aggregate principal amount of credit facility | 5,000,000 | ||||||||
Line of Credit | Third Amended and Restated Credit Agreement | Swingline | Genesco (UK) Limited | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Aggregate principal amount of credit facility | 10,000,000 | ||||||||
Line of Credit | Third Amended and Restated Credit Agreement | Revolving Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Aggregate principal amount of credit facility | 275,000,000 | ||||||||
Line of Credit | Third Amended and Restated Credit Agreement | Revolving Credit Facility | GCO Canada Inc | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Aggregate principal amount of credit facility | 70,000,000 | ||||||||
Line of credit increase amount limit | 15,000,000 | ||||||||
Line of Credit | Third Amended and Restated Credit Agreement | Revolving Credit Facility | Genesco (UK) Limited | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Aggregate principal amount of credit facility | 100,000,000 | ||||||||
Line of credit increase amount limit | $ 100,000,000 | ||||||||
Maximum | Revolving Credit Facility | Third Amended and Restated Credit Agreement | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Amended amount on senior debt covenant | $ 500,000,000 | ||||||||
Covenants for fixed charge coverage ratio | 5 | 5 | |||||||
IRELAND | 2019 Restatement Agreement | Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Aggregate principal amount of credit facility | € | € 7,200,000 | ||||||||
London Interbank Offered Rate (LIBOR) | 2019 Restatement Agreement | Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis spread on variable rate | 2.50% | ||||||||
London Interbank Offered Rate (LIBOR) | 2019 Restatement Agreement | Revolving Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis spread on variable rate | 2.20% | ||||||||
EURIBOR | IRELAND | 2019 Restatement Agreement | Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis spread on variable rate | 2.20% | ||||||||
Subsequent Event | U.K. A&R Agreement | Revolving Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Aggregate principal amount of credit facility | £ | £ 19,000,000 | ||||||||
Stated interest rate | 2.20% | ||||||||
Carrying amount | £ | £ 19,000,000 |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Details) $ in Thousands | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 184,428 |
Variable lease cost | 12,176 |
Less: Sublease income | (307) |
Net Lease Cost | $ 196,297 |
Leases - Schedule of Lease Matu
Leases - Schedule of Lease Maturity Under Topic 842 (Details) $ in Thousands | Feb. 01, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 180,314 |
2022 | 171,483 |
2023 | 151,141 |
2024 | 127,544 |
2025 | 103,668 |
Thereafter | 192,246 |
Total undiscounted future minimum lease payments | 926,396 |
Less: Amounts representing interest | (135,752) |
Total Present Value of Operating Lease Liabilities | $ 790,644 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) | Nov. 02, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term (years) | 6 years 2 months 12 days |
Weighted-average discount rate | 5.20% |
Leases - Prior Period Comparati
Leases - Prior Period Comparative Disclosures (Details) $ in Thousands | Feb. 02, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 183,432 |
2021 | 171,584 |
2022 | 159,155 |
2023 | 140,889 |
2024 | 119,023 |
Thereafter | 323,638 |
Total Minimum Rental Commitments | $ 1,097,721 |
Leases - Textuals (Details)
Leases - Textuals (Details) ft² in Thousands, $ in Millions | 9 Months Ended | 12 Months Ended | ||
Nov. 02, 2019 | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | Feb. 10, 2020ft²option | |
Operating Leased Assets [Line Items] | ||||
Percent of leases containing renewal option | 2.00% | |||
Tenant allowances | $ 22.5 | |||
Deferred rent | 48.6 | |||
Rent expense | $ 202.6 | $ 203.1 | ||
United States, Puerto Rico and Canada | ||||
Operating Leased Assets [Line Items] | ||||
Lease term | 10 years | |||
Minimum | United Kingdom And The Republic of Ireland | ||||
Operating Leased Assets [Line Items] | ||||
Lease term | 10 years | |||
Maximum | United Kingdom And The Republic of Ireland | ||||
Operating Leased Assets [Line Items] | ||||
Lease term | 15 years | |||
Subsequent Event | Nashville, Tennessee | ||||
Operating Leased Assets [Line Items] | ||||
Lease term | 15 years | |||
Area of property leased | ft² | 199 | |||
Renewal options | option | 2 | |||
Renewal term | 5 years |
Equity - Non-Redeemable Preferr
Equity - Non-Redeemable Preferred Stock (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Non-Redeemable Preferred Stock | |||
Preferred stock | $ 1,009 | $ 1,060 | |
Employees’ Subordinated Convertible Preferred | |||
Non-Redeemable Preferred Stock | |||
Shares authorized (in shares) | 5,000,000 | ||
Number of shares (in shares) | 34,440 | 36,147 | 36,671 |
Preferred stock | $ 1,033 | $ 1,084 | $ 1,100 |
Stated Value of Issued Shares | |||
Non-Redeemable Preferred Stock | |||
Preferred stock | 1,033 | 1,084 | 1,100 |
Employees’ Preferred Stock Purchase Accounts | |||
Non-Redeemable Preferred Stock | |||
Preferred stock | (24) | (24) | (48) |
Non-Redeemable Preferred Stock | |||
Non-Redeemable Preferred Stock | |||
Preferred stock | $ 1,009 | $ 1,060 | $ 1,052 |
Equity - Textual (Details)
Equity - Textual (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Feb. 01, 2020USD ($)Vote$ / sharesshares | Feb. 02, 2019USD ($)$ / sharesshares | Feb. 03, 2018USD ($)$ / sharesshares | |
Class of Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | $ 1 | |
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 | |
Common stock, shares issued (in shares) | 15,185,670 | 19,591,048 | |
Treasury shares, at cost (in shares) | 488,464 | 488,464 | |
Number of common stock issued to directors for no consideration (in shares) | 25,368 | 36,421 | 30,620 |
Common stock withheld for taxes on restricted stock vested (in shares) | 55,598 | 69,762 | 50,957 |
Restricted stock forfeited during the year (in shares) | 77,013 | 153,646 | 23,581 |
Common stock shares repurchased and retired (in shares) | 4,570,015 | 968,375 | 275,300 |
Weighted average price of common stock retired and repurchase (in dollars per share) | $ / shares | $ 41.44 | $ 47.45 | $ 58.71 |
Common stock value repurchased and retired | $ | $ 189.4 | $ 45.9 | $ 16.2 |
Remaining authorized repurchase amount | $ | 89.7 | ||
Authorized amount | $ | $ 100 | ||
2009 Stock Incentive Plan | |||
Class of Stock [Line Items] | |||
Common shares reserved (in shares) | 916,680 | ||
2009 Equity Incentive Plan | |||
Class of Stock [Line Items] | |||
Common stock issued as restricted shares (in shares) | 270,173 | 353,633 | 356,224 |
Subordinated Serial Preferred Stock Aggregate | |||
Class of Stock [Line Items] | |||
Preferred shares authorized (in shares) | 3,000,000 | ||
Subordinated Serial Preferred Stock $2.30 Series 1 | |||
Class of Stock [Line Items] | |||
Preferred shares authorized (in shares) | 64,368 | ||
Preferred stock par value (in dollars per share) | $ / shares | $ 2.30 | ||
Subordinated Serial Preferred Stock $4.75 Series 3 | |||
Class of Stock [Line Items] | |||
Preferred shares authorized (in shares) | 40,449 | ||
Preferred stock par value (in dollars per share) | $ / shares | $ 4.75 | ||
Subordinated Serial Preferred Stock $4.75 Series 4 | |||
Class of Stock [Line Items] | |||
Preferred shares authorized (in shares) | 53,764 | ||
Preferred stock par value (in dollars per share) | $ / shares | $ 4.75 | ||
Subordinated Serial Preferred Stock Series 6 | |||
Class of Stock [Line Items] | |||
Preferred shares authorized (in shares) | 800,000 | ||
Preferred stock par value (in dollars per share) | $ / shares | $ 4.75 | ||
$1.50 Subordinated Cumulative Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred shares authorized (in shares) | 5,000,000 | ||
Preferred stock par value (in dollars per share) | $ / shares | $ 1.50 | ||
Employees’ Subordinated Convertible Preferred Stock | |||
Class of Stock [Line Items] | |||
Multiplication value to quarterly dividend per share of common stock for calculation of stated and liquidation values and redemption price | 88 | ||
Average quarterly dividend payment period | 2 years | ||
Common convertible ratio (in shares) | 1 | ||
Number of votes for each outstanding share | Vote | 1 | ||
Common stock issued in conversion of debentures (in shares) | 1,707 | 524 | 975 |
Employees’ Subordinated Convertible Preferred Stock | Minimum | |||
Class of Stock [Line Items] | |||
Stated and liquidation values and redemption price per share dividend paid on common stock plus accumulated dividends (in dollars per share) | $ / shares | $ 30 | ||
Conversion of Preferred Stock | |||
Class of Stock [Line Items] | |||
Common shares reserved (in shares) | 34,440 | ||
Common Stock | |||
Class of Stock [Line Items] | |||
Number of votes for each outstanding share | Vote | 1 |
Income Taxes - Textual (Details
Income Taxes - Textual (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
Provisional increase to income tax expense related to revaluation of deferred tax balances | $ 5,300 | ||
Decrease in net deferred tax assets related to revaluation of deferred tax balances | 5,300 | ||
Provisional income tax expense related to transition tax on foreign earnings | 4,500 | ||
Additional expense recorded as a result of finalizing the one-time transition tax | $ 1,300 | ||
One-time transition tax on foreign earnings | 5,800 | ||
Deferred tax valuation allowance | $ 23,333 | 20,354 | |
Increase in valuation allowance | 2,900 | ||
Unrecognized tax benefits that would impact effective tax rate | 200 | 600 | $ 600 |
State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 3,400 | 5,700 | |
Valuation allowance | 3,200 | 3,300 | |
Tax credit carryforward | 600 | 400 | |
Increase in valuation allowance | 500 | ||
Foreign | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 29,500 | $ 28,400 | |
Increase in valuation allowance | $ 2,400 | ||
Minimum | |||
Operating Loss Carryforwards [Line Items] | |||
Period of statutes of limitation of subsidiaries in foreign jurisdictions | 2 years | ||
Maximum | |||
Operating Loss Carryforwards [Line Items] | |||
Period of statutes of limitation of subsidiaries in foreign jurisdictions | 6 years |
Income Taxes - Earnings from Co
Income Taxes - Earnings from Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ 83,871 | $ 84,807 | $ 58,137 | ||||||||
Foreign | (1,436) | (6,548) | 10,852 | ||||||||
Earnings from continuing operations before income taxes | $ 44,958 | $ 25,433 | $ 2,708 | $ 9,336 | $ 49,986 | $ 25,580 | $ 1 | $ 2,692 | $ 82,435 | $ 78,259 | $ 68,989 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Current | |||
U.S. federal | $ 16,313 | $ 13,657 | $ 25,093 |
International | 322 | 1,649 | 5,421 |
State | 3,383 | 4,029 | 3,828 |
Total Current Income Tax Expense | 20,018 | 19,335 | 34,342 |
Deferred | |||
U.S. federal | (463) | 3,632 | 1,491 |
International | 1,145 | 2,594 | (3,498) |
State | (22) | 1,474 | (54) |
Total Deferred Income Tax Expense (Benefit) | 660 | 7,700 | (2,061) |
Total Income Tax Expense – Continuing Operations | $ 20,678 | $ 27,035 | $ 32,281 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Statutory Rate (Details) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Reconciliation of the United States federal statutory rate to the Company's effective tax rate from continuing operations | |||
U. S. federal statutory rate of tax | 21.00% | 21.00% | 33.72% |
State taxes (net of federal tax benefit) | 3.62% | 5.67% | 3.58% |
Foreign rate differential | (2.21%) | (2.56%) | (5.66%) |
Change in valuation allowance | 3.64% | 11.51% | 1.95% |
Impact of statutory rate change | 0.00% | 0.00% | 7.74% |
Credits | (0.93%) | (2.65%) | (1.80%) |
Permanent items | 1.72% | 2.27% | 2.77% |
Uncertain federal, state and foreign tax positions | (2.01%) | (1.68%) | (1.36%) |
Transition tax | 0.00% | 2.23% | 6.47% |
Other | 0.25% | (1.24%) | (0.62%) |
Effective Tax Rate | 25.08% | 34.55% | 46.79% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Deferred tax assets and liabilities | ||
Pensions | $ 332 | $ 0 |
Lease obligation | 188,590 | 11,081 |
Book over tax depreciation | 4,558 | 2,739 |
Expense accruals | 7,386 | 5,061 |
Uniform capitalization costs | 7,292 | 7,938 |
Provisions for discontinued operations and restructurings | 674 | 730 |
Inventory valuation | 810 | 908 |
Tax net operating loss and credit carryforwards | 11,972 | 15,766 |
Allowances for bad debts and notes | 181 | 318 |
Deferred compensation and restricted stock | 3,344 | 3,814 |
Other | 144 | 39 |
Gross deferred tax assets | 225,283 | 48,394 |
Deferred tax asset valuation allowance | (23,333) | (20,354) |
Deferred tax asset net of valuation allowance | 201,950 | 28,040 |
Identified intangibles | (3,616) | (3,265) |
Prepaids | (1,929) | (1,638) |
Right of use asset | (176,930) | |
Pensions | 0 | (1,802) |
Gross deferred tax liabilities | (182,475) | (6,705) |
Net Deferred Tax Assets | $ 19,475 | $ 21,335 |
Income Taxes - Deferred Tax Bal
Income Taxes - Deferred Tax Balances (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Deferred tax assets net classification | ||
Net non-current asset | $ 19,475 | $ 21,335 |
Net Deferred Tax Assets | $ 19,475 | $ 21,335 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Reconciliation of the total amounts of unrecognized tax benefits | |||
Unrecognized Tax Benefit – Beginning of Period | $ 1,835 | $ 3,701 | $ 5,622 |
Gross Increases (Decreases) – Tax Positions in a Prior Period | 0 | 0 | (15) |
Gross Increases (Decreases) – Tax Positions in a Current Period | 178 | (638) | (166) |
Settlements | (931) | 0 | 0 |
Lapse of Statutes of Limitations | (904) | (1,228) | (1,740) |
Unrecognized Tax Benefit – End of Period | $ 178 | $ 1,835 | $ 3,701 |
Defined Benefit Pension Plans_3
Defined Benefit Pension Plans and Other Postretirement Benefit Plans - Textuals (Details) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020USD ($)hour | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum hours of service of employee related to savings plan | hour | 500 | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum percentage of salary up to which additional contribution made by employer | 2.50% | ||
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Age under health care plan for early retirees eligible for benefits | 65 years | ||
Minimum year of age of employee related to savings plan | 18 years | ||
Percent of matching contribution by employer | 100.00% | ||
Maximum employer contribution up to a specified percentage of salary | 3.00% | ||
Percent of matching contribution by employer up to a specified percentage of salary | 50.00% | ||
Another maximum employer contribution up to specified percentage of salary | 2.00% | ||
Contribution expense to company for matching program | $ | $ 5.3 | $ 5.6 | $ 5.1 |
Defined Benefit Pension Plans_4
Defined Benefit Pension Plans and Other Postretirement Benefit Plans - Change in Benefit Obligation and Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Pension Benefits | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | $ 82,632 | $ 85,730 | |
Actual gain on plan assets | 8,470 | 892 | |
Employer contributions | 0 | 3,500 | |
Plan participants’ contributions | 0 | 0 | |
Benefits paid | (26,363) | (7,490) | |
Asset transfer | (64,739) | 0 | |
Fair Value of Plan Assets at End of Year | 0 | 82,632 | $ 85,730 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 78,322 | 85,035 | |
Service cost - ongoing operations | 596 | 450 | 550 |
Service cost - discontinued operations | 0 | 0 | |
Interest cost - ongoing operations | 2,771 | 3,022 | 3,277 |
Interest cost - discontinued operations | 0 | 0 | |
Plan participants’ contributions | 0 | 0 | |
Effect of plan change | 0 | 0 | |
Asset transfer | (64,739) | 0 | |
Benefits paid | (26,363) | (7,490) | |
Actuarial (gain) loss | 9,413 | (2,695) | |
Benefit Obligation at End of Year | 0 | 78,322 | 85,035 |
Funded Status at End of Year | 0 | 4,310 | |
Other Benefits | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual gain on plan assets | 0 | 0 | |
Employer contributions | 480 | 105 | |
Plan participants’ contributions | 111 | 126 | |
Benefits paid | (591) | (231) | |
Asset transfer | 0 | 0 | |
Fair Value of Plan Assets at End of Year | 0 | 0 | 0 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 4,525 | 10,584 | |
Service cost - ongoing operations | 89 | 409 | 507 |
Service cost - discontinued operations | 0 | 300 | |
Interest cost - ongoing operations | 151 | 214 | 251 |
Interest cost - discontinued operations | 0 | 80 | |
Plan participants’ contributions | 111 | 126 | |
Effect of plan change | 0 | (3,658) | |
Asset transfer | 0 | 0 | |
Benefits paid | (591) | (231) | |
Actuarial (gain) loss | 2,740 | (3,299) | |
Benefit Obligation at End of Year | 7,025 | 4,525 | $ 10,584 |
Funded Status at End of Year | $ (7,025) | $ (4,525) |
Defined Benefit Pension Plans_5
Defined Benefit Pension Plans and Other Postretirement Benefit Plans - Balance Sheets (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | $ 0 | $ 4,310 |
Current liabilities | 0 | 0 |
Noncurrent liabilities | 0 | 0 |
Net Amount Recognized | 0 | 4,310 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (603) | (391) |
Noncurrent liabilities | (6,422) | (4,134) |
Net Amount Recognized | $ (7,025) | $ (4,525) |
Defined Benefit Pension Plans_6
Defined Benefit Pension Plans and Other Postretirement Benefit Plans - Other Comprehensive Income (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost | $ 0 | $ 0 |
Net loss (gain) | 0 | 8,148 |
Total Recognized in Accumulated Other Comprehensive Loss | 0 | 8,148 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost | (1,244) | (2,165) |
Net loss (gain) | 2,384 | (334) |
Total Recognized in Accumulated Other Comprehensive Loss | $ 1,140 | $ (2,499) |
Defined Benefit Pension Plans_7
Defined Benefit Pension Plans and Other Postretirement Benefit Plans - Accumulated Benefit Obligation and Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | ||
Projected benefit obligation | $ 0 | $ 78,322 |
Accumulated benefit obligation | 0 | 78,322 |
Fair value of plan assets | $ 0 | $ 82,632 |
Defined Benefit Pension Plans_8
Defined Benefit Pension Plans and Other Postretirement Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Amortization: | |||
Other components of net periodic benefit cost | $ (395) | $ (380) | $ (29) |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 596 | 450 | 550 |
Interest cost | 2,771 | 3,022 | 3,277 |
Expected return on plan assets | (2,676) | (4,198) | (4,505) |
Amortization: | |||
Prior service cost | 0 | 0 | 0 |
Losses | 258 | 776 | 834 |
Net amortization | 258 | 776 | 834 |
Other components of net periodic benefit cost | 353 | (400) | (394) |
Net Periodic Benefit Cost - Ongoing Operations | 949 | 50 | 156 |
Net Periodic Benefit Cost - Discontinued Operations | 0 | 0 | 0 |
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 89 | 409 | 507 |
Interest cost | 151 | 214 | 251 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization: | |||
Prior service cost | (921) | (231) | 0 |
Losses | 22 | 37 | 114 |
Net amortization | (899) | (194) | 114 |
Other components of net periodic benefit cost | (748) | 20 | 365 |
Net Periodic Benefit Cost - Ongoing Operations | (659) | 429 | 872 |
Net Periodic Benefit Cost - Discontinued Operations | $ 0 | $ (877) | $ 524 |
Defined Benefit Pension Plans_9
Defined Benefit Pension Plans and Other Postretirement Benefit Plans - Reconciliation of AOCI (Details) $ in Thousands | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Net (gain) loss | $ 3,620 |
Amortization of prior service cost | 0 |
Settlement charge | (11,510) |
Amortization of net actuarial loss | (258) |
Total Recognized in Other Comprehensive Income | (8,148) |
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | (7,199) |
Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Net (gain) loss | 2,740 |
Amortization of prior service cost | 921 |
Settlement charge | 0 |
Amortization of net actuarial loss | (22) |
Total Recognized in Other Comprehensive Income | 3,639 |
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | $ 2,980 |
Defined Benefit Pension Plan_10
Defined Benefit Pension Plans and Other Postretirement Benefit Plans - Benefit Obligation Assumptions (Details) | Feb. 01, 2020 | Feb. 02, 2019 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.05% | |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.21% | 3.48% |
Defined Benefit Pension Plan_11
Defined Benefit Pension Plans and Other Postretirement Benefit Plans - Net Periodic Benefit Cost Assumptions (Details) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.05% | 3.70% | 3.95% |
Expected long-term rate of return on plan assets | 3.85% | 5.65% | 6.05% |
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.48% | 3.67% | 3.98% |
Defined Benefit Pension Plan_12
Defined Benefit Pension Plans and Other Postretirement Benefit Plans - Health Care Cost Trend Rates (Details) | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | ||
Health care cost trend rate assumed for next year | 7.25% | 7.25% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 6.25% | 6.75% |
Year that the rate reaches the ultimate trend rate | 2024 | 2022 |
Defined Benefit Pension Plan_13
Defined Benefit Pension Plans and Other Postretirement Benefit Plans - Future Year Health Care Cost (Details) $ in Thousands | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | |
Aggregated service and interest cost, 1% increase in rates | $ 20 |
Aggregated service and interest cost, 1% decrease in rates | 18 |
Accumulated postretirement benefit obligation, 1% increase in rates | 526 |
Accumulated postretirement benefit obligation, 1% decrease in rates | $ 480 |
Defined Benefit Pension Plan_14
Defined Benefit Pension Plans and Other Postretirement Benefit Plans - Estimated Future Payments (Details) - Other Benefits $ in Millions | Feb. 01, 2020USD ($) |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2020 | $ 0.6 |
2021 | 0.6 |
2022 | 0.6 |
2023 | 0.6 |
2024 | 0.5 |
2025 – 2029 | $ 2.8 |
Earnings Per Share - Average Nu
Earnings Per Share - Average Number of Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Earnings Per Share [Abstract] | |||
Weighted-average number of shares - basic (in shares) | 15,544 | 19,351 | 19,218 |
Common stock equivalents (in shares) | 127 | 144 | 64 |
Weighted-average number of shares - diluted (in shares) | 15,671 | 19,495 | 19,282 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Textual (Details) | Feb. 05, 2020USD ($) | Feb. 01, 2020USD ($)shares | Feb. 02, 2019USD ($)shares | Feb. 03, 2018USD ($)trading_dayshares |
Nonvested Restricted Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized share-based compensation cost | $ 19,000,000 | |||
Shares granted (in shares) | shares | 269,816 | 352,060 | 356,224 | |
Share-based compensation cost | $ 8,800,000 | $ 12,100,000 | $ 12,200,000 | |
Share-based compensation cost related to discontinued operations | $ 2,000,000 | 1,700,000 | ||
Weighted average expected period nonvested share-based compensation | 1 year 9 months 14 days | |||
2009 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, shares issued (in shares) | shares | 2,600,000 | |||
2009 Equity Incentive Plan | Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation for restricted stock value grant in period | $ 91,375 | $ 91,375 | $ 107,500 | |
Restriction period | 3 years | |||
Number of trading days to determine grant value | trading_day | 5 | |||
Share-based compensation, shares issued (in shares) | shares | 10,913 | 14,379 | 8,435 | |
Share-based compensation cost | $ 1,300,000 | $ 1,300,000 | $ 1,300,000 | |
2009 Equity Incentive Plan | Two New Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation for restricted stock value grant in period | 106,605 | |||
2009 Equity Incentive Plan | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting term | 4 years | |||
Unrecognized share-based compensation cost | $ 0 | $ 0 | $ 0 | |
Compensation cost capitalized | $ 0 | |||
Options outstanding | shares | 0 | |||
2009 Equity Incentive Plan | Stock Options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option's term | 10 years | |||
2009 Equity Incentive Plan | Nonvested Restricted Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting term | 4 years | |||
Depletion ratio | 2 | |||
Share-based compensation, shares issued (in shares) | shares | 269,816 | 352,060 | 356,224 | |
2009 Equity Incentive Plan | Nonvested Restricted Shares | Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, shares issued (in shares) | shares | 14,455 | 22,042 | 22,185 | |
Addition to the 2009 Equity Incentive Plan | Nonvested Restricted Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting term | 3 years | |||
Share-based compensation, shares issued (in shares) | shares | 1,800 | 4,388 | 4,947 | |
Vesting percentage - Year 1 | 2009 Equity Incentive Plan | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual vesting percentage | 25.00% | |||
Vesting percentage - Year 1 | 2009 Equity Incentive Plan | Nonvested Restricted Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual vesting percentage | 25.00% | |||
Vesting percentage - Year 2 | 2009 Equity Incentive Plan | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual vesting percentage | 25.00% | |||
Vesting percentage - Year 2 | 2009 Equity Incentive Plan | Nonvested Restricted Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual vesting percentage | 25.00% | |||
Vesting percentage - Year 3 | 2009 Equity Incentive Plan | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual vesting percentage | 25.00% | |||
Vesting percentage - Year 3 | 2009 Equity Incentive Plan | Nonvested Restricted Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual vesting percentage | 25.00% | |||
Vesting percentage - Year 4 | 2009 Equity Incentive Plan | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual vesting percentage | 25.00% | |||
Vesting percentage - Year 4 | 2009 Equity Incentive Plan | Nonvested Restricted Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual vesting percentage | 25.00% | |||
Subsequent Event | 2009 Equity Incentive Plan | CEO | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation for restricted stock value grant in period | $ 500,000 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans - Restricted Stock (Details) - Nonvested Restricted Shares - $ / shares | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Summary of the status of the Company's nonvested shares of its employee restricted stock | |||
Nonvested, beginning balance (in shares) | 591,338 | 640,080 | 484,002 |
Granted (in shares) | 269,816 | 352,060 | 356,224 |
Vested (in shares) | (138,765) | (177,394) | (125,190) |
Withheld for federal taxes (in shares) | (55,598) | (69,762) | (50,957) |
Forfeited (in shares) | (77,013) | (153,646) | (23,999) |
Nonvested, ending balance (in shares) | 589,778 | 591,338 | 640,080 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Nonvested, Weighted-Average Grant-Date Fair Value, beginning balance (in usd per share) | $ 42.99 | $ 48.37 | $ 68.27 |
Granted, Weighted-Average Grant-Date Fair Value (in usd per share) | 42.48 | 40.90 | 32 |
Vested, Weighted-Average Grant-Date Fair Value (in usd per share) | 47.56 | 54.12 | 68.94 |
Withheld for federal taxes, Weighted-Average Grant-Date Fair Value (in usd per share) | 46.51 | 54.26 | 68.87 |
Forfeited, Weighted-Average Grant-Date Fair Value (in usd per share) | 42.19 | 42.66 | 55.90 |
Nonvested, Weighted-Average Grant-Date Fair Value, ending balance (in usd per share) | $ 41.46 | $ 42.99 | $ 48.37 |
Legal Proceedings and Other M_2
Legal Proceedings and Other Matters (Details) | May 19, 2017employee | Feb. 28, 2017USD ($) | Jun. 30, 2016USD ($) | Feb. 01, 2020USD ($)Well | Feb. 01, 2020USD ($)Well | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | Nov. 03, 2018USD ($) | Apr. 30, 2015USD ($) |
Loss Contingencies [Line Items] | |||||||||
Number of water supply wells | Well | 2 | 2 | |||||||
Minimum historical cost associated with enhanced treatment required by the impact of groundwater plume | $ 1,800,000 | ||||||||
Maximum historical cost associated with enhanced treatment required by the impact of groundwater plume | 2,500,000 | ||||||||
Amount related to outstanding environmental contingencies | $ 1,500,000 | 1,500,000 | $ 1,800,000 | $ 3,000,000 | |||||
Pretax accrual charges (gains) for environmental contingencies included in provision for discontinued operations | 400,000 | $ 700,000 | $ 600,000 | ||||||
Number of claimants | employee | 2 | ||||||||
Pending Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Payment of attorneys fees and administrative costs | 400,000 | ||||||||
Village of Garden City, New York | |||||||||
Loss Contingencies [Line Items] | |||||||||
Future operation and maintenance costs | 126,400 | ||||||||
Amount awarded to other party | $ 10,000,000 | ||||||||
Chen And Salas V. Genesco Inc. | Pending Litigation | Maximum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Amount awarded to other party | 800,000 | ||||||||
Environmental Monitoring, Operation and Maintenance Activities | Minimum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Estimated possible loss | 1,700,000 | 1,700,000 | |||||||
Environmental Monitoring, Operation and Maintenance Activities | Maximum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Estimated possible loss | 2,000,000 | 2,000,000 | |||||||
EPA Interim Oversight Costs | |||||||||
Loss Contingencies [Line Items] | |||||||||
Estimated possible loss | 1,250,000 | $ 1,250,000 | |||||||
Response Costs Claimed by the EPA | |||||||||
Loss Contingencies [Line Items] | |||||||||
Estimated possible loss | $ 2,200,000 | ||||||||
Amount awarded to other party | $ 1,500,000 | ||||||||
Estimated recovery percent from settlement | 75.00% | ||||||||
Estimated recovery amount from a third party | $ 500,000 | ||||||||
Internal Revenue Service (IRS) | |||||||||
Loss Contingencies [Line Items] | |||||||||
Estimated possible loss | $ 4,200,000 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Segment reporting information by segment | |||||||||||
Sales | $ 2,197,066 | $ 2,188,565 | $ 2,127,550 | ||||||||
Intercompany sales | 0 | (12) | (3) | ||||||||
Net sales to external customers | $ 677,579 | $ 537,263 | $ 486,573 | $ 495,651 | $ 675,491 | $ 539,828 | $ 487,015 | $ 486,219 | 2,197,066 | 2,188,553 | 2,127,547 |
Segment operating income (loss) | 96,692 | 84,980 | 82,145 | ||||||||
Asset impairments and other | (11,500) | (800) | (1,800) | 700 | (2,100) | (1,100) | (13,374) | (3,163) | (7,773) | ||
Operating income | 83,318 | 81,817 | 74,372 | ||||||||
Loss on early retirement of debt | 600 | 0 | (597) | 0 | |||||||
Other components of net periodic benefit cost | 395 | 380 | 29 | ||||||||
Interest expense | (3,339) | (4,115) | (5,420) | ||||||||
Interest income | 2,061 | 774 | 8 | ||||||||
Earnings from continuing operations before income taxes | 44,958 | $ 25,433 | $ 2,708 | $ 9,336 | 49,986 | $ 25,580 | $ 1 | $ 2,692 | 82,435 | 78,259 | 68,989 |
Total assets ongoing operations | 998,973 | ||||||||||
Assets from discontinued operations | 316,380 | ||||||||||
Total Assets | 1,680,478 | 1,181,081 | 1,680,478 | 1,181,081 | 1,315,353 | ||||||
Depreciation and amortization | 49,574 | 76,939 | 78,326 | ||||||||
Depreciation and amortization from continuing operations | 52,161 | 51,533 | |||||||||
Capital expenditures | 29,767 | 57,230 | 127,853 | ||||||||
Capital expenditures from continuing operations | 41,780 | 98,609 | |||||||||
Operating Segments | Journeys Group | |||||||||||
Segment reporting information by segment | |||||||||||
Sales | 1,460,253 | 1,419,993 | 1,329,460 | ||||||||
Intercompany sales | 0 | 0 | 0 | ||||||||
Net sales to external customers | 1,460,253 | 1,419,993 | 1,329,460 | ||||||||
Segment operating income (loss) | 114,945 | 100,799 | 74,114 | ||||||||
Asset impairments and other | 0 | 0 | 0 | ||||||||
Operating income | 114,945 | 100,799 | 74,114 | ||||||||
Loss on early retirement of debt | 0 | ||||||||||
Other components of net periodic benefit cost | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Earnings from continuing operations before income taxes | 114,945 | 100,799 | 74,114 | ||||||||
Total assets ongoing operations | 443,066 | ||||||||||
Total Assets | 908,312 | 425,842 | 908,312 | 425,842 | |||||||
Depreciation and amortization | 29,122 | ||||||||||
Depreciation and amortization from continuing operations | 28,121 | 26,490 | |||||||||
Capital expenditures | 17,920 | ||||||||||
Capital expenditures from continuing operations | 26,114 | 79,532 | |||||||||
Operating Segments | Schuh Group | |||||||||||
Segment reporting information by segment | |||||||||||
Sales | 373,930 | 382,591 | 403,698 | ||||||||
Intercompany sales | 0 | 0 | 0 | ||||||||
Net sales to external customers | 373,930 | 382,591 | 403,698 | ||||||||
Segment operating income (loss) | 4,659 | 3,765 | 20,104 | ||||||||
Asset impairments and other | 0 | 0 | 0 | ||||||||
Operating income | 4,659 | 3,765 | 20,104 | ||||||||
Loss on early retirement of debt | 0 | ||||||||||
Other components of net periodic benefit cost | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Earnings from continuing operations before income taxes | 4,659 | 3,765 | 20,104 | ||||||||
Total assets ongoing operations | 239,479 | ||||||||||
Total Assets | 363,205 | 211,983 | 363,205 | 211,983 | |||||||
Depreciation and amortization | 11,466 | ||||||||||
Depreciation and amortization from continuing operations | 14,193 | 13,769 | |||||||||
Capital expenditures | 4,890 | ||||||||||
Capital expenditures from continuing operations | 7,226 | 10,968 | |||||||||
Operating Segments | Johnston & Murphy Group | |||||||||||
Segment reporting information by segment | |||||||||||
Sales | 300,850 | 313,134 | 304,160 | ||||||||
Intercompany sales | 0 | 0 | 0 | ||||||||
Net sales to external customers | 300,850 | 313,134 | 304,160 | ||||||||
Segment operating income (loss) | 17,702 | 20,385 | 19,367 | ||||||||
Asset impairments and other | 0 | 0 | 0 | ||||||||
Operating income | 17,702 | 20,385 | 19,367 | ||||||||
Loss on early retirement of debt | 0 | ||||||||||
Other components of net periodic benefit cost | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Earnings from continuing operations before income taxes | 17,702 | 20,385 | 19,367 | ||||||||
Total assets ongoing operations | 127,178 | ||||||||||
Total Assets | 197,670 | 128,525 | 197,670 | 128,525 | |||||||
Depreciation and amortization | 6,091 | ||||||||||
Depreciation and amortization from continuing operations | 6,517 | 6,418 | |||||||||
Capital expenditures | 5,540 | ||||||||||
Capital expenditures from continuing operations | 6,526 | 6,163 | |||||||||
Operating Segments | Licensed Brands | |||||||||||
Segment reporting information by segment | |||||||||||
Sales | 61,859 | 72,576 | 89,812 | ||||||||
Intercompany sales | 0 | (12) | (3) | ||||||||
Net sales to external customers | 61,859 | 72,564 | 89,809 | ||||||||
Segment operating income (loss) | (698) | (488) | (299) | ||||||||
Asset impairments and other | 0 | 0 | 0 | ||||||||
Operating income | (698) | (488) | (299) | ||||||||
Loss on early retirement of debt | 0 | ||||||||||
Other components of net periodic benefit cost | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Earnings from continuing operations before income taxes | (698) | (488) | (299) | ||||||||
Total assets ongoing operations | 32,331 | ||||||||||
Total Assets | 63,385 | 24,004 | 63,385 | 24,004 | |||||||
Depreciation and amortization | 660 | ||||||||||
Depreciation and amortization from continuing operations | 637 | 688 | |||||||||
Capital expenditures | 428 | ||||||||||
Capital expenditures from continuing operations | 162 | 421 | |||||||||
Corporate & Other | |||||||||||
Segment reporting information by segment | |||||||||||
Sales | 174 | 271 | 420 | ||||||||
Intercompany sales | 0 | 0 | 0 | ||||||||
Net sales to external customers | 174 | 271 | 420 | ||||||||
Segment operating income (loss) | (39,916) | (39,481) | (31,141) | ||||||||
Asset impairments and other | (13,374) | (3,163) | (7,773) | ||||||||
Operating income | (53,290) | (42,644) | (38,914) | ||||||||
Loss on early retirement of debt | (597) | ||||||||||
Other components of net periodic benefit cost | 395 | 380 | 29 | ||||||||
Interest expense | (3,339) | (4,115) | (5,420) | ||||||||
Interest income | 2,061 | 774 | 8 | ||||||||
Earnings from continuing operations before income taxes | (54,173) | (46,202) | (44,297) | ||||||||
Total assets ongoing operations | 156,919 | ||||||||||
Total Assets | $ 147,906 | $ 390,727 | 147,906 | 390,727 | |||||||
Depreciation and amortization | 2,235 | ||||||||||
Depreciation and amortization from continuing operations | 2,693 | 4,168 | |||||||||
Capital expenditures | $ 989 | ||||||||||
Capital expenditures from continuing operations | $ 1,752 | $ 1,525 |
Business Segment Information -
Business Segment Information - Textual (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Segment Reporting Information [Line Items] | |||||||||
Asset impairments and other, net | $ 11,500 | $ 800 | $ 1,800 | $ (700) | $ 2,100 | $ 1,100 | $ 13,374 | $ 3,163 | $ 7,773 |
Long-lived assets | 973,400 | 277,400 | 973,400 | 277,400 | 298,500 | ||||
Goodwill | 122,184 | 93,081 | 122,184 | 93,081 | |||||
Goodwill, increase (decrease) due to foreign currency translation adjustments | 718 | ||||||||
Depreciation and amortization | 49,400 | 52,100 | 51,500 | ||||||
Capital expenditures | 29,767 | 57,230 | 127,853 | ||||||
United Kingdom | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Long-lived assets | 174,400 | 44,600 | 174,400 | 44,600 | 55,200 | ||||
Canada | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Long-lived assets | 46,200 | 12,800 | 46,200 | 12,800 | 14,800 | ||||
Lids Sports Group | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Depreciation and amortization | 24,800 | 26,800 | |||||||
Capital expenditures | 15,400 | 29,200 | |||||||
Schuh Group | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Goodwill | 84,069 | 83,243 | 84,069 | 83,243 | 89,900 | ||||
Goodwill, increase (decrease) due to foreign currency translation adjustments | 826 | 10,100 | |||||||
Licensed Brands | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Goodwill | 28,385 | 0 | 28,385 | 0 | |||||
Goodwill, increase (decrease) due to foreign currency translation adjustments | 0 | ||||||||
Journeys Group | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Goodwill | $ 9,730 | $ 9,838 | 9,730 | 9,838 | 10,400 | ||||
Goodwill, increase (decrease) due to foreign currency translation adjustments | (108) | 600 | |||||||
Pension Settlement Expense | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Asset impairments and other, net | 11,500 | ||||||||
Licensing Termination Expense | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Asset impairments and other, net | (400) | 5,200 | |||||||
Licensing Termination Expense | Licensed Brands | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Asset impairments and other, net | 5,200 | ||||||||
Retail Store Asset Impairments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Asset impairments and other, net | 3,100 | 4,200 | 1,700 | ||||||
Retail Store Asset Impairments | Schuh Group | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Asset impairments and other, net | 1,200 | 2,400 | 1,000 | ||||||
Retail Store Asset Impairments | Johnston & Murphy Group | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Asset impairments and other, net | 1,200 | 200 | |||||||
Retail Store Asset Impairments | Journeys Group | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Asset impairments and other, net | 700 | 1,600 | 700 | ||||||
Sale Of Lids Sports Group Headquarters Building | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Asset impairments and other, net | (600) | ||||||||
Legal and Other Matters | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Asset impairments and other, net | 300 | ||||||||
Hurricane Losses | |||||||||
Segment Reporting Information [Line Items] | |||||||||
(Gain) loss related to hurricane | 100 | $ 900 | |||||||
Hurricane Maria | |||||||||
Segment Reporting Information [Line Items] | |||||||||
(Gain) loss related to hurricane | $ (200) | $ (1,400) |
Discontinued Operations - Textu
Discontinued Operations - Textual (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Feb. 02, 2019USD ($) | Nov. 03, 2018USD ($) | Oct. 28, 2017USD ($) | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($)store | Feb. 03, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Impairment of intangible assets | $ 269 | $ 5,736 | $ 182,211 | |||
Estimated maximum future payments | $ 1,097,721 | 1,097,721 | ||||
Discontinued Operations, Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Loss on sale of Lids Sports Group | 126,321 | $ 0 | ||||
Lids Sports Group | Discontinued Operations, Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of Lids Sports Group | 93,800 | |||||
Cash received in sale, subject to adjustment | 100,000 | 100,000 | ||||
Working capital adjustment | 6,200 | $ 6,200 | ||||
Loss on sale of Lids Sports Group | 98,300 | |||||
Impairment of intangible assets | $ 182,200 | |||||
Number of leases for which the company is a guarantor | store | 36 | |||||
Estimated maximum future payments | 20,600 | $ 20,600 | ||||
Trademarks | Lids Sports Group | Discontinued Operations, Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Indefinite lived asset impairment | $ 48,700 | $ 5,700 |
Discontinued Operations - State
Discontinued Operations - Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Provision for discontinued operations | $ (425) | $ (743) | $ (552) |
Loss from discontinued operations, net of tax | $ (373) | (103,154) | (148,547) |
Discontinued Operations, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | 723,125 | 779,469 | |
Cost of sales | 348,038 | 374,730 | |
Selling and administrative expenses | 370,480 | 391,982 | |
Goodwill and trademark impairment | 5,736 | 182,211 | |
Asset impairments and other, net | 2,394 | 1,068 | |
Loss on sale of Lids Sports Group | (126,321) | 0 | |
Other components of net periodic benefit cost | (23) | (128) | |
Provision for discontinued operations | (743) | (552) | |
Loss from discontinued operations before taxes | (130,610) | (171,202) | |
Income tax benefit | (27,456) | (22,655) | |
Loss from discontinued operations, net of tax | $ (103,154) | $ (148,547) |
Discontinued Operations - Sta_2
Discontinued Operations - Statement of Cash Flow (Details) - Discontinued Operations, Disposed of by Sale - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 02, 2019 | Feb. 03, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation and amortization | $ 24,778 | $ 26,793 |
Capital expenditures | 15,450 | 29,244 |
Impairment of intangible assets | 5,736 | 182,211 |
Impairment of long-lived assets | $ 1,670 | $ 1,007 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Details of Quarterly financial information | |||||||||||
Net sales | $ 677,579 | $ 537,263 | $ 486,573 | $ 495,651 | $ 675,491 | $ 539,828 | $ 487,015 | $ 486,219 | $ 2,197,066 | $ 2,188,553 | $ 2,127,547 |
Gross margin | 317,472 | 264,202 | 236,533 | 244,908 | 315,663 | 261,918 | 231,469 | 238,006 | 1,063,115 | 1,047,056 | 1,011,383 |
Earnings from continuing operations before income taxes | 44,958 | 25,433 | 2,708 | 9,336 | 49,986 | 25,580 | 1 | 2,692 | 82,435 | 78,259 | 68,989 |
Earnings (loss) from continuing operations | 35,515 | 18,979 | 793 | 6,470 | 29,699 | 19,694 | (25) | 1,856 | 61,757 | 51,224 | 36,708 |
Net earnings (loss) | $ 35,562 | $ 18,899 | $ 577 | $ 6,346 | $ (63,971) | $ 14,387 | $ (15) | $ (2,331) | $ 61,384 | $ (51,930) | $ (111,839) |
Diluted earnings (loss) per common share: | |||||||||||
Continuing operations (in dollars per share) | $ 2.49 | $ 1.31 | $ 0.05 | $ 0.36 | $ 1.53 | $ 1 | $ 0 | $ 0.10 | $ 3.94 | $ 2.63 | $ 1.90 |
Net earnings (loss) (in dollars per share) | $ 2.49 | $ 1.30 | $ 0.04 | $ 0.36 | $ (3.29) | $ 0.73 | $ 0 | $ (0.12) | $ 3.92 | $ (2.66) | $ (5.80) |
Quarterly Financial Informati_4
Quarterly Financial Information (Unaudited) - Textual (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Asset impairments and other, net | $ 11,500 | $ 800 | $ 1,800 | $ (700) | $ 2,100 | $ 1,100 | $ 13,374 | $ 3,163 | $ 7,773 | |
(Gain) loss from discontinued operations | 93,700 | $ 5,300 | $ 4,200 | |||||||
Loss on early retirement of debt | $ (600) | $ 0 | $ 597 | $ 0 |
Subsequent Event (Details)
Subsequent Event (Details) ft² in Thousands, $ in Thousands | Apr. 01, 2020USD ($) | Mar. 19, 2020USD ($) | Mar. 24, 2020GBP (£) | Mar. 19, 2020GBP (£) | Feb. 10, 2020ft²option | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) |
Subsequent Event [Line Items] | |||||||
Carrying amount | $ 14,393 | $ 65,743 | |||||
U.S. Credit Facility | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Amount borrowed | $ 34,300 | $ 150,000 | |||||
Available liquidity | $ 50,000 | ||||||
Revolving Credit Facility | U.K. A&R Agreement | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Aggregate principal amount of credit facility | £ | £ 19,000,000 | ||||||
Stated interest rate | 2.20% | ||||||
Carrying amount | £ | £ 19,000,000 | ||||||
UK Credit Facility | U.K. A&R Agreement | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Interest coverage covenant minimum level | 4.50 | ||||||
Interest coverage covenant maximum level | 1.75 | ||||||
Nashville, Tennessee | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Area of property leased | ft² | 199 | ||||||
Lease term | 15 years | ||||||
Renewal options | option | 2 | ||||||
Renewal term | 5 years |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Accounts Receivable Allowances | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | $ 2,894 | $ 4,593 | $ 3,073 |
Charged to Profit and Loss | 133 | 40 | 618 |
Additions (Reductions) | (87) | (1,739) | 902 |
Ending Balance | 2,940 | 2,894 | 4,593 |
Markdown Allowance | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | 7,019 | 6,498 | 5,416 |
Charged to Profit and Loss | 1,579 | 4,297 | 3,491 |
Additions (Reductions) | (3,039) | (3,776) | (2,409) |
Ending Balance | $ 5,559 | $ 7,019 | $ 6,498 |
Uncategorized Items - gcofy2020
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 4,413,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 4,413,000 |
Accounting Standards Update 2016-02 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (4,208,000) |
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (4,208,000) |