Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 28, 2018 | Mar. 25, 2018 | Jul. 30, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 28, 2018 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | WSM | ||
Entity Registrant Name | WILLIAMS SONOMA INC | ||
Entity Central Index Key | 719,955 | ||
Current Fiscal Year End Date | --01-28 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 83,310,319 | ||
Entity Public Float | $ 3,945,278,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | ||||
Net revenues | [1] | $ 5,292,359 | $ 5,083,812 | $ 4,976,090 | ||
Cost of goods sold | 3,360,648 | 3,200,502 | 3,131,876 | |||
Gross profit | 1,931,711 | 1,883,310 | 1,844,214 | |||
Selling, general and administrative expenses | 1,477,900 | 1,410,711 | 1,355,580 | |||
Operating income | 453,811 | [2],[3] | 472,599 | [3] | 488,634 | |
Interest (income) expense, net | 1,372 | 688 | 627 | |||
Earnings before income taxes | 452,439 | 471,911 | 488,007 | |||
Income taxes | 192,894 | 166,524 | 177,939 | |||
Net earnings | $ 259,545 | $ 305,387 | $ 310,068 | |||
Basic earnings per share | $ 3.03 | $ 3.45 | $ 3.42 | |||
Diluted earnings per share | $ 3.02 | $ 3.41 | $ 3.37 | |||
Shares used in calculation of earnings per share: | ||||||
Basic | 85,592 | 88,594 | 90,787 | |||
Diluted | 86,080 | 89,462 | 92,102 | |||
E-commerce | ||||||
Net revenues | $ 2,778,457 | $ 2,633,602 | $ 2,522,580 | |||
Retail | ||||||
Net revenues | $ 2,513,902 | $ 2,450,210 | $ 2,453,510 | |||
[1] | Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom and our franchise businesses) of approximately $328.2 million, $321.2 million and $298.9 million in fiscal 2017, fiscal 2016 and fiscal 2015, respectively. | |||||
[2] | Includes approximately $6.2 million in fiscal 2017 for costs related to the acquisition of Outward and its ongoing operations, which is primarily recorded in selling, general and administrative expenses. | |||||
[3] | Includes approximately $8.6 million in fiscal 2017 and $14.4 million in fiscal 2016 for severance-related reorganization charges primarily in our corporate functions, which is recorded in selling, general and administrative expenses within the unallocated segment. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | |
Net earnings | $ 259,545 | $ 305,387 | $ 310,068 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 3,730 | 1,523 | (7,958) |
Change in fair value of derivative financial instruments, net of tax (tax benefit) of $(259), $(327) and $380 | (715) | (916) | 1,074 |
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax (tax benefit) of $(38), $(41) and $421 | 106 | 106 | (1,184) |
Comprehensive income | $ 262,666 | $ 306,100 | $ 302,000 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | |
Change in fair value of derivative financial instruments, tax | $ (259) | $ (327) | $ 380 |
Reclassification adjustment for realized losses on derivative financial instruments, tax | $ (38) | $ (41) | $ 421 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 28, 2018 | Jan. 29, 2017 | |
Current assets | |||
Cash and cash equivalents | $ 390,136 | $ 213,713 | |
Accounts receivable, net | 90,119 | 88,803 | |
Merchandise inventories, net | 1,061,593 | 977,505 | |
Prepaid catalog expenses | 24,028 | 23,625 | |
Prepaid expenses | 58,693 | 52,882 | |
Other assets | 11,876 | 10,652 | |
Total current assets | 1,636,445 | 1,367,180 | |
Property and equipment, net | 932,283 | 923,283 | |
Deferred income taxes, net | 67,306 | 135,238 | |
Other assets, net | 149,715 | 51,178 | |
Total assets | [1] | 2,785,749 | 2,476,879 |
Current liabilities | |||
Accounts payable | 459,378 | 453,710 | |
Accrued salaries, benefits and other liabilities | 135,884 | 130,187 | |
Customer deposits | 292,460 | 294,276 | |
Income taxes payable | 56,783 | 23,245 | |
Other liabilities | 63,318 | 59,838 | |
Total current liabilities | 1,007,823 | 961,256 | |
Deferred rent and lease incentives | 202,134 | 196,188 | |
Long-term debt | 299,422 | ||
Other long-term obligations | 72,804 | 71,215 | |
Total liabilities | 1,582,183 | 1,228,659 | |
Commitments and contingencies - See Note I | |||
Stockholders' equity | |||
Preferred stock: $.01 par value; 7,500 shares authorized; none issued | |||
Common stock: $.01 par value; 253,125 shares authorized; 83,726 and 87,325 shares issued and outstanding at January 28, 2018 and January 29, 2017, respectively | 837 | 873 | |
Additional paid-in capital | 562,814 | 556,928 | |
Retained earnings | 647,422 | 701,702 | |
Accumulated other comprehensive loss | (6,782) | (9,903) | |
Treasury stock - at cost: 11 and 20 shares as of January 28, 2018 and January 29, 2017, respectively | (725) | (1,380) | |
Total stockholders' equity | 1,203,566 | 1,248,220 | |
Total liabilities and stockholders' equity | $ 2,785,749 | $ 2,476,879 | |
[1] | Includes long-term assets related to our international operations of approximately $63.4 million, $59.2 million and $61.7 million in fiscal 2017, fiscal 2016 and fiscal 2015, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 28, 2018 | Jan. 29, 2017 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 7,500,000 | 7,500,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 253,125,000 | 253,125,000 |
Common stock, shares issued | 83,726,000 | 87,325,000 |
Common stock, shares outstanding | 83,726,000 | 87,325,000 |
Treasury stock, shares | 11,000 | 20,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | ||
Beginning Balance (in shares) at Feb. 01, 2015 | 91,891 | |||||||
Beginning Balance at Feb. 01, 2015 | $ 1,224,706 | $ 919 | $ 527,261 | $ 701,214 | $ (2,548) | $ (2,140) | ||
Net earnings | 310,068 | 310,068 | ||||||
Foreign currency translation adjustments | (7,958) | (7,958) | ||||||
Change in fair value of derivative financial instruments, net of tax | 1,074 | 1,074 | ||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | (1,184) | (1,184) | [1] | |||||
Exercise of stock-based awards and related tax effect, shares | 68 | |||||||
Exercise of stock-based awards and related tax effect, value | 17,239 | $ 1 | 17,238 | |||||
Conversion/release of stock-based awards, shares | [2] | 554 | ||||||
Conversion/release of stock- based awards, value | [2] | (31,405) | $ 6 | (31,411) | ||||
Repurchases of common stock, shares | (2,950) | |||||||
Repurchases of common stock, value | (224,995) | $ (30) | (12,646) | (212,319) | ||||
Reissuance of treasury stock under stock-based compensation plans | [2] | (386) | (492) | (128) | 234 | |||
Stock-based compensation expense | 41,357 | 41,357 | ||||||
Dividends declared | (130,290) | (130,290) | ||||||
Ending Balance (in shares) at Jan. 31, 2016 | 89,563 | |||||||
Ending Balance at Jan. 31, 2016 | 1,198,226 | $ 896 | 541,307 | 668,545 | (10,616) | (1,906) | ||
Net earnings | 305,387 | 305,387 | ||||||
Foreign currency translation adjustments | 1,523 | 1,523 | ||||||
Change in fair value of derivative financial instruments, net of tax | (916) | (916) | ||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | 106 | 106 | [1] | |||||
Exercise of stock-based awards and related tax effect, shares | 39 | |||||||
Exercise of stock-based awards and related tax effect, value | 4,762 | 4,762 | ||||||
Conversion/release of stock-based awards, shares | [2] | 594 | ||||||
Conversion/release of stock- based awards, value | [2] | (27,062) | $ 6 | (26,805) | (263) | |||
Repurchases of common stock, shares | (2,871) | |||||||
Repurchases of common stock, value | (151,272) | $ (29) | (12,684) | (138,559) | ||||
Reissuance of treasury stock under stock-based compensation plans | [2] | (706) | (83) | 789 | ||||
Stock-based compensation expense | 51,054 | 51,054 | ||||||
Dividends declared | (133,588) | (133,588) | ||||||
Ending Balance (in shares) at Jan. 29, 2017 | 87,325 | |||||||
Ending Balance at Jan. 29, 2017 | 1,248,220 | $ 873 | 556,928 | 701,702 | (9,903) | (1,380) | ||
Net earnings | 259,545 | 259,545 | ||||||
Foreign currency translation adjustments | 3,730 | 3,730 | ||||||
Change in fair value of derivative financial instruments, net of tax | (715) | (715) | ||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | 106 | 106 | [1] | |||||
Conversion/release of stock-based awards, shares | [2] | 452 | ||||||
Conversion/release of stock- based awards, value | [2] | (18,130) | $ 5 | (17,810) | (325) | |||
Repurchases of common stock, shares | (4,051) | |||||||
Repurchases of common stock, value | (196,179) | $ (41) | (18,518) | (177,620) | ||||
Reissuance of treasury stock under stock-based compensation plans | [2] | (554) | (426) | 980 | ||||
Stock-based compensation expense | 42,768 | 42,768 | ||||||
Dividends declared | (135,779) | (135,779) | ||||||
Ending Balance (in shares) at Jan. 28, 2018 | 83,726 | |||||||
Ending Balance at Jan. 28, 2018 | $ 1,203,566 | $ 837 | $ 562,814 | $ 647,422 | $ (6,782) | $ (725) | ||
[1] | Refer to Note L for additional disclosures about reclassifications out of accumulated other comprehensive income and their corresponding effects on the respective line items in the Consolidated Statements of Earnings. | |||||||
[2] | Amounts are shown net of shares withheld for employee taxes. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | |
Cash flows from operating activities: | |||
Net earnings | $ 259,545 | $ 305,387 | $ 310,068 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 183,077 | 173,195 | 167,760 |
Loss on disposal/impairment of assets | 1,889 | 3,806 | 4,339 |
Amortization of deferred lease incentives | (25,372) | (25,212) | (24,721) |
Deferred income taxes | 63,381 | 7,114 | (7,436) |
Tax benefit related to stock-based awards | 3,230 | 14,592 | |
Excess tax benefit related to stock-based awards | (4,894) | (14,494) | |
Stock-based compensation expense | 42,988 | 51,116 | 41,357 |
Other | (135) | (423) | 149 |
Changes in: | |||
Accounts receivable | 149 | (9,794) | (12,849) |
Merchandise inventories | (80,235) | 4,493 | (92,647) |
Prepaid catalog expenses | (403) | 5,294 | 5,022 |
Prepaid expenses and other assets | (16,092) | (6,367) | (9,245) |
Accounts payable | 2,382 | 3,169 | 60,507 |
Accrued salaries, benefits and other liabilities | 9,157 | 25,876 | (135) |
Customer deposits | (2,394) | (3,037) | 35,877 |
Deferred rent and lease incentives | 28,226 | 35,559 | 31,334 |
Income taxes payable | 33,541 | (43,803) | 34,548 |
Net cash provided by operating activities | 499,704 | 524,709 | 544,026 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (189,712) | (197,414) | (202,935) |
Acquisition of Outward, Inc., net of cash received | (80,528) | ||
Other | 480 | 439 | 769 |
Net cash used in investing activities | (269,760) | (196,975) | (202,166) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 300,000 | ||
Repurchases of common stock | (196,179) | (151,272) | (224,995) |
Borrowings under revolving line of credit | 170,000 | 125,000 | 200,000 |
Repayments of borrowings under revolving line of credit | (170,000) | (125,000) | (200,000) |
Payment of dividends | (135,010) | (133,539) | (127,636) |
Tax withholdings related to stock-based awards | (18,130) | (27,062) | (31,790) |
Excess tax benefit related to stock-based awards | 4,894 | 14,494 | |
Proceeds related to stock-based awards | 0 | 1,532 | 2,647 |
Repayment of long-term obligations | (1,968) | ||
Debt issuance costs | (1,191) | (359) | (135) |
Other | (1,197) | ||
Net cash used in financing activities | (51,707) | (305,806) | (369,383) |
Effect of exchange rates on cash and cash equivalents | (1,814) | (1,862) | (1,757) |
Net increase (decrease) in cash and cash equivalents | 176,423 | 20,066 | (29,280) |
Cash and cash equivalents at beginning of year | 213,713 | 193,647 | 222,927 |
Cash and cash equivalents at end of year | 390,136 | 213,713 | 193,647 |
Supplemental disclosure of cash flow information: | |||
Cash paid during the year for interest | 2,915 | 2,202 | 1,989 |
Cash paid during the year for income taxes, net of refunds | 99,062 | 203,426 | 134,478 |
Non-cash investing activities: | |||
Purchases of property and equipment not yet paid for at end of year | $ 1,257 | $ 625 | $ 2,715 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 28, 2018 | |
Summary of Significant Accounting Policies | Note A: Summary of Significant Accounting Policies We are a specialty retailer of high-quality products for the home. These products, representing distinct merchandise strategies — Williams Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, PBteen, Williams Sonoma Home, Rejuvenation, and Mark and Graham — are marketed through e-commerce e-commerce websites 3-D Consolidation The Consolidated Financial Statements include the accounts of Williams-Sonoma, Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated. Fiscal Year Our fiscal year ends on the Sunday closest to January 31, based on a 52 or 53-week 52-week 52-week 52-week Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. These estimates and assumptions are evaluated on an ongoing basis and are based on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results could differ from these estimates. Cash Equivalents Cash equivalents include highly liquid investments with an original maturity of three months or less. As of January 28, 2018, we were invested primarily in interest bearing demand deposit accounts and money market funds. Book cash overdrafts issued, but not yet presented to the bank for payment, are reclassified to accounts payable. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are stated at their carrying values, net of an allowance for doubtful accounts. Accounts receivable consist primarily of credit card, franchisee and landlord receivables for which collectability is reasonably assured. Receivables are evaluated for collectability on a regular basis and an allowance for doubtful accounts is recorded, if necessary. Our allowance for doubtful accounts was not material to our financial statements as of January 28, 2018 and January 29, 2017. Merchandise Inventories Merchandise inventories, net of an allowance for excess quantities and obsolescence, are stated at the lower of cost (weighted average method) or market. To determine if the value of our inventory should be reduced below cost, we consider current and anticipated demand, customer preferences and age of the merchandise. The significant estimates used in inventory valuation are obsolescence (including excess and slow-moving inventory and lower of cost or market reserves) and estimates of inventory shrinkage. We reserve for obsolescence based on historical trends, aging reports, specific identification and our estimates of future sales and selling prices. Reserves for shrinkage are estimated and recorded throughout the year as a percentage of net sales based on historical shrinkage results, cycle count results within our distribution centers, expectations of future shrinkage and current inventory levels. Actual shrinkage is recorded at year-end off-site year-end, Our obsolescence and shrinkage reserve calculations contain estimates that require management to make assumptions and to apply judgment regarding a number of factors, including market conditions, the selling environment, historical results and current inventory trends. If actual obsolescence or shrinkage estimates change from our original estimate, we will adjust our reserves accordingly throughout the year. We have made no material changes to our assumptions included in the calculations of the obsolescence and shrinkage reserves throughout the year. As of January 28, 2018 and January 29, 2017, our inventory obsolescence reserves were $12,649,000 and $13,770,000, respectively. Advertising and Prepaid Catalog Expenses Advertising expenses consist of media and production costs related to digital advertising, catalog mailings and other direct marketing activities. All advertising costs are expensed as incurred, or upon the release of the initial advertisement, with the exception of prepaid catalog expenses. Prepaid catalog expenses consist primarily of third-party incremental direct costs, including creative design, paper, printing, postage and mailing costs for all of our direct response catalogs. Such costs are capitalized as prepaid catalog expenses and amortized over their expected period of future benefit, generally three months. Total advertising expenses (including digital advertising, catalog advertising and other advertising costs) were approximately $382,206,000, $347,474,000 and $333,276,000 in fiscal 2017, fiscal 2016 and fiscal 2015, respectively. Property and Equipment Property and equipment is stated at cost. Depreciation is computed using the straight-line method over the following estimated useful lives of the assets: Leasehold improvements Shorter of estimated useful life or lease term (generally 5 – 22 years) Fixtures and equipment 2 – 20 years Buildings and building improvements 10 – 40 years Capitalized software 2 – 10 years We review the carrying value of all long-lived assets for impairment, primarily at an individual store level, whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Our impairment analyses determine whether projected cash flows from operations are sufficient to recover the carrying value of these assets. Impairment may result when the carrying value of the asset exceeds the estimated undiscounted future cash flows over its remaining useful life. For store impairment, our estimate of undiscounted future cash flows over the store lease term is based upon our experience, the historical operations of the stores and estimates of future store profitability and economic conditions. The estimates of future store profitability and economic conditions require estimating such factors as sales growth, gross margin, employment costs, lease escalations, inflation and the overall economics of the retail industry, and are therefore subject to variability and difficult to predict. Actual future results may differ from those estimates. If a long-lived asset is found to be impaired, the amount recognized for impairment is equal to the excess of the asset’s net carrying value over its fair value. Long-lived assets are measured at fair value on a nonrecurring basis using Level 3 inputs as defined in the fair value hierarchy (see Note M). The fair value is based on the present value of estimated future cash flows using a discount rate that approximates our weighted average cost of capital. During fiscal 2017, we did not record any asset impairment charges. During fiscal 2016 and fiscal 2015, we recorded asset impairment charges of approximately $1,765,000 and $2,100,000, respectively, related to our retail stores, which is recorded within selling, general and administrative expenses. Goodwill Goodwill is initially recorded as of the acquisition date, and is measured as any excess of the purchase price over the estimated fair value of the identifiable net assets acquired. Goodwill is not amortized, but rather is subject to impairment testing annually (on the first day of the fourth quarter), or between annual tests whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying amount. We first perform a qualitative assessment to evaluate goodwill for potential impairment. If based on that assessment it is more likely than not that the fair value of the reporting unit is below its carrying value, a quantitative impairment test is necessary. The quantitative impairment test requires determining the fair value of the reporting unit. We use the income approach, whereby we calculate the fair value based on the present value of estimated future cash flows using a discount rate that approximates our weighted average cost of capital. The process of evaluating the potential impairment of goodwill is subjective and requires significant estimates and assumptions about the future such as sales growth, gross margins, employment costs, capital expenditures, inflation and future economic and market conditions. Actual future results may differ from those estimates. If the carrying value of the reporting unit’s assets and liabilities, including goodwill, exceeds its fair value, impairment is recorded for the excess, not to exceed the total amount of goodwill allocated to the reporting unit. As of January 28, 2018 and January 29, 2017, we had goodwill of $18,838,000 and $18,680,000, respectively, presented within other long-term assets in our Consolidated Balance Sheets, primarily related to our fiscal 2011 acquisition of Rejuvenation, Inc. In fiscal 2017 and fiscal 2016, we performed a qualitative assessment of potential goodwill impairment and determined it was more likely than not that the fair value of each of our reporting units exceeded its carrying value. Accordingly, no further impairment testing of goodwill was performed, and we did not recognize any goodwill impairment in fiscal 2017 or fiscal 2016. In fiscal 2015, we performed a quantitative goodwill impairment test and determined that the fair value of each of our reporting units substantially exceeded their carrying value. Accordingly, we did not recognize any goodwill impairment in fiscal 2015. Self-Insured Liabilities We are primarily self-insured for workers’ compensation, employee health benefits, product and other general liability claims. We record self-insurance liability reserves based on claims filed, including the development of those claims, and an estimate of claims incurred but not yet reported, based on an actuarial analysis of historical claims data. Factors affecting these estimates include future inflation rates, changes in severity, benefit level changes, medical costs and claim settlement patterns. Should a different number of claims occur compared to what was estimated, or costs of the claims increase or decrease beyond what was anticipated, reserves may need to be adjusted accordingly. Self-insurance reserves for workers’ compensation, employee health benefits, product and other general liability claims were $26,370,000 and $24,988,000 as of January 28, 2018 and January 29, 2017, respectively. Customer Deposits Customer deposits are primarily comprised of deferred revenues related to unredeemed stored-value cards and undelivered merchandise. We maintain a liability for unredeemed stored-value cards until the earlier of redemption, escheatment or four years as we have concluded that the likelihood of our stored-value cards being redeemed beyond four years from the date of issuance is remote. Income from unredeemed stored-value cards, which is recorded in other income within selling, general and administrative expenses, is not material to our Consolidated Financial Statements. Our stored-value cards have no expiration dates. Deferred Rent and Lease Incentives For leases that contain fixed escalations of the minimum annual lease payment during the original term of the lease, we recognize rental expense on a straight-line basis over the lease term, including the construction period, and record the difference between rent expense and the amount currently payable as deferred rent. Deferred lease incentives include construction allowances received from landlords, which are amortized on a straight-line basis over the lease term, including the construction period. For any store or facility closure where a lease obligation still exists, we record the estimated future liability associated with the rental obligation on the cease use date. Fair Value of Financial Instruments The carrying values of cash and cash equivalents, accounts receivable, accounts payable and debt approximate their estimated fair values. We use derivative financial instruments to hedge against foreign currency exchange rate fluctuations. The assets or liabilities associated with our derivative financial instruments are recorded at fair value in either other current or long-term assets or other current or long-term liabilities. The fair value of our foreign currency derivative instruments is measured using the income approach whereby we use observable market data at the measurement date and standard valuation techniques to convert future amounts to a single present value amount. These observable inputs include spot rates, forward rates, interest rates and credit derivative market rates (see Notes L and M for additional information). Revenue Recognition We recognize revenues (including shipping fees) and the related cost of goods sold (including shipping expense) at the time the products are delivered to our customers. Revenue is recognized for retail sales (excluding home-delivered merchandise) at the point of sale in the store and, for home-delivered merchandise and e-commerce Sales Returns Reserve Our customers may return purchased items for an exchange or refund. We record a reserve for estimated product returns, net of cost of goods sold, based on historical return trends together with current product sales performance. A summary of activity in our sales returns reserve is as follows: In thousands Fiscal 2017 1 Fiscal 2016 1 Fiscal 2015 1 Balance at beginning of year $ 16,058 $ 19,113 $ 14,782 Provision for sales returns 302,320 303,694 321,421 Actual sales returns (306,536 ) (306,749 ) (317,090 ) Balance at end of year $ 11,842 $ 16,058 $ 19,113 1 Amounts are shown net of cost of goods sold. Vendor Allowances We receive allowances or credits from certain vendors for volume rebates. We treat such volume rebates as an offset to the cost of the product or services provided at the time the expense is recorded. These allowances and credits received are recorded in both cost of goods sold and in selling, general and administrative expenses. Cost of Goods Sold Cost of goods sold includes cost of goods, occupancy expenses and shipping costs. Cost of goods consists of cost of merchandise, inbound freight expenses, freight-to-store Selling, General and Administrative Expenses Selling, general and administrative expenses consist of non-occupancy-related Stock-Based Compensation We account for stock-based compensation arrangements by measuring and recognizing compensation expense for all stock-based awards using a fair value based method. Restricted stock units are valued using the closing price of our stock on the date prior to the date of grant. The fair value of each stock-based award is amortized over the requisite service period. Foreign Currency Translation Some of our foreign operations have a functional currency other than the U.S. dollar. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect at the balance sheet date, while revenues and expenses are translated at the average exchange rates during the period. The resulting translation adjustments are recorded as other comprehensive income within stockholders’ equity. Foreign currency exchange gains and losses are recorded in selling, general and administrative expenses, except for those discussed in Note L. Earnings Per Share Basic earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding plus common stock equivalents for the period. Common stock equivalents consist of shares subject to stock-based awards with exercise prices less than or equal to the average market price of our common stock for the period, to the extent their inclusion would be dilutive. Income Taxes Income taxes are accounted for using the asset and liability method. Under this method, deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in our Consolidated Financial Statements. We record reserves for our estimates of the additional income tax liability that is more likely than not to result from the ultimate resolution of foreign and domestic tax examinations. At any one time, many tax years are subject to examination by various taxing jurisdictions. The results of these audits and negotiations with taxing authorities may affect the ultimate settlement of these issues. We review and update the estimates used in the accrual for uncertain tax positions as more definitive information becomes available from taxing authorities, upon completion of tax examination, upon expiration of statutes of limitation, or upon occurrence of other events. In order to compute income tax on an interim basis, we estimate what our effective tax rate will be for the full fiscal year and adjust these estimates throughout the year as necessary. Adjustments to our income tax provision due to changes in our estimated effective tax rate are recorded in the interim period in which the change occurs. The tax expense (or benefit) related to items other than ordinary income is individually computed and recognized when the items occur. Our effective tax rate in a given financial statement period may be materially impacted by changes in the mix and level of our earnings in various taxing jurisdictions or changes in tax law. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations 2016-10, Identifying Performance Obligations and Licensing 2014-09 • the reclassification from selling, general and administrative expenses into net revenues for certain incentives received from credit card issuers, • the reclassification of breakage income related to our unredeemed stored-value cards from selling, general and administrative expenses into net revenues, as well as an acceleration in the timing of recognizing breakage income, and • an acceleration in the timing of revenue recognition for certain merchandise shipped to our customers. In addition, prepaid catalog advertising costs, which are currently amortized over their expected period of future benefit of approximately three months, will be expensed as incurred. We do not expect the impact of this change to be material to our Consolidated Statement of Earnings going forward. We will adopt these ASUs on a modified retrospective basis in the first quarter of fiscal 2018 and, as a result, will record approximately $30,000,000 in net pre-tax cumulative effect adjustments to increase retained earnings primarily related to unredeemed stored-value cards, partially offset by prepaid catalog expenses capitalized prior to adoption. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, fifty-two In February 2016, the FASB issued ASU 2016-02, Leases, right-of-use In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other than Inventory In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (Topic 815), both non-financial and In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220) |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 28, 2018 | |
Property and Equipment | Note B: Property and Equipment Property and equipment consists of the following: In thousands Jan. 28, 2018 Jan. 29, 2017 Leasehold improvements $ 950,024 $ 923,909 Fixtures and equipment 800,003 762,379 Capitalized software 621,730 584,122 Land and buildings 173,457 172,856 Corporate systems projects in progress 65,283 52,352 Construction in progress 1 8,615 13,704 Total 2,619,112 2,509,322 Accumulated depreciation (1,686,829 ) (1,586,039 ) Property and equipment, net $ 932,283 $ 923,283 1 Construction in progress primarily consists of leasehold improvements and furniture and fixtures related to new, expanded or remodeled retail stores where construction had not been completed as of year-end. |
Borrowing Arrangements
Borrowing Arrangements | 12 Months Ended |
Jan. 28, 2018 | |
Borrowing Arrangements | Note C: Borrowing Arrangements Credit Facility On January 8, 2018, we amended and extended our credit facility which provides for a $500,000,000 unsecured revolving line of credit (“revolver”) and a $300,000,000 unsecured term loan facility (“term loan”). The revolver may be used to borrow revolving loans or request the issuance of letters of credit. We may, upon notice to the administrative agent, request existing or new lenders to increase the revolver by up to $250,000,000, at such lenders’ option, to provide for a total of $750,000,000 of unsecured revolving credit. The revolver matures on January 8, 2023, at which time all outstanding borrowings must be repaid and all outstanding letters of credit must be cash collateralized. We may, prior to the first and second anniversaries of the closing date of the amendment of the credit facility, elect to extend the maturity date for an additional year, subject to lender approval. Costs incurred in connection with the amendment and extension of the revolver are presented as an asset in our Consolidated Balance Sheet. During fiscal 2017, we had borrowings of $170,000,000 under the revolver (at a weighted average interest rate of 2.21%), all of which were repaid in the fourth quarter of fiscal 2017, and no amounts were outstanding as of January 28, 2018. During fiscal 2016, we had borrowings of $125,000,000 under the revolver (at a weighted average interest rate of 1.54%), all of which were repaid in the fourth quarter of fiscal 2016, and no amounts were outstanding as of January 29, 2017. Additionally, as of January 28, 2018, $12,780,000 in issued but undrawn standby letters of credit were outstanding under the revolver. The standby letters of credit were issued to secure the liabilities associated with workers’ compensation and other insurance programs. As of January 28, 2018, we had $300,000,000 outstanding under our term loan (at a weighted average interest rate of 2.68%). The term loan matures on January 8, 2021, at which time all outstanding principal and any accrued interest must be repaid. Costs incurred in connection with the issuance of the term loan are presented as a reduction to the carrying value of the debt in our Consolidated Balance Sheet. The interest rate under the credit facility is variable, and may be elected by us as: (i) the London Interbank Offer Rate (“LIBOR”) plus an applicable margin based on our leverage ratio ranging from 0.91% to 1.775% for a revolver borrowing, and 1.0% to 2.0% for the term loan; or (ii) a base rate as defined in the credit facility, plus an applicable margin ranging from 0% to 0.775% for a revolver borrowing, and 0% to 1% for the term loan. As of January 28, 2018, we were in compliance with our covenants under the credit facility and, based on current projections, we expect to remain in compliance throughout fiscal 2018. Letter of Credit Facilities We have three unsecured letter of credit reimbursement facilities for a total of $70,000,000, each of which matures on August 25, 2018. The letter of credit facilities contain covenants that are consistent with our credit facility. Interest on unreimbursed amounts under the letter of credit facilities accrues at a base rate as defined in the credit facility, plus a margin based on our leverage ratio. As of January 28, 2018, an aggregate of $6,721,000 was outstanding under the letter of credit facilities, which represents only a future commitment to fund inventory purchases to which we had not taken legal title. The latest expiration possible for any future letters of credit issued under the facilities is January 22, 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 28, 2018 | |
Income Taxes | Note D: Income Taxes The 2017 Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017, and significantly changed U.S. tax law by, among other things, reducing the corporate income tax rate to 21% as of January 1, 2018, and introducing a modified territorial tax system that includes a transition tax on deemed repatriated earnings of foreign subsidiaries. In response to the Tax Act, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”), which allows issuers to recognize provisional estimates of the impact of the Tax Act in their financial statements and provides a one-year Income Taxes Our U.S. federal statutory rate for fiscal 2017 was a blended rate of 33.9%, and our rate will be 21% for future fiscal years. Based on information available as of January 28, 2018, we recorded a net tax expense of $13,200,000 for the transition tax and $28,300,000 for the re-measurement The components of earnings before income taxes, by tax jurisdiction, are as follows: In thousands Fiscal 2017 Fiscal 2016 Fiscal 2015 United States $ 379,000 $ 425,517 $ 462,701 Foreign 73,439 46,394 25,306 Total earnings before income taxes $ 452,439 $ 471,911 $ 488,007 The provision for income taxes consists of the following: In thousands Fiscal 2017 Fiscal 2016 Fiscal 2015 Current Federal $ 97,202 $ 125,760 $ 156,812 State 19,552 26,197 22,969 Foreign 12,759 7,453 5,594 Total current 129,513 159,410 185,375 Deferred Federal 62,893 8,307 (6,093 ) State 460 (807 ) 1,258 Foreign 28 (386 ) (2,601 ) Total deferred 63,381 7,114 (7,436 ) Total provision $ 192,894 $ 166,524 $ 177,939 As part of the modified territorial tax system, the Tax Act implemented a new tax on Global Intangible Low-Taxed We have historically elected not to provide for U.S. income taxes with respect to the undistributed earnings of our foreign subsidiaries as we intended to utilize those earnings in our foreign operations for an indefinite period of time. As a result of the Tax Act, we are deemed to have remitted all of the post-1986 accumulated earnings of our foreign subsidiaries to the U.S. as of December 31, 2017 as part of the transition tax. No additional U.S. income tax or foreign withholding taxes have been provided. In light of the Tax Act, we continue to evaluate our permanent reinvestment assertion and expect our evaluation of the impact to be completed within the one-year A reconciliation of income taxes at the federal statutory corporate rate to the effective rate is as follows: Fiscal 2017 Fiscal 2016 Fiscal 2015 Federal income taxes at the statutory rate 33.9% 35.0% 35.0% Re-measurement 6.7% — — Transition tax 2.9% — — State income tax rate 2.5% 3.5% 3.2% Change in uncertain tax positions (1.6% ) 2.8% (0.1% ) Rate differential (2.9% ) (5.7% ) (1.8% ) Other 1.1% (0.3% ) 0.2% Effective tax rate 42.6% 35.3% 36.5% Significant components of our deferred income tax accounts are as follows: Deferred tax assets (liabilities), in thousands Jan. 28, 2018 Jan. 29, 2017 Customer deposits $ 23,601 $ 64,776 Merchandise inventories 23,314 32,003 Deferred rent 18,387 24,182 Compensation 14,127 16,781 Accrued liabilities 13,626 23,994 Stock-based compensation 9,024 17,437 Federal and state net operating loss 6,026 2,797 Executive deferred compensation 5,886 7,060 State taxes 5,099 7,107 Deferred lease incentives (24,854 ) (36,715 ) Depreciation (17,361 ) (22,477 ) Prepaid catalog expenses (5,386 ) (8,726 ) Other (3,116 ) 8,014 Valuation allowance (1,067 ) (995 ) Total deferred income tax assets, net $ 67,306 $ 135,238 As the result of the acquisition of Outward, Inc. (see Note O), we had net operating loss carry-forwards of $14,904,000 and $4,838,000 for U.S. federal and state, respectively, as of January 28, 2018. The carry-forwards are expected to be fully utilized in future years and, therefore, no valuation allowance has been provided to the related deferred tax assets. The following table summarizes the activity related to our gross unrecognized tax benefits: In thousands Fiscal 2017 Fiscal 2016 Fiscal 2015 Balance at beginning of year $ 25,864 $ 13,290 $ 14,359 Increases related to current year’s tax positions 3,345 11,772 2,765 Increases related to prior years’ tax positions 808 3,456 101 Decreases related to prior years’ tax positions (10,610 ) (818 ) (341 ) Settlements — (714 ) (2,912 ) Lapses in statute of limitations (1,356 ) (1,122 ) (682 ) Balance at end of year $ 18,051 $ 25,864 $ 13,290 As of January 28, 2018, we had $18,051,000 of gross unrecognized tax benefits, of which $13,286,000 would, if recognized, affect the effective tax rate. We accrue interest and penalties related to unrecognized tax benefits in the provision for income taxes. As of January 28, 2018 and January 29, 2017, our accruals for the payment of interest and penalties totaled $3,719,000 and $2,882,000, respectively. Due to the potential resolution of state issues, it is reasonably possible that the balance of our gross unrecognized tax benefits could decrease within the next twelve months by a range of $0 to $3,800,000. We file income tax returns in the U.S. and foreign jurisdictions and are therefore subject to examination by the tax authorities in these jurisdictions. Our U.S. federal taxable years for which the statute of limitations has not expired are fiscal years 2013 to 2016. Substantially all material states, local and foreign jurisdictions’ statutes of limitations are closed for taxable years prior to fiscal 2013. |
Accounting for Leases
Accounting for Leases | 12 Months Ended |
Jan. 28, 2018 | |
Accounting for Leases | Note E: Accounting for Leases Operating Leases We lease store locations, distribution and manufacturing facilities, corporate facilities, customer care centers and certain equipment for our U.S. and foreign operations for original terms generally ranging from 5 to 22 years. Certain leases contain renewal options for periods up to 20 years. The rental payments for our store leases are typically structured as either: minimum rent; rent based on a percentage of store sales; minimum rent plus additional rent based on a percentage of store sales; or rent based on a percentage of store sales if a specified store sales threshold or contractual obligation of the landlord has not been met. Contingent rental payments, including rental payments that are based on a percentage of sales, cannot be predicted with certainty at the onset of the lease term. Accordingly, such contingent rental payments are recorded as incurred each period and are excluded from our calculation of deferred rent liability. Total rent expense for all operating leases was as follows: In thousands Fiscal 2017 Fiscal 2016 Fiscal 2015 Rent expense $ 263,409 $ 251,066 $ 224,564 Contingent rent expense 24,918 26,980 33,985 Rent expense before deferred lease incentive income 288,327 278,046 258,549 Deferred lease incentive income (25,293 ) (25,298 ) (24,679 ) Less: sublease rental income (578 ) (558 ) (608 ) Total rent expense 1 $ 262,456 $ 252,190 $ 233,262 1 Excludes all other occupancy-related costs including depreciation, common area maintenance, property taxes and utilities. The aggregate future minimum annual cash rental payments under non-cancellable In thousands Lease Commitments 1 Fiscal 2018 $ 288,583 Fiscal 2019 275,712 Fiscal 2020 245,189 Fiscal 2021 212,085 Fiscal 2022 176,193 Thereafter 671,173 Total $ 1,868,935 1 Projected cash payments include only those amounts that are fixed and determinable as of the reporting date and are not necessarily representative of future expected rent expense. We currently pay rent for certain store locations based on a percentage of store sales. As future store sales cannot be predicted with certainty, projected payments for these locations are based on minimum rent, which is generally higher than rent based on a percentage of store sales. We incur other lease obligation expenses, such as common area maintenance and other executory costs, which are not fixed in nature and are thus not included in the future projected cash payments reflected above. In addition, projected cash payments do not include any benefit from deferred lease incentive income, which is reflected within “Total rent expense” above. Memphis-Based Distribution Facility In August 1990, we entered into an agreement to lease a distribution facility in Memphis, Tennessee. The lessor is a general partnership comprised of the estate of W. Howard Lester, our former Chairman of the Board and Chief Executive Officer, and the estate of James A. McMahan, a former Director Emeritus and significant stockholder and two unrelated parties. The terms of the lease automatically renewed until the second quarter of fiscal 2015 when the bonds that financed the construction of the facility were fully repaid. Simultaneously, we entered into an agreement with the partnership to lease the facility through July 2017. In fiscal 2017, we exercised the first of two one-year one-year |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 28, 2018 | |
Earnings Per Share | Note F: Earnings Per Share The following is a reconciliation of net earnings and the number of shares used in the basic and diluted earnings per share computations: In thousands, except per share amounts Net Earnings Weighted Earnings Fiscal 2017 Basic $ 259,545 85,592 $ 3.03 Effect of dilutive stock-based awards 488 Diluted $ 259,545 86,080 $ 3.02 Fiscal 2016 Basic $ 305,387 88,594 $ 3.45 Effect of dilutive stock-based awards 868 Diluted $ 305,387 89,462 $ 3.41 Fiscal 2015 Basic $ 310,068 90,787 $ 3.42 Effect of dilutive stock-based awards 1,315 Diluted $ 310,068 92,102 $ 3.37 Stock-based awards of 577,000, 261,000, and 12,000 were excluded from the computation of diluted earnings per share in fiscal 2017, fiscal 2016 and fiscal 2015, respectively, as their inclusion would be anti-dilutive. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 28, 2018 | |
Stock-Based Compensation | Note G: Stock-Based Compensation Equity Award Programs Our Amended and Restated 2001 Long-Term Incentive Plan (the “Plan”) provides for grants of incentive stock options, nonqualified stock options, stock-settled stock appreciation rights (collectively, “option awards”), restricted stock awards, restricted stock units (including those that are performance-based), deferred stock awards (collectively, “stock awards”) and dividend equivalents up to an aggregate of 32,310,000 shares. As of January 28, 2018, there were approximately 6,014,000 shares available for future grant. Awards may be granted under the Plan to officers, employees and non-employee Option Awards Annual grants of option awards are limited to 1,000,000 shares on a per person basis and have a maximum term of seven years. The exercise price of these option awards is not less than 100% of the closing price of our stock on the day prior to the grant date. Option awards granted to employees generally vest evenly over a period of four years for service-based awards. Certain option awards contain vesting acceleration clauses resulting from events including, but not limited to, retirement, merger or a similar corporate event. Stock Awards Annual grants of stock awards are limited to 1,000,000 shares on a per person basis and have a maximum term of seven years. Stock awards granted to employees generally vest evenly over a period of four years for service-based awards. Certain performance-based awards, which have variable payout conditions based on predetermined financial targets, vest three years from the date of grant. Certain stock awards and other agreements contain vesting acceleration clauses resulting from events including, but not limited to, retirement, merger or a similar corporate event. Stock awards granted to non-employee Non-employee non-employee Stock-Based Compensation Expense During fiscal 2017, fiscal 2016 and fiscal 2015, we recognized total stock-based compensation expense, as a component of selling, general and administrative expenses, of $42,988,000, $51,116,000, and $41,357,000, respectively. As of January 28, 2018, there was $71,272,000 of unrecognized stock-based compensation expense (net of estimated forfeitures), which we expect to recognize on a straight-line basis over a weighted average remaining service period of approximately two years. At each reporting period, all compensation expense attributable to vested awards has been fully recognized. Stock-Settled Stock Appreciation Rights A stock-settled stock appreciation right is an award that allows the recipient to receive common stock equal to the appreciation in the fair market value of our common stock between the grant date and the conversion date for the number of shares converted. The following table summarizes our stock-settled stock appreciation right activity during fiscal 2017: Shares Weighted Average Conversion 1 Weighted Average Contractual Term Intrinsic 2 Balance at January 29, 2017 (100% vested) 411,710 $ 26.02 Granted — — Converted into common stock (243,973 ) 22.66 Cancelled — — Balance at January 28, 2018 (100% vested) 167,737 $ 30.91 0.42 $ 3,774,000 1 Conversion price is equal to the market value on the date of grant. 2 Intrinsic value for outstanding and vested rights is based on the excess of the market value of our common stock on the last business day of the fiscal year (or $53.41) over the conversion price. No stock-settled stock appreciation rights were granted in fiscal 2017, fiscal 2016 or fiscal 2015. The total intrinsic value of awards converted to common stock was $7,287,000 for fiscal 2017, $5,237,000 for fiscal 2016 and $24,465,000 for fiscal 2015. Intrinsic value for conversions is based on the excess of the market value on the date of conversion over the conversion price. Restricted Stock Units The following table summarizes our restricted stock unit activity during fiscal 2017: Shares Weighted Fair Value Weighted Average Contractual Term Intrinsic Value 1 Balance at January 29, 2017 2,232,486 $ 63.75 Granted 1,301,405 52.60 Granted, with vesting subject to performance conditions 222,110 53.74 Released (665,085 ) 61.26 Cancelled (732,779 ) 61.09 Balance at January 28, 2018 2,358,137 $ 58.18 3.17 $ 125,948,000 Vested plus expected to vest at January 28, 2018 1,684,675 $ 57.15 3.24 $ 89,978,000 1 Intrinsic value for outstanding and unvested restricted stock units is based on the market value of our common stock on the last business day of the fiscal year (or $53.41). The following table summarizes additional information about restricted stock units: Fiscal 2017 Fiscal 2016 Fiscal 2015 Weighted average grant date fair value per share of awards granted $ 52.76 $ 59.17 $ 76.19 Intrinsic value of awards released 1 $ 35,508,000 $ 56,405,000 $ 50,773,000 1 Intrinsic value for releases is based on the market value on the date of release. Tax Effect In accordance with ASU 2016-09 , Improvements to Employee Share-Based Payment Accounting |
Williams-Sonoma, Inc. 401(k) Pl
Williams-Sonoma, Inc. 401(k) Plan and Other Employee Benefits | 12 Months Ended |
Jan. 28, 2018 | |
Williams-Sonoma, Inc. 401(k) Plan and Other Employee Benefits | Note H: Williams-Sonoma, Inc. 401(k) Plan and Other Employee Benefits We have a defined contribution retirement plan, the Williams-Sonoma, Inc. 401(k) Plan (the “401(k) Plan”), which is intended to be qualified under Internal Revenue Code sections 401(a), 401(k), 401(m) and 4975(e)(7). The 401(k) Plan permits eligible employees to make salary deferral contributions up to 75% of their eligible compensation each pay period (7% for highly-compensated employees). Employees designate the funds in which their contributions are invested. Each participant may choose to have his or her salary deferral contributions and earnings thereon invested in one or more investment funds, including our company stock fund. Our matching contribution is equal to 50% of each participant’s salary deferral contribution, taking into account only those contributions that do not exceed 6% of the participant’s eligible pay for the pay period. Each participant’s matching contribution is earned on a semi-annual basis with respect to eligible salary deferrals for those participants that are employed with the company on June 30th or December 31st of the year in which the deferrals are made. Each associate must complete one year of service prior to receiving company matching contributions. For the first five years of the participant’s employment, all matching contributions vest at the rate of 20% per year of service, measuring service from the participant’s hire date. Thereafter, all matching contributions vest immediately. Our contributions to the plan were $8,224,000, $7,725,000 and $6,915,000 in fiscal 2017, fiscal 2016 and fiscal 2015, respectively. The 401(k) Plan consists of two parts: a profit sharing plan portion and a stock bonus plan/employee stock ownership plan (the “ESOP”). The ESOP portion is the portion that is invested in the Williams-Sonoma, Inc. Stock Fund. The profit sharing and ESOP components of the 401(k) Plan are considered a single plan under Internal Revenue Code section 414(l). We also have a nonqualified executive deferred compensation plan that provides supplemental retirement income benefits for a select group of management. This plan permits eligible employees to make salary and bonus deferrals that are 100% vested. We have an unsecured obligation to pay in the future the value of the deferred compensation adjusted to reflect the performance, whether positive or negative, of selected investment measurement options chosen by each participant during the deferral period. As of January 28, 2018 and January 29, 2017, $24,151,000 and $18,736,000, respectively, is included in other long-term liabilities related to these deferred compensation obligations. Additionally, we have purchased life insurance policies on certain participants to potentially offset these unsecured obligations. The cash surrender value of these policies was $25,550,000 and $19,000,000 as of January 28, 2018 and January 29, 2017, respectively, and is included in other assets, net. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 28, 2018 | |
Commitments and Contingencies | Note I: Commitments and Contingencies We are involved in lawsuits, claims and proceedings incident to the ordinary course of our business. These disputes, which are not currently material, are increasing in number as our business expands and our company grows. We review the need for any loss contingency reserves and establish reserves when, in the opinion of management, it is probable that a matter would result in liability, and the amount of loss, if any, can be reasonably estimated. In view of the inherent difficulty of predicting the outcome of these matters, it may not be possible to determine whether any loss is probable or to reasonably estimate the amount of the loss until the case is close to resolution, in which case no reserve is established until that time. Any claims against us, whether meritorious or not, could result in costly litigation, require significant amounts of management time and result in the diversion of significant operational resources. The results of these lawsuits, claims and proceedings cannot be predicted with certainty. However, we believe that the ultimate resolution of these current matters will not have a material adverse effect on our Consolidated Financial Statements taken as a whole. |
Stock Repurchase Program and Di
Stock Repurchase Program and Dividends | 12 Months Ended |
Jan. 28, 2018 | |
Stock Repurchase Program and Dividends | Note J: Stock Repurchase Program and Dividends During fiscal 2017, we repurchased 4,050,697 shares of our common stock at an average cost of $48.43 per share and a total cost of approximately $196,179,000 under our stock repurchase program. As of January 28, 2018, there was approximately $214,399,000 remaining under our current stock repurchase program. In March 2018, we announced that our Board of Directors had authorized an increase in our current stock repurchase program to $500,000,000. As of January 28, 2018, we held treasury stock of $725,000 that represents the cost of shares available for issuance intended to satisfy future stock-based award settlements in certain foreign jurisdictions. During fiscal 2016, we repurchased 2,871,480 shares of our common stock at an average cost of $52.68 per share and a total cost of approximately $151,272,000. During fiscal 2015, we repurchased 2,950,438 shares of our common stock at an average cost of $76.26 per share and a total cost of approximately $224,995,000. Stock repurchases under our program may be made through open market and privately negotiated transactions at times and in such amounts as management deems appropriate. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, capital availability and other market conditions. Total cash dividends declared in fiscal 2017, fiscal 2016 and fiscal 2015, were approximately $135,779,000, or $1.56 per common share, $133,588,000, or $1.48 per common share and $130,290,000, or $1.40 per common share, respectively. In March 2018, we announced that our Board of Directors had authorized a 10% increase in our quarterly cash dividend, from $0.39 to $0.43 per common share, subject to capital availability. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Jan. 28, 2018 | |
Segment Reporting | Note K: Segment Reporting We have two reportable segments, e-commerce e-commerce e-commerce e-commerce e-commerce. These reportable segments are strategic business units that offer similar products for the home. They are managed separately because the business units utilize two distinct distribution and marketing strategies. Based on management’s best estimate, our operating segments include allocations of certain expenses, including advertising and employment costs, to the extent they have been determined to benefit both channels. These operating segments are aggregated at the channel level for reporting purposes due to the fact that our brands are interdependent for economies of scale and we do not maintain fully allocated income statements at the brand level. As a result, material financial decisions related to the brands are made at the channel level. Furthermore, it is not practicable for us to report revenue by product group. We use operating income to evaluate segment profitability. Operating income is defined as earnings (loss) before net interest income (expense) and income taxes. Unallocated costs before interest and income taxes include corporate employee-related costs, occupancy expenses (including depreciation expense), administrative costs and third-party service costs, primarily in our corporate administrative and systems departments. Unallocated assets include corporate cash and cash equivalents, prepaid expenses, the net book value of corporate facilities and related information systems, deferred income taxes and other corporate long-lived assets. Income taxes are calculated at an entity level and are not allocated to our reportable segments. Segment Information In thousands E-commerce Retail Unallocated Total Fiscal 2017 Net revenues 1 $ 2,778,457 $ 2,513,902 $ — $ 5,292,359 Depreciation and amortization expense 28,977 90,625 63,475 183,077 Operating income (loss) 2,3 599,491 224,608 (370,288 ) 453,811 Assets 4 776,569 1,114,726 894,454 2,785,749 Capital expenditures 39,273 83,750 66,689 189,712 Fiscal 2016 Net revenues 1 $ 2,633,602 $ 2,450,210 $ — $ 5,083,812 Depreciation and amortization expense 31,135 86,228 55,832 173,195 Operating income (loss) 2 606,286 231,929 (365,616 ) 472,599 Assets 4 614,213 1,077,593 785,073 2,476,879 Capital expenditures 21,479 102,859 73,076 197,414 Fiscal 2015 Net revenues 1 $ 2,522,580 $ 2,453,510 $ — $ 4,976,090 Depreciation and amortization expense 32,056 83,027 52,677 167,760 Operating income (loss) 562,081 239,288 (312,735 ) 488,634 Assets 4 625,951 1,049,892 741,584 2,417,427 Capital expenditures 22,293 102,717 77,925 202,935 1 Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom and our franchise businesses) of approximately $328.2 million, $321.2 million and $298.9 million in fiscal 2017, fiscal 2016 and fiscal 2015, respectively. 2 Includes approximately $8.6 million in fiscal 2017 and $14.4 million in fiscal 2016 for severance-related reorganization charges, primarily in our corporate functions, which is recorded in selling, general and administrative expenses within the unallocated segment. 3 Includes approximately $6.2 million in fiscal 2017 for costs related to the acquisition of Outward and its ongoing operations, which is primarily recorded in selling, general and administrative expenses. 4 Includes long-term assets related to our international operations of approximately $63.4 million, $59.2 million and $61.7 million in fiscal 2017, fiscal 2016 and fiscal 2015, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Jan. 28, 2018 | |
Derivative Financial Instruments | Note L: Derivative Financial Instruments We have retail and e-commerce Derivatives and Hedging Cash Flow Hedges We enter into foreign currency forward contracts designated as cash flow hedges (to sell Canadian dollars and purchase U.S. dollars) for forecasted inventory purchases in U.S. dollars by our Canadian subsidiary. These hedges have terms of up to 18 months. All hedging relationships are formally documented, and the forward contracts are designed to mitigate foreign currency exchange risk on hedged transactions. We record the effective portion of changes in the fair value of our cash flow hedges in other comprehensive income (“OCI”) until the earlier of when the hedged forecasted inventory purchase occurs or the respective contract reaches maturity. Subsequently, as the inventory is sold to the customer, we reclassify amounts previously recorded in OCI to cost of goods sold. Changes in the fair value of the forward contract related to interest charges (or forward points) are excluded from the assessment and measurement of hedge effectiveness and are recorded immediately in selling, general and administrative expenses. Based on the rates in effect as of January 28, 2018, we expect to reclassify a net pre-tax We also enter into non-designated In thousands Jan. 28, 2018 Jan. 29, 2017 Contracts designated as cash flow hedges $ 28,200 $ 19,550 Contracts not designated as cash flow hedges $ 46,000 $ 46,000 Hedge effectiveness is evaluated prospectively at inception, on an ongoing basis, as well as retrospectively using regression analysis. Any measurable ineffectiveness of the hedge is recorded in selling, general and administrative expenses. No gain or loss was recognized for cash flow hedges due to hedge ineffectiveness and all hedges were deemed effective for assessment purposes for fiscal 2017, fiscal 2016 and fiscal 2015. The effect of derivative instruments in our Consolidated Financial Statements, pre-tax, In thousands Fiscal 2017 Fiscal 2016 Fiscal 2015 Net gain (loss) recognized in OCI $ (974 ) $ (1,243 ) $ 1,454 Net gain (loss) reclassified from OCI to cost of goods sold $ (144 ) $ (147 ) $ 1,605 Net foreign exchange gain (loss) recognized in selling, general and administrative expenses: Instruments designated as cash flow hedges 1 $ 88 $ (4 ) $ (66 ) Instruments not designated or de-designated $ (3,286 ) $ (3,569 ) $ 2,838 1 Changes in fair value of the forward contract related to interest charges (or forward points). The fair values of our derivative financial instruments are presented below according to their classification in our Consolidated Balance Sheets. All fair values were measured using Level 2 inputs as defined by the fair value hierarchy described in Note M. In thousands Jan. 28, 2018 Jan. 29, 2017 Derivatives designated as cash flow hedges: Other current assets $ — $ 241 Other long-term assets $ — $ 21 Other current liabilities $ (635 ) $ (230 ) Other long-term liabilities $ (54 ) $ — Derivatives not designated as hedging instruments: Other current assets $ — $ 111 Other current liabilities $ (299 ) $ — We record all derivative assets and liabilities on a gross basis. They do not meet the balance sheet netting criteria as discussed in ASC 210, Balance Sheet |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 28, 2018 | |
Fair Value Measurements | Note M: Fair Value Measurements Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We determine the fair value of financial and non-financial Fair Value Measurement • Level 1: inputs which include quoted prices in active markets for identical assets or liabilities; • Level 2: inputs which include observable inputs other than Level 1 inputs, such as quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities 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 asset or liability; and • Level 3: inputs which include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. The fair values of our cash and cash equivalents are based on Level 1 inputs, which include quoted prices in active markets for identical assets. Long-term Debt As of January 28, 2018, the fair value of our long-term debt approximates its carrying value and is based on observable Level 2 inputs, primarily market interest rates for instruments with similar maturities. Foreign Currency Derivatives and Hedging Instruments We use the income approach to value our derivatives using observable Level 2 market data at the measurement date and standard valuation techniques to convert future amounts to a single present value amount, assuming that participants are motivated but not compelled to transact. Level 2 inputs are limited to quoted prices that are observable for the assets and liabilities, which include interest rates and credit risk ratings. We use mid-market The counterparties associated with our foreign currency forward contracts are large credit-worthy financial institutions, and the derivatives transacted with these entities are relatively short in duration, therefore, we do not consider counterparty concentration and non-performance Property and Equipment We review the carrying value of all long-lived assets for impairment, primarily at an individual store level, whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. We measure these assets at fair value on a nonrecurring basis using Level 3 inputs as defined in the fair value hierarchy. The fair value is based on the present value of estimated future cash flows using a discount rate that approximates our weighted average cost of capital. There were no transfers between Level 1, 2 or 3 categories during fiscal 2017 or fiscal 2016. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Jan. 28, 2018 | |
Accumulated Other Comprehensive Income | Note N: Accumulated Other Comprehensive Income Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows: In thousands Foreign Currency Cash Flow Accumulated Other Balance at February 1, 2015 $ (3,522) $ 974 $ (2,548) Foreign currency translation adjustments (7,958 ) — (7,958 ) Change in fair value of derivative financial instruments — 1,074 1,074 Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — (1,184 ) (1,184 ) Other comprehensive income (loss) (7,958 ) (110 ) (8,068 ) Balance at January 31, 2016 (11,480 ) 864 (10,616 ) Foreign currency translation adjustments 1,523 — 1,523 Change in fair value of derivative financial instruments — (916 ) (916 ) Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — 106 106 Other comprehensive income (loss) 1,523 (810 ) 713 Balance at January 29, 2017 (9,957 ) 54 (9,903 ) Foreign currency translation adjustments 3,730 — 3,730 Change in fair value of derivative financial instruments — (715 ) (715 ) Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — 106 106 Other comprehensive income (loss) 3,730 (609 ) 3,121 Balance at January 28, 2018 $ (6,227 ) $ (555 ) $ (6,782 ) 1 Refer to Note L for additional disclosures about reclassifications out of accumulated other comprehensive income and their corresponding effects on the respective line items in the Consolidated Statements of Earnings. |
Acquisition of Outward, Inc.
Acquisition of Outward, Inc. | 12 Months Ended |
Jan. 28, 2018 | |
Acquisition of Outward, Inc. | Note O: Acquisition of Outward, Inc. On December 1, 2017, we acquired Outward, Inc. (“Outward”), a 3-D pre-existing The purchase consideration of $80,864,000 was allocated to identifiable assets acquired of $2,767,000, primarily property and equipment, and to liabilities assumed of $12,169,000, based on their estimated fair values on the acquisition date. The remaining consideration has been recorded within other long-term assets in our Consolidated Balance Sheet as of January 28, 2018. We are currently in the process of valuing intangible assets acquired, and expect to allocate the remaining consideration between goodwill and intangible assets upon completion. During the fourth quarter of fiscal 2017, we incurred third party acquisition-related costs of approximately $1,983,000, which have been recorded within selling, general and administrative expenses. Outward is a wholly-owned subsidiary of Williams-Sonoma, Inc. Results of operations for Outward have been included in our Consolidated Financial Statements from the acquisition date. Pro forma results of Outward have not been presented as the results were not material to our Consolidated Financial Statements for all years presented, and would not have been material had the acquisition occurred at the beginning of fiscal 2017. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 28, 2018 | |
Fiscal Year | Fiscal Year Our fiscal year ends on the Sunday closest to January 31, based on a 52 or 53-week 52-week 52-week 52-week |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. These estimates and assumptions are evaluated on an ongoing basis and are based on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results could differ from these estimates. |
Cash Equivalents | Cash Equivalents Cash equivalents include highly liquid investments with an original maturity of three months or less. As of January 28, 2018, we were invested primarily in interest bearing demand deposit accounts and money market funds. Book cash overdrafts issued, but not yet presented to the bank for payment, are reclassified to accounts payable. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are stated at their carrying values, net of an allowance for doubtful accounts. Accounts receivable consist primarily of credit card, franchisee and landlord receivables for which collectability is reasonably assured. Receivables are evaluated for collectability on a regular basis and an allowance for doubtful accounts is recorded, if necessary. Our allowance for doubtful accounts was not material to our financial statements as of January 28, 2018 and January 29, 2017. |
Merchandise Inventories | Merchandise Inventories Merchandise inventories, net of an allowance for excess quantities and obsolescence, are stated at the lower of cost (weighted average method) or market. To determine if the value of our inventory should be reduced below cost, we consider current and anticipated demand, customer preferences and age of the merchandise. The significant estimates used in inventory valuation are obsolescence (including excess and slow-moving inventory and lower of cost or market reserves) and estimates of inventory shrinkage. We reserve for obsolescence based on historical trends, aging reports, specific identification and our estimates of future sales and selling prices. Reserves for shrinkage are estimated and recorded throughout the year as a percentage of net sales based on historical shrinkage results, cycle count results within our distribution centers, expectations of future shrinkage and current inventory levels. Actual shrinkage is recorded at year-end off-site year-end, Our obsolescence and shrinkage reserve calculations contain estimates that require management to make assumptions and to apply judgment regarding a number of factors, including market conditions, the selling environment, historical results and current inventory trends. If actual obsolescence or shrinkage estimates change from our original estimate, we will adjust our reserves accordingly throughout the year. We have made no material changes to our assumptions included in the calculations of the obsolescence and shrinkage reserves throughout the year. As of January 28, 2018 and January 29, 2017, our inventory obsolescence reserves were $12,649,000 and $13,770,000, respectively. |
Advertising and Prepaid Catalog Expenses | Advertising and Prepaid Catalog Expenses Advertising expenses consist of media and production costs related to digital advertising, catalog mailings and other direct marketing activities. All advertising costs are expensed as incurred, or upon the release of the initial advertisement, with the exception of prepaid catalog expenses. Prepaid catalog expenses consist primarily of third-party incremental direct costs, including creative design, paper, printing, postage and mailing costs for all of our direct response catalogs. Such costs are capitalized as prepaid catalog expenses and amortized over their expected period of future benefit, generally three months. Total advertising expenses (including digital advertising, catalog advertising and other advertising costs) were approximately $382,206,000, $347,474,000 and $333,276,000 in fiscal 2017, fiscal 2016 and fiscal 2015, respectively. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost. Depreciation is computed using the straight-line method over the following estimated useful lives of the assets: Leasehold improvements Shorter of estimated useful life or lease term (generally 5 – 22 years) Fixtures and equipment 2 – 20 years Buildings and building improvements 10 – 40 years Capitalized software 2 – 10 years We review the carrying value of all long-lived assets for impairment, primarily at an individual store level, whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Our impairment analyses determine whether projected cash flows from operations are sufficient to recover the carrying value of these assets. Impairment may result when the carrying value of the asset exceeds the estimated undiscounted future cash flows over its remaining useful life. For store impairment, our estimate of undiscounted future cash flows over the store lease term is based upon our experience, the historical operations of the stores and estimates of future store profitability and economic conditions. The estimates of future store profitability and economic conditions require estimating such factors as sales growth, gross margin, employment costs, lease escalations, inflation and the overall economics of the retail industry, and are therefore subject to variability and difficult to predict. Actual future results may differ from those estimates. If a long-lived asset is found to be impaired, the amount recognized for impairment is equal to the excess of the asset’s net carrying value over its fair value. Long-lived assets are measured at fair value on a nonrecurring basis using Level 3 inputs as defined in the fair value hierarchy (see Note M). The fair value is based on the present value of estimated future cash flows using a discount rate that approximates our weighted average cost of capital. During fiscal 2017, we did not record any asset impairment charges. During fiscal 2016 and fiscal 2015, we recorded asset impairment charges of approximately $1,765,000 and $2,100,000, respectively, related to our retail stores, which is recorded within selling, general and administrative expenses. |
Goodwill | Goodwill Goodwill is initially recorded as of the acquisition date, and is measured as any excess of the purchase price over the estimated fair value of the identifiable net assets acquired. Goodwill is not amortized, but rather is subject to impairment testing annually (on the first day of the fourth quarter), or between annual tests whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying amount. We first perform a qualitative assessment to evaluate goodwill for potential impairment. If based on that assessment it is more likely than not that the fair value of the reporting unit is below its carrying value, a quantitative impairment test is necessary. The quantitative impairment test requires determining the fair value of the reporting unit. We use the income approach, whereby we calculate the fair value based on the present value of estimated future cash flows using a discount rate that approximates our weighted average cost of capital. The process of evaluating the potential impairment of goodwill is subjective and requires significant estimates and assumptions about the future such as sales growth, gross margins, employment costs, capital expenditures, inflation and future economic and market conditions. Actual future results may differ from those estimates. If the carrying value of the reporting unit’s assets and liabilities, including goodwill, exceeds its fair value, impairment is recorded for the excess, not to exceed the total amount of goodwill allocated to the reporting unit. As of January 28, 2018 and January 29, 2017, we had goodwill of $18,838,000 and $18,680,000, respectively, presented within other long-term assets in our Consolidated Balance Sheets, primarily related to our fiscal 2011 acquisition of Rejuvenation, Inc. In fiscal 2017 and fiscal 2016, we performed a qualitative assessment of potential goodwill impairment and determined it was more likely than not that the fair value of each of our reporting units exceeded its carrying value. Accordingly, no further impairment testing of goodwill was performed, and we did not recognize any goodwill impairment in fiscal 2017 or fiscal 2016. In fiscal 2015, we performed a quantitative goodwill impairment test and determined that the fair value of each of our reporting units substantially exceeded their carrying value. Accordingly, we did not recognize any goodwill impairment in fiscal 2015. |
Self-Insured Liabilities | Self-Insured Liabilities We are primarily self-insured for workers’ compensation, employee health benefits, product and other general liability claims. We record self-insurance liability reserves based on claims filed, including the development of those claims, and an estimate of claims incurred but not yet reported, based on an actuarial analysis of historical claims data. Factors affecting these estimates include future inflation rates, changes in severity, benefit level changes, medical costs and claim settlement patterns. Should a different number of claims occur compared to what was estimated, or costs of the claims increase or decrease beyond what was anticipated, reserves may need to be adjusted accordingly. Self-insurance reserves for workers’ compensation, employee health benefits, product and other general liability claims were $26,370,000 and $24,988,000 as of January 28, 2018 and January 29, 2017, respectively. |
Customer Deposits | Customer Deposits Customer deposits are primarily comprised of deferred revenues related to unredeemed stored-value cards and undelivered merchandise. We maintain a liability for unredeemed stored-value cards until the earlier of redemption, escheatment or four years as we have concluded that the likelihood of our stored-value cards being redeemed beyond four years from the date of issuance is remote. Income from unredeemed stored-value cards, which is recorded in other income within selling, general and administrative expenses, is not material to our Consolidated Financial Statements. Our stored-value cards have no expiration dates. |
Deferred Rent and Lease Incentives | Deferred Rent and Lease Incentives For leases that contain fixed escalations of the minimum annual lease payment during the original term of the lease, we recognize rental expense on a straight-line basis over the lease term, including the construction period, and record the difference between rent expense and the amount currently payable as deferred rent. Deferred lease incentives include construction allowances received from landlords, which are amortized on a straight-line basis over the lease term, including the construction period. For any store or facility closure where a lease obligation still exists, we record the estimated future liability associated with the rental obligation on the cease use date. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying values of cash and cash equivalents, accounts receivable, accounts payable and debt approximate their estimated fair values. We use derivative financial instruments to hedge against foreign currency exchange rate fluctuations. The assets or liabilities associated with our derivative financial instruments are recorded at fair value in either other current or long-term assets or other current or long-term liabilities. The fair value of our foreign currency derivative instruments is measured using the income approach whereby we use observable market data at the measurement date and standard valuation techniques to convert future amounts to a single present value amount. These observable inputs include spot rates, forward rates, interest rates and credit derivative market rates (see Notes L and M for additional information). |
Revenue Recognition | Revenue Recognition We recognize revenues (including shipping fees) and the related cost of goods sold (including shipping expense) at the time the products are delivered to our customers. Revenue is recognized for retail sales (excluding home-delivered merchandise) at the point of sale in the store and, for home-delivered merchandise and e-commerce |
Sales Returns Reserve | Sales Returns Reserve Our customers may return purchased items for an exchange or refund. We record a reserve for estimated product returns, net of cost of goods sold, based on historical return trends together with current product sales performance. A summary of activity in our sales returns reserve is as follows: In thousands Fiscal 2017 1 Fiscal 2016 1 Fiscal 2015 1 Balance at beginning of year $ 16,058 $ 19,113 $ 14,782 Provision for sales returns 302,320 303,694 321,421 Actual sales returns (306,536 ) (306,749 ) (317,090 ) Balance at end of year $ 11,842 $ 16,058 $ 19,113 1 Amounts are shown net of cost of goods sold. |
Vendor Allowances | Vendor Allowances We receive allowances or credits from certain vendors for volume rebates. We treat such volume rebates as an offset to the cost of the product or services provided at the time the expense is recorded. These allowances and credits received are recorded in both cost of goods sold and in selling, general and administrative expenses. |
Cost of Goods Sold | Cost of Goods Sold Cost of goods sold includes cost of goods, occupancy expenses and shipping costs. Cost of goods consists of cost of merchandise, inbound freight expenses, freight-to-store |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses consist of non-occupancy-related |
Stock-Based Compensation | Stock-Based Compensation We account for stock-based compensation arrangements by measuring and recognizing compensation expense for all stock-based awards using a fair value based method. Restricted stock units are valued using the closing price of our stock on the date prior to the date of grant. The fair value of each stock-based award is amortized over the requisite service period. |
Foreign Currency Translation | Foreign Currency Translation Some of our foreign operations have a functional currency other than the U.S. dollar. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect at the balance sheet date, while revenues and expenses are translated at the average exchange rates during the period. The resulting translation adjustments are recorded as other comprehensive income within stockholders’ equity. Foreign currency exchange gains and losses are recorded in selling, general and administrative expenses, except for those discussed in Note L. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding plus common stock equivalents for the period. Common stock equivalents consist of shares subject to stock-based awards with exercise prices less than or equal to the average market price of our common stock for the period, to the extent their inclusion would be dilutive. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method. Under this method, deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in our Consolidated Financial Statements. We record reserves for our estimates of the additional income tax liability that is more likely than not to result from the ultimate resolution of foreign and domestic tax examinations. At any one time, many tax years are subject to examination by various taxing jurisdictions. The results of these audits and negotiations with taxing authorities may affect the ultimate settlement of these issues. We review and update the estimates used in the accrual for uncertain tax positions as more definitive information becomes available from taxing authorities, upon completion of tax examination, upon expiration of statutes of limitation, or upon occurrence of other events. In order to compute income tax on an interim basis, we estimate what our effective tax rate will be for the full fiscal year and adjust these estimates throughout the year as necessary. Adjustments to our income tax provision due to changes in our estimated effective tax rate are recorded in the interim period in which the change occurs. The tax expense (or benefit) related to items other than ordinary income is individually computed and recognized when the items occur. Our effective tax rate in a given financial statement period may be materially impacted by changes in the mix and level of our earnings in various taxing jurisdictions or changes in tax law. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations 2016-10, Identifying Performance Obligations and Licensing 2014-09 • the reclassification from selling, general and administrative expenses into net revenues for certain incentives received from credit card issuers, • the reclassification of breakage income related to our unredeemed stored-value cards from selling, general and administrative expenses into net revenues, as well as an acceleration in the timing of recognizing breakage income, and • an acceleration in the timing of revenue recognition for certain merchandise shipped to our customers. In addition, prepaid catalog advertising costs, which are currently amortized over their expected period of future benefit of approximately three months, will be expensed as incurred. We do not expect the impact of this change to be material to our Consolidated Statement of Earnings going forward. We will adopt these ASUs on a modified retrospective basis in the first quarter of fiscal 2018 and, as a result, will record approximately $30,000,000 in net pre-tax cumulative effect adjustments to increase retained earnings primarily related to unredeemed stored-value cards, partially offset by prepaid catalog expenses capitalized prior to adoption. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, fifty-two In February 2016, the FASB issued ASU 2016-02, Leases, right-of-use In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other than Inventory In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (Topic 815), both non-financial and In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220) |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 28, 2018 | |
Schedule of Estimated Useful Lives of Property, Plant And Equipment | Depreciation is computed using the straight-line method over the following estimated useful lives of the assets: Leasehold improvements Shorter of estimated useful life or lease term (generally 5 – 22 years) Fixtures and equipment 2 – 20 years Buildings and building improvements 10 – 40 years Capitalized software 2 – 10 years |
Schedule of Summary of Activity in Sales Returns Reserve | A summary of activity in our sales returns reserve is as follows: In thousands Fiscal 2017 1 Fiscal 2016 1 Fiscal 2015 1 Balance at beginning of year $ 16,058 $ 19,113 $ 14,782 Provision for sales returns 302,320 303,694 321,421 Actual sales returns (306,536 ) (306,749 ) (317,090 ) Balance at end of year $ 11,842 $ 16,058 $ 19,113 1 Amounts are shown net of cost of goods sold. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 28, 2018 | |
Schedule of Property and Equipment | Property and equipment consists of the following: In thousands Jan. 28, 2018 Jan. 29, 2017 Leasehold improvements $ 950,024 $ 923,909 Fixtures and equipment 800,003 762,379 Capitalized software 621,730 584,122 Land and buildings 173,457 172,856 Corporate systems projects in progress 65,283 52,352 Construction in progress 1 8,615 13,704 Total 2,619,112 2,509,322 Accumulated depreciation (1,686,829 ) (1,586,039 ) Property and equipment, net $ 932,283 $ 923,283 1 Construction in progress primarily consists of leasehold improvements and furniture and fixtures related to new, expanded or remodeled retail stores where construction had not been completed as of year-end. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 28, 2018 | |
Schedule of Components of Earnings Before Income Taxes, By Tax Jurisdiction | The components of earnings before income taxes, by tax jurisdiction, are as follows: In thousands Fiscal 2017 Fiscal 2016 Fiscal 2015 United States $ 379,000 $ 425,517 $ 462,701 Foreign 73,439 46,394 25,306 Total earnings before income taxes $ 452,439 $ 471,911 $ 488,007 |
Schedule of Components of Provision for Income Taxes | The provision for income taxes consists of the following: In thousands Fiscal 2017 Fiscal 2016 Fiscal 2015 Current Federal $ 97,202 $ 125,760 $ 156,812 State 19,552 26,197 22,969 Foreign 12,759 7,453 5,594 Total current 129,513 159,410 185,375 Deferred Federal 62,893 8,307 (6,093 ) State 460 (807 ) 1,258 Foreign 28 (386 ) (2,601 ) Total deferred 63,381 7,114 (7,436 ) Total provision $ 192,894 $ 166,524 $ 177,939 |
Schedule of Reconciliation of Income Taxes at Federal Statutory Corporate Rate to Effective Rate | A reconciliation of income taxes at the federal statutory corporate rate to the effective rate is as follows: Fiscal 2017 Fiscal 2016 Fiscal 2015 Federal income taxes at the statutory rate 33.9% 35.0% 35.0% Re-measurement 6.7% — — Transition tax 2.9% — — State income tax rate 2.5% 3.5% 3.2% Change in uncertain tax positions (1.6% ) 2.8% (0.1% ) Rate differential (2.9% ) (5.7% ) (1.8% ) Other 1.1% (0.3% ) 0.2% Effective tax rate 42.6% 35.3% 36.5% |
Schedule of Components of Deferred Income Tax Accounts | Significant components of our deferred income tax accounts are as follows: Deferred tax assets (liabilities), in thousands Jan. 28, 2018 Jan. 29, 2017 Customer deposits $ 23,601 $ 64,776 Merchandise inventories 23,314 32,003 Deferred rent 18,387 24,182 Compensation 14,127 16,781 Accrued liabilities 13,626 23,994 Stock-based compensation 9,024 17,437 Federal and state net operating loss 6,026 2,797 Executive deferred compensation 5,886 7,060 State taxes 5,099 7,107 Deferred lease incentives (24,854 ) (36,715 ) Depreciation (17,361 ) (22,477 ) Prepaid catalog expenses (5,386 ) (8,726 ) Other (3,116 ) 8,014 Valuation allowance (1,067 ) (995 ) Total deferred income tax assets, net $ 67,306 $ 135,238 |
Summary of Activity Related to Gross Unrecognized Tax Benefits | The following table summarizes the activity related to our gross unrecognized tax benefits: In thousands Fiscal 2017 Fiscal 2016 Fiscal 2015 Balance at beginning of year $ 25,864 $ 13,290 $ 14,359 Increases related to current year’s tax positions 3,345 11,772 2,765 Increases related to prior years’ tax positions 808 3,456 101 Decreases related to prior years’ tax positions (10,610 ) (818 ) (341 ) Settlements — (714 ) (2,912 ) Lapses in statute of limitations (1,356 ) (1,122 ) (682 ) Balance at end of year $ 18,051 $ 25,864 $ 13,290 |
Accounting for Leases (Tables)
Accounting for Leases (Tables) | 12 Months Ended |
Jan. 28, 2018 | |
Schedule of Total Rent Expense for All Operating Leases | Total rent expense for all operating leases was as follows: In thousands Fiscal 2017 Fiscal 2016 Fiscal 2015 Rent expense $ 263,409 $ 251,066 $ 224,564 Contingent rent expense 24,918 26,980 33,985 Rent expense before deferred lease incentive income 288,327 278,046 258,549 Deferred lease incentive income (25,293 ) (25,298 ) (24,679 ) Less: sublease rental income (578 ) (558 ) (608 ) Total rent expense 1 $ 262,456 $ 252,190 $ 233,262 1 Excludes all other occupancy-related costs including depreciation, common area maintenance, property taxes and utilities. |
Schedule of Aggregate Future Minimum Annual Cash Rental Payments Under Non-Cancellable Operating Leases | The aggregate future minimum annual cash rental payments under non-cancellable In thousands Lease Commitments 1 Fiscal 2018 $ 288,583 Fiscal 2019 275,712 Fiscal 2020 245,189 Fiscal 2021 212,085 Fiscal 2022 176,193 Thereafter 671,173 Total $ 1,868,935 1 Projected cash payments include only those amounts that are fixed and determinable as of the reporting date and are not necessarily representative of future expected rent expense. We currently pay rent for certain store locations based on a percentage of store sales. As future store sales cannot be predicted with certainty, projected payments for these locations are based on minimum rent, which is generally higher than rent based on a percentage of store sales. We incur other lease obligation expenses, such as common area maintenance and other executory costs, which are not fixed in nature and are thus not included in the future projected cash payments reflected above. In addition, projected cash payments do not include any benefit from deferred lease incentive income, which is reflected within “Total rent expense” above. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 28, 2018 | |
Reconciliation of Net Earnings and Number of Shares Used In Basic and Diluted Earnings per Share Computations | The following is a reconciliation of net earnings and the number of shares used in the basic and diluted earnings per share computations: In thousands, except per share amounts Net Earnings Weighted Earnings Fiscal 2017 Basic $ 259,545 85,592 $ 3.03 Effect of dilutive stock-based awards 488 Diluted $ 259,545 86,080 $ 3.02 Fiscal 2016 Basic $ 305,387 88,594 $ 3.45 Effect of dilutive stock-based awards 868 Diluted $ 305,387 89,462 $ 3.41 Fiscal 2015 Basic $ 310,068 90,787 $ 3.42 Effect of dilutive stock-based awards 1,315 Diluted $ 310,068 92,102 $ 3.37 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 28, 2018 | |
Summary of Stock-Settled Stock Appreciation Rights Activity | The following table summarizes our stock-settled stock appreciation right activity during fiscal 2017: Shares Weighted Average Conversion 1 Weighted Average Contractual Term Intrinsic 2 Balance at January 29, 2017 (100% vested) 411,710 $ 26.02 Granted — — Converted into common stock (243,973 ) 22.66 Cancelled — — Balance at January 28, 2018 (100% vested) 167,737 $ 30.91 0.42 $ 3,774,000 1 Conversion price is equal to the market value on the date of grant. 2 Intrinsic value for outstanding and vested rights is based on the excess of the market value of our common stock on the last business day of the fiscal year (or $53.41) over the conversion price. |
Summary of Restricted Stock Units Activity | The following table summarizes our restricted stock unit activity during fiscal 2017: Shares Weighted Fair Value Weighted Average Contractual Term Intrinsic Value 1 Balance at January 29, 2017 2,232,486 $ 63.75 Granted 1,301,405 52.60 Granted, with vesting subject to performance conditions 222,110 53.74 Released (665,085 ) 61.26 Cancelled (732,779 ) 61.09 Balance at January 28, 2018 2,358,137 $ 58.18 3.17 $ 125,948,000 Vested plus expected to vest at January 28, 2018 1,684,675 $ 57.15 3.24 $ 89,978,000 1 Intrinsic value for outstanding and unvested restricted stock units is based on the market value of our common stock on the last business day of the fiscal year (or $53.41). |
Summary of Additional Information About Restricted Stock Units | The following table summarizes additional information about restricted stock units: Fiscal 2017 Fiscal 2016 Fiscal 2015 Weighted average grant date fair value per share of awards granted $ 52.76 $ 59.17 $ 76.19 Intrinsic value of awards released 1 $ 35,508,000 $ 56,405,000 $ 50,773,000 1 Intrinsic value for releases is based on the market value on the date of release. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Jan. 28, 2018 | |
Segment Information | Segment Information In thousands E-commerce Retail Unallocated Total Fiscal 2017 Net revenues 1 $ 2,778,457 $ 2,513,902 $ — $ 5,292,359 Depreciation and amortization expense 28,977 90,625 63,475 183,077 Operating income (loss) 2,3 599,491 224,608 (370,288 ) 453,811 Assets 4 776,569 1,114,726 894,454 2,785,749 Capital expenditures 39,273 83,750 66,689 189,712 Fiscal 2016 Net revenues 1 $ 2,633,602 $ 2,450,210 $ — $ 5,083,812 Depreciation and amortization expense 31,135 86,228 55,832 173,195 Operating income (loss) 2 606,286 231,929 (365,616 ) 472,599 Assets 4 614,213 1,077,593 785,073 2,476,879 Capital expenditures 21,479 102,859 73,076 197,414 Fiscal 2015 Net revenues 1 $ 2,522,580 $ 2,453,510 $ — $ 4,976,090 Depreciation and amortization expense 32,056 83,027 52,677 167,760 Operating income (loss) 562,081 239,288 (312,735 ) 488,634 Assets 4 625,951 1,049,892 741,584 2,417,427 Capital expenditures 22,293 102,717 77,925 202,935 1 Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom and our franchise businesses) of approximately $328.2 million, $321.2 million and $298.9 million in fiscal 2017, fiscal 2016 and fiscal 2015, respectively. 2 Includes approximately $8.6 million in fiscal 2017 and $14.4 million in fiscal 2016 for severance-related reorganization charges, primarily in our corporate functions, which is recorded in selling, general and administrative expenses within the unallocated segment. 3 Includes approximately $6.2 million in fiscal 2017 for costs related to the acquisition of Outward and its ongoing operations, which is primarily recorded in selling, general and administrative expenses. 4 Includes long-term assets related to our international operations of approximately $63.4 million, $59.2 million and $61.7 million in fiscal 2017, fiscal 2016 and fiscal 2015, respectively. |
Derivative Financial Instrume32
Derivative Financial Instruments (Tables) | 12 Months Ended |
Jan. 28, 2018 | |
Foreign Currency Forward Contracts Outstanding with Notional Values | As of January 28, 2018, and January 29, 2017, we had foreign currency forward contracts outstanding (in U.S. dollars) with notional values as follows: In thousands Jan. 28, 2018 Jan. 29, 2017 Contracts designated as cash flow hedges $ 28,200 $ 19,550 Contracts not designated as cash flow hedges $ 46,000 $ 46,000 |
Effect of Derivative Instruments in Consolidated Financial Statements | The effect of derivative instruments in our Consolidated Financial Statements, pre-tax, In thousands Fiscal 2017 Fiscal 2016 Fiscal 2015 Net gain (loss) recognized in OCI $ (974 ) $ (1,243 ) $ 1,454 Net gain (loss) reclassified from OCI to cost of goods sold $ (144 ) $ (147 ) $ 1,605 Net foreign exchange gain (loss) recognized in selling, general and administrative expenses: Instruments designated as cash flow hedges 1 $ 88 $ (4 ) $ (66 ) Instruments not designated or de-designated $ (3,286 ) $ (3,569 ) $ 2,838 1 Changes in fair value of the forward contract related to interest charges (or forward points). |
Fair Values of Derivative Instruments | The fair values of our derivative financial instruments are presented below according to their classification in our Consolidated Balance Sheets. All fair values were measured using Level 2 inputs as defined by the fair value hierarchy described in Note M. In thousands Jan. 28, 2018 Jan. 29, 2017 Derivatives designated as cash flow hedges: Other current assets $ — $ 241 Other long-term assets $ — $ 21 Other current liabilities $ (635 ) $ (230 ) Other long-term liabilities $ (54 ) $ — Derivatives not designated as hedging instruments: Other current assets $ — $ 111 Other current liabilities $ (299 ) $ — |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Jan. 28, 2018 | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax | Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows: In thousands Foreign Currency Cash Flow Accumulated Other Balance at February 1, 2015 $ (3,522) $ 974 $ (2,548) Foreign currency translation adjustments (7,958 ) — (7,958 ) Change in fair value of derivative financial instruments — 1,074 1,074 Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — (1,184 ) (1,184 ) Other comprehensive income (loss) (7,958 ) (110 ) (8,068 ) Balance at January 31, 2016 (11,480 ) 864 (10,616 ) Foreign currency translation adjustments 1,523 — 1,523 Change in fair value of derivative financial instruments — (916 ) (916 ) Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — 106 106 Other comprehensive income (loss) 1,523 (810 ) 713 Balance at January 29, 2017 (9,957 ) 54 (9,903 ) Foreign currency translation adjustments 3,730 — 3,730 Change in fair value of derivative financial instruments — (715 ) (715 ) Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — 106 106 Other comprehensive income (loss) 3,730 (609 ) 3,121 Balance at January 28, 2018 $ (6,227 ) $ (555 ) $ (6,782 ) 1 Refer to Note L for additional disclosures about reclassifications out of accumulated other comprehensive income and their corresponding effects on the respective line items in the Consolidated Statements of Earnings. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Jan. 28, 2018USD ($)Store | Jan. 29, 2017USD ($) | Jan. 31, 2016USD ($) | Apr. 30, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of stores | Store | 631 | |||
Inventory obsolescence reserves | $ 12,649,000 | $ 13,770,000 | ||
Advertising expenses | 382,206,000 | 347,474,000 | $ 333,276,000 | |
Asset impairment charges | 0 | 1,765,000 | 2,100,000 | |
Goodwill | 18,838,000 | 18,680,000 | ||
Goodwill impairment | 0 | 0 | $ 0 | |
Self-insurance reserves | $ 26,370,000 | $ 24,988,000 | ||
Period of recognition for stored-value card | 4 years | |||
Retained Earnings | Adjustments for New Accounting Pronouncement | Scenario, Forecast | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Cumulative effect of net pre-tax increase to retained earnings | $ 30,000,000 |
Estimated Useful Lives of Prope
Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Jan. 28, 2018 | |
Leasehold Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of assets, years | 5 years |
Leasehold Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of assets, years | 22 years |
Fixtures and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of assets, years | 2 years |
Fixtures and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of assets, years | 20 years |
Buildings and Building Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of assets, years | 10 years |
Buildings and Building Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of assets, years | 40 years |
Capitalized Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of assets, years | 2 years |
Capitalized Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of assets, years | 10 years |
Summary of Activity in Sales Re
Summary of Activity in Sales Returns Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | ||
Summary Of Significant Accounting Policies [Line Items] | ||||
Balance at beginning of year | [1] | $ 16,058 | $ 19,113 | $ 14,782 |
Provision for sales returns | [1] | 302,320 | 303,694 | 321,421 |
Actual sales returns | [1] | (306,536) | (306,749) | (317,090) |
Balance at end of year | [1] | $ 11,842 | $ 16,058 | $ 19,113 |
[1] | Amounts are shown net of cost of goods sold. |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | Jan. 28, 2018 | Jan. 29, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 2,619,112 | $ 2,509,322 | |
Accumulated depreciation | (1,686,829) | (1,586,039) | |
Property and equipment, net | 932,283 | 923,283 | |
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 950,024 | 923,909 | |
Fixtures and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 800,003 | 762,379 | |
Capitalized Software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 621,730 | 584,122 | |
Land and Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 173,457 | 172,856 | |
Corporate Systems Projects in Progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 65,283 | 52,352 | |
Construction in Progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | [1] | $ 8,615 | $ 13,704 |
[1] | Construction in progress primarily consists of leasehold improvements and furniture and fixtures related to new, expanded or remodeled retail stores where construction had not been completed as of year-end. |
Borrowing Arrangements - Additi
Borrowing Arrangements - Additional Information (Detail) - USD ($) | Jan. 08, 2018 | Jan. 28, 2018 | Jan. 29, 2017 |
Debt Instrument [Line Items] | |||
Amount of borrowings under revolving line during period | $ 170,000,000 | $ 125,000,000 | |
Amount outstanding under revolving line | $ 0 | $ 0 | |
Interest rate description | Interest on unreimbursed amounts under the letter of credit facilities accrues at a base rate as defined in the credit facility, plus a margin based on our leverage ratio. | ||
Maximum borrowing capacity under letter of credit facilities including additional borrowing capacity | $ 70,000,000 | ||
Letter of credit facilities, maturity date | Aug. 25, 2018 | ||
Outstanding letter of credit facilities | $ 6,721,000 | ||
Latest expiration date possible for future letters of credit | Jan. 22, 2019 | ||
Standby Letters of Credit | |||
Debt Instrument [Line Items] | |||
Amount issued but undrawn under credit facility | $ 12,780,000 | ||
Unsecured Revolving Line Of Credit | |||
Debt Instrument [Line Items] | |||
Current borrowing capacity | $ 500,000,000 | ||
Maximum borrowing capacity including additional borrowing capacity | $ 750,000,000 | ||
Revolving line, maturity date | Jan. 8, 2023 | ||
Weighted average interest rate | 2.21% | 1.54% | |
Interest rate description | The interest rate under the credit facility is variable, and may be elected by us as (i) the London Interbank Offer Rate ("LIBOR") plus an applicable margin based on our leverage ratio ranging from 0.91% to 1.775% for a revolver borrowing, and 1.0% to 2.0% for the term loan; or (ii) a base rate as defined in the credit facility, plus an applicable margin ranging from 0% to 0.775% for a revolver borrowing, and 0% to 1% for the term loan. | ||
Unsecured Revolving Line Of Credit | Maximum | |||
Debt Instrument [Line Items] | |||
Additional borrowing capacity | $ 250,000,000 | ||
Unsecured Revolving Line Of Credit | Margin Based On Leverage Ratio | Maximum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 1.775% | ||
Unsecured Revolving Line Of Credit | Margin Based On Leverage Ratio | Minimum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 0.91% | ||
Unsecured Revolving Line Of Credit | Base Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 0.775% | ||
Unsecured Revolving Line Of Credit | Base Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 0.00% | ||
Unsecured Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 300,000,000 | ||
Long term debt | $ 300,000,000 | ||
Debt instrument, maturity date | Jan. 8, 2021 | ||
Weighted average interest rate | 2.68% | ||
Unsecured Term Loan Facility | Margin Based On Leverage Ratio | Maximum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 2.00% | ||
Unsecured Term Loan Facility | Margin Based On Leverage Ratio | Minimum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 1.00% | ||
Unsecured Term Loan Facility | Base Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 1.00% | ||
Unsecured Term Loan Facility | Base Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 0.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Jan. 27, 2019 | Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | Feb. 01, 2015 | |
Income Taxes [Line Items] | |||||
Federal income taxes at the statutory rate | 33.90% | 35.00% | 35.00% | ||
Net tax expense for transition tax | $ 13,200,000 | ||||
Re-measurement of deferred tax assets | 28,300,000 | ||||
Deferred tax assets valuation allowance | 1,067,000 | $ 995,000 | |||
Unrecognized tax benefits, gross | 18,051,000 | 25,864,000 | $ 13,290,000 | $ 14,359,000 | |
Unrecognized tax benefits, gross, that would, if recognized, affect the effective tax rate | 13,286,000 | ||||
Accruals for interest and penalties | 3,719,000 | $ 2,882,000 | |||
Scenario, Plan | |||||
Income Taxes [Line Items] | |||||
Federal income taxes at the statutory rate | 21.00% | ||||
Outward Inc. | |||||
Income Taxes [Line Items] | |||||
Net operating loss carry-forwards, federal | 14,904,000 | ||||
Net operating loss carry-forwards, state | 4,838,000 | ||||
Deferred tax assets valuation allowance | 0 | ||||
Minimum | |||||
Income Taxes [Line Items] | |||||
Gross unrecognized tax benefits, possible decrease in balance within next twelve months | 0 | ||||
Maximum | |||||
Income Taxes [Line Items] | |||||
Gross unrecognized tax benefits, possible decrease in balance within next twelve months | $ 3,800,000 |
Components of Earnings Before I
Components of Earnings Before Income Taxes, by Tax Jurisdiction (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | |
Schedule of Income Before Income Tax [Line Items] | |||
United States | $ 379,000 | $ 425,517 | $ 462,701 |
Foreign | 73,439 | 46,394 | 25,306 |
Earnings before income taxes | $ 452,439 | $ 471,911 | $ 488,007 |
Components Of Provision For Inc
Components Of Provision For Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | |
Provision For Income Taxes [Line Items] | |||
Federal, Current | $ 97,202 | $ 125,760 | $ 156,812 |
State, Current | 19,552 | 26,197 | 22,969 |
Foreign, Current | 12,759 | 7,453 | 5,594 |
Total current | 129,513 | 159,410 | 185,375 |
Federal, Deferred | 62,893 | 8,307 | (6,093) |
State, Deferred | 460 | (807) | 1,258 |
Foreign, Deferred | 28 | (386) | (2,601) |
Total deferred | 63,381 | 7,114 | (7,436) |
Total provision | $ 192,894 | $ 166,524 | $ 177,939 |
Reconciliation of Income Taxes
Reconciliation of Income Taxes At Federal Statutory Rate to Effective Rate (Detail) | 12 Months Ended | ||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | |
Reconciliation of Statutory Federal Tax Rate [Line Items] | |||
Federal income taxes at the statutory rate | 33.90% | 35.00% | 35.00% |
Re-measurement of deferred tax assets and liabilities | 6.70% | ||
Transition tax | 2.90% | ||
State income tax rate | 2.50% | 3.50% | 3.20% |
Change in uncertain tax positions | (1.60%) | 2.80% | (0.10%) |
Rate differential | (2.90%) | (5.70%) | (1.80%) |
Other | 1.10% | (0.30%) | 0.20% |
Effective tax rate | 42.60% | 35.30% | 36.50% |
Significant Components of Defer
Significant Components of Deferred Income Tax Accounts (Detail) - USD ($) $ in Thousands | Jan. 28, 2018 | Jan. 29, 2017 |
Deferred Income Tax Asset [Line Items] | ||
Customer deposits | $ 23,601 | $ 64,776 |
Merchandise inventories | 23,314 | 32,003 |
Deferred rent | 18,387 | 24,182 |
Compensation | 14,127 | 16,781 |
Accrued liabilities | 13,626 | 23,994 |
Stock-based compensation | 9,024 | 17,437 |
Federal and state net operating loss | 6,026 | 2,797 |
Executive deferred compensation | 5,886 | 7,060 |
State taxes | 5,099 | 7,107 |
Deferred lease incentives | (24,854) | (36,715) |
Depreciation | (17,361) | (22,477) |
Prepaid catalog expenses | (5,386) | (8,726) |
Other | (3,116) | 8,014 |
Valuation allowance | (1,067) | (995) |
Total deferred income tax assets, net | $ 67,306 | $ 135,238 |
Summary of Activity Related to
Summary of Activity Related to Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | |
Schedule of Unrecognized Tax Benefits [Line Items] | |||
Balance at beginning of year | $ 25,864 | $ 13,290 | $ 14,359 |
Increases related to current year's tax positions | 3,345 | 11,772 | 2,765 |
Increases related to prior years' tax positions | 808 | 3,456 | 101 |
Decreases related to prior years' tax positions | (10,610) | (818) | (341) |
Settlements | (714) | (2,912) | |
Lapses in statute of limitations | (1,356) | (1,122) | (682) |
Balance at end of year | $ 18,051 | $ 25,864 | $ 13,290 |
Accounting for Leases - Additio
Accounting for Leases - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jan. 28, 2018 | Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | ||
Accounting For Leases [Line Items] | |||||
Maximum optional renewal period under operating leases, years | 20 years | ||||
Rent expense | [1] | $ 262,456,000 | $ 252,190,000 | $ 233,262,000 | |
Partnership | |||||
Accounting For Leases [Line Items] | |||||
Lease expiration date | Jul. 31, 2017 | ||||
Rent expense | $ 1,629,000 | $ 1,599,000 | $ 3,050,000 | ||
Extension period | 1 year | ||||
Operating lease term extended expiry date | Jul. 31, 2018 | ||||
Partnership | Amendment | |||||
Accounting For Leases [Line Items] | |||||
Operating lease term extended expiry date | Jul. 31, 2020 | ||||
Renewal options period | 1 year | ||||
Minimum | |||||
Accounting For Leases [Line Items] | |||||
Operating lease term, years | 5 years | ||||
Maximum | |||||
Accounting For Leases [Line Items] | |||||
Operating lease term, years | 22 years | ||||
[1] | Excludes all other occupancy-related costs including depreciation, common area maintenance, property taxes and utilities. |
Total Rent Expense for All Oper
Total Rent Expense for All Operating Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | ||
Accounting For Leases [Line Items] | ||||
Rent expense | $ 263,409 | $ 251,066 | $ 224,564 | |
Contingent rent expense | 24,918 | 26,980 | 33,985 | |
Rent expense before deferred lease incentive income | 288,327 | 278,046 | 258,549 | |
Deferred lease incentive income | (25,293) | (25,298) | (24,679) | |
Less: sublease rental income | (578) | (558) | (608) | |
Total rent expense | [1] | $ 262,456 | $ 252,190 | $ 233,262 |
[1] | Excludes all other occupancy-related costs including depreciation, common area maintenance, property taxes and utilities. |
Aggregate Future Minimum Annual
Aggregate Future Minimum Annual Cash Rental Payments Under Non-Cancellable Operating Leases (Detail) $ in Thousands | Jan. 28, 2018USD ($) | [1] |
Accounting For Leases [Line Items] | ||
Lease Commitments, Fiscal 2018 | $ 288,583 | |
Lease Commitments, Fiscal 2019 | 275,712 | |
Lease Commitments, Fiscal 2020 | 245,189 | |
Lease Commitments, Fiscal 2021 | 212,085 | |
Lease Commitments, Fiscal 2022 | 176,193 | |
Lease Commitments, Thereafter | 671,173 | |
Total | $ 1,868,935 | |
[1] | Projected cash payments include only those amounts that are fixed and determinable as of the reporting date and are not necessarily representative of future expected rent expense. We currently pay rent for certain store locations based on a percentage of store sales. As future store sales cannot be predicted with certainty, projected payments for these locations are based on minimum rent, which is generally higher than rent based on a percentage of store sales. We incur other lease obligation expenses, such as common area maintenance and other executory costs, which are not fixed in nature and are thus not included in the future projected cash payments reflected above. In addition, projected cash payments do not include any benefit from deferred lease incentive income, which is reflected within "Total rent expense" above. |
Reconciliation of Net Earnings
Reconciliation of Net Earnings and Number of Shares Used in Basic and Diluted Earnings Per Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | |
Earnings Per Share [Line Items] | |||
Net Earnings, Basic | $ 259,545 | $ 305,387 | $ 310,068 |
Net Earnings, Diluted | $ 259,545 | $ 305,387 | $ 310,068 |
Weighted Average Shares, Basic | 85,592 | 88,594 | 90,787 |
Weighted Average Shares, Effect of dilutive stock-based awards | 488 | 868 | 1,315 |
Weighted Average Shares, Diluted | 86,080 | 89,462 | 92,102 |
Earnings Per Share, Basic | $ 3.03 | $ 3.45 | $ 3.42 |
Earnings Per Share, Diluted | $ 3.02 | $ 3.41 | $ 3.37 |
Earnings Per Share- Additional
Earnings Per Share- Additional Information (Detail) - shares | 12 Months Ended | ||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | |
Earnings Per Share [Line Items] | |||
Anti-dilutive stock-based awards excluded from the computation of diluted earnings per share | 577,000 | 261,000 | 12,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum term of grants of option awards, years | 7 years | |||
Stock-based compensation expense | $ 42,988,000 | $ 51,116,000 | $ 41,357,000 | |
Unamortized expense | $ 71,272,000 | |||
Unamortized expense expected to be recognized over average remaining service period (years) | 2 years | |||
Intrinsic value of awards converted into common stock | $ 7,287,000 | 5,237,000 | 24,465,000 | |
Net proceeds related to stock-based awards | 0 | 1,532,000 | 2,647,000 | |
Total current tax benefit associated with the exercise of stock-based awards | $ 16,066,000 | $ 24,129,000 | $ 30,352,000 | |
Minimum | Non-Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of awards granted to employees, years | 1 year | |||
Equity Award Programs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate number of shares under the Plan | 32,310,000 | |||
Shares available for future grant | 6,014,000 | |||
Option Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards annual grant limit | 1,000,000 | |||
Option Awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price as a percentage of closing price on the day prior to the grant date | 100.00% | |||
Service Based Option Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of awards granted to employees, years | 4 years | |||
Stock-Settled Stock Appreciation Rights | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Intrinsic value of awards converted into common stock | [1] | $ 3,774,000 | ||
Stock-settled stock appreciation granted, shares | 0 | 0 | 0 | |
Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards annual grant limit | 1,000,000 | |||
Maximum term of grants of stock awards, years | 7 years | |||
Service Based Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of awards granted to employees, years | 4 years | |||
Performance Based Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of awards granted to employees, years | 3 years | |||
[1] | Intrinsic value for outstanding and vested rights is based on the excess of the market value of our common stock on the last business day of the fiscal year (or $53.41) over the conversion price. |
Summary of Stock-Settled Stock
Summary of Stock-Settled Stock Appreciation Right Activity (Detail) - USD ($) | 12 Months Ended | |||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Balance at January 28, 2018 (100% vested) | $ 7,287,000 | $ 5,237,000 | $ 24,465,000 | |
Stock-Settled Stock Appreciation Rights | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Balance at January 29, 2017 (100% vested) | 411,710 | |||
Granted, shares | 0 | 0 | 0 | |
Converted into common stock, shares | (243,973) | |||
Cancelled, shares | 0 | |||
Balance at January 28, 2018 (100% vested) | 167,737 | 411,710 | ||
Balance at January 29, 2017 (100% vested) | [1] | $ 26.02 | ||
Granted, weighted average conversion price | [1] | 0 | ||
Converted into common stock, weighted average conversion price | [1] | 22.66 | ||
Cancelled, weighted average conversion price | [1] | 0 | ||
Balance at January 28, 2018, shares (100% vested) | [1] | $ 30.91 | $ 26.02 | |
Balance, Weighted average contractual term remaining (years) | 5 months 1 day | |||
Balance at January 28, 2018 (100% vested) | [2] | $ 3,774,000 | ||
[1] | Conversion price is equal to the market value on the date of grant. | |||
[2] | Intrinsic value for outstanding and vested rights is based on the excess of the market value of our common stock on the last business day of the fiscal year (or $53.41) over the conversion price. |
Summary of Stock-Settled Stoc52
Summary of Stock-Settled Stock Appreciation Right Activity (Parenthetical) (Detail) | 12 Months Ended |
Jan. 28, 2018$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Market value on the last business day of the fiscal year | $ 53.41 |
Stock-Settled Stock Appreciation Rights | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vested percentage | 100.00% |
Summary of Restricted Stock Uni
Summary of Restricted Stock Unit Activity (Detail) - USD ($) | 12 Months Ended | |||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, weighted average grant date fair value | $ 52.76 | $ 59.17 | $ 76.19 | |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Balance at January 29, 2017, shares | 2,232,486 | |||
Granted, shares | 1,301,405 | |||
Granted, with vesting subject to performance conditions, shares | 222,110 | |||
Released, shares | (665,085) | |||
Cancelled, shares | (732,779) | |||
Balance at January 28, 2018, shares | 2,358,137 | 2,232,486 | ||
Vested plus expected to vest at January 28, 2018 shares | 1,684,675 | |||
Balance at January 29, 2017, weighted average grant date fair value | $ 63.75 | |||
Granted, weighted average grant date fair value | 52.60 | |||
Granted, with vesting subject to performance conditions, weighted average grant date fair value | 53.74 | |||
Released, weighted average grant date fair value | 61.26 | |||
Cancelled, weighted average grant date fair value | 61.09 | |||
Balance at January 28, 2018, weighted average grant date fair value | 58.18 | $ 63.75 | ||
Vested plus expected to vest at January 28, 2018, weighted average grant date fair value | $ 57.15 | |||
Weighted average contractual term remaining (years) | 3 years 2 months 1 day | |||
Vested plus expected to vest at January 29, 2017, weighted average contractual term remaining (years) | 3 years 2 months 27 days | |||
Balance at January 28, 2018 | [1] | $ 125,948,000 | ||
Vested plus expected to vest at January 28, 2018 | [1] | $ 89,978,000 | ||
[1] | Intrinsic value for outstanding and unvested restricted stock units is based on the market value of our common stock on the last business day of the fiscal year (or $53.41). |
Summary of Restricted Stock U54
Summary of Restricted Stock Unit Activity (Parenthetical) (Detail) | Jan. 28, 2018$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Market value on the last business day of the fiscal year | $ 53.41 |
Summary of Additional Informati
Summary of Additional Information about Restricted Stock units (Detail) - USD ($) | 12 Months Ended | |||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value per share of awards granted | $ 52.76 | $ 59.17 | $ 76.19 | |
Intrinsic value of awards released | [1] | $ 35,508,000 | $ 56,405,000 | $ 50,773,000 |
[1] | Intrinsic value for releases is based on the market value on the date of release. |
Williams-Sonoma, Inc. 401(k) 56
Williams-Sonoma, Inc. 401(k) Plan and Other Employee Benefits - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution | 50.00% | ||
Defined contribution retirement plan, maximum percentage of salary deferral contributions subject to match by employer | 6.00% | ||
Years of service required to be eligible for company matching contributions | 1 year | ||
Matching contribution, vesting percentage per year during first five years of employment | 20.00% | ||
Contributions to the profit sharing plan | $ 8,224,000 | $ 7,725,000 | $ 6,915,000 |
Deferred compensation liabilities included in other long-term obligations | 24,151,000 | 18,736,000 | |
Cash surrender value of the life insurance policies | $ 25,550,000 | $ 19,000,000 | |
Eligible Employees | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution retirement plan, maximum percentage of salary deferral contributions by employee | 75.00% | ||
Highly-Compensated Employees | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution retirement plan, maximum percentage of salary deferral contributions by employee | 7.00% |
Stock Repurchase Program and 57
Stock Repurchase Program and Dividends - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | |
Stock Repurchase Program and Dividend [Line Items] | ||||
Common stock repurchased, shares | 4,050,697 | 2,871,480 | 2,950,438 | |
Common stock repurchased, average cost per share | $ 48.43 | $ 52.68 | $ 76.26 | |
Common stock repurchased, total cost | $ 196,179 | $ 151,272 | $ 224,995 | |
Stock repurchase program, remaining authorized repurchase amount | 214,399 | |||
Treasure stock, value | $ 725 | 1,380 | ||
Cash dividend, per common share | $ 0.39 | |||
Cash dividend declared | $ 135,779 | $ 133,588 | $ 130,290 | |
Cash dividends declared per common share | $ 1.56 | $ 1.48 | $ 1.40 | |
Subsequent Event | ||||
Stock Repurchase Program and Dividend [Line Items] | ||||
Stock repurchase program, authorized shares | $ 500,000 | |||
Percentage increase in authorized cash dividend | 10.00% | |||
Authorized cash dividend, per common share | $ 0.43 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Jan. 28, 2018Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 2 |
Segment Information (Detail)
Segment Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | ||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | [1] | $ 5,292,359 | $ 5,083,812 | $ 4,976,090 | ||
Depreciation and amortization expense | 183,077 | 173,195 | 167,760 | |||
Operating income (loss) | 453,811 | [2],[3] | 472,599 | [3] | 488,634 | |
Assets | [4] | 2,785,749 | 2,476,879 | 2,417,427 | ||
Capital expenditures | 189,712 | 197,414 | 202,935 | |||
E-commerce | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 2,778,457 | 2,633,602 | 2,522,580 | |||
Retail | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 2,513,902 | 2,450,210 | 2,453,510 | |||
Operating Segments | E-commerce | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | [1] | 2,778,457 | 2,633,602 | 2,522,580 | ||
Depreciation and amortization expense | 28,977 | 31,135 | 32,056 | |||
Operating income (loss) | 599,491 | [2],[3] | 606,286 | [3] | 562,081 | |
Assets | [4] | 776,569 | 614,213 | 625,951 | ||
Capital expenditures | 39,273 | 21,479 | 22,293 | |||
Operating Segments | Retail | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | [1] | 2,513,902 | 2,450,210 | 2,453,510 | ||
Depreciation and amortization expense | 90,625 | 86,228 | 83,027 | |||
Operating income (loss) | 224,608 | [2],[3] | 231,929 | [3] | 239,288 | |
Assets | [4] | 1,114,726 | 1,077,593 | 1,049,892 | ||
Capital expenditures | 83,750 | 102,859 | 102,717 | |||
Unallocated | ||||||
Segment Reporting Information [Line Items] | ||||||
Depreciation and amortization expense | 63,475 | 55,832 | 52,677 | |||
Operating income (loss) | (370,288) | [2],[3] | (365,616) | [3] | (312,735) | |
Assets | [4] | 894,454 | 785,073 | 741,584 | ||
Capital expenditures | $ 66,689 | $ 73,076 | $ 77,925 | |||
[1] | Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom and our franchise businesses) of approximately $328.2 million, $321.2 million and $298.9 million in fiscal 2017, fiscal 2016 and fiscal 2015, respectively. | |||||
[2] | Includes approximately $6.2 million in fiscal 2017 for costs related to the acquisition of Outward and its ongoing operations, which is primarily recorded in selling, general and administrative expenses. | |||||
[3] | Includes approximately $8.6 million in fiscal 2017 and $14.4 million in fiscal 2016 for severance-related reorganization charges primarily in our corporate functions, which is recorded in selling, general and administrative expenses within the unallocated segment. | |||||
[4] | Includes long-term assets related to our international operations of approximately $63.4 million, $59.2 million and $61.7 million in fiscal 2017, fiscal 2016 and fiscal 2015, respectively. |
Segment Information (Parentheti
Segment Information (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Net revenues related to foreign operations | $ 328.2 | $ 321.2 | $ 298.9 |
Severance, related reorganization charges | 8.6 | 14.4 | |
Acquisition-related costs | 6.2 | ||
Long-term assets related to foreign operations | $ 63.4 | $ 59.2 | $ 61.7 |
Derivative Financial Instrume61
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | |
Derivative [Line Items] | |||
Reclassification from OCI to cost of goods sold | $ (756,000) | ||
Gain or loss recognized for cash flow hedges due to hedge ineffectiveness | $ 0 | $ 0 | $ 0 |
Foreign Currency Forward Contra
Foreign Currency Forward Contracts Outstanding with Notional Values (Detail) - Foreign Exchange Contract - USD ($) | Jan. 28, 2018 | Jan. 29, 2017 |
Derivatives designated as hedging instruments | Cash Flow Hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Exchange of foreign currency contracts | $ 28,200,000 | $ 19,550,000 |
Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Exchange of foreign currency contracts | $ 46,000,000 | $ 46,000,000 |
Effect of Derivative Instrument
Effect of Derivative Instruments in Consolidated Financial Statements (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | ||
Derivative [Line Items] | ||||
Net gain (loss) recognized in OCI | $ (974) | $ (1,243) | $ 1,454 | |
Net gain (loss) reclassified from OCI to cost of goods sold | (144) | (147) | 1,605 | |
Net foreign exchange gain (loss) recognized in selling, general and administrative expenses, Instruments designated as cash flow hedges | [1] | 88 | (4) | (66) |
Net foreign exchange gain (loss) recognized in selling, general and administrative expenses, Instruments not designated or de-designated | $ (3,286) | $ (3,569) | $ 2,838 | |
[1] | Changes in fair value of the forward contract related to interest charges (or forward points). |
Fair Values of Derivative Instr
Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Jan. 28, 2018 | Jan. 29, 2017 |
Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives designated as cash flow hedges, Assets | $ 241 | |
Derivatives not designated as hedging instruments, Assets | 111 | |
Other Long-Term Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives designated as cash flow hedges, Assets | 21 | |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives designated as cash flow hedges, Liabilities | $ (635) | $ (230) |
Derivatives not designated as hedging instruments, Liabilities | (299) | |
Other Long Term Liabilites | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives designated as cash flow hedges, Liabilities | $ (54) |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 28, 2018 | Jan. 29, 2017 | Jan. 31, 2016 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ (9,903) | |||
Foreign currency translation adjustments | 3,730 | $ 1,523 | $ (7,958) | |
Change in fair value of derivative financial instruments | (715) | (916) | 1,074 | |
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | 106 | 106 | (1,184) | |
Ending Balance | (6,782) | (9,903) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (9,957) | (11,480) | (3,522) | |
Foreign currency translation adjustments | 3,730 | 1,523 | (7,958) | |
Other comprehensive income (loss) | 3,730 | 1,523 | (7,958) | |
Ending Balance | (6,227) | (9,957) | (11,480) | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 54 | 864 | 974 | |
Change in fair value of derivative financial instruments | (715) | (916) | 1,074 | |
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | [1] | 106 | 106 | (1,184) |
Other comprehensive income (loss) | (609) | (810) | (110) | |
Ending Balance | (555) | 54 | 864 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (9,903) | (10,616) | (2,548) | |
Foreign currency translation adjustments | 3,730 | 1,523 | (7,958) | |
Change in fair value of derivative financial instruments | (715) | (916) | 1,074 | |
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | [1] | 106 | 106 | (1,184) |
Other comprehensive income (loss) | 3,121 | 713 | (8,068) | |
Ending Balance | $ (6,782) | $ (9,903) | $ (10,616) | |
[1] | Refer to Note L for additional disclosures about reclassifications out of accumulated other comprehensive income and their corresponding effects on the respective line items in the Consolidated Statements of Earnings. |
Acquisition of Outward, Inc. -
Acquisition of Outward, Inc. - Additional Information (Detail) - USD ($) | Dec. 01, 2017 | Jan. 28, 2018 | Jan. 28, 2018 |
Business Acquisition [Line Items] | |||
Acquisition-related costs | $ 6,200,000 | ||
Outward Inc. | |||
Business Acquisition [Line Items] | |||
Contractual purchase price | $ 112,000,000 | ||
Purchase consideration | 80,864,000 | ||
Consideration owed to former owners of an acquired business, contingent upon continued future service | 26,690,000 | ||
Cash paid to settle pre-existing obligations as part of a business combination, excluded from consideration transferred | 4,446,000 | ||
Consideration owed to certain key employees of an acquired business, contingent upon continued future service and certain financial targets | $ 20,000,000 | ||
Acquisition payment period | 4 years | ||
Amount allocated to identifiable assets acquired primarily property and equipment | $ 2,767,000 | ||
Amount allocated to identifiable liabilities acquired | $ 12,169,000 | ||
Outward Inc. | Selling, General and Administrative Expenses | |||
Business Acquisition [Line Items] | |||
Acquisition-related costs | $ 1,983,000 |