Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 29, 2022 | Mar. 10, 2022 | Jul. 31, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 29, 2022 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AEO | ||
Entity Registrant Name | AMERICAN EAGLE OUTFITTERS, INC. | ||
Entity Central Index Key | 0000919012 | ||
Current Fiscal Year End Date | --01-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 168,842,420 | ||
Entity Public Float | $ 5,276,744,054 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Security Exchange Name | NYSE | ||
Entity File Number | 1-33338 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-2721761 | ||
Entity Address, Address Line One | 77 Hot Metal Street | ||
Entity Address, City or Town | Pittsburgh | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 15203-2329 | ||
City Area Code | 412 | ||
Local Phone Number | 432-3300 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Company’s Proxy Statement for the 2022 Annual Meeting of Stockholders are incorporated into Part III herein. | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | Pittsburgh, Pennsylvania |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 434,770 | $ 850,477 |
Merchandise inventory | 553,458 | 405,445 |
Accounts receivable, net | 286,683 | 146,102 |
Prepaid expenses and other | 122,013 | 120,619 |
Total current assets | 1,396,924 | 1,522,643 |
Operating lease right-of-use assets | 1,193,021 | 1,155,965 |
Property and equipment, at cost, net of accumulated depreciation | 728,272 | 623,808 |
Goodwill, net | 271,416 | 13,267 |
Intangible assets,net | 102,701 | 57,065 |
Non-current deferred income taxes | 44,167 | 33,045 |
Other assets | 50,142 | 29,013 |
Total assets | 3,786,643 | 3,434,806 |
Current liabilities: | ||
Accounts payable | 231,782 | 255,912 |
Current portion of operating lease liabilities | 311,005 | 328,624 |
Accrued compensation and payroll taxes | 141,817 | 142,272 |
Unredeemed gift cards and gift certificates | 71,365 | 62,181 |
Accrued income and other taxes | 16,274 | 14,150 |
Other current liabilities and accrued expenses | 70,628 | 55,343 |
Total current liabilities | 842,871 | 858,482 |
Non-current liabilities: | ||
Non-current operating lease liabilities | 1,154,481 | 1,148,742 |
Long-term debt, net | 341,002 | 325,290 |
Other non-current liabilities | 24,617 | 15,627 |
Total non-current liabilities | 1,520,100 | 1,489,659 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; 5,000 shares authorized; none issued and outstanding | ||
Common stock, $0.01 par value; 600,000 shares authorized; 249,566 shares issued; 168,699 and 166,335 shares outstanding, respectively | 2,496 | 2,496 |
Contributed capital | 636,355 | 663,718 |
Accumulated other comprehensive loss, net of tax | (40,845) | (40,748) |
Retained earnings | 2,203,772 | 1,868,613 |
Treasury stock, 80,867 and 83,231 shares, respectively, at cost | (1,378,106) | (1,407,414) |
Total stockholders' equity | 1,423,672 | 1,086,665 |
Total liabilities and stockholders’ equity | $ 3,786,643 | $ 3,434,806 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 |
Statement of Financial Position [Abstract] | ||||
Preferred stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 | 0 | 0 |
Preferred stock, outstanding | 0 | 0 | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 600,000,000 | 600,000,000 | 600,000,000 | 600,000,000 |
Common stock, shares issued | 249,566,000 | 249,566,000 | 249,566,000 | 249,566,000 |
Common stock, shares outstanding | 168,699,000 | 166,335,000 | 166,993,000 | 172,436,000 |
Treasury stock, shares | 80,867,000 | 83,231,000 | 82,573,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | ||||
Income Statement [Abstract] | ||||||
Total net revenue | [1] | $ 5,010,785 | $ 3,759,113 | $ 4,308,212 | ||
Cost of sales, including certain buying, occupancy and warehousing expenses | 3,018,995 | 2,610,966 | 2,785,911 | |||
Gross profit | 1,991,790 | 1,148,147 | 1,522,301 | |||
Selling, general and administrative expenses | 1,222,000 | 977,264 | 1,029,412 | |||
Impairment, restructuring and COVID-19 related charges | 11,944 | 279,826 | [1] | 80,494 | [1] | |
Depreciation and amortization expense | [1] | 166,781 | 162,402 | 179,050 | ||
Operating income (loss) | [1] | 591,065 | (271,345) | 233,345 | ||
Interest expense (income), net | 34,632 | 24,610 | (6,202) | |||
Other income, net | (2,489) | (3,682) | (5,731) | |||
income (loss) before income taxes | 558,922 | (292,273) | 245,278 | |||
Provision (benefit) for income taxes | 139,293 | (82,999) | 54,021 | |||
Net income (loss) | $ 419,629 | $ (209,274) | $ 191,257 | |||
Basic net income (loss) per common share | $ 2.50 | $ (1.26) | $ 1.13 | |||
Diluted net income (loss) per common share | $ 2.03 | $ (1.26) | $ 1.12 | |||
Weighted average common shares outstanding - basic | 168,156 | 166,455 | 169,711 | |||
Weighted average common shares outstanding - diluted | 206,529 | 166,455 | 170,867 | |||
[1] | The difference between Operating income (loss) and Income (loss) before income taxes includes the following, which are not allocated to our reportable segments: - For Fiscal 2021: interest expense (income), net of $ 34.6 million and other income, net of $ 2.5 million - For Fiscal 2020: interest expense (income), net of $ 24.6 million and other income, net of $ 3.7 million - For Fiscal 2019: interest expense (income), net of ($ 6.2 ) million and other income, net of $ 5.7 million |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 419,629 | $ (209,274) | $ 191,257 |
Other comprehensive (loss) gain: | |||
Foreign currency translation (loss) gain | (97) | (7,580) | 1,664 |
Other comprehensive (loss) gain | (97) | (7,580) | 1,664 |
Comprehensive income (loss) | $ 419,532 | $ (216,854) | $ 192,921 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Contributed Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Treasury Stock | [1] | Accumulated Other Comprehensive (Loss) | ||
Beginning Balance at Feb. 02, 2019 | $ 1,287,555 | $ 2,496 | $ 574,929 | $ 2,054,654 | $ (1,309,692) | $ (34,832) | |||||
Beginning Balance (in shares) at Feb. 02, 2019 | 172,436 | 172,436 | [2] | ||||||||
Stock awards | $ 22,742 | 22,742 | |||||||||
Repurchase of common stock as part of publicly announced programs | (112,381) | (112,381) | |||||||||
Repurchase of common stock as part of publicly announced programs (in shares) | [2] | (6,336) | |||||||||
Repurchase of common stock from employees | (8,087) | (8,087) | |||||||||
Repurchase of common stock from employees (in shares) | [2] | (431) | |||||||||
Reissuance of treasury stock | $ 2,321 | (22,175) | 1,959 | 22,537 | |||||||
Reissuance of treasury stock (in shares) | 1,324 | 1,324 | [2] | ||||||||
Net (loss) income | $ 191,257 | 191,257 | |||||||||
Other comprehensive income (loss) | 1,664 | 1,664 | |||||||||
Cash dividends and dividend equivalents | (92,783) | 2,360 | (95,143) | ||||||||
Ending Balance at Feb. 01, 2020 | $ 1,247,853 | $ (44,435) | $ 2,496 | 577,856 | 2,108,292 | $ (44,435) | (1,407,623) | (33,168) | |||
Ending Balance (in shares) at Feb. 01, 2020 | 166,993 | 166,993 | [2] | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | ||||||||||
Stock awards | $ 32,298 | 32,298 | |||||||||
Repurchase of common stock as part of publicly announced programs | (20,000) | (20,000) | |||||||||
Repurchase of common stock as part of publicly announced programs (in shares) | [2] | (1,720) | |||||||||
Repurchase of common stock from employees | (5,413) | (5,413) | |||||||||
Repurchase of common stock from employees (in shares) | [2] | (449) | |||||||||
Convertible Notes - Equity portion, net of tax | 68,330 | 68,330 | |||||||||
Reissuance of treasury stock | $ 2,549 | (15,522) | (7,551) | 25,622 | |||||||
Reissuance of treasury stock (in shares) | 1,511 | 1,511 | [2] | ||||||||
Net (loss) income | $ (209,274) | (209,274) | |||||||||
Other comprehensive income (loss) | (7,580) | (7,580) | |||||||||
Cash dividends and dividend equivalents | (22,098) | 756 | (22,854) | ||||||||
Ending Balance at Jan. 30, 2021 | $ 1,086,665 | $ 2,496 | 663,718 | 1,868,613 | (1,407,414) | (40,748) | |||||
Ending Balance (in shares) at Jan. 30, 2021 | 166,335 | 166,335 | [2] | ||||||||
Stock awards | $ 37,887 | 37,887 | |||||||||
Repurchase of common stock from employees | (24,018) | (24,018) | |||||||||
Repurchase of common stock from employees (in shares) | [2] | (781) | |||||||||
Reissuance of treasury stock | $ 14,533 | (59,384) | 26,490 | 47,427 | |||||||
Reissuance of treasury stock (in shares) | 2,798 | 2,798 | [2] | ||||||||
Equity portion of partial extinguishment of Convertible Senior Notes, net of tax | $ 3,018 | (9,876) | 6,995 | 5,899 | |||||||
Equity portion of partial extinguishment of Convertible Senior Notes, net of tax, (in shares) | [2] | 347 | |||||||||
Net (loss) income | 419,629 | 419,629 | |||||||||
Other comprehensive income (loss) | (97) | (97) | |||||||||
Cash dividends and dividend equivalents | (113,945) | 4,010 | (117,955) | ||||||||
Ending Balance at Jan. 29, 2022 | $ 1,423,672 | $ 2,496 | $ 636,355 | $ 2,203,772 | $ (1,378,106) | $ (40,845) | |||||
Ending Balance (in shares) at Jan. 29, 2022 | 168,699 | 168,699 | [2] | ||||||||
[1] | 80,867 shares, 83,231 shares, and 82,573 shares at January 29, 2022, January 30, 2021, and February 1, 2020, respectively. During Fiscal 2021, Fiscal 2020, and Fiscal 2019, 2,798 shares, 1,511 shares, and 1,324 shares, respectively, were reissued from treasury stock for the issuance of share-based payments. | ||||||||||
[2] | 600,000 authorized, 249,566 issued and 168,699 outstanding, $ 0.01 par value common stock at January 29, 2022; 600,000 authorized, 249,566 issued and 166,335 outstanding, $ 0.01 par value common stock at January 30, 2021; 600,000 authorized, 249,566 issued and 166,993 outstanding, $ 0.01 par value common stock at February 1, 2020; 600,000 authorized, 249,566 issued and 172,436 outstanding, $ 0.01 par value common stock at February 2, 2019. The Company has 5,000 authorized, with none issued or outstanding , $ 0.01 par value preferred stock for all periods presented. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends and dividend equivalents, Per share | $ 0.6775 | $ 0.1375 | $ 0.55 |
Common stock, shares authorized | 600,000,000 | 600,000,000 | 600,000,000 |
Common stock, shares issued | 249,566,000 | 249,566,000 | 249,566,000 |
Common stock, shares outstanding | 168,699,000 | 166,335,000 | 166,993,000 |
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Preferred stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Treasury stock, shares | 80,867,000 | 83,231,000 | 82,573,000 |
Reissuance of treasury stock, shares | 2,798,000 | 1,511,000 | 1,324,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | ||||
Operating activities: | ||||||
Net income (loss) | $ 419,629 | $ (209,274) | $ 191,257 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||||||
Depreciation and amortization | 171,151 | 165,580 | 181,379 | |||
Share-based compensation | 38,153 | 32,778 | 23,038 | |||
Deferred income taxes | (12,850) | (34,890) | 6,541 | |||
Loss on impairment of assets | 11,944 | [1],[2] | 249,163 | [3] | 66,252 | [4] |
Changes in assets and liabilities: | ||||||
Merchandise inventory | (147,140) | 42,156 | (21,615) | |||
Operating lease assets | 296,652 | 226,376 | 261,303 | |||
Operating lease liabilities | (352,547) | (238,810) | (271,519) | |||
Other assets | (134,152) | (107,317) | (32,845) | |||
Accounts payable | (36,192) | (30,909) | 44,949 | |||
Accrued compensation and payroll taxes | (1,412) | 95,116 | (38,603) | |||
Accrued and other liabilities | 50,435 | 12,529 | 5,279 | |||
Net cash provided by operating activities | 303,671 | 202,498 | 415,416 | |||
Investing activities: | ||||||
Acquisitions of businesses, net of cash acquired | (358,151) | |||||
Capital expenditures for property and equipment | (233,847) | (127,975) | (210,360) | |||
Purchase of available-for-sale investments | (75,000) | (14,956) | (85,000) | |||
Sale of available-for-sale investments | 75,000 | 69,956 | 122,135 | |||
Other investing activities | (2,603) | (970) | (1,669) | |||
Net cash used for investing activities | (594,601) | (73,945) | (174,894) | |||
Financing activities: | ||||||
Cash dividends paid | (113,945) | (22,854) | (92,783) | |||
Repurchase of common stock from employees | (24,018) | (5,413) | (8,087) | |||
Other financing activities | (299) | (1,199) | (94) | |||
Net proceeds from stock options exercised | 13,065 | 3,265 | 2,119 | |||
Repurchase of common stock as part of publicly announced programs | (20,000) | (112,381) | ||||
Proceeds from revolving line of credit and convertible notes | 736,108 | |||||
Principal payments on revolving line of credit | (330,000) | |||||
Net cash (used for) provided by financing activities | (125,197) | 359,907 | (211,226) | |||
Effect of exchange rates on cash | 420 | 87 | (696) | |||
Net change in cash and cash equivalents | (415,707) | 488,547 | 28,600 | |||
Cash and cash equivalents - beginning of period | 850,477 | 361,930 | 333,330 | |||
Cash and cash equivalents - end of period | $ 434,770 | $ 850,477 | $ 361,930 | |||
[1] | The Company recorded impairment charges of $ 11.9 million in Fiscal 2021, primarily related to store property and equipment and operating lease ROU assets. | |||||
[2] | The difference between Operating income (loss) and Income (loss) before income taxes includes the following, which are not allocated to our reportable segments: - For Fiscal 2021: interest expense (income), net of $ 34.6 million and other income, net of $ 2.5 million - For Fiscal 2020: interest expense (income), net of $ 24.6 million and other income, net of $ 3.7 million - For Fiscal 2019: interest expense (income), net of ($ 6.2 ) million and other income, net of $ 5.7 million | |||||
[3] | In Fiscal 2020, the Company recorded impairment charges of $ 249.2 million. Included in this amount are retail store impairment charges of $ 203.2 million, of which $ 154.8 million relates to operating lease ROU assets and $ 48.4 million relates to store property and equipment (fixtures and equipment and leasehold improvements). We also recorded $ 28.0 million related to the impairment of certain corporate property and equipment, as well as $ 18.0 million of certain cost and equity method investments. | |||||
[4] | In Fiscal 2019, the Company recorded asset impairment charges of $ 64.5 million on the assets of 20 retail stores. Of the total, $ 39.5 million related to the impairment of leasehold improvements and store fixtures, and $ 25.0 million related to the impairment of operating lease ROU assets. The Company also concluded that certain goodwill was impaired resulting in a $ 1.7 million charge in Fiscal 2019. |
Business Operations
Business Operations | 12 Months Ended |
Jan. 29, 2022 | |
Accounting Policies [Abstract] | |
Business Operations | 1. Business Operations American Eagle Outfitters, Inc. (the “Company,” “we” and “our”), a Delaware corporation, operates under the American Eagle ® (“AE”) and Aerie ® brands. We also operate Todd Snyder New York, a premium menswear brand, and Unsubscribed, a new brand with a focus on consciously-made slow fashion. Founded in 1977, the Company is a leading multi-brand specialty retailer that operates more than 1,000 retail stores in the U.S. and internationally, online through our digital channels at www.ae.com and www.aerie.com , www.toddsnyder.com , www.unsubscribed.com and more than 200 international store locations managed by third-party operators. Through its portfolio of brands, the Company offers high quality, on-trend clothing, accessories, and personal care products at affordable prices. The Company’s online business, AEO Direct, ships to 81 countries worldwide. AEO Direct reinforces each particular brand platform and is designed to complement the in-store experience. We offer the ability for customers to return products seamlessly via any channel regardless of where it was originally purchased. We also offer a variety of channels to fulfill customer orders. These include “ship to home”, which can be fulfilled either through our distribution centers or our store sites (buy online, ship from stores) when purchased online or through our app; “store pick-up”, which consist of online orders being fulfilled either in store or curbside, and we offer “store-to-door” capability where customers order within our store, and the goods are shipped directly to their home. In Fiscal 2021, we acquired AirTerra, Inc. ("AirTerra") and Quiet Logistics, Inc. ("Quiet Logistics"), which together form the foundation of our "Supply Chain Platform". |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 29, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. At January 29, 2022 , the Company operated in two reportable segments, American Eagle and Aerie. Fiscal Year Our fiscal year is a 52- or 53-week year that ends on the Saturday nearest to January 31. As used herein, “Fiscal 2022” refers to the 52-week period that will end on January 28, 2023. “Fiscal 2021” refers to the 52-week period ended January 29, 2022. “Fiscal 2020” refers to the 52-week period ended January 30, 2021. “Fiscal 2019” refers to the 52-week period ended February 1, 2020 . Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, our management reviews its estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board ("FASB") amended Accounting Standards Codification ("ASC") 740, Income Taxes (issued under ASU 2019-12, Simplifying the Accounting for Income Taxes). This amendment removes certain exceptions to the general principles of ASC 740, and clarifies and amends the existing guidance to improve consistent application. The Company adopted the guidance effective January 31, 2021 . The adoption did not have a material impact on the Company’s Consolidated Financial Statements. In August 2020, the FASB issued ASU 2020-06, Debt with Conversion and Other Options (“ASU 2020-06”), which simplifies the accounting for convertible debt instruments. The new guidance eliminates two of the three models in ASC 470-20, Debt with Conversion and Other Options that require separating embedded conversion features from convertible instruments. The guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation. The guidance is effective for fiscal years beginning after December 15, 2021. The Company will adopt ASU 2020-06 at the beginning of Fiscal 2022 using the full retrospective approach. In April 2020, the Company issued a $ 415 million aggregate principal amount of convertible senior notes due 2025 (the "Notes"). The Notes are currently accounted for under the cash conversion model, which is one of the models being eliminated by ASU 2020-06. The adoption of ASU 2020-06 will result in the Notes being accounted for as a single balance in long-term debt, rather than being accounted for as separate debt and equity components. Subsequently, the adoption of ASU 2020-06 is expected to reduce reported interest expense. For Fiscal 2021, interest expense would have decreased approximately $ 12 million and reported net income would have increased by $ 12 million, net of tax. Additionally, as a result of this adoption we are required to use the "if-converted" method of calculating EPS. This method requires us to consider the Notes as fully converted in shares in our diluted EPS denominator. The dilutive effect of the Notes will increase to approximately 49 million dilutive shares, or an incremental 15 million shares compared to the dilutive effect as of January 29, 2022. The "if-converted" method also requires us to add back interest expense of the Notes, net of tax, to the numerator when calculating diluted EPS. Foreign Currency Translation In accordance with ASC 830, Foreign Currency Matters , the Company translates assets and liabilities denominated in foreign currencies into United States dollars (“USD”) (the reporting currency) at the exchange rates prevailing at the balance sheet date. The Company translates revenues and expenses denominated in foreign currencies into USD at the monthly average exchange rates for the period. Gains or losses resulting from foreign currency transactions are included in the consolidated results of operations, whereas related translation adjustments are reported as an element of other comprehensive income (loss) in accordance with ASC 220, Comprehensive Income. Refer to Note 12 to the Consolidated Financial Statements for information regarding comprehensive income (loss). Cash and Cash Equivalents The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. Refer to Note 4 to the Consolidated Financial Statements for information regarding cash and cash equivalents. Receivables The Company maintains an allowance for doubtful accounts for estimated losses from the failure of certain of our customers to make required payments for products or services delivered. The Company estimates this allowance based on the age of the related receivable, knowledge of the financial condition of customers, review of historical and expected future receivables and reserve trends and other pertinent information. If the financial condition of customers deteriorates or an unfavorable trend in receivable collections is experienced in the future, additional allowances may be required. Historically, the Company’s reserves have approximated actual experience. Merchandise Inventory Merchandise inventory is valued at the lower of average cost or net realizable value, utilizing the retail method. Average cost includes merchandise design and sourcing costs and related expenses. The Company records merchandise receipts when control of the merchandise has transferred to the Company. The Company reviews its inventory levels to identify slow-moving merchandise and generally uses markdowns to clear merchandise. Additionally, the Company estimates a markdown reserve for future planned permanent markdowns related to current inventory. Markdowns may occur when inventory exceeds customer demand for reasons of style, seasonal adaptation, changes in customer preference, lack of consumer acceptance of fashion items, competition, or if it is determined that the inventory in stock will not sell at its currently ticketed price. Such markdowns may have a material adverse impact on earnings, depending on the extent and amount of inventory affected. The Company also estimates a shrinkage reserve for the period between the last physical count and the balance sheet date. The estimate for the shrinkage reserve, based on historical results, can be affected by changes in merchandise mix and changes in actual shrinkage trends. Property and Equipment Property and equipment are recorded on the basis of cost with depreciation computed utilizing the straight-line method over the assets’ estimated useful lives. The useful lives of our major classes of assets are as follows: Buildings 25 years Leasehold improvements Lesser of 10 years or the term of the lease Fixtures and equipment Five years Information technology Three - five years As of January 29, 2022 , the weighted average remaining useful life of our assets was approximately 6.3 years. In accordance with ASC 360, Property, Plant, and Equipment (“ASC 360”), the Company’s management evaluates the value of leasehold improvements, store fixtures, and operating lease right-of-use "ROU" assets associated with retail stores. The Company evaluates long-lived assets for impairment at the individual store level, which is the lowest level at which individual cash flows can be identified. Impairment losses are recorded on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the projected undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts. When events such as these occur, the impaired assets are adjusted to their estimated fair value and an impairment loss is recorded separately as a component of Operating income (loss) within Impairment, restructuring and COVID-19 related charges in the Consolidated Statements of Operations. When the Company closes, remodels, or relocates a store prior to the end of its lease term, the remaining net book value of the assets related to the store is recorded as a write-off of assets within depreciation and amortization expense. Refer to Note 8 to the Consolidated Financial Statements for additional information regarding property and equipment, and refer to Note 17 to the Consolidated Financial Statements for additional information regarding impairment charges for Fiscal 2021, Fiscal 2020 and Fiscal 2019. Goodwill and Intangible Assets, net The Company’s goodwill is primarily related to the acquisition of its Supply Chain Platform, in Fiscal 2021 as well as its importing operations and Canadian business, and represents the excess of cost over fair value of net assets of businesses acquired. In accordance with ASC 350, Intangibles – Goodwill and Other , the Company evaluates goodwill for possible impairment at least annually as of the last day of the fiscal year and upon occurrence of certain triggering events or substantive changes in circumstances that indicate that the fair value of a reporting unit may be below it's carrying value. If the carrying value of the reporting unit exceeds the fair value, an impairment charge is recorded in the period of the evaluation based on that difference. The Company last performed an annual goodwill impairment test as of January 29, 2022. As a result, there was no goodwill impairment charge recorded during Fiscal 2021 or Fiscal 2020. During Fiscal 2019, the Company concluded that certain goodwill was impaired resulting in a $ 1.7 million charge included within Impairment, restructuring and COVID-19 related charges in the Consolidated Statements of Operations. Definite-lived intangible assets are initially recorded at fair value, with amortization computed utilizing the straight-line method over the assets’ estimated useful lives. The Company’s definite-lived intangible assets, which consist primarily of trademark assets, are generally amortized over 10 to 15 years . The Company evaluates definite-lived intangible assets for impairment in accordance with ASC 360 when events or circumstances indicate that the carrying value of the asset may not be recoverable. Such an evaluation includes the estimation of undiscounted future cash flows to be generated by those assets. If the sum of the estimated future undiscounted cash flows is less than the carrying amounts of the assets, then the assets are impaired and are adjusted to their estimated fair value. No definite-lived intangible asset impairment charges were recorded for all periods presented. Refer to Note 3 to the Consolidated Financial Statements for additional information regarding acquisitions and Note 9 to the Consolidated Financial Statements for additional information regarding goodwill and intangible assets. Gift Cards Revenue is not recorded on the issuance of gift cards. The value of a gift card is recorded as a current liability upon issuance and revenue is recognized when the gift card is redeemed for merchandise. The Company estimates gift card breakage and recognizes revenue in proportion to actual gift card redemptions as a component of total net revenue. The Company determines an estimated gift card breakage rate by continuously evaluating historical redemption data and the time when there is a remote likelihood that a gift card will be redeemed. The Company recorded $ 10.3 million, $ 8.8 million, and $ 9.5 million during Fiscal 2021, Fiscal 2020, and Fiscal 2019, respectively, of revenue related to gift card breakage. Construction Allowances As part of certain lease agreements for retail stores, the Company receives construction allowances from lessors, which are generally comprised of cash amounts. The Company records a receivable and an adjustment to the operating lease ROU asset at the lease commencement date (date of initial possession of the store). The deferred lease credit is amortized as part of the single lease cost over the term of the original lease (including the pre-opening build-out period). The receivable is reduced as amounts are received from the lessor. Self-Insurance Liability The Company uses a combination of insurance and self-insurance mechanisms for certain losses related to employee medical benefits and worker’s compensation. Costs for self-insurance claims filed and claims incurred but not reported are accrued based on known claims and historical experience. Management believes that it has adequately reserved for its self-insurance liability, which is capped by stop loss contracts with insurance companies. However, any significant variation of future claims from historical trends could cause actual results to differ from the accrued liability. Leases The Company leases all store premises, regional distribution facilities, some of its office space and certain information technology and office equipment. These leases are generally classified as operating leases. Store leases generally provide for a combination of base rentals and contingent rent based on store sales. Additionally, most leases include lessor incentives such as construction allowances and rent holidays. The Company is typically responsible for tenant occupancy costs including maintenance costs, common area charges, real estate taxes and certain other expenses. Most leases include one or more options to renew. The exercise of lease renewal options is at the Company’s discretion and is not reasonably certain at lease commencement. When measuring operating lease ROU assets and operating lease liabilities, the Company only includes cash flows related to options to extend or terminate leases once those options are executed. Some leases have variable payments. However, because they are not based on an index or rate, they are not included in the measurement of operating lease ROU assets and operating lease liabilities. When determining the present value of future payments for an operating lease that does not have a readily determinable implicit rate, the Company uses its incremental borrowing rate as of the date of initial possession of the leased asset. For leases that qualify for the short-term lease exemption, the Company does not record an operating lease liability or operating lease ROU asset. Short-term lease payments are recognized on a straight-line basis over the lease term of 12 months or less. Refer to Note 11 to the Consolidated Financial Statements for additional information. Lease Modifications and COVID-19 The FASB staff issued a Q&A document in April 2020 providing guidance on how to apply the lease modification guidance in ASC 842 to rent concessions arising from the COVID-19 pandemic, allowing companies to elect accounting for the concessions as if enforceable rights and obligations existed, regardless of whether they are explicitly stated in the lease contract. Per the FASB staff Q&A guidance, entities may make the elections for any lessor-provided concessions related to the effects of the COVID-19 pandemic (e.g., deferrals of lease payments, cash payments made to the lessee, reduced future lease payments) as long as the concession does not result in a substantial increase in the rights of the lessor or the obligations of the lessee. During Fiscal 2020: • For concessions in the form of rent forgiveness, the Company invoked the accounting elections provided by the FASB staff; savings were recorded as a credit to variable rent in the period the amendments became fully executed. • For concessions in the form of deferred payments, the Company did not apply the FASB accounting elections; rent expense was recorded in accordance with ASC 842 and the unpaid amount remained accrued as part of the current operating lease liability. • All other forms of rent concessions followed our normal accounting policy for lease modifications, adhering to the guidance set forth in ASC 842. Co-Branded Credit Card The Company offers a co-branded credit card and a private label credit card under the AE and Aerie brands. These credit cards are issued by a third party bank (the “Bank”) in accordance with a credit card agreement (the “Agreement”). The Company has no liability to the Bank for bad debt expense, provided that purchases are made in accordance with the Bank’s procedures. We receive funding from the Bank based on the Agreement and card activity, which includes payments for new account activations and usage of the credit cards. We recognize revenue for this funding as we fulfill our performance obligations under the Agreement. This revenue is recorded in other revenue, which is a component of total net revenue in our Consolidated Statements of Operations. For further information on the Company’s loyalty program, refer to the Customer Loyalty Program caption below. Customer Loyalty Program In June 2020, the Company launched a highly-digitized loyalty program called Real Rewards by American Eagle and Aerie (the “Program”). This Program features both shared and unique benefits for loyalty members and credit card holders. Under the Program, members accumulate points based on purchase activity and earn rewards by reaching certain point thresholds. Members earn rewards in the form of discount savings certificates. Prior to this launch in June 2020, under our previous program, AEO Connected, we also offered additional rewards for key items such as jeans and bras. Rewards earned are valid through the stated expiration date, which is 60 days from the issuance date of the reward. Rewards not redeemed during the 60-day redemption period are forfeited. Points earned under the Program on purchases at American Eagle and Aerie are accounted for in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). The portion of the sales revenue attributed to the award points is deferred and recognized when the award is redeemed or when the points expire, using the relative stand-alone selling price method. Additionally, reward points earned using the co-branded credit card on non-AE or Aerie purchases are accounted for in accordance with ASC 606. As the points are earned, a current liability is recorded for the estimated cost of the reward, and the impact of adjustments is recorded in revenue. The Company defers a portion of the sales revenue attributed to the loyalty points and recognizes revenue when the points are redeemed or expire, consistent with the requirements of ASC 606. Sales Return Reserve Revenue is recorded net of estimated and actual sales returns and deductions for coupon redemptions and other promotions. The Company records the impact of adjustments to its sales return reserve quarterly within total net revenue and cost of sales. The sales return reserve reflects an estimate of sales returns based on projected merchandise returns determined using historical average return percentages. For the Years Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Beginning balance $ 8,377 $ 5,825 $ 4,620 Returns ( 149,988 ) ( 107,700 ) ( 121,513 ) Provisions 150,779 110,252 122,718 Ending balance $ 9,168 $ 8,377 $ 5,825 The presentation on a gross basis consists of a separate right of return asset and liability. These amounts are recorded within (i) prepaid expenses and other and (ii) other current liabilities and accrued expenses, respectively, on the Consolidated Balance Sheets. Income Taxes The Company calculates income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires the use of the liability method. Under this method, deferred tax assets and liabilities are recognized based on the difference between the Consolidated Financial Statements carrying amounts of existing assets and liabilities and their respective tax bases as computed pursuant to ASC 740. Deferred tax assets and liabilities are measured using the tax rates, based on certain judgments regarding enacted tax laws and published guidance, in effect in the years when those temporary differences are expected to reverse. A valuation allowance is established against the deferred tax assets when it is more likely than not that some portion or all of the deferred taxes may not be realized. Changes in the Company’s level and composition of earnings, tax laws or the deferred tax valuation allowance, as well as the results of tax audits may materially impact the Company’s effective income tax rate. The Company evaluates its income tax positions in accordance with ASC 740, which prescribes a comprehensive model for recognizing, measuring, presenting and disclosing in the financial statements tax positions taken or expected to be taken on a tax return, including a decision whether to file or not to file in a particular jurisdiction. Under ASC 740, a tax benefit from an uncertain position may be recognized only if it is “more likely than not” that the position is sustainable based on its technical merits. The calculation of deferred tax assets and liabilities, as well as the decision to recognize a tax benefit from an uncertain position and to establish a valuation allowance requires management to make estimates and assumptions. The Company believes that its estimates and assumptions are reasonable, although actual results may have a positive or negative material impact on the balances of deferred tax assets and liabilities, valuation allowances or net income (loss). Refer to Note 15 to the Consolidated Financial Statements for additional information. Revenue Recognition The Company recognizes revenue pursuant to ASC 606. Revenue is recorded for store sales upon the purchase of merchandise by customers. The Company’s e-commerce operation records revenue upon the customer receipt date of the merchandise. Shipping and handling revenues are included in total net revenue. Sales tax collected from customers is excluded from revenue and is included as part of accrued income and other taxes on the Company’s Consolidated Balance Sheets. Revenue is recorded net of estimated and actual sales returns and promotional price reductions. The Company records the impact of adjustments to its sales return reserve quarterly within total net revenue and cost of sales. The sales return reserve reflects an estimate of sales returns based on projected merchandise returns determined using historical average return percentages. Revenue is not recorded on the issuance of gift cards. A current liability is recorded upon issuance, and revenue is recognized when the gift card is redeemed for merchandise. Additionally, the Company recognizes revenue on unredeemed gift cards based on an estimate of the amounts that will not be redeemed (“gift card breakage”), determined through historical redemption trends. Gift card breakage revenue is recognized in proportion to actual gift card redemptions as a component of total net revenue. For further information on the Company’s gift card program, refer to the Gift Cards caption above. The Company recognizes royalty revenue generated from its license or franchise agreements based on a percentage of merchandise sales by the licensee/franchisee. This revenue is recorded as a component of total net revenue when earned and collection is probable. The Company defers a portion of the sales revenue attributed to loyalty points and recognizes revenue when the points are redeemed or expire, consistent with the requirements of ASC 606. Refer to the Customer Loyalty Program caption above for additional information. Cost of Sales, Including Certain Buying, Occupancy, and Warehousing Expenses Cost of sales consists of merchandise costs, including design, sourcing, importing and inbound freight costs, as well as markdowns, shrinkage and certain promotional costs (collectively, “merchandise costs”) and buying, occupancy and warehousing costs. Design costs are related to the Company's Design Center operations and include compensation, travel and entertainment, supplies and samples for our design teams, as well as rent and depreciation for our Design Center. These costs are included in cost of sales as the respective inventory is sold. Buying, occupancy and warehousing costs consist of compensation, employee benefit expenses and travel and entertainment for our buyers and certain senior merchandising executives; rent and utilities related to our stores, corporate headquarters, distribution centers and other office space; freight from our distribution centers to the stores; compensation and supplies for our distribution centers, including purchasing, receiving and inspection costs; and shipping and handling costs related to our e-commerce operation. Gross profit is the difference between total net revenue and cost of sales. Selling, General, and Administrative Expenses Selling, general and administrative expenses consist of compensation and employee benefit expenses, including salaries, incentives and related benefits associated with our stores and corporate headquarters. Selling, general and administrative expenses also include advertising costs, supplies for our stores and home office, communication costs, travel and entertainment, leasing costs and services purchased. Selling, general and administrative expenses do not include compensation, employee benefit expenses and travel for our design, sourcing and importing teams, our buyers and our distribution centers as these amounts are recorded in cost of sales. Additionally, selling, general and administrative expenses do not include rent and utilities related to our stores, operating costs of our distribution centers, and shipping and handling costs related to our e-commerce operations, all of which are included in cost of sales. Advertising Costs Certain advertising costs, including direct mail, in-store photographs, and other promotional costs are expensed when the marketing campaign commences. As of January 29, 2022 and January 30, 2021 , the Company had prepaid advertising expense of $ 6.1 million and $ 5.7 million, respectively. All other advertising costs are expensed as incurred. The Company recognized $ 173.6 million, $ 150.0 million, and $ 151.5 million in advertising expense during Fiscal 2021, Fiscal 2020, and Fiscal 2019, respectively. Store Pre-Opening Costs Store pre-opening costs consist primarily of rent, advertising, supplies, and payroll expenses. These costs are expensed as incurred. Interest Expense (Income), Net Interest expense (income), net primarily consists of interest expense related to the Company’s convertible notes and borrowings under the revolving credit facility, as well as interest income from cash, cash equivalents and short-term investments. Other Income, Net Other income, net consists primarily of allowances for uncollectible receivables, foreign currency fluctuations and changes in other non-operating items Legal Proceedings and Claims The Company is subject to certain legal proceedings and claims arising out of the conduct of its business. In accordance with ASC 450, Contingencies (“ASC 450”), the Company records a reserve for estimated losses when the loss is probable and the amount can be reasonably estimated. If a range of possible loss exists and no anticipated loss within the range is more likely than any other anticipated loss, the Company records the accrual at the low end of the range, in accordance with ASC 450. As the Company believes that it has provided adequate reserves, it anticipates that the ultimate outcome of any matter currently pending against the Company will not materially affect the consolidated financial position, results of operations or cash flows of the Company. However, our assessment of any litigation or other legal claims could potentially change in light of the discovery of facts not presently known or determinations by judges, juries, or other finders of fact that are not in accord with management’s evaluation of the possible liability or outcome of such litigation or claims. Supplemental Disclosures of Cash Flow Information The table below shows supplemental cash flow information for cash amounts paid during the respective periods: For the Years Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Cash paid during the periods for: Income taxes $ 182,656 $ 4,191 $ 69,689 Interest $ 8,729 $ 10,316 $ 828 Segment Information We have two reportable segments: American Eagle and Aerie. For additional information, regarding the Company’s segment and geographic information, refer to Note 16 to the Consolidated Financial Statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Jan. 29, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions On December 29, 2021 , the Company completed the acquisition of Quiet Logistics, Inc. and certain other strategic investments pursuant to a Stock Purchase Agreement, dated as of November 1, 2021. Quiet Logistics is a leading logistics company that operates a network of in-market fulfillment centers in Boston, Chicago, Los Angeles, Dallas, St. Louis and Jacksonville, locating products closer to need, creating inventory efficiencies, cost benefits and affordable same-day and next-day delivery options to customers and stores. At the closing of the transaction, the Company acquired from the sellers all of the issued and outstanding shares of capital stock of Quiet Logistics and certain equity interests in two related strategic investments. The aggregate purchase price paid at the closing, after giving effect to estimated adjustments in respect of working capital and other customary matters, was approximately $ 360.6 million in cash. In accordance with ASC 805, Business Combinations ("ASC 805"), the total purchase price was allocated to the net tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Such estimated fair values require management to make estimates and judgments, especially with respect to intangible assets. Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The preliminary purchase price allocation was based upon a preliminary valuation, and the Company's estimates and assumptions are subject to change within the measurement period (defined as one year following the acquisition date), as permitted by ASC 805. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. The Company is in the process of obtaining third-party valuations of certain intangible assets; thus, the provisional measurements of intangible assets, goodwill and deferred income tax assets are subject to change: Current assets: Cash and cash equivalents $ 3,857 Accounts Receivable 23,207 Prepaid expenses 3,210 Total current assets $ 30,274 Property and equipment $ 28,728 Intangible assets 51,500 Goodwill 255,133 Other long-term assets 112,215 Total Assets $ 477,850 Current liabilities $ 29,819 Total long-term liabilities 87,415 Total Liabilities $ 117,234 Total purchase price $ 360,616 The preliminary purchase price allocation included $ 51.5 million of acquired intangible assets, of which $ 39.0 million was provisionally assigned to customer relationships and $ 12.5 million was provisionally assigned to trade names, which were both recognized at fair value on the acquisition date. The preliminary fair value of the identifiable intangible assets has been estimated using the income approach through a discounted cash flow analysis. The cash flows are based on estimates used to price the Quiet Logistics acquisition, and the discount rates applied were benchmarked with reference to the implied rate of return to the Company’s pricing model and the weighted-average cost of capital of 14.5 %. Additionally, the significant assumption used to determine the fair value of the customer relationships intangible asset was revenue growth. This significant assumption is forward-looking and could be affected by future economic and market conditions. The customer relationships and trade name intangible assets are subject to useful lives of 10 and 15 years, respectively. The fair value of the acquired identifiable intangible assets is provisional pending receipt of the final valuations for these assets . In accordance with ASC 350, the $ 255.1 million of goodwill that was associated with the Quiet Logistics acquisition was assigned to the reporting units that benefited from the acquisition, namely the AE, Aerie and the Supply Chain Platform reporting units in the amounts of $ 101.6 million, $ 110.6 million and $ 42.9 million, respectively. The goodwill recognized is attributable primarily to expected synergies and the assembled workforce of Quiet Logistics. No ne of the goodwill is expected to be deductible for income tax purposes. On May 3, 2021 the Company completed the acquisition of AirTerra, Inc. AirTerra is a logistics and supply chain platform that solves ecommerce fulfillment and shipping challenges in a unique and innovative way for retailers and brands of all sizes. The aggregate purchase price paid at closing was $ 3.0 million. Together, the Quiet Logistics and AirTerra acquisitions represent an important step in building our Supply Chain Platform, as part our ongoing supply chain transformation strategy of leveraging scale and innovation to help us manage costs and improve service . Pro forma results for acquisitions completed during the year ended January 29, 2022 were determined not to be material. |
Cash, Cash Equivalents
Cash, Cash Equivalents | 12 Months Ended |
Jan. 29, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Short-term Investments | . Cash and Cash Equivalents The following table summarizes the fair market value of our cash and short-term investments, which are recorded on the Consolidated Balance Sheets: January 29, January 30, (In thousands) 2022 2021 Cash and cash equivalents: Cash $ 138,758 $ 524,970 Interest bearing deposits 296,012 275,507 Certificates of deposit — 50,000 Total cash and cash equivalents $ 434,770 $ 850,477 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 29, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements ASC 820, Fair Value Measurement Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosures about fair value measurements. Fair value is defined under ASC 820 as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date. Financial Instruments Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. In addition, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: • Level 1 — Quoted prices in active markets. • Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s cash equivalents and short-term investments are Level 1 financial assets and are measured at fair value on a recurring basis, for all periods presented. Refer to Note 4 to the Consolidated Financial Statements for additional information regarding cash equivalents and short-term investments. The Company had no other financial instruments that required fair value measurement for any of the periods presented. Long-Term Debt As of January 29, 2022, the Company had no outstanding borrowings under its revolving credit facilities. In April 2020, the Company issued $ 415 million aggregate principal amount of convertible senior notes due in 2025 . The fair value of the Company's Notes is not required to be measured at fair value on a recurring basis. Upon issuance, the fair value of the Notes was measured using two approaches that consider market related conditions, including market benchmark rates and a secondary market quoted price, and is therefore within Level 2 of the fair value hierarchy. Refer to Note 10 to the Consolidated Financial Statements for additional information regarding long-term debt and other credit arrangements. Non-Financial Assets The Company’s non-financial assets, which include intangible assets and property and equipment, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur and the Company is required to evaluate the non-financial asset for impairment, a resulting impairment would require that the non-financial asset be recorded at the estimated fair value. Certain long-lived assets were measured at fair value on a nonrecurring basis using Level 3 inputs as defined in ASC 820. During Fiscal 2021, the Company recorded asset impairment charges of $ 11.9 million, primarily related to retail store property and equipment, and operating lease ROU assets. The assets were adjusted to their fair value and the loss on impairment was recorded within impairment, restructuring and COVID-19 related charges in the Consolidated Statements of Operations. During Fiscal 2020, the Company recorded asset impairment charges of $ 249.2 million. Included in this amount are retail store impairment charges of $ 203.2 million, of which $ 154.8 million relates to operating lease ROU assets and $ 48.4 million relates to store property and equipment (fixtures and equipment and leasehold improvements). We also recorded $ 28.0 million of impairment charges related to certain corporate property and equipment as well as $ 18.0 million of impairment charges of certain cost and equity method investments. The assets were adjusted to their fair value and the loss on impairment was recorded within impairment, restructuring and COVID-19 related charges in the Consolidated Statements of Operations. The fair value of the impaired assets, after the recorded loss, is approximately $ 93.2 million. The fair value of the Company’s store assets in Fiscal 2021 and Fiscal 2020 was determined by estimating the amount and timing of net future cash flows and discounting them using a risk-adjusted rate of interest. The Company estimates future cash flows based on its experience and knowledge of the market in which the store is located. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Jan. 29, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 6. Earnings per Share The following is a reconciliation between basic and diluted weighted average shares outstanding: For the Years Ended January 29, January 30, February 1, (In thousands, except per share amounts) 2022 2021 2020 Weighted average common shares outstanding: Basic number of common shares outstanding 168,156 166,455 169,711 Dilutive effect of convertible notes 34,003 — — Dilutive effect of stock options and non-vested 4,370 — 1,156 Diluted number of common shares outstanding 206,529 166,455 170,867 Anti-Dilutive Shares* 202 14,259 700 * In Fiscal 2020, there were 1.9 million potentially dilutive equity awards and 12.4 million potentially dilutive shares from the Company’s Notes that were excluded from the diluted earnings per share calculation because the Company incurred a net loss for this period and their inclusion would be anti-dilutive. For all other periods, anti-dilutive shares relate to stock options and unvested restricted stock. The Company has the right to settle the Notes in any combination of cash and shares of common stock. However, the Company intends to settle the original principal portion of the Notes in cash and any conversion value above the principal in stock. Because of this repayment policy election, only the conversion spread portion of the amount owed is reflected as dilutive in our weighted average diluted shares outstanding. The Company uses the average of the closing prices of its common stock (NYSE: AEO) as reported on the New York Stock Exchange to calculate the conversion spread. The Notes could have a potential dilutive effect in future periods. Refer to Note 10 and Note 13 to the Consolidated Financial Statements for additional information regarding the Notes and share-based compensation. |
Accounts Receivable, net
Accounts Receivable, net | 12 Months Ended |
Jan. 29, 2022 | |
Receivables [Abstract] | |
Accounts Receivable, net | 7. Accounts Receivable, net Accounts receivable, net is comprised of the following: January 29, January 30, (In thousands) 2022 2021 Tax and other government refunds $ 75,137 $ 12,394 Franchise & license receivables 71,371 48,046 Credit card program receivable 39,507 19,481 Merchandise sell-offs and vendor receivables 37,707 45,096 Landlord construction allowances 24,285 12,844 Supply Chain Platform receivables 16,095 — Gift card receivable 12,771 1,544 Other items 9,810 6,697 Total $ 286,683 $ 146,102 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Jan. 29, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | 8. Property and Equipment, net Property and equipment, net consists of the following: January 29, January 30, (In thousands) 2022 2021 Land $ 17,910 $ 17,910 Buildings 219,194 216,429 Leasehold improvements 739,245 689,885 Fixtures and equipment 1,496,972 1,325,711 Construction in progress 7,117 1,039 Property and equipment, at cost $ 2,480,438 $ 2,250,974 Less: Accumulated depreciation ( 1,752,166 ) ( 1,627,166 ) Property and equipment, net $ 728,272 $ 623,808 Depreciation expense is as follows: For the Years Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Depreciation expense $ 161,492 $ 159,413 $ 178,038 Additionally, during Fiscal 2021, Fiscal 2020, and Fiscal 2019, the Company recorded $ 4.4 million, $ 2.2 million and $ 4.3 million, respectively, related to asset write-offs within depreciation and amortization expense. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 12 Months Ended |
Jan. 29, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, net | 9. Goodwill and Intangible Assets, net Goodwill and definite-lived intangible assets, net consist of the following: January 29, 2022 January 30, 2021 (In thousands) American Eagle Aerie Corporate and Other (2) Total American Eagle Aerie Corporate and Other (2) Total Goodwill, net beginning balance $ 13,267 $ — $ — $ 13,267 $ 13,157 $ — $ — $ 13,157 Additions from acquisitions 101,600 110,600 45,933 258,133 — — — — Foreign currency fluctuation 16 — — 16 110 — — 110 Goodwill, net ending balance $ 114,883 $ 110,600 $ 45,933 $ 271,416 $ 13,267 $ — $ — $ 13,267 (1) Beginning balance for both periods include accumulated impairment of $ 4.2 million (2) Corporate and Other includes goodwill allocated to the Supply Chain Platform reporting unit, which has been identified as a separate operating segment, but is not material to disclose as a separate reportable segment. January 29, January 30, (In thousands) 2022 2021 Intangible assets, beginning balance, at cost $ 57,065 $ 39,847 Additions 52,580 20,978 Amortization ( 6,944 ) ( 3,760 ) Intangible assets, net (1) $ 102,701 $ 57,065 (1) The ending balance includes accumulated amortization of $ 42.1 million and $ 35.6 million as of January 29, 2022 and January 30, 2021. respectively. Amortization expense is as follows: For the Years Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Amortization expense $ 6,468 $ 3,752 $ 4,184 The table below summarizes the estimated future amortization expense for intangible assets existing as of January 29, 2022 for the next five Fiscal Years: Future (In thousands) Amortization 2022 $ 6,935 2023 $ 6,845 2024 $ 6,722 2025 $ 6,586 2026 $ 6,463 |
Long-Term Debt, Net
Long-Term Debt, Net | 12 Months Ended |
Jan. 29, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Net | 10. Long-Term Debt, Net The Company’s long-term debt consisted of the following as of January 29, 2022: January 29, January 30, (In thousands) 2022 2021 Convertible senior notes principal $ 412,025 $ 415,025 Less: unamortized discount 71,023 89,735 Total long-term debt, net $ 341,002 $ 325,290 Convertible Senior Notes - Equity portion, net of tax 58,454 68,330 Convertible notes In April 2020, the Company issued $ 415 million aggregate principal amount of convertible senior notes due in 2025 in a private placement to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933. The Notes have a stated interest rate of 3.75 %, payable semi-annually . The Company may redeem the Notes, in whole or in part, at any time beginning April 2023 . The Company used the net proceeds from the offering for general corporate purposes. The Company does not have the right to redeem the Notes prior to April 17, 2023 . On or after April 17, 2023 and prior to the fortieth scheduled trading day immediately preceding the maturity date, the Company may redeem all or any portion of the Notes, at its option, for cash, if the last reported sale price of AEO’s common stock has been at least 130 % of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period. Beginning January 2025 , noteholders may convert their Notes for approximately 117.9 shares of common stock per $ 1,000 principal amount of the Notes, equivalent to a conversion price of approximately $ 8.48 per share. The Company has the right to settle conversions in any combination of cash and shares of common stock. However, the Company intends to settle the original principal portion of the Notes in cash and any conversion value above the principal in stock. Because of this repayment policy, only the conversion spread portion of the amount owed is reflected as dilutive in earnings per share. The effective interest rate for the Notes is 10.0 % and we calculated the effective yield using a market approach. The remaining amortization period of the discount was 3.25 years as of January 29, 2022. Interest expense for the Notes was: January 29, January 30, (In thousands) 2022 2021 Cash based interest $ 15,431 $ 11,857 Amortization of discount (non-cash) 18,520 12,517 Total interest expense $ 33,951 $ 24,374 The following table discloses conversion amounts if the Notes were all converted as of the end of the period: January 29, (In thousands, except per share amounts) 2022 Number of shares convertible 48,574 Conversion price per share 8.48 Value in excess of principal if converted 807,470 Revolving credit facilities In January 2019, the Company entered into an amended and restated Credit Agreement (“Credit Agreement”) for five-year , syndicated, asset-based revolving credit facilities (the “Credit Facilities”). The Credit Agreement provides senior secured revolving credit for loans and letters of credit up to $ 400 million, subject to customary borrowing base limitations. All obligations under the Credit Facilities are unconditionally guaranteed by certain subsidiaries. The obligations under the Credit Agreement are secured by a first-priority security interest in certain working capital assets of the borrowers and guarantors, consisting primarily of cash, receivables, inventory and certain other assets, and will be further secured by first-priority mortgages on certain real property. As of January 29, 2022 , the Company was in compliance with the terms of the Credit Agreement and had $ 7.9 million outstanding in stand-by letters of credit. No loans were outstanding under the Credit Agreement as of January 29, 2022 . |
Leases
Leases | 12 Months Ended |
Jan. 29, 2022 | |
Leases [Abstract] | |
Leases | 11. Leases The Company leases all store premises, regional distribution facilities, some of its office space and certain information technology and office equipment. These leases are generally classified as operating leases. Store leases generally provide for a combination of base rentals and contingent rent based on store sales. Additionally, most leases include lessor incentives such as construction allowances and rent holidays. The Company is typically responsible for tenant occupancy costs including maintenance costs, common area charges, real estate taxes, and certain other expenses. Most leases include one or more options to renew. The exercise of lease renewal options is at the Company’s discretion and is not reasonably certain at lease commencement. When measuring operating lease ROU assets and operating lease liabilities after the date of adoption of ASC 842, the Company only includes cash flows related to options to extend or terminate leases once those options are executed. Some leases have variable payments. However, because they are not based on an index or rate, they are not included in the measurement of operating lease ROU assets and operating lease liabilities. When determining the present value of future payments for an operating lease that does not have a readily determinable implicit rate, the Company uses its incremental borrowing rate as of the date of initial possession of the leased asset. For leases that qualify for the short-term lease exemption, the Company does not record an operating lease liability or operating lease ROU asset. Short-term lease payments are recognized on a straight-line basis over the lease term of 12 months or less. The following table summarizes expense categories and cash payments for operating leases during the period. It also includes the total non-cash transaction activity for new operating lease ROU assets and related operating lease liabilities entered into during the period. For the Year Ended January 29, January 30, (In thousands) 2022 2021 Lease costs Operating lease costs $ 328,868 $ 325,005 Variable lease costs 121,118 98,057 Short-term leases and other lease costs 11,927 11,090 Total lease costs $ 461,913 $ 434,152 Other information Cash paid for operating lease liability $ ( 363,468 ) $ ( 331,543 ) New operating lease ROU assets entered into during the period $ 336,546 $ 116,128 The following table contains the average remaining lease term and discount rate, weighted by outstanding operating lease liability as of the end of the period: Lease term and discount rate January 29, 2022 Weighted-average remaining lease term - operating leases 5.3 years Weighted-average discount rate - operating leases 4.7 % The table below is a maturity analysis of the operating leases in effect as of the end of the period. Undiscounted cash flows for finance leases and short-term leases are not material for the periods reported and are excluded from the table below: Undiscounted January 29, 2022 (In thousands) Fiscal years: 2022 $ 335,219 2023 337,945 2024 252,800 2025 211,885 2026 174,747 Thereafter 340,353 Total undiscounted cash flows $ 1,652,949 Less: discount on lease liability ( 187,463 ) Total lease liability $ 1,465,486 |
Other Comprehensive Loss
Other Comprehensive Loss | 12 Months Ended |
Jan. 29, 2022 | |
Equity [Abstract] | |
Other Comprehensive Loss | 12. Other Comprehensive Loss The accumulated balances of other comprehensive loss included as part of the Consolidated Statements of Stockholders’ Equity follow: Accumulated Before Tax Other Tax Benefit Comprehensive (In thousands) Amount (Expense) Loss Balance at February 2, 2019 $ ( 35,804 ) 972 $ ( 34,832 ) Foreign currency translation gain (1) 2,094 — 2,094 Loss on long-term intra-entity foreign currency transactions ( 577 ) 147 ( 430 ) Balance at February 1, 2020 $ ( 34,287 ) $ 1,119 $ ( 33,168 ) Foreign currency translation loss (1) ( 7,053 ) — ( 7,053 ) Loss on long-term intra-entity foreign currency transactions 592 ( 1,119 ) ( 527 ) Balance at January 30, 2021 $ ( 40,748 ) $ — $ ( 40,748 ) Foreign currency translation loss (1) ( 1,003 ) — ( 1,003 ) Loss on long-term intra-entity foreign currency transactions 906 — 906 Balance at January 29, 2022 $ ( 40,845 ) $ — $ ( 40,845 ) (1) Foreign currency translation adjustments are not adjusted for income taxes as they relate to a permanent investment in a subsidiary. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Jan. 29, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Payments | 13. Share-Based Payments The Company accounts for share-based compensation under the provisions of ASC 718, Compensation – Stock Compensation (“ASC 718”), which requires the Company to measure and recognize compensation expense for all share-based payments at fair value. Total share-based compensation expense included in the Consolidated Statements of Operations for Fiscal 2021, Fiscal 2020 and Fiscal 2019 was $ 38.2 million ( $ 28.8 million, net of tax ), $ 32.8 million ($ 24.6 million, net of tax), and $ 23.0 million ($ 17.9 million, net of tax), respectively. ASC 718 requires recognition of compensation cost under a non-substantive vesting period approach for awards containing provisions that accelerate or continue vesting upon retirement. Accordingly, for awards with such provisions, the Company recognizes compensation expense over the period from the grant date to the date retirement eligibility is achieved, if that is expected to occur during the nominal vesting period. Additionally, for awards granted to retirement eligible employees, the full compensation cost of an award must be recognized immediately upon grant. At January 29, 2022 , the Company had awards outstanding under two share-based compensation plans, which are described below. Share-based compensation plans 2020 Stock Award and Incentive Plan (“2020 Plan”) The 2020 Plan was approved by the stockholders on April 13, 2020. The 2020 Plan authorized 10.2 million shares for issuance, in the form of options, stock appreciation rights (“SARS”), restricted stock, restricted stock units, bonus stock and awards, performance awards, dividend equivalents and other stock-based awards. The 2020 Plan provides that for awards intended to qualify as “performance-based compensation” under Code Section 162(m), (i) the maximum number of shares awarded to any individual may not exceed 3.0 million shares per year for options and SARS and (ii) no more than 1.5 million shares may be granted with respect to each of restricted shares of stock and restricted stock units (subject to certain adjustments and exceptions provided therein). The 2020 Plan allows the Compensation Committee of the Board to determine which employees receive awards and the terms and conditions of the awards under the 2020 Plan. The 2020 Plan provides for grants to directors who are not officers or employees of the Company, which are not to exceed in value $ 750,000 in any single fiscal year. Through January 29, 2022, approximately 2.0 million shares of restricted stock and approximately 1.2 million shares of common stock had been granted under the 2020 Plan to employees and directors. Approximately 40 % of the restricted stock awards are performance-based and are earned if the established performance goals are met. The remaining 60 % of the restricted stock awards are time-based and 97 % vest ratably over three years and 3 % vest over a period of one to two years . 2017 Stock Award and Incentive Plan (“2017 Plan”) The 2017 Plan was approved by the stockholders on May 23, 2017. The 2017 Plan authorized 11.2 million shares for issuance, in the form of options, stock appreciation rights (“SARS”), restricted stock, restricted stock units, bonus stock and awards, performance awards, dividend equivalents and other stock-based awards. The 2017 Plan provides that for awards intended to qualify as “performance-based compensation” under Code Section 162(m) (i) the maximum number of shares awarded to any individual may not exceed 3.0 million shares per year for options and SARS and (ii) no more than 1.5 million shares may be granted with respect to each of restricted shares of stock and restricted stock units (subject to certain adjustments and exceptions provided therein). The 2017 Plan allows the Compensation Committee of the Board to determine which employees receive awards and the terms and conditions of the awards under the 2017 Plan. The 2017 Plan provides for grants to directors who are not officers or employees of the Company, which are not to exceed in value $ 750,000 in any single fiscal year. Through January 30, 2021, approximately 7.7 million shares of restricted stock and approximately 3.5 million shares of common stock had been granted under the 2017 Plan to employees and directors. Approximately 80 % of the restricted stock awards are performance-based and are earned if the established performance goals are met. The remaining 20 % of the restricted stock awards are time-based and 98 % vest ratably over three years and 2 % vest over a period of one to two years . After April 13, 2020, no new awards may be granted under the 2017 Plan and all outstanding awards at that time continued in force and operation in accordance with their respective terms. Stock Option Grants The Company has granted time-based stock options under the 2017 and 2020 Plans. Time-based stock option awards vest over the requisite service period of the award or to an employee’s eligible retirement date, if earlier. A summary of the Company’s stock option activity under the 2017 and 2020 Plans for Fiscal 2021 follows: For the Year Ended January 29, 2022 Weighted- Weighted- Aggregate Options Exercise Price Term Value (In thousands) (In years) (In thousands) Outstanding - January 30, 2021 3,940 $ 14.87 Granted 478 $ 31.46 Exercised (1) ( 771 ) $ 16.33 Cancelled — $ — Outstanding - January 29, 2022 3,647 $ 16.74 4.3 $ 24,980 Vested and expected to vest - January 29, 2022 2,513 $ 16.62 3.1 $ 13,231 Exercisable - January 29, 2022 (2) 1,788 $ 16.28 1.6 $ 10,949 (1) Options exercised during Fiscal 2021 ranged in price from $ 8.62 to $ 21.41 . (2) Options exercisable represent “in-the-money” vested options based upon the weighted average exercise price of vested options compared to the Company’s stock price on January 29, 2022. The weighted-average grant date fair value of stock options granted during Fiscal 2021 and Fiscal 2020 was $ 11.68 and $ 3.06 , respectively. The aggregate intrinsic value of options exercised during Fiscal 2021, Fiscal 2020, and Fiscal 2019 was $ 12.8 million, $ 0.7 million and $ 0.8 million, respectively. Cash received from the exercise of stock options and the actual tax benefit realized from share-based payments was $ 13.1 million and $ 4.5 million, respectively, for Fiscal 2021. Cash received from the exercise of stock options and the actual tax benefit realized from share-based payments was $ 3.3 million and $ 1.2 million, respectively, for Fiscal 2020. Cash received from the exercise of stock options and the actual tax benefit realized from share-based payments was $ 2.1 million and $ 1.2 million, respectively, for Fiscal 2019. The fair value of stock options was estimated at the date of grant using a Black-Scholes option-pricing model with the following weighted-average assumptions: For the Years Ended January 29, January 30, Black-Scholes Option Valuation Assumptions 2022 2021 Risk-free interest rates (1) 0.9 % 0.3 - 0.6 % Dividend yield 1.6 % 3.5 - 6.0 % Volatility factors of the expected market price of (2) 50.7 % 43.1 - 48.7 % Weighted-average expected term (3) 4.5 years 4.4 years (1) Based on the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected life of our stock options. (2) Based on the historical volatility of the Company’s common stock. (3) Represents the period of time options are expected to be outstanding. The weighted average expected option terms were determined based on historical experience. As of January 29, 2022 , there was $ 6.5 million of unrecognized compensation expense related to non-vested stock option awards that is expected to be recognized over a weighted average period of 1.9 years. Restricted Stock Grants Time-based restricted stock awards are comprised of time-based restricted stock units. These awards vest over three years . Time-based restricted stock units receive dividend equivalents in the form of additional time-based restricted stock units, which are subject to the same restrictions and forfeiture provisions as the original award. Performance-based restricted stock awards include performance-based restricted stock units. These awards cliff vest at the end of a three-year period based upon the Company’s achievement of pre-established goals throughout the term of the award. Performance-based restricted stock units receive dividend equivalents in the form of additional performance-based restricted stock units, which are subject to the same restrictions and forfeiture provisions as the original award. The grant date fair value of some restricted stock awards is based on the closing market price of the Company’s common stock on the date of grant. A Monte-Carlo simulation was utilized for the remaining performance awards. A summary of the activity of the Company’s restricted stock is presented in the following tables: Time-Based Restricted Stock Units Performance- Restricted Stock Units For the year ended For the year ended January 29, 2022 January 29, 2022 (Shares in thousands) Shares Weighted-Average Shares Weighted-Average Non-vested - January 30, 2021 3,698 $ 12.42 1,868 $ 17.44 Granted 724 32.40 339 39.54 Vested ( 1,483 ) 14.92 ( 418 ) 22.22 Cancelled/Forfeited ( 237 ) 14.20 ( 327 ) 18.56 Non-vested - January 29, 2022 2,702 $ 16.25 1,462 $ 20.95 As of January 29, 2022 , there was $ 25.8 million of unrecognized compensation expense related to non-vested time-based restricted stock unit awards that is expected to be recognized over a weighted average period of 1.8 years. Based on current probable performance, there is $ 6.9 million of unrecognized compensation expense related to performance-based restricted stock unit awards which will be recognized as achievement of performance goals is probable over a one to three -year period. As of January 29, 2022 , the Company had 7.5 million shares available for all equity grants. |
Retirement Plan and Employee St
Retirement Plan and Employee Stock Purchase Plan | 12 Months Ended |
Jan. 29, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Plan and Employee Stock Purchase Plan | 14. Retirement Plan and Employee Stock Purchase Plan The Company maintains a profit sharing and 401(k) plan (the “Retirement Plan”). Under the provisions of the Retirement Plan, full-time employees and part-time employees are automatically enrolled to contribute 3 % of their salary if they have attained 20 years of age. In addition, full-time employees need to have completed 30 days of service and part-time employees must complete 1,000 hours of service within a 12-month period. Individuals can decline enrollment or can contribute up to 50 % of their salary to the 401(k) plan on a pretax basis, subject to Internal Revenue Service (“IRS) limitations. After one year of service, the Company will match 100 % of the first 3% of pay plus an additional 25 % of the next 3% of pay that is contributed to the plan. Employees are 100 % vested in the Company match after 2 years. Contributions to the profit sharing plan, as determined by the Board, are discretionary. The Company recognized $ 14.7 million, $ 13.3 million and $ 11.5 million in expense during Fiscal 2021, Fiscal 2020, and Fiscal 2019, respectively, in connection with the Retirement Plan. The Employee Stock Purchase Plan is a non-qualified plan that covers all full-time employees and part-time employees who are at least 18 years old and have completed 60 days of service. Contributions are determined by the employee, with the Company matching 15 % of the investment up to a maximum investment of $ 100 per pay period. These contributions are used to purchase shares of Company stock in the open market. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 29, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes On December 22, 2017, the U.S. government enacted comprehensive tax legislation in the form of the Tax Cuts and Jobs Act (“the Tax Act”). The Tax Act significantly changed U.S. international tax laws for tax years beginning after December 31, 2017 and included a provision designed to currently tax global intangible low-taxed income (“GILTI”) earned by non-U.S. corporate subsidiaries of large U.S. shareholders. The Company has elected to treat GILTI as a period expense, and the effect of the GILTI inclusion for Fiscal 2021 is not material. In addition, on March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) to address the COVID-19 pandemic. The CARES Act allows net operating losses (“NOL”) generated within tax years 2018 through 2020 to be carried back up to five years , including years in which the U.S. federal corporate income tax rate was 35 %, as opposed to the current U.S federal corporate income tax rate of 21 %. The CARES Act contains other key income and payroll tax provisions, including the immediate write-off of qualified improvement property. The components of income (loss) before income taxes are: For the Years Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 U.S. $ 520,952 $ ( 294,208 ) $ 229,906 Foreign 37,970 1,935 15,372 Total $ 558,922 $ ( 292,273 ) $ 245,278 The significant components of the Company’s deferred tax assets and liabilities are as follows: January 29, January 30, (in thousands) 2022 2021 Deferred tax assets: Operating lease ROU assets $ 380,117 $ 389,604 Net Operating Loss 27,643 10,160 Employee compensation and benefits 20,521 3,124 Accruals not currently deductible 11,645 8,538 Deferred compensation 8,429 7,400 Other long term assets 8,208 — State tax credits 7,546 7,407 Inventories 5,220 3,267 Capital Loss 4,213 4,471 Allowance for Doubtful Accounts 3,201 750 Foreign tax credits 2,982 943 Other 5,757 2,093 Gross deferred tax assets 485,482 437,757 Valuation allowance ( 25,628 ) ( 12,263 ) Total deferred tax assets 459,854 425,494 Deferred tax liabilities: Operating lease liabilities $ ( 308,299 ) $ ( 310,888 ) Property and equipment ( 87,192 ) ( 56,487 ) Convertible Senior Note ( 15,384 ) ( 20,589 ) Prepaid expenses ( 2,215 ) ( 2,294 ) Other ( 2,597 ) ( 2,191 ) Total deferred tax liabilities $ ( 415,687 ) $ ( 392,449 ) Total deferred tax assets, net $ 44,167 $ 33,045 The increase in net deferred tax assets was primarily due to an increase in federal net operating loss carryovers related to the acquisition of Quiet Logistics, Inc. and employee compensation and benefits, partially offset by an increase in property and equipment. As of January 29, 2022, the Company had deferred tax assets related to federal, state and foreign net operating loss carryovers of $ 15.3 million, $ 6.1 million and $ 6.2 million, respectively that could be utilized to reduce future years’ tax liabilities. A portion of these net operating loss carryovers expire in future years and some have an indefinite carryforward period. Management believes it is more likely than not that a portion of state net operating loss and the foreign net operating loss carryovers will not reduce future years’ tax liabilities in certain jurisdictions. As such, a valuation allowance of $ 2.7 million has been recorded on the deferred tax assets related to a portion of the state net operating loss carryovers as of January 29, 2022. Further, valuation allowances of $ 6.1 million and $ 4.3 million have been recorded on the deferred tax assets related to the cumulative foreign net operating loss carryovers as of January 29, 2022 and January 30, 2021 respectively. We also provided for valuation allowances of approximately $ 1.6 million and $ 0.8 million related to other foreign deferred tax assets as of January 29, 2022 and January 30, 2021, respectively. The Company had foreign tax credit carryovers in the amount of $ 3.0 million and $ 0.9 million as of January 29, 2022 and January 30, 2021, respectively. The foreign tax credit carryovers begin to expire in Fiscal 2028 to the extent not utilized. Management believes it is more likely than not that a certain category of foreign tax credit carryover will not reduce future years’ tax liabilities. As such, valuation allowances of $ 1.0 million and $ 0.9 million have been recorded on the deferred tax assets related to the foreign tax credit carryovers as of January 29, 2022 and January 30, 2021, respectively. The Company had state income tax credit carryforwards of $ 7.5 million (net of federal tax) and $ 7.4 million (net of federal tax) as of January 29, 2022 and January 30, 2021, respectively. These income tax credits can be utilized to offset future state income taxes, with the majority having a carryforward period of 16 years. They will begin to expire in Fiscal 2024 . Management believes it is more likely than not that a portion of the state income tax credit carryovers will not reduce future years’ tax liabilities in certain jurisdictions. As such, valuation allowances of $ 1.8 million and $ 1.8 million have been recorded on the deferred tax assets related to the cumulative state income tax credit carryovers as of January 29, 2022 and January 30, 2021, respectively. The Company had U.S. and state capital losses carryforwards of $ 4.2 million and $ 4.5 million as of January 29, 2022 and January 30, 2021, respectively. Generally, the capital losses have a carryforward period of 5 years. The Company has recorded a valuation allowance for $ 4.2 million and $ 4.5 million as of January 29, 2022 and January 30, 2021, respectively, on the deferred tax asset attributable to these capital losses. In Fiscal 2021, the Company recorded a deferred tax asset of $ 8.2 million for other long term assets related to the acquisition of Quiet Logistics, Inc. and certain other strategic investments. Management believes it is more likely than not that these other long term assets will not reduce future years’ tax liabilities. As such, the Company recorded a valuation allowance for $ 8.2 million as of January 29, 2022 for the deferred tax asset attributable to these assets. Significant components of the provision (benefit) for income taxes are as follows: For the Years Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Current: Federal $ 107,493 $ ( 59,080 ) $ 25,745 Foreign taxes 19,671 7,443 8,137 State 24,979 3,528 13,598 Total current 152,143 ( 48,109 ) 47,480 Deferred: Federal $ ( 12,637 ) $ ( 17,286 ) $ 12,289 Foreign taxes ( 1,284 ) ( 4,622 ) ( 1,213 ) State 1,071 ( 12,982 ) ( 4,535 ) Total deferred ( 12,850 ) ( 34,890 ) 6,541 (Benefit) Provision for income taxes $ 139,293 $ ( 82,999 ) $ 54,021 As of January 29, 2022, the undistributed earnings of the Company’s foreign subsidiaries were approximately $ 87.8 million. The Company intends to permanently reinvest a portion of its earnings outside of the United States for the foreseeable future. On the remaining earnings, the Company has no t recognized deferred tax expense because we expect any potential distribution to be made from previously taxed earnings, or qualify for the 100 percent dividends received deduction, along with negligible foreign withholding taxes. The following table summarizes the activity related to our unrecognized tax benefits: For the Years Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Unrecognized tax benefits, beginning of the year $ 2,563 $ 2,781 $ 6,534 Increases in current period tax positions 251 602 422 Increases in tax positions of prior periods 688 1 151 Settlements 0 ( 450 ) ( 2,223 ) Lapse of statute of limitations ( 93 ) ( 289 ) ( 720 ) Decreases in tax positions of prior periods ( 150 ) ( 82 ) ( 1,383 ) Unrecognized tax benefits, end of the year balance $ 3,259 $ 2,563 $ 2,781 As of January 29, 2022, the gross amount of unrecognized tax benefits was $ 3.3 million, of which $ 2.6 million would affect the effective income tax rate if recognized. The gross amount of unrecognized tax benefits as of January 30, 2021 was $ 2.6 million, of which $ 2.0 million would affect the effective income tax rate if recognized. Unrecognized tax benefits increased by $ 0.7 million during Fiscal 2021, decreased by $ 0.2 million during Fiscal 2020, and increased by $ 3.8 million during Fiscal 2019. Over the next twelve months, the Company believes it is reasonably possible that the unrecognized tax benefits could decrease by as much as $ 1.0 million as a result of federal and state tax settlements, statute of limitations lapses, and other changes to the reserves. The Company records accrued interest and penalties related to unrecognized tax benefits in income tax expense. Accrued interest and penalties related to unrecognized tax benefits included in the Consolidated Balance Sheets were $ 0.9 million and $ 0.7 million as of January 29, 2022 and January 30, 2021, respectively. An immaterial amount of interest and penalties was recognized in the provision (benefit) for income taxes during Fiscal 2021, Fiscal 2020, and Fiscal 2019. The Company and its subsidiaries file income tax returns in the U.S. federal and various state and foreign jurisdictions. The IRS has completed examinations through February 1, 2020. With respect to state and local jurisdictions and countries outside of the United States, with limited exceptions, generally, the Company and its subsidiaries are no longer subject to income tax audits for tax years before Fiscal 2016 (ended January 28, 2017). Although the outcome of tax audits is always uncertain, the Company believes that adequate amounts of tax, interest, and penalties have been provided for any adjustments that are expected to result from these years. A reconciliation between the statutory federal income tax rate and the effective income tax rate follows: For the Years Ended January 29, January 30, February 1, 2022 2021 2020 Federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax effect 4.1 3.1 3.6 Foreign rate differential 0.6 0.3 ( 0.6 ) International provisions of Tax Act ( 0.5 ) 0.0 ( 2.1 ) Rate differential on CARES Act NOL carryback 0.0 8.1 0.0 Valuation allowance changes, net 0.2 ( 2.6 ) 0.3 Non-deductible executive compensation 1.3 ( 2.1 ) 0.6 Change in unrecognized tax benefits 0.1 ( 0.1 ) 0.1 Share Based Payments ( 0.8 ) 0.4 ( 0.5 ) Other ( 1.1 ) 0.3 ( 0.4 ) 24.9 % 28.4 % 22.0 % The Company recorded income tax expense of $ 139.3 million (an effective tax rate of 24.9 %) in Fiscal 2021, compared to an income tax benefit of $ 83.0 million (an effective tax benefit rate of 28.4 %) in Fiscal 2020, and income tax expense of $ 54.0 million (an effective tax rate of 22.0 %) in Fiscal 2019. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Jan. 29, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | 16. Segment Reporting In accordance with ASC 280, Segment Reporting (“ASC 280”), the Company has identified two operating segments (American Eagle brand and Aerie brand) that also represent our reportable segments and reflect the Chief Operating Decision Maker’s (defined as our CEO) internal view of analyzing results and allocating resources. Additionally, our Todd Snyder brand, Unsubscribed brand, and Supply Chain Platform have been identified as separate operating segments; however, as they do not meet the quantitative thresholds for separate disclosure, they have been included in the Corporate and Other category, as permitted by ASC 280. Our CEO analyzes segment results and allocates resources between segments based on the adjusted operating income (loss) of each segment. Adjusted operating income (loss) is a non-GAAP financial measure ("non-GAAP" or "adjusted") that is defined by the Company as operating income excluding impairment, restructuring and COVID-19 related charges. Adjusted operating income (loss) is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to similar measures presented by other companies. Non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. We believe that this non-GAAP information is useful as an additional means for investors to evaluate our operating performance, when reviewed in conjunction with our GAAP consolidated financial statements and provides a higher degree of transparency. These amounts are not determined in accordance with GAAP and, therefore, should not be used exclusively in evaluating our business and operations. Adjusted operating income (loss) on a consolidated basis is presented in the following table to reconcile the segment operating performance measure to operating income (loss) as presented on the Consolidated Financial Statements. Reportable segment information is presented in the following table: (in thousands) American Eagle Aerie Corporate and Other (1) Total (2) For the year ended January 29, 2022 Total net revenue $ 3,555,706 $ 1,376,269 $ 78,810 $ 5,010,785 Operating income (Ioss) $ 785,729 $ 212,287 $ ( 406,951 ) $ 591,065 Asset Impairment $ 10,231 $ 1,713 $ - $ 11,944 Adjusted operating income (loss) $ 795,960 $ 214,000 $ ( 406,951 ) $ 603,009 Depreciation and Amortization $ 59,641 $ 33,834 $ 73,306 $ 166,781 Capital expenditures $ 47,106 $ 80,062 $ 106,679 $ 233,847 For the year ended January 30, 2021 Total net revenue $ 2,733,849 $ 989,989 $ 35,275 $ 3,759,113 Operating income (Ioss) $ 93,029 $ 60,298 $ ( 424,672 ) $ ( 271,345 ) Impairment, restructuring and COVID-19 related charges $ 144,486 $ 52,849 $ 82,491 $ 279,826 Adjusted operating income (loss) $ 237,515 $ 113,147 $ ( 342,181 ) $ 8,481 Depreciation and Amortization $ 63,019 $ 26,647 $ 72,736 $ 162,402 Capital expenditures $ 36,606 $ 32,723 $ 58,646 $ 127,975 For the year ended February 1, 2020 Total net revenue $ 3,479,592 $ 801,035 $ 27,585 $ 4,308,212 Operating income (loss) $ 484,078 $ 47,465 $ ( 298,198 ) $ 233,345 Impairment and restructuring charges $ 41,657 $ 20,261 $ 18,576 $ 80,494 Adjusted operating Income (loss) $ 525,735 $ 67,726 $ ( 279,622 ) $ 313,839 Depreciation and Amortization $ 75,889 $ 22,578 $ 80,583 $ 179,050 Capital expenditures $ 98,699 $ 56,283 $ 55,378 $ 210,360 (1) Corporate and Other includes revenue and operating results of the Todd Snyder brand, Unsubscribed brand, and Supply Chain Platform, which have been identified as separate operating segments, but are not material to disclose as separate reportable segments. Corporate operating costs represents certain costs that are not directly attributable to another reportable segment. (2) The difference between Operating income (loss) and Income (loss) before income taxes includes the following, which are not allocated to our reportable segments: - For Fiscal 2021: interest expense (income), net of $ 34.6 million and other income, net of $ 2.5 million - For Fiscal 2020: interest expense (income), net of $ 24.6 million and other income, net of $ 3.7 million - For Fiscal 2019: interest expense (income), net of ($ 6.2 ) million and other income, net of $ 5.7 million We do not allocate assets to the reportable segment level and therefore our CEO does not use segment asset information to make decisions. Total net revenue for the American Eagle and Aerie reportable segments in the table above represents revenue attributable to each brands merchandise which comprises approximately 98% of total net revenue. The following tables present summarized geographical information. For the Years Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Total net revenue: United States $ 4,336,806 $ 3,295,028 $ 3,710,270 Foreign (1) 673,979 464,085 597,942 Total net revenue $ 5,010,785 $ 3,759,113 $ 4,308,212 (1) Amounts represent sales from American Eagle and Aerie international retail stores, and e-commerce sales that are billed to and/or shipped to foreign countries and international franchise royalty revenue. January 29, January 30, (In thousands) 2022 2021 Long-lived assets, net: United States $ 2,137,835 $ 1,705,561 Foreign 157,575 144,544 Total long-lived assets, net $ 2,295,410 $ 1,850,105 |
Impairment, Restructuring and C
Impairment, Restructuring and COVID-19 Related Charges | 12 Months Ended |
Jan. 29, 2022 | |
Restructuring and Related Activities [Abstract] | |
Impairment, Restructuring and COVID-19 Related Charges | 17. Impairment, Restructuring and COVID-19 Related Charges The following table represents impairment, restructuring and COVID-19 related charges. All amounts were recorded within impairment, restructuring and COVID-19 related charges on the Consolidated Statements of Operations, unless otherwise noted. For the years ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Long-lived asset Impairment charges (1) $ 11,944 $ 249,163 $ 66,252 Incremental COVID-19 related expenses (2) — 26,930 — Severance and related employee — 3,733 6,691 Other restructuring charges (3) — — 7,551 Total impairment, restructuring, and COVID-19 related $ 11,944 $ 279,826 $ 80,494 (1) The Company recorded impairment charges of $ 11.9 million in Fiscal 2021, primarily related to store property and equipment and operating lease ROU assets. (2) In Fiscal 2020, the Company recorded impairment charges of $ 249.2 million. Included in this amount are retail store impairment charges of $ 203.2 million, of which $ 154.8 million relates to operating lease ROU assets and $ 48.4 million relates to store property and equipment (fixtures and equipment and leasehold improvements). We also recorded $ 28.0 million related to the impairment of certain corporate property and equipment, as well as $ 18.0 million of certain cost and equity method investments. (3) In Fiscal 2019, the Company recorded asset impairment charges of $ 64.5 million on the assets of 20 retail stores. Of the total, $ 39.5 million related to the impairment of leasehold improvements and store fixtures, and $ 25.0 million related to the impairment of operating lease ROU assets. The Company also concluded that certain goodwill was impaired resulting in a $ 1.7 million charge in Fiscal 2019. (4) Incremental COVID-19 related expenses consisting of personal protective equipment and supplies for our associates and customers. (5) Other restructuring charges consists of $ 4.2 million of joint business venture exit charges, $ 1.8 million of Japan market transition costs and $ 1.5 million of China restructuring in Fiscal 2019. A rollforward of the restructuring liabilities recognized in the Consolidated Balance Sheet is as follows: January 29, (In thousands) 2022 Accrued liability as of January 30, 2021 $ 2,812 Add: Costs incurred, excluding non-cash 1,367 Less: Cash payments and adjustments ( 2,812 ) Accrued liability as of January 29, 2022 $ 1,367 The accrued liability as of January 30, 2021 relates to previous restructuring activities disclosed in the Company’s Fiscal 2020 Form 10-K, which remained unpaid at the beginning of Fiscal 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 29, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. At January 29, 2022 , the Company operated in two reportable segments, American Eagle and Aerie. |
Fiscal Year | Fiscal Year Our fiscal year is a 52- or 53-week year that ends on the Saturday nearest to January 31. As used herein, “Fiscal 2022” refers to the 52-week period that will end on January 28, 2023. “Fiscal 2021” refers to the 52-week period ended January 29, 2022. “Fiscal 2020” refers to the 52-week period ended January 30, 2021. “Fiscal 2019” refers to the 52-week period ended February 1, 2020 . |
Estimates | Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, our management reviews its estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board ("FASB") amended Accounting Standards Codification ("ASC") 740, Income Taxes (issued under ASU 2019-12, Simplifying the Accounting for Income Taxes). This amendment removes certain exceptions to the general principles of ASC 740, and clarifies and amends the existing guidance to improve consistent application. The Company adopted the guidance effective January 31, 2021 . The adoption did not have a material impact on the Company’s Consolidated Financial Statements. In August 2020, the FASB issued ASU 2020-06, Debt with Conversion and Other Options (“ASU 2020-06”), which simplifies the accounting for convertible debt instruments. The new guidance eliminates two of the three models in ASC 470-20, Debt with Conversion and Other Options that require separating embedded conversion features from convertible instruments. The guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation. The guidance is effective for fiscal years beginning after December 15, 2021. The Company will adopt ASU 2020-06 at the beginning of Fiscal 2022 using the full retrospective approach. In April 2020, the Company issued a $ 415 million aggregate principal amount of convertible senior notes due 2025 (the "Notes"). The Notes are currently accounted for under the cash conversion model, which is one of the models being eliminated by ASU 2020-06. The adoption of ASU 2020-06 will result in the Notes being accounted for as a single balance in long-term debt, rather than being accounted for as separate debt and equity components. Subsequently, the adoption of ASU 2020-06 is expected to reduce reported interest expense. For Fiscal 2021, interest expense would have decreased approximately $ 12 million and reported net income would have increased by $ 12 million, net of tax. Additionally, as a result of this adoption we are required to use the "if-converted" method of calculating EPS. This method requires us to consider the Notes as fully converted in shares in our diluted EPS denominator. The dilutive effect of the Notes will increase to approximately 49 million dilutive shares, or an incremental 15 million shares compared to the dilutive effect as of January 29, 2022. The "if-converted" method also requires us to add back interest expense of the Notes, net of tax, to the numerator when calculating diluted EPS. |
Foreign Currency Translation | Foreign Currency Translation In accordance with ASC 830, Foreign Currency Matters , the Company translates assets and liabilities denominated in foreign currencies into United States dollars (“USD”) (the reporting currency) at the exchange rates prevailing at the balance sheet date. The Company translates revenues and expenses denominated in foreign currencies into USD at the monthly average exchange rates for the period. Gains or losses resulting from foreign currency transactions are included in the consolidated results of operations, whereas related translation adjustments are reported as an element of other comprehensive income (loss) in accordance with ASC 220, Comprehensive Income. Refer to Note 12 to the Consolidated Financial Statements for information regarding comprehensive income (loss). |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. Refer to Note 4 to the Consolidated Financial Statements for information regarding cash and cash equivalents. |
Receivables | Receivables The Company maintains an allowance for doubtful accounts for estimated losses from the failure of certain of our customers to make required payments for products or services delivered. The Company estimates this allowance based on the age of the related receivable, knowledge of the financial condition of customers, review of historical and expected future receivables and reserve trends and other pertinent information. If the financial condition of customers deteriorates or an unfavorable trend in receivable collections is experienced in the future, additional allowances may be required. Historically, the Company’s reserves have approximated actual experience. |
Merchandise Inventory | Merchandise Inventory Merchandise inventory is valued at the lower of average cost or net realizable value, utilizing the retail method. Average cost includes merchandise design and sourcing costs and related expenses. The Company records merchandise receipts when control of the merchandise has transferred to the Company. The Company reviews its inventory levels to identify slow-moving merchandise and generally uses markdowns to clear merchandise. Additionally, the Company estimates a markdown reserve for future planned permanent markdowns related to current inventory. Markdowns may occur when inventory exceeds customer demand for reasons of style, seasonal adaptation, changes in customer preference, lack of consumer acceptance of fashion items, competition, or if it is determined that the inventory in stock will not sell at its currently ticketed price. Such markdowns may have a material adverse impact on earnings, depending on the extent and amount of inventory affected. The Company also estimates a shrinkage reserve for the period between the last physical count and the balance sheet date. The estimate for the shrinkage reserve, based on historical results, can be affected by changes in merchandise mix and changes in actual shrinkage trends. |
Property and Equipment | Property and Equipment Property and equipment are recorded on the basis of cost with depreciation computed utilizing the straight-line method over the assets’ estimated useful lives. The useful lives of our major classes of assets are as follows: Buildings 25 years Leasehold improvements Lesser of 10 years or the term of the lease Fixtures and equipment Five years Information technology Three - five years As of January 29, 2022 , the weighted average remaining useful life of our assets was approximately 6.3 years. In accordance with ASC 360, Property, Plant, and Equipment (“ASC 360”), the Company’s management evaluates the value of leasehold improvements, store fixtures, and operating lease right-of-use "ROU" assets associated with retail stores. The Company evaluates long-lived assets for impairment at the individual store level, which is the lowest level at which individual cash flows can be identified. Impairment losses are recorded on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the projected undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts. When events such as these occur, the impaired assets are adjusted to their estimated fair value and an impairment loss is recorded separately as a component of Operating income (loss) within Impairment, restructuring and COVID-19 related charges in the Consolidated Statements of Operations. When the Company closes, remodels, or relocates a store prior to the end of its lease term, the remaining net book value of the assets related to the store is recorded as a write-off of assets within depreciation and amortization expense. Refer to Note 8 to the Consolidated Financial Statements for additional information regarding property and equipment, and refer to Note 17 to the Consolidated Financial Statements for additional information regarding impairment charges for Fiscal 2021, Fiscal 2020 and Fiscal 2019. |
Goodwill and Intangible Assets, net | Goodwill and Intangible Assets, net The Company’s goodwill is primarily related to the acquisition of its Supply Chain Platform, in Fiscal 2021 as well as its importing operations and Canadian business, and represents the excess of cost over fair value of net assets of businesses acquired. In accordance with ASC 350, Intangibles – Goodwill and Other , the Company evaluates goodwill for possible impairment at least annually as of the last day of the fiscal year and upon occurrence of certain triggering events or substantive changes in circumstances that indicate that the fair value of a reporting unit may be below it's carrying value. If the carrying value of the reporting unit exceeds the fair value, an impairment charge is recorded in the period of the evaluation based on that difference. The Company last performed an annual goodwill impairment test as of January 29, 2022. As a result, there was no goodwill impairment charge recorded during Fiscal 2021 or Fiscal 2020. During Fiscal 2019, the Company concluded that certain goodwill was impaired resulting in a $ 1.7 million charge included within Impairment, restructuring and COVID-19 related charges in the Consolidated Statements of Operations. Definite-lived intangible assets are initially recorded at fair value, with amortization computed utilizing the straight-line method over the assets’ estimated useful lives. The Company’s definite-lived intangible assets, which consist primarily of trademark assets, are generally amortized over 10 to 15 years . The Company evaluates definite-lived intangible assets for impairment in accordance with ASC 360 when events or circumstances indicate that the carrying value of the asset may not be recoverable. Such an evaluation includes the estimation of undiscounted future cash flows to be generated by those assets. If the sum of the estimated future undiscounted cash flows is less than the carrying amounts of the assets, then the assets are impaired and are adjusted to their estimated fair value. No definite-lived intangible asset impairment charges were recorded for all periods presented. Refer to Note 3 to the Consolidated Financial Statements for additional information regarding acquisitions and Note 9 to the Consolidated Financial Statements for additional information regarding goodwill and intangible assets. |
Gift Cards | Gift Cards Revenue is not recorded on the issuance of gift cards. The value of a gift card is recorded as a current liability upon issuance and revenue is recognized when the gift card is redeemed for merchandise. The Company estimates gift card breakage and recognizes revenue in proportion to actual gift card redemptions as a component of total net revenue. The Company determines an estimated gift card breakage rate by continuously evaluating historical redemption data and the time when there is a remote likelihood that a gift card will be redeemed. The Company recorded $ 10.3 million, $ 8.8 million, and $ 9.5 million during Fiscal 2021, Fiscal 2020, and Fiscal 2019, respectively, of revenue related to gift card breakage. |
Construction Allowances | Construction Allowances As part of certain lease agreements for retail stores, the Company receives construction allowances from lessors, which are generally comprised of cash amounts. The Company records a receivable and an adjustment to the operating lease ROU asset at the lease commencement date (date of initial possession of the store). The deferred lease credit is amortized as part of the single lease cost over the term of the original lease (including the pre-opening build-out period). The receivable is reduced as amounts are received from the lessor. |
Self-Insurance Liability | Self-Insurance Liability The Company uses a combination of insurance and self-insurance mechanisms for certain losses related to employee medical benefits and worker’s compensation. Costs for self-insurance claims filed and claims incurred but not reported are accrued based on known claims and historical experience. Management believes that it has adequately reserved for its self-insurance liability, which is capped by stop loss contracts with insurance companies. However, any significant variation of future claims from historical trends could cause actual results to differ from the accrued liability. |
Leases | Leases The Company leases all store premises, regional distribution facilities, some of its office space and certain information technology and office equipment. These leases are generally classified as operating leases. Store leases generally provide for a combination of base rentals and contingent rent based on store sales. Additionally, most leases include lessor incentives such as construction allowances and rent holidays. The Company is typically responsible for tenant occupancy costs including maintenance costs, common area charges, real estate taxes and certain other expenses. Most leases include one or more options to renew. The exercise of lease renewal options is at the Company’s discretion and is not reasonably certain at lease commencement. When measuring operating lease ROU assets and operating lease liabilities, the Company only includes cash flows related to options to extend or terminate leases once those options are executed. Some leases have variable payments. However, because they are not based on an index or rate, they are not included in the measurement of operating lease ROU assets and operating lease liabilities. When determining the present value of future payments for an operating lease that does not have a readily determinable implicit rate, the Company uses its incremental borrowing rate as of the date of initial possession of the leased asset. For leases that qualify for the short-term lease exemption, the Company does not record an operating lease liability or operating lease ROU asset. Short-term lease payments are recognized on a straight-line basis over the lease term of 12 months or less. Refer to Note 11 to the Consolidated Financial Statements for additional information. Lease Modifications and COVID-19 The FASB staff issued a Q&A document in April 2020 providing guidance on how to apply the lease modification guidance in ASC 842 to rent concessions arising from the COVID-19 pandemic, allowing companies to elect accounting for the concessions as if enforceable rights and obligations existed, regardless of whether they are explicitly stated in the lease contract. Per the FASB staff Q&A guidance, entities may make the elections for any lessor-provided concessions related to the effects of the COVID-19 pandemic (e.g., deferrals of lease payments, cash payments made to the lessee, reduced future lease payments) as long as the concession does not result in a substantial increase in the rights of the lessor or the obligations of the lessee. During Fiscal 2020: • For concessions in the form of rent forgiveness, the Company invoked the accounting elections provided by the FASB staff; savings were recorded as a credit to variable rent in the period the amendments became fully executed. • For concessions in the form of deferred payments, the Company did not apply the FASB accounting elections; rent expense was recorded in accordance with ASC 842 and the unpaid amount remained accrued as part of the current operating lease liability. • All other forms of rent concessions followed our normal accounting policy for lease modifications, adhering to the guidance set forth in ASC 842. |
Co-Branded Credit Card | Co-Branded Credit Card The Company offers a co-branded credit card and a private label credit card under the AE and Aerie brands. These credit cards are issued by a third party bank (the “Bank”) in accordance with a credit card agreement (the “Agreement”). The Company has no liability to the Bank for bad debt expense, provided that purchases are made in accordance with the Bank’s procedures. We receive funding from the Bank based on the Agreement and card activity, which includes payments for new account activations and usage of the credit cards. We recognize revenue for this funding as we fulfill our performance obligations under the Agreement. This revenue is recorded in other revenue, which is a component of total net revenue in our Consolidated Statements of Operations. For further information on the Company’s loyalty program, refer to the Customer Loyalty Program caption below. |
Customer Loyalty Program | Customer Loyalty Program In June 2020, the Company launched a highly-digitized loyalty program called Real Rewards by American Eagle and Aerie (the “Program”). This Program features both shared and unique benefits for loyalty members and credit card holders. Under the Program, members accumulate points based on purchase activity and earn rewards by reaching certain point thresholds. Members earn rewards in the form of discount savings certificates. Prior to this launch in June 2020, under our previous program, AEO Connected, we also offered additional rewards for key items such as jeans and bras. Rewards earned are valid through the stated expiration date, which is 60 days from the issuance date of the reward. Rewards not redeemed during the 60-day redemption period are forfeited. Points earned under the Program on purchases at American Eagle and Aerie are accounted for in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). The portion of the sales revenue attributed to the award points is deferred and recognized when the award is redeemed or when the points expire, using the relative stand-alone selling price method. Additionally, reward points earned using the co-branded credit card on non-AE or Aerie purchases are accounted for in accordance with ASC 606. As the points are earned, a current liability is recorded for the estimated cost of the reward, and the impact of adjustments is recorded in revenue. The Company defers a portion of the sales revenue attributed to the loyalty points and recognizes revenue when the points are redeemed or expire, consistent with the requirements of ASC 606. |
Sales Return Reserve | Sales Return Reserve Revenue is recorded net of estimated and actual sales returns and deductions for coupon redemptions and other promotions. The Company records the impact of adjustments to its sales return reserve quarterly within total net revenue and cost of sales. The sales return reserve reflects an estimate of sales returns based on projected merchandise returns determined using historical average return percentages. For the Years Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Beginning balance $ 8,377 $ 5,825 $ 4,620 Returns ( 149,988 ) ( 107,700 ) ( 121,513 ) Provisions 150,779 110,252 122,718 Ending balance $ 9,168 $ 8,377 $ 5,825 The presentation on a gross basis consists of a separate right of return asset and liability. These amounts are recorded within (i) prepaid expenses and other and (ii) other current liabilities and accrued expenses, respectively, on the Consolidated Balance Sheets. |
Income Taxes | Income Taxes The Company calculates income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires the use of the liability method. Under this method, deferred tax assets and liabilities are recognized based on the difference between the Consolidated Financial Statements carrying amounts of existing assets and liabilities and their respective tax bases as computed pursuant to ASC 740. Deferred tax assets and liabilities are measured using the tax rates, based on certain judgments regarding enacted tax laws and published guidance, in effect in the years when those temporary differences are expected to reverse. A valuation allowance is established against the deferred tax assets when it is more likely than not that some portion or all of the deferred taxes may not be realized. Changes in the Company’s level and composition of earnings, tax laws or the deferred tax valuation allowance, as well as the results of tax audits may materially impact the Company’s effective income tax rate. The Company evaluates its income tax positions in accordance with ASC 740, which prescribes a comprehensive model for recognizing, measuring, presenting and disclosing in the financial statements tax positions taken or expected to be taken on a tax return, including a decision whether to file or not to file in a particular jurisdiction. Under ASC 740, a tax benefit from an uncertain position may be recognized only if it is “more likely than not” that the position is sustainable based on its technical merits. The calculation of deferred tax assets and liabilities, as well as the decision to recognize a tax benefit from an uncertain position and to establish a valuation allowance requires management to make estimates and assumptions. The Company believes that its estimates and assumptions are reasonable, although actual results may have a positive or negative material impact on the balances of deferred tax assets and liabilities, valuation allowances or net income (loss). Refer to Note 15 to the Consolidated Financial Statements for additional information. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue pursuant to ASC 606. Revenue is recorded for store sales upon the purchase of merchandise by customers. The Company’s e-commerce operation records revenue upon the customer receipt date of the merchandise. Shipping and handling revenues are included in total net revenue. Sales tax collected from customers is excluded from revenue and is included as part of accrued income and other taxes on the Company’s Consolidated Balance Sheets. Revenue is recorded net of estimated and actual sales returns and promotional price reductions. The Company records the impact of adjustments to its sales return reserve quarterly within total net revenue and cost of sales. The sales return reserve reflects an estimate of sales returns based on projected merchandise returns determined using historical average return percentages. Revenue is not recorded on the issuance of gift cards. A current liability is recorded upon issuance, and revenue is recognized when the gift card is redeemed for merchandise. Additionally, the Company recognizes revenue on unredeemed gift cards based on an estimate of the amounts that will not be redeemed (“gift card breakage”), determined through historical redemption trends. Gift card breakage revenue is recognized in proportion to actual gift card redemptions as a component of total net revenue. For further information on the Company’s gift card program, refer to the Gift Cards caption above. The Company recognizes royalty revenue generated from its license or franchise agreements based on a percentage of merchandise sales by the licensee/franchisee. This revenue is recorded as a component of total net revenue when earned and collection is probable. The Company defers a portion of the sales revenue attributed to loyalty points and recognizes revenue when the points are redeemed or expire, consistent with the requirements of ASC 606. Refer to the Customer Loyalty Program caption above for additional information. |
Cost of Sales, Including Certain Buying, Occupancy and Warehousing Expenses | Cost of Sales, Including Certain Buying, Occupancy, and Warehousing Expenses Cost of sales consists of merchandise costs, including design, sourcing, importing and inbound freight costs, as well as markdowns, shrinkage and certain promotional costs (collectively, “merchandise costs”) and buying, occupancy and warehousing costs. Design costs are related to the Company's Design Center operations and include compensation, travel and entertainment, supplies and samples for our design teams, as well as rent and depreciation for our Design Center. These costs are included in cost of sales as the respective inventory is sold. Buying, occupancy and warehousing costs consist of compensation, employee benefit expenses and travel and entertainment for our buyers and certain senior merchandising executives; rent and utilities related to our stores, corporate headquarters, distribution centers and other office space; freight from our distribution centers to the stores; compensation and supplies for our distribution centers, including purchasing, receiving and inspection costs; and shipping and handling costs related to our e-commerce operation. Gross profit is the difference between total net revenue and cost of sales. |
Selling, General and Administrative Expenses | Selling, General, and Administrative Expenses Selling, general and administrative expenses consist of compensation and employee benefit expenses, including salaries, incentives and related benefits associated with our stores and corporate headquarters. Selling, general and administrative expenses also include advertising costs, supplies for our stores and home office, communication costs, travel and entertainment, leasing costs and services purchased. Selling, general and administrative expenses do not include compensation, employee benefit expenses and travel for our design, sourcing and importing teams, our buyers and our distribution centers as these amounts are recorded in cost of sales. Additionally, selling, general and administrative expenses do not include rent and utilities related to our stores, operating costs of our distribution centers, and shipping and handling costs related to our e-commerce operations, all of which are included in cost of sales. |
Advertising Costs | Advertising Costs Certain advertising costs, including direct mail, in-store photographs, and other promotional costs are expensed when the marketing campaign commences. As of January 29, 2022 and January 30, 2021 , the Company had prepaid advertising expense of $ 6.1 million and $ 5.7 million, respectively. All other advertising costs are expensed as incurred. The Company recognized $ 173.6 million, $ 150.0 million, and $ 151.5 million in advertising expense during Fiscal 2021, Fiscal 2020, and Fiscal 2019, respectively. |
Store Pre-Opening Costs | Store Pre-Opening Costs Store pre-opening costs consist primarily of rent, advertising, supplies, and payroll expenses. These costs are expensed as incurred. |
Interest Expense (Income), Net | Interest Expense (Income), Net Interest expense (income), net primarily consists of interest expense related to the Company’s convertible notes and borrowings under the revolving credit facility, as well as interest income from cash, cash equivalents and short-term investments. |
Other Income, Net | Other Income, Net Other income, net consists primarily of allowances for uncollectible receivables, foreign currency fluctuations and changes in other non-operating items |
Legal Proceedings and Claims | Legal Proceedings and Claims The Company is subject to certain legal proceedings and claims arising out of the conduct of its business. In accordance with ASC 450, Contingencies (“ASC 450”), the Company records a reserve for estimated losses when the loss is probable and the amount can be reasonably estimated. If a range of possible loss exists and no anticipated loss within the range is more likely than any other anticipated loss, the Company records the accrual at the low end of the range, in accordance with ASC 450. As the Company believes that it has provided adequate reserves, it anticipates that the ultimate outcome of any matter currently pending against the Company will not materially affect the consolidated financial position, results of operations or cash flows of the Company. However, our assessment of any litigation or other legal claims could potentially change in light of the discovery of facts not presently known or determinations by judges, juries, or other finders of fact that are not in accord with management’s evaluation of the possible liability or outcome of such litigation or claims. |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information The table below shows supplemental cash flow information for cash amounts paid during the respective periods: For the Years Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Cash paid during the periods for: Income taxes $ 182,656 $ 4,191 $ 69,689 Interest $ 8,729 $ 10,316 $ 828 |
Segment Information | Segment Information We have two reportable segments: American Eagle and Aerie. For additional information, regarding the Company’s segment and geographic information, refer to Note 16 to the Consolidated Financial Statements. |
Fair Value Measurements | ASC 820, Fair Value Measurement Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosures about fair value measurements. Fair value is defined under ASC 820 as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date. Financial Instruments Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. In addition, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: • Level 1 — Quoted prices in active markets. • Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Accounting Policies [Abstract] | |
Useful Lives of Major Classes of Assets | The useful lives of our major classes of assets are as follows: Buildings 25 years Leasehold improvements Lesser of 10 years or the term of the lease Fixtures and equipment Five years Information technology Three - five years |
Sales Return Reserve | The sales return reserve reflects an estimate of sales returns based on projected merchandise returns determined using historical average return percentages. For the Years Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Beginning balance $ 8,377 $ 5,825 $ 4,620 Returns ( 149,988 ) ( 107,700 ) ( 121,513 ) Provisions 150,779 110,252 122,718 Ending balance $ 9,168 $ 8,377 $ 5,825 |
Supplemental Cash Flow Information for Cash Amounts Paid | The table below shows supplemental cash flow information for cash amounts paid during the respective periods: For the Years Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Cash paid during the periods for: Income taxes $ 182,656 $ 4,191 $ 69,689 Interest $ 8,729 $ 10,316 $ 828 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Business Combinations [Abstract] | |
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. The Company is in the process of obtaining third-party valuations of certain intangible assets; thus, the provisional measurements of intangible assets, goodwill and deferred income tax assets are subject to change: Current assets: Cash and cash equivalents $ 3,857 Accounts Receivable 23,207 Prepaid expenses 3,210 Total current assets $ 30,274 Property and equipment $ 28,728 Intangible assets 51,500 Goodwill 255,133 Other long-term assets 112,215 Total Assets $ 477,850 Current liabilities $ 29,819 Total long-term liabilities 87,415 Total Liabilities $ 117,234 Total purchase price $ 360,616 |
Cash, Cash Equivalents (Tables)
Cash, Cash Equivalents (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Fair Market Values for Cash and Short-term Investments | The following table summarizes the fair market value of our cash and short-term investments, which are recorded on the Consolidated Balance Sheets: January 29, January 30, (In thousands) 2022 2021 Cash and cash equivalents: Cash $ 138,758 $ 524,970 Interest bearing deposits 296,012 275,507 Certificates of deposit — 50,000 Total cash and cash equivalents $ 434,770 $ 850,477 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation Between Basic and Diluted Weighted Average Shares Outstanding | The following is a reconciliation between basic and diluted weighted average shares outstanding: For the Years Ended January 29, January 30, February 1, (In thousands, except per share amounts) 2022 2021 2020 Weighted average common shares outstanding: Basic number of common shares outstanding 168,156 166,455 169,711 Dilutive effect of convertible notes 34,003 — — Dilutive effect of stock options and non-vested 4,370 — 1,156 Diluted number of common shares outstanding 206,529 166,455 170,867 Anti-Dilutive Shares* 202 14,259 700 |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Receivables [Abstract] | |
Accounts receivable, net | Accounts receivable, net is comprised of the following: January 29, January 30, (In thousands) 2022 2021 Tax and other government refunds $ 75,137 $ 12,394 Franchise & license receivables 71,371 48,046 Credit card program receivable 39,507 19,481 Merchandise sell-offs and vendor receivables 37,707 45,096 Landlord construction allowances 24,285 12,844 Supply Chain Platform receivables 16,095 — Gift card receivable 12,771 1,544 Other items 9,810 6,697 Total $ 286,683 $ 146,102 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and equipment, net consists of the following: January 29, January 30, (In thousands) 2022 2021 Land $ 17,910 $ 17,910 Buildings 219,194 216,429 Leasehold improvements 739,245 689,885 Fixtures and equipment 1,496,972 1,325,711 Construction in progress 7,117 1,039 Property and equipment, at cost $ 2,480,438 $ 2,250,974 Less: Accumulated depreciation ( 1,752,166 ) ( 1,627,166 ) Property and equipment, net $ 728,272 $ 623,808 |
Depreciation Expense | Depreciation expense is as follows: For the Years Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Depreciation expense $ 161,492 $ 159,413 $ 178,038 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, net (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Definite-lived intangible assets, net | Goodwill and definite-lived intangible assets, net consist of the following: January 29, 2022 January 30, 2021 (In thousands) American Eagle Aerie Corporate and Other (2) Total American Eagle Aerie Corporate and Other (2) Total Goodwill, net beginning balance $ 13,267 $ — $ — $ 13,267 $ 13,157 $ — $ — $ 13,157 Additions from acquisitions 101,600 110,600 45,933 258,133 — — — — Foreign currency fluctuation 16 — — 16 110 — — 110 Goodwill, net ending balance $ 114,883 $ 110,600 $ 45,933 $ 271,416 $ 13,267 $ — $ — $ 13,267 (1) Beginning balance for both periods include accumulated impairment of $ 4.2 million (2) Corporate and Other includes goodwill allocated to the Supply Chain Platform reporting unit, which has been identified as a separate operating segment, but is not material to disclose as a separate reportable segment. January 29, January 30, (In thousands) 2022 2021 Intangible assets, beginning balance, at cost $ 57,065 $ 39,847 Additions 52,580 20,978 Amortization ( 6,944 ) ( 3,760 ) Intangible assets, net (1) $ 102,701 $ 57,065 (1) The ending balance includes accumulated amortization of $ 42.1 million and $ 35.6 million as of January 29, 2022 and January 30, 2021. respectively. |
Amortization Expense | Amortization expense is as follows: For the Years Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Amortization expense $ 6,468 $ 3,752 $ 4,184 |
Estimated Future Amortization Expense | The table below summarizes the estimated future amortization expense for intangible assets existing as of January 29, 2022 for the next five Fiscal Years: Future (In thousands) Amortization 2022 $ 6,935 2023 $ 6,845 2024 $ 6,722 2025 $ 6,586 2026 $ 6,463 |
Long-Term Debt, Net (Tables)
Long-Term Debt, Net (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | The Company’s long-term debt consisted of the following as of January 29, 2022: January 29, January 30, (In thousands) 2022 2021 Convertible senior notes principal $ 412,025 $ 415,025 Less: unamortized discount 71,023 89,735 Total long-term debt, net $ 341,002 $ 325,290 Convertible Senior Notes - Equity portion, net of tax 58,454 68,330 |
Schedule of Interest Expense for Notes | Interest expense for the Notes was: January 29, January 30, (In thousands) 2022 2021 Cash based interest $ 15,431 $ 11,857 Amortization of discount (non-cash) 18,520 12,517 Total interest expense $ 33,951 $ 24,374 |
Schedule of Notes Conversion Amounts | The following table discloses conversion amounts if the Notes were all converted as of the end of the period: January 29, (In thousands, except per share amounts) 2022 Number of shares convertible 48,574 Conversion price per share 8.48 Value in excess of principal if converted 807,470 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Leases [Abstract] | |
Summary of Expense Categories and Cash Payments for Operating Leases, Average Remaining Lease Term and Discount Rate | The following table summarizes expense categories and cash payments for operating leases during the period. It also includes the total non-cash transaction activity for new operating lease ROU assets and related operating lease liabilities entered into during the period. For the Year Ended January 29, January 30, (In thousands) 2022 2021 Lease costs Operating lease costs $ 328,868 $ 325,005 Variable lease costs 121,118 98,057 Short-term leases and other lease costs 11,927 11,090 Total lease costs $ 461,913 $ 434,152 Other information Cash paid for operating lease liability $ ( 363,468 ) $ ( 331,543 ) New operating lease ROU assets entered into during the period $ 336,546 $ 116,128 The following table contains the average remaining lease term and discount rate, weighted by outstanding operating lease liability as of the end of the period: Lease term and discount rate January 29, 2022 Weighted-average remaining lease term - operating leases 5.3 years Weighted-average discount rate - operating leases 4.7 % |
Summary of Maturity Analysis of Operating Leases | The table below is a maturity analysis of the operating leases in effect as of the end of the period. Undiscounted cash flows for finance leases and short-term leases are not material for the periods reported and are excluded from the table below: Undiscounted January 29, 2022 (In thousands) Fiscal years: 2022 $ 335,219 2023 337,945 2024 252,800 2025 211,885 2026 174,747 Thereafter 340,353 Total undiscounted cash flows $ 1,652,949 Less: discount on lease liability ( 187,463 ) Total lease liability $ 1,465,486 |
Other Comprehensive Loss (Table
Other Comprehensive Loss (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Equity [Abstract] | |
Accumulated Balances of Other Comprehensive Loss | The accumulated balances of other comprehensive loss included as part of the Consolidated Statements of Stockholders’ Equity follow: Accumulated Before Tax Other Tax Benefit Comprehensive (In thousands) Amount (Expense) Loss Balance at February 2, 2019 $ ( 35,804 ) 972 $ ( 34,832 ) Foreign currency translation gain (1) 2,094 — 2,094 Loss on long-term intra-entity foreign currency transactions ( 577 ) 147 ( 430 ) Balance at February 1, 2020 $ ( 34,287 ) $ 1,119 $ ( 33,168 ) Foreign currency translation loss (1) ( 7,053 ) — ( 7,053 ) Loss on long-term intra-entity foreign currency transactions 592 ( 1,119 ) ( 527 ) Balance at January 30, 2021 $ ( 40,748 ) $ — $ ( 40,748 ) Foreign currency translation loss (1) ( 1,003 ) — ( 1,003 ) Loss on long-term intra-entity foreign currency transactions 906 — 906 Balance at January 29, 2022 $ ( 40,845 ) $ — $ ( 40,845 ) (1) Foreign currency translation adjustments are not adjusted for income taxes as they relate to a permanent investment in a subsidiary. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | A summary of the Company’s stock option activity under the 2017 and 2020 Plans for Fiscal 2021 follows: For the Year Ended January 29, 2022 Weighted- Weighted- Aggregate Options Exercise Price Term Value (In thousands) (In years) (In thousands) Outstanding - January 30, 2021 3,940 $ 14.87 Granted 478 $ 31.46 Exercised (1) ( 771 ) $ 16.33 Cancelled — $ — Outstanding - January 29, 2022 3,647 $ 16.74 4.3 $ 24,980 Vested and expected to vest - January 29, 2022 2,513 $ 16.62 3.1 $ 13,231 Exercisable - January 29, 2022 (2) 1,788 $ 16.28 1.6 $ 10,949 (1) Options exercised during Fiscal 2021 ranged in price from $ 8.62 to $ 21.41 . (2) Options exercisable represent “in-the-money” vested options based upon the weighted average exercise price of vested options compared to the Company’s stock price on January 29, 2022. |
Black-Scholes Option Valuation Assumptions | The fair value of stock options was estimated at the date of grant using a Black-Scholes option-pricing model with the following weighted-average assumptions: For the Years Ended January 29, January 30, Black-Scholes Option Valuation Assumptions 2022 2021 Risk-free interest rates (1) 0.9 % 0.3 - 0.6 % Dividend yield 1.6 % 3.5 - 6.0 % Volatility factors of the expected market price of (2) 50.7 % 43.1 - 48.7 % Weighted-average expected term (3) 4.5 years 4.4 years (1) Based on the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected life of our stock options. (2) Based on the historical volatility of the Company’s common stock. (3) Represents the period of time options are expected to be outstanding. The weighted average expected option terms were determined based on historical experience. |
Summary of Restricted Stock Activity | A summary of the activity of the Company’s restricted stock is presented in the following tables: Time-Based Restricted Stock Units Performance- Restricted Stock Units For the year ended For the year ended January 29, 2022 January 29, 2022 (Shares in thousands) Shares Weighted-Average Shares Weighted-Average Non-vested - January 30, 2021 3,698 $ 12.42 1,868 $ 17.44 Granted 724 32.40 339 39.54 Vested ( 1,483 ) 14.92 ( 418 ) 22.22 Cancelled/Forfeited ( 237 ) 14.20 ( 327 ) 18.56 Non-vested - January 29, 2022 2,702 $ 16.25 1,462 $ 20.95 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes | The components of income (loss) before income taxes are: For the Years Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 U.S. $ 520,952 $ ( 294,208 ) $ 229,906 Foreign 37,970 1,935 15,372 Total $ 558,922 $ ( 292,273 ) $ 245,278 |
Components of Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred tax assets and liabilities are as follows: January 29, January 30, (in thousands) 2022 2021 Deferred tax assets: Operating lease ROU assets $ 380,117 $ 389,604 Net Operating Loss 27,643 10,160 Employee compensation and benefits 20,521 3,124 Accruals not currently deductible 11,645 8,538 Deferred compensation 8,429 7,400 Other long term assets 8,208 — State tax credits 7,546 7,407 Inventories 5,220 3,267 Capital Loss 4,213 4,471 Allowance for Doubtful Accounts 3,201 750 Foreign tax credits 2,982 943 Other 5,757 2,093 Gross deferred tax assets 485,482 437,757 Valuation allowance ( 25,628 ) ( 12,263 ) Total deferred tax assets 459,854 425,494 Deferred tax liabilities: Operating lease liabilities $ ( 308,299 ) $ ( 310,888 ) Property and equipment ( 87,192 ) ( 56,487 ) Convertible Senior Note ( 15,384 ) ( 20,589 ) Prepaid expenses ( 2,215 ) ( 2,294 ) Other ( 2,597 ) ( 2,191 ) Total deferred tax liabilities $ ( 415,687 ) $ ( 392,449 ) Total deferred tax assets, net $ 44,167 $ 33,045 |
Components of Provision (Benefit) for Income Taxes | Significant components of the provision (benefit) for income taxes are as follows: For the Years Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Current: Federal $ 107,493 $ ( 59,080 ) $ 25,745 Foreign taxes 19,671 7,443 8,137 State 24,979 3,528 13,598 Total current 152,143 ( 48,109 ) 47,480 Deferred: Federal $ ( 12,637 ) $ ( 17,286 ) $ 12,289 Foreign taxes ( 1,284 ) ( 4,622 ) ( 1,213 ) State 1,071 ( 12,982 ) ( 4,535 ) Total deferred ( 12,850 ) ( 34,890 ) 6,541 (Benefit) Provision for income taxes $ 139,293 $ ( 82,999 ) $ 54,021 |
Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to our unrecognized tax benefits: For the Years Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Unrecognized tax benefits, beginning of the year $ 2,563 $ 2,781 $ 6,534 Increases in current period tax positions 251 602 422 Increases in tax positions of prior periods 688 1 151 Settlements 0 ( 450 ) ( 2,223 ) Lapse of statute of limitations ( 93 ) ( 289 ) ( 720 ) Decreases in tax positions of prior periods ( 150 ) ( 82 ) ( 1,383 ) Unrecognized tax benefits, end of the year balance $ 3,259 $ 2,563 $ 2,781 |
Reconciliation Between Statutory Federal Income Tax Rate and Effective Income Tax Rate | A reconciliation between the statutory federal income tax rate and the effective income tax rate follows: For the Years Ended January 29, January 30, February 1, 2022 2021 2020 Federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax effect 4.1 3.1 3.6 Foreign rate differential 0.6 0.3 ( 0.6 ) International provisions of Tax Act ( 0.5 ) 0.0 ( 2.1 ) Rate differential on CARES Act NOL carryback 0.0 8.1 0.0 Valuation allowance changes, net 0.2 ( 2.6 ) 0.3 Non-deductible executive compensation 1.3 ( 2.1 ) 0.6 Change in unrecognized tax benefits 0.1 ( 0.1 ) 0.1 Share Based Payments ( 0.8 ) 0.4 ( 0.5 ) Other ( 1.1 ) 0.3 ( 0.4 ) 24.9 % 28.4 % 22.0 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Segment Reporting [Abstract] | |
Summary of Reportable Segment Information | Reportable segment information is presented in the following table: (in thousands) American Eagle Aerie Corporate and Other (1) Total (2) For the year ended January 29, 2022 Total net revenue $ 3,555,706 $ 1,376,269 $ 78,810 $ 5,010,785 Operating income (Ioss) $ 785,729 $ 212,287 $ ( 406,951 ) $ 591,065 Asset Impairment $ 10,231 $ 1,713 $ - $ 11,944 Adjusted operating income (loss) $ 795,960 $ 214,000 $ ( 406,951 ) $ 603,009 Depreciation and Amortization $ 59,641 $ 33,834 $ 73,306 $ 166,781 Capital expenditures $ 47,106 $ 80,062 $ 106,679 $ 233,847 For the year ended January 30, 2021 Total net revenue $ 2,733,849 $ 989,989 $ 35,275 $ 3,759,113 Operating income (Ioss) $ 93,029 $ 60,298 $ ( 424,672 ) $ ( 271,345 ) Impairment, restructuring and COVID-19 related charges $ 144,486 $ 52,849 $ 82,491 $ 279,826 Adjusted operating income (loss) $ 237,515 $ 113,147 $ ( 342,181 ) $ 8,481 Depreciation and Amortization $ 63,019 $ 26,647 $ 72,736 $ 162,402 Capital expenditures $ 36,606 $ 32,723 $ 58,646 $ 127,975 For the year ended February 1, 2020 Total net revenue $ 3,479,592 $ 801,035 $ 27,585 $ 4,308,212 Operating income (loss) $ 484,078 $ 47,465 $ ( 298,198 ) $ 233,345 Impairment and restructuring charges $ 41,657 $ 20,261 $ 18,576 $ 80,494 Adjusted operating Income (loss) $ 525,735 $ 67,726 $ ( 279,622 ) $ 313,839 Depreciation and Amortization $ 75,889 $ 22,578 $ 80,583 $ 179,050 Capital expenditures $ 98,699 $ 56,283 $ 55,378 $ 210,360 (1) Corporate and Other includes revenue and operating results of the Todd Snyder brand, Unsubscribed brand, and Supply Chain Platform, which have been identified as separate operating segments, but are not material to disclose as separate reportable segments. Corporate operating costs represents certain costs that are not directly attributable to another reportable segment. (2) The difference between Operating income (loss) and Income (loss) before income taxes includes the following, which are not allocated to our reportable segments: - For Fiscal 2021: interest expense (income), net of $ 34.6 million and other income, net of $ 2.5 million - For Fiscal 2020: interest expense (income), net of $ 24.6 million and other income, net of $ 3.7 million - For Fiscal 2019: interest expense (income), net of ($ 6.2 ) million and other income, net of $ 5.7 million |
Summary of Geographical Information | The following tables present summarized geographical information. For the Years Ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Total net revenue: United States $ 4,336,806 $ 3,295,028 $ 3,710,270 Foreign (1) 673,979 464,085 597,942 Total net revenue $ 5,010,785 $ 3,759,113 $ 4,308,212 (1) Amounts represent sales from American Eagle and Aerie international retail stores, and e-commerce sales that are billed to and/or shipped to foreign countries and international franchise royalty revenue. January 29, January 30, (In thousands) 2022 2021 Long-lived assets, net: United States $ 2,137,835 $ 1,705,561 Foreign 157,575 144,544 Total long-lived assets, net $ 2,295,410 $ 1,850,105 |
Impairment, Restructuring and_2
Impairment, Restructuring and COVID-19 Related Charges (Tables) | 12 Months Ended |
Jan. 29, 2022 | |
Restructuring and Related Activities [Abstract] | |
Summary of Impairment,Restructuring and COVID-19 Related Charges | The following table represents impairment, restructuring and COVID-19 related charges. All amounts were recorded within impairment, restructuring and COVID-19 related charges on the Consolidated Statements of Operations, unless otherwise noted. For the years ended January 29, January 30, February 1, (In thousands) 2022 2021 2020 Long-lived asset Impairment charges (1) $ 11,944 $ 249,163 $ 66,252 Incremental COVID-19 related expenses (2) — 26,930 — Severance and related employee — 3,733 6,691 Other restructuring charges (3) — — 7,551 Total impairment, restructuring, and COVID-19 related $ 11,944 $ 279,826 $ 80,494 (1) The Company recorded impairment charges of $ 11.9 million in Fiscal 2021, primarily related to store property and equipment and operating lease ROU assets. (2) In Fiscal 2020, the Company recorded impairment charges of $ 249.2 million. Included in this amount are retail store impairment charges of $ 203.2 million, of which $ 154.8 million relates to operating lease ROU assets and $ 48.4 million relates to store property and equipment (fixtures and equipment and leasehold improvements). We also recorded $ 28.0 million related to the impairment of certain corporate property and equipment, as well as $ 18.0 million of certain cost and equity method investments. (3) In Fiscal 2019, the Company recorded asset impairment charges of $ 64.5 million on the assets of 20 retail stores. Of the total, $ 39.5 million related to the impairment of leasehold improvements and store fixtures, and $ 25.0 million related to the impairment of operating lease ROU assets. The Company also concluded that certain goodwill was impaired resulting in a $ 1.7 million charge in Fiscal 2019. (4) Incremental COVID-19 related expenses consisting of personal protective equipment and supplies for our associates and customers. (5) Other restructuring charges consists of $ 4.2 million of joint business venture exit charges, $ 1.8 million of Japan market transition costs and $ 1.5 million of China restructuring in Fiscal 2019. |
Rollforward of Restructuring Liabilities Recognized in Consolidated Balance Sheet | A rollforward of the restructuring liabilities recognized in the Consolidated Balance Sheet is as follows: January 29, (In thousands) 2022 Accrued liability as of January 30, 2021 $ 2,812 Add: Costs incurred, excluding non-cash 1,367 Less: Cash payments and adjustments ( 2,812 ) Accrued liability as of January 29, 2022 $ 1,367 |
Business Operations - Additiona
Business Operations - Additional Information (Detail) | Jan. 29, 2022CountryStore |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of retail stores | 1,000 |
Number of international store locations | 200 |
Number of countries company operates in | Country | 81 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) shares in Thousands | Jan. 30, 2022USD ($)shares | Apr. 30, 2020USD ($) | Jan. 29, 2022USD ($)Segmentshares | Jan. 30, 2021USD ($) | Feb. 01, 2020USD ($) |
Significant Accounting Policies [Line Items] | |||||
Number of reportable segments | Segment | 2 | ||||
Decrease in interest expense | $ 34,632,000 | $ 24,610,000 | $ (6,202,000) | ||
Increase in net income, net of tax | $ 419,629,000 | (209,274,000) | 191,257,000 | ||
Dilutive effect of convertible notes | shares | 34,003 | ||||
Weighted average remaining useful life, assets | 6 years 3 months 18 days | ||||
Goodwill impairment charge | $ 0 | 0 | 1,700,000 | ||
Definite-lived impairment charges | 0 | 0 | |||
Revenue related to gift card breakage | $ 10,300,000 | 8,800,000 | 9,500,000 | ||
Reward expiration period | 60 days | ||||
Credit Card Reward Program Description | This Program features both shared and unique benefits for loyalty members and credit card holders. Under the Program, members accumulate points based on purchase activity and earn rewards by reaching certain point thresholds. Members earn rewards in the form of discount savings certificates. Prior to this launch in June 2020, under our previous program, AEO Connected, we also offered additional rewards for key items such as jeans and bras. Rewards earned are valid through the stated expiration date, which is 60 days from the issuance date of the reward. Rewards not redeemed during the 60-day redemption period are forfeited. | ||||
Prepaid advertising expense | $ 6,100,000 | 5,700,000 | |||
Advertising expense | $ 173,600,000 | $ 150,000,000 | $ 151,500,000 | ||
Convertible Senior Notes Due 2025 | |||||
Significant Accounting Policies [Line Items] | |||||
Aggregate principal amount of debt issued | $ 415,000,000 | ||||
Debt instrument, maturity year | 2025 | ||||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Definite-lived intangibles, useful life | 10 years | ||||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Definite-lived intangibles, useful life | 15 years | ||||
Accounting Standards Update 2019-12 | |||||
Significant Accounting Policies [Line Items] | |||||
Change in accounting principle, accounting standards update, adopted | true | ||||
Change in accounting principle, accounting standards update, adoption date | Jan. 31, 2021 | ||||
Change in accounting principle, accounting standards update, immaterial effect | true | ||||
ASU 2020-06 | |||||
Significant Accounting Policies [Line Items] | |||||
Dilutive effect of convertible notes | shares | 15,000 | ||||
ASU 2020-06 | Subsequent Event | |||||
Significant Accounting Policies [Line Items] | |||||
Decrease in interest expense | $ 12,000,000 | ||||
Increase in net income, net of tax | $ 12,000,000 | ||||
Dilutive effect of convertible notes | shares | 49,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Useful Lives of Major Classes of Assets (Detail) | 12 Months Ended |
Jan. 29, 2022 | |
Buildings | |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | |
Useful lives in asset class | 25 years |
Leasehold Improvements | |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | |
Useful lives in asset class | Lesser of 10 years or the term of the lease |
Leasehold Improvements | Maximum | |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | |
Useful lives in asset class | 10 years |
Fixtures and Equipment | |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | |
Useful lives in asset class | 5 years |
Information Technology | Minimum | |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | |
Useful lives in asset class | 3 years |
Information Technology | Maximum | |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | |
Useful lives in asset class | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Useful Lives of Major Classes of Assets (Parenthetical) (Detail) | 12 Months Ended |
Jan. 29, 2022 | |
Maximum | Leasehold Improvements | |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | |
Useful lives in asset class | 10 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Sales Return Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Accounting Policies [Abstract] | |||
Beginning balance | $ 8,377 | $ 5,825 | $ 4,620 |
Returns | (149,988) | (107,700) | (121,513) |
Provisions | 150,779 | 110,252 | 122,718 |
Ending balance | $ 9,168 | $ 8,377 | $ 5,825 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Supplemental Cash Flow Information for Cash Amounts Paid (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Cash paid during the periods for: | |||
Income taxes | $ 182,656 | $ 4,191 | $ 69,689 |
Interest | $ 8,729 | $ 10,316 | $ 828 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Dec. 29, 2021 | May 03, 2021 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 271,416,000 | $ 13,267,000 | $ 13,157,000 | ||
Quiet Logistics | |||||
Business Acquisition [Line Items] | |||||
Acquisition date | Dec. 29, 2021 | ||||
Aggregate purchase price in cash | $ 360,600,000 | ||||
Acquired intangible assets | $ 51,500,000 | 51,500,000 | |||
Weighted average cost of capital | 14.50% | ||||
Goodwill | $ 255,100,000 | 255,133,000 | |||
Goodwill deductible for income tax purposes | $ 0 | ||||
Quiet Logistics | American Eagle | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 101,600,000 | ||||
Quiet Logistics | Aerie | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 110,600,000 | ||||
Quiet Logistics | Supply Chain Platform | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 42,900,000 | ||||
Quiet Logistics | Customer Relationships | |||||
Business Acquisition [Line Items] | |||||
Acquired intangible assets | $ 39,000,000 | ||||
Definite-lived intangibles, useful life | 10 years | ||||
Quiet Logistics | Trade Names | |||||
Business Acquisition [Line Items] | |||||
Acquired intangible assets | $ 12,500,000 | ||||
Definite-lived intangibles, useful life | 15 years | ||||
AirTerra | |||||
Business Acquisition [Line Items] | |||||
Acquisition date | May 3, 2021 | ||||
Aggregate purchase price paid | $ 3,000,000 |
Acquisitions - Summary of Estim
Acquisitions - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date (Detail) - USD ($) $ in Thousands | Jan. 29, 2022 | Dec. 29, 2021 | Jan. 30, 2021 | Feb. 01, 2020 |
Current assets | ||||
Goodwill | $ 271,416 | $ 13,267 | $ 13,157 | |
Quiet Logistics | ||||
Current assets | ||||
Cash and cash equivalents | 3,857 | |||
Accounts Receivable | 23,207 | |||
Prepaid expenses | 3,210 | |||
Total current assets | 30,274 | |||
Property and equipment | 28,728 | |||
Intangible assets | 51,500 | $ 51,500 | ||
Goodwill | 255,133 | $ 255,100 | ||
Other long term assets | 112,215 | |||
Total Assets | 477,850 | |||
Current liabilities | 29,819 | |||
Total long-term liabilities | 87,415 | |||
Total Liabilities | 117,234 | |||
Total purchase price | $ 360,616 |
Cash and Cash Equivalents - Fai
Cash and Cash Equivalents - Fair Market Values for Cash and Short-term Investments (Detail) - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Cash and cash equivalents: | ||
Cash and cash equivalents | $ 434,770 | $ 850,477 |
Cash | ||
Cash and cash equivalents: | ||
Cash and cash equivalents | 138,758 | 524,970 |
Interest Bearing Deposits | ||
Cash and cash equivalents: | ||
Cash and cash equivalents | $ 296,012 | 275,507 |
Certificates of Deposit | ||
Cash and cash equivalents: | ||
Cash and cash equivalents | $ 50,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2020 | Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | ||||
Fair Value Measurements Disclosure [Line Items] | |||||||
Financial instruments required at fair value measurements | $ 0 | ||||||
Asset impairment charges | 11,944,000 | [1],[2] | $ 249,163,000 | [3] | $ 66,252,000 | [4] | |
Goodwill impairment | 0 | 0 | 1,700,000 | ||||
Retail Stores | |||||||
Fair Value Measurements Disclosure [Line Items] | |||||||
Asset impairment charges | 203,200,000 | 64,500,000 | |||||
Impairment of operating lease ROU assets | 154,800,000 | $ 25,000,000 | |||||
Impairment of certain cost and equity method investments | 18,000,000 | ||||||
Fair value of impaired asset | 93,200,000 | ||||||
Corporate Property and Equipment | Retail Stores | |||||||
Fair Value Measurements Disclosure [Line Items] | |||||||
Asset impairment charges | 28,000,000 | ||||||
Store Property and Equipment (Fixtures and Equipment and Leasehold Improvements) | Retail Stores | |||||||
Fair Value Measurements Disclosure [Line Items] | |||||||
Asset impairment charges | $ 48,400,000 | ||||||
Convertible Senior Notes Due 2025 | |||||||
Fair Value Measurements Disclosure [Line Items] | |||||||
Aggregate principal amount of debt issued | $ 415,000,000 | ||||||
Debt instrument, maturity year | 2025 | ||||||
Revolving Credit Facility | |||||||
Fair Value Measurements Disclosure [Line Items] | |||||||
Outstanding borrowings | $ 0 | ||||||
[1] | The Company recorded impairment charges of $ 11.9 million in Fiscal 2021, primarily related to store property and equipment and operating lease ROU assets. | ||||||
[2] | The difference between Operating income (loss) and Income (loss) before income taxes includes the following, which are not allocated to our reportable segments: - For Fiscal 2021: interest expense (income), net of $ 34.6 million and other income, net of $ 2.5 million - For Fiscal 2020: interest expense (income), net of $ 24.6 million and other income, net of $ 3.7 million - For Fiscal 2019: interest expense (income), net of ($ 6.2 ) million and other income, net of $ 5.7 million | ||||||
[3] | In Fiscal 2020, the Company recorded impairment charges of $ 249.2 million. Included in this amount are retail store impairment charges of $ 203.2 million, of which $ 154.8 million relates to operating lease ROU assets and $ 48.4 million relates to store property and equipment (fixtures and equipment and leasehold improvements). We also recorded $ 28.0 million related to the impairment of certain corporate property and equipment, as well as $ 18.0 million of certain cost and equity method investments. | ||||||
[4] | In Fiscal 2019, the Company recorded asset impairment charges of $ 64.5 million on the assets of 20 retail stores. Of the total, $ 39.5 million related to the impairment of leasehold improvements and store fixtures, and $ 25.0 million related to the impairment of operating lease ROU assets. The Company also concluded that certain goodwill was impaired resulting in a $ 1.7 million charge in Fiscal 2019. |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation Between Basic and Diluted Weighted Average Shares Outstanding (Detail) - shares shares in Thousands | 12 Months Ended | |||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | ||
Weighted average common shares outstanding: | ||||
Basic number of common shares outstanding | 168,156 | 166,455 | 169,711 | |
Dilutive effect of convertible notes | 34,003 | |||
Dilutive effect of stock options and non-vested restricted stock | 4,370 | 1,156 | ||
Diluted number of common shares outstanding | 206,529 | 166,455 | 170,867 | |
Anti-Dilutive Shares | [1] | 202 | 14,259 | 700 |
[1] | In Fiscal 2020, there were 1.9 million potentially dilutive equity awards and 12.4 million potentially dilutive shares from the Company’s Notes that were excluded from the diluted earnings per share calculation because the Company incurred a net loss for this period and their inclusion would be anti-dilutive. For all other periods, anti-dilutive shares relate to stock options and unvested restricted stock. |
Earnings per Share - Reconcil_2
Earnings per Share - Reconciliation Between Basic and Diluted Weighted Average Shares Outstanding (Parenthetical) (Detail) - shares shares in Thousands | 12 Months Ended | |||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Awards excluded from diluted earnings per share calculation | [1] | 202 | 14,259 | 700 |
Equity Awards | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Awards excluded from diluted earnings per share calculation | 1,900 | |||
Notes | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Awards excluded from diluted earnings per share calculation | 12,400 | |||
[1] | In Fiscal 2020, there were 1.9 million potentially dilutive equity awards and 12.4 million potentially dilutive shares from the Company’s Notes that were excluded from the diluted earnings per share calculation because the Company incurred a net loss for this period and their inclusion would be anti-dilutive. For all other periods, anti-dilutive shares relate to stock options and unvested restricted stock. |
Accounts Receivable, net (Detai
Accounts Receivable, net (Detail) - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Receivables [Abstract] | ||
Tax and other government refunds | $ 75,137 | $ 12,394 |
Franchise & license receivables | 71,371 | 48,046 |
Credit card program receivable | 39,507 | 19,481 |
Merchandise sell-offs and vendor receivables | 37,707 | 45,096 |
Landlord construction allowances | 24,285 | 12,844 |
Supply Chain platform receivables | 16,095 | |
Gift card receivable | 12,771 | 1,544 |
Other items | 9,810 | 6,697 |
Total | $ 286,683 | $ 146,102 |
Property and Equipment, net (De
Property and Equipment, net (Detail) - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 17,910 | $ 17,910 |
Buildings | 219,194 | 216,429 |
Leasehold improvements | 739,245 | 689,885 |
Fixtures and equipment | 1,496,972 | 1,325,711 |
Construction in progress | 7,117 | 1,039 |
Property and equipment, at cost | 2,480,438 | 2,250,974 |
Less: Accumulated depreciation | (1,752,166) | (1,627,166) |
Property and equipment, net | $ 728,272 | $ 623,808 |
Depreciation Expense (Detail)
Depreciation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 161,492 | $ 159,413 | $ 178,038 |
Property and Equipment, net - A
Property and Equipment, net - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Asset write-offs | $ 4.4 | $ 2.2 | $ 4.3 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, net - Summary of Goodwill and Definite-lived Intangible Assets, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 29, 2022 | Jan. 30, 2021 | |||
Goodwill [Line Items] | ||||
Goodwill, beginning balance | $ 13,267 | $ 13,157 | ||
Additions from acquisitions | 258,133 | |||
Foreign currency fluctuation | 16 | 110 | ||
Goodwill, net | 271,416 | 13,267 | ||
Intangible assets, beginning balance, at cost | 57,065 | [1] | 39,847 | |
Additions | 52,580 | 20,978 | ||
Amortization | 6,944 | 3,760 | ||
Intangible assets, net | [1] | 102,701 | 57,065 | |
Operating Segments | American Eagle | ||||
Goodwill [Line Items] | ||||
Goodwill, beginning balance | 13,267 | 13,157 | ||
Additions from acquisitions | 101,600 | |||
Foreign currency fluctuation | 16 | 110 | ||
Goodwill, net | 114,883 | $ 13,267 | ||
Operating Segments | Aerie | ||||
Goodwill [Line Items] | ||||
Additions from acquisitions | 110,600 | |||
Goodwill, net | 110,600 | |||
Corporate and Other, Non-Segment | ||||
Goodwill [Line Items] | ||||
Additions from acquisitions | [2] | 45,933 | ||
Goodwill, net | [2] | $ 45,933 | ||
[1] | The ending balance includes accumulated amortization of $ 42.1 million and $ 35.6 million as of January 29, 2022 and January 30, 2021. respectively. | |||
[2] | Corporate and Other includes goodwill allocated to the Supply Chain Platform reporting unit, which has been identified as a separate operating segment, but is not material to disclose as a separate reportable segment. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, net - Summary of Goodwill and Definite-lived Intangible Assets, Net, (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 29, 2022 | Jan. 30, 2021 | |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Accumulated impairment | $ 4.2 | $ 4.2 |
Accumulated amortization | $ 42.1 | $ 35.6 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, net - Amortization Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 6,468 | $ 3,752 | $ 4,184 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, net - Estimated Future Amortization Expense (Detail) $ in Thousands | Jan. 29, 2022USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 6,935 |
2023 | 6,845 |
2024 | 6,722 |
2025 | 6,586 |
2026 | $ 6,463 |
Long-Term Debt, Net - Component
Long-Term Debt, Net - Components of Long-Term Debt (Detail) - USD ($) | Jan. 29, 2022 | Jan. 30, 2021 |
Debt Instrument [Line Items] | ||
Convertible Senior Notes - Equity portion, net of tax | $ 58,454 | $ 68,330 |
Convertible Senior Notes Due 2025 | ||
Debt Instrument [Line Items] | ||
Convertible senior notes principal | 412,025 | 415,025 |
Less: unamortized discount | 71,023 | 89,735 |
Total long-term debt, net | $ 341,002 | $ 325,290 |
Long-Term Debt, Net - Additiona
Long-Term Debt, Net - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2020USD ($)TradingDay$ / sharesshares | Jan. 31, 2019USD ($) | Jan. 29, 2022USD ($)$ / shares | Jan. 30, 2021USD ($) | |
Line Of Credit Facility [Line Items] | ||||
Repayments of lines of credit | $ 330,000,000 | |||
Revolving Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Outstanding borrowings | $ 0 | |||
Credit Agreement | Credit Facilities | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility, expiration period | 5 years | |||
Loans and letters of credit maximum borrowing capacity | $ 400,000,000 | |||
Credit Agreement | Stand-by Letters of Credit | ||||
Line Of Credit Facility [Line Items] | ||||
Letters of credit outstanding amount | 7.9 | |||
Credit Agreement | Credit Agreement Loans | ||||
Line Of Credit Facility [Line Items] | ||||
Outstanding borrowings | $ 0 | |||
Convertible Senior Notes Due 2025 | ||||
Line Of Credit Facility [Line Items] | ||||
Aggregate principal amount of debt issued | $ 415,000,000 | |||
Debt instrument, stated interest rate | 3.75% | |||
Debt instrument, maturity year | 2025 | |||
Debt instrument, interest terms | The Notes have a stated interest rate of 3.75%, payable semi-annually. | |||
Debt instrument, frequency of periodic payment of interest | payable semi-annually | |||
Debt instrument, redemption period beginning month and year | 2023-04 | |||
Debt instrument, redemption earliest date | Apr. 17, 2023 | |||
Debt instrument, redemption, scheduled trading day immediately preceding maturity date | TradingDay | 40 | |||
Debt instrument, redemption percentage of common stock price to conversion price | 130.00% | |||
Debt instrument, redemption, effect for trading days | TradingDay | 20 | |||
Debt instrument, redemption, consecutive trading day period | TradingDay | 30 | |||
Debt instrument, conversion period beginning month and year | 2025-01 | |||
Debt conversion, original debt, principal amount converted | $ 1,000 | |||
Debt instrument, conversion price per share | $ / shares | $ 8.48 | $ 8.48 | ||
Debt instrument, effective interest rate | 10.00% | |||
Debt instrument, remaining amortization period of discount | 3 years 3 months | |||
Convertible Senior Notes Due 2025 | Common Stock | ||||
Line Of Credit Facility [Line Items] | ||||
Debt conversion, converted instruments, shares issued | shares | 117.9 |
Long-Term Debt, Net - Schedule
Long-Term Debt, Net - Schedule of Interest Expense for Notes (Detail) - Convertible Senior Notes Due 2025 - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 29, 2022 | Jan. 30, 2021 | |
Debt Instrument [Line Items] | ||
Cash based interest | $ 15,431 | $ 11,857 |
Amortization of discount (non-cash) | 18,520 | 12,517 |
Total interest expense | $ 33,951 | $ 24,374 |
Long-Term Debt, Net - Schedul_2
Long-Term Debt, Net - Schedule of Notes Conversion Amounts (Detail) - Convertible Senior Notes Due 2025 - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jan. 29, 2022 | Apr. 30, 2020 | |
Debt Instrument [Line Items] | ||
Number of shares convertible | 48,574 | |
Conversion price per share | $ 8.48 | $ 8.48 |
Value in excess of principal if converted | $ 807,470 |
Leases - Summary of Expense Cat
Leases - Summary of Expense Categories and Cash Payments for Operating Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 29, 2022 | Jan. 30, 2021 | |
Lease costs | ||
Operating lease costs | $ 328,868 | $ 325,005 |
Variable lease costs | 121,118 | 98,057 |
Short-term leases and other lease costs | 11,927 | 11,090 |
Total lease costs | 461,913 | 434,152 |
Other information | ||
Cash paid for operating lease liability | (363,468) | (331,543) |
New operating lease ROU assets entered into during the period | $ 336,546 | $ 116,128 |
Leases - Summary of Average Rem
Leases - Summary of Average Remaining Lease Term and Discount Rate (Detail) | Jan. 29, 2022 |
Lease term and discount rate | |
Weighted-average remaining lease term - operating leases | 5 years 3 months 18 days |
Weighted-average discount rate - operating leases | 4.70% |
Leases - Summary of Maturity An
Leases - Summary of Maturity Analysis of Operating Leases (Detail) $ in Thousands | Jan. 29, 2022USD ($) |
Leases [Abstract] | |
2022 | $ 335,219 |
2023 | 337,945 |
2024 | 252,800 |
2025 | 211,885 |
2026 | 174,747 |
Thereafter | 340,353 |
Total undiscounted cash flows | 1,652,949 |
Less: discount on lease liability | (187,463) |
Total lease liability | $ 1,465,486 |
Accumulated Balances of Other C
Accumulated Balances of Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | ||
Before Tax Amount | ||||
Beginning Balance | $ (40,748) | $ (34,287) | $ (35,804) | |
Foreign currency translation gain (loss) | [1] | (1,003) | (7,053) | 2,094 |
Loss on long-term intra-entity foreign currency transactions | 906 | 592 | (577) | |
Ending Balance | (40,845) | (40,748) | (34,287) | |
Tax Benefit (Expense) | ||||
Beginning Balance | 1,119 | 972 | ||
Foreign currency translation gain (loss) | [1] | 0 | 0 | |
Loss on long-term intra-entity foreign currency transactions | (1,119) | 147 | ||
Ending Balance | 1,119 | |||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning Balance | (40,748) | (33,168) | (34,832) | |
Foreign currency translation gain (loss) | [1] | (1,003) | (7,053) | 2,094 |
Loss on long-term intra-entity foreign currency transactions | 906 | (527) | (430) | |
Ending Balance | $ (40,845) | $ (40,748) | $ (33,168) | |
[1] | Foreign currency translation adjustments are not adjusted for income taxes as they relate to a permanent investment in a subsidiary. |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Detail) | Apr. 13, 2020USD ($)shares | May 23, 2017USD ($)shares | Jan. 29, 2022USD ($)CompensationPlan$ / sharesshares | Jan. 30, 2021USD ($)$ / sharesshares | Feb. 01, 2020USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | $ | $ 38,153,000 | $ 32,778,000 | $ 23,038,000 | ||
Share-based compensation, net of tax | $ | $ 28,800,000 | 24,600,000 | 17,900,000 | ||
Number of share-based compensation plans | CompensationPlan | 2 | ||||
Stock awards | $ | $ 37,887,000 | $ 32,298,000 | 22,742,000 | ||
Weighted-average grant date fair value of stock options granted | $ / shares | $ 11.68 | $ 3.06 | |||
Aggregate intrinsic value of options exercised | $ | $ 12,800,000 | $ 700,000 | 800,000 | ||
Net proceeds from stock options exercised | $ | 13,065,000 | 3,265,000 | 2,119,000 | ||
Tax benefit realized from stock option exercises | $ | $ 4,500,000 | $ 1,200,000 | $ 1,200,000 | ||
Shares available for all equity grants | 7,500,000 | ||||
2020 Stock Award and Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized shares under the plan | 10,200,000 | ||||
Shares of common stock granted | 1,200,000 | ||||
2020 Stock Award and Incentive Plan | Director | In any single calendar year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock awards | $ | $ 750,000 | ||||
2017 Stock Award and Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized shares under the plan | 11,200,000 | ||||
Shares of common stock granted | 3,500,000 | ||||
2017 Stock Award and Incentive Plan | Director | In any single calendar year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock awards | $ | $ 750,000 | ||||
Stock options, SAR, dividend equivalents, performance awards or other non-full value stock awards | 2020 Stock Award and Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of options that may be granted to any individual | 3,000,000 | ||||
Stock options, SAR, dividend equivalents, performance awards or other non-full value stock awards | 2017 Stock Award and Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of options that may be granted to any individual | 3,000,000 | ||||
Restricted stock awards, restricted stock units or other full value stock awards | 2020 Stock Award and Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of options that may be granted to any individual | 1,500,000 | ||||
Restricted stock awards, restricted stock units or other full value stock awards | 2017 Stock Award and Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of options that may be granted to any individual | 1,500,000 | ||||
Restricted Stock | 2020 Stock Award and Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted | 2,000,000 | ||||
Restricted Stock | 2017 Stock Award and Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted | 7,700,000 | ||||
Performance-Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted | 339,000 | ||||
Vesting period | 3 years | ||||
Unrecognized compensation expense, restricted stock grants | $ | $ 6,900,000 | ||||
Performance-Based Restricted Stock Units | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense, weighted average period | 1 year | ||||
Performance-Based Restricted Stock Units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense, weighted average period | 3 years | ||||
Performance-Based Restricted Stock Units | 2020 Stock Award and Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shares vested | 40.00% | ||||
Performance-Based Restricted Stock Units | 2017 Stock Award and Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shares vested | 80.00% | ||||
Time-based restricted stock awards | 2020 Stock Award and Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shares vested | 60.00% | ||||
Time-based restricted stock awards | 2017 Stock Award and Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shares vested | 20.00% | ||||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense | $ | $ 6,500,000 | ||||
Unrecognized compensation expense, weighted average period | 1 year 10 months 24 days | ||||
Time Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted | 724,000 | ||||
Vesting period | 3 years | ||||
Unrecognized compensation expense, weighted average period | 1 year 9 months 18 days | ||||
Unrecognized compensation expense, restricted stock grants | $ | $ 25,800,000 | ||||
Vest Ratably | 2020 Stock Award and Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shares vested | 97.00% | ||||
Vesting period | 3 years | ||||
Vest Ratably | 2017 Stock Award and Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shares vested | 98.00% | ||||
Vesting period | 3 years | ||||
Vest Ratably 1 | 2020 Stock Award and Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shares vested | 3.00% | ||||
Vest Ratably 1 | 2020 Stock Award and Incentive Plan | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Vest Ratably 1 | 2020 Stock Award and Incentive Plan | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 2 years | ||||
Vest Ratably 1 | 2017 Stock Award and Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shares vested | 2.00% | ||||
Vest Ratably 1 | 2017 Stock Award and Incentive Plan | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Vest Ratably 1 | 2017 Stock Award and Incentive Plan | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 2 years |
Share-Based Payments - Summary
Share-Based Payments - Summary of Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jan. 29, 2022USD ($)$ / sharesshares | ||
Options | ||
Outstanding - beginning of period | shares | 3,940 | |
Granted | shares | 478 | |
Exercised | shares | (771) | [1] |
Cancelled | shares | 0 | |
Outstanding - end of period | shares | 3,647 | |
Vested and expected to vest - end of period | shares | 2,513 | |
Exercisable - end of period | shares | 1,788 | [2] |
Weighted-Average Exercise Price | ||
Outstanding - beginning of period | $ / shares | $ 14.87 | |
Granted | $ / shares | 31.46 | |
Exercised | $ / shares | 16.33 | [1] |
Cancelled | $ / shares | 0 | |
Outstanding - end of period | $ / shares | 16.74 | |
Vested and expected to vest - end of period | $ / shares | 16.62 | |
Exercisable - end of period | $ / shares | $ 16.28 | [2] |
Weighted-Average Remaining Contractual Term (In years) | ||
Outstanding - end of period | 4 years 3 months 18 days | |
Vested and expected to vest - end of period | 3 years 1 month 6 days | |
Exercisable - end of period | 1 year 7 months 6 days | [2] |
Aggregate Intrinsic Value | ||
Outstanding - end of period | $ | $ 24,980 | |
Vested and expected to vest - end of period | $ | 13,231 | |
Exercisable - end of period | $ | $ 10,949 | [2] |
[1] | Options exercised during Fiscal 2021 ranged in price from $ 8.62 to $ 21.41 . | |
[2] | Options exercisable represent “in-the-money” vested options based upon the weighted average exercise price of vested options compared to the Company’s stock price on January 29, 2022. |
Share-Based Payments - Summar_2
Share-Based Payments - Summary of Stock Option Activity (Parenthetical) (Detail) | 12 Months Ended |
Jan. 29, 2022$ / shares | |
Share-based Payment Arrangement [Abstract] | |
Options exercised, exercise price range, lower limit | $ 8.62 |
Options exercised, exercise price range, upper limit | $ 21.41 |
Share-Based Payments - Black-Sc
Share-Based Payments - Black-Scholes Option Valuation Assumptions (Detail) | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rates | [1] | 0.90% | |
Risk-free interest rates, minimum | [1] | 0.30% | |
Risk-free interest rates, maximum | [1] | 0.60% | |
Dividend yield | 1.60% | ||
Volatility factors of the expected market price of the Company's common stock | [2] | 50.70% | |
Volatility factors of the expected market price of the Company's common stock, minimum | [2] | 43.10% | |
Volatility factors of the expected market price of the Company's common stock, maximum | [2] | 48.70% | |
Weighted-average expected term | [3] | 4 years 6 months | 4 years 4 months 24 days |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 3.50% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 6.00% | ||
[1] | Based on the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected life of our stock options. | ||
[2] | Based on the historical volatility of the Company’s common stock. | ||
[3] | Represents the period of time options are expected to be outstanding. The weighted average expected option terms were determined based on historical experience. |
Share-Based Payments - Summar_3
Share-Based Payments - Summary of Restricted Stock Activity (Detail) shares in Thousands | 12 Months Ended |
Jan. 29, 2022$ / sharesshares | |
Time Based Restricted Stock Units | |
Shares | |
Nonvested - beginning of period | shares | 3,698 |
Granted | shares | 724 |
Vested | shares | (1,483) |
Cancelled/Forfeited | shares | (237) |
Nonvested - end of period | shares | 2,702 |
Weighted-Average Grant Date Fair Value | |
Nonvested - beginning of period | $ / shares | $ 12.42 |
Granted | $ / shares | 32.40 |
Vested | $ / shares | 14.92 |
Cancelled/Forfeited | $ / shares | 14.20 |
Nonvested - end of period | $ / shares | $ 16.25 |
Performance-Based Restricted Stock Units | |
Shares | |
Nonvested - beginning of period | shares | 1,868 |
Granted | shares | 339 |
Vested | shares | (418) |
Cancelled/Forfeited | shares | (327) |
Nonvested - end of period | shares | 1,462 |
Weighted-Average Grant Date Fair Value | |
Nonvested - beginning of period | $ / shares | $ 17.44 |
Granted | $ / shares | 39.54 |
Vested | $ / shares | 22.22 |
Cancelled/Forfeited | $ / shares | 18.56 |
Nonvested - end of period | $ / shares | $ 20.95 |
Retirement Plan and Employee _2
Retirement Plan and Employee Stock Purchase Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employee contribution percentage | 3.00% | ||
Years of age attained | 20 years | ||
Vesting percentage in matching contribution to defined contribution plan | 100.00% | ||
Vesting period in matching contribution to defined contribution plan | 2 years | ||
Compensation expense | $ 14,700,000 | $ 13,300,000 | $ 11,500,000 |
First 3 Percent of Each Participant's Contributions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Matching contribution to defined contribution plan | 100.00% | ||
Next 3 Percent of Each Participant's Contributions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Matching contribution to defined contribution plan | 25.00% | ||
Full-time employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Periods of service to be eligible | 30 days | ||
Part-time employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Periods of service to be eligible | 1000 hours | ||
Defined Contribution Pension Plan 401k | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee contribution percentage | 50.00% | ||
Employee Stock Purchase Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Periods of service to be eligible | 60 days | ||
Employee Stock Purchase Plan | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Matching investment per pay period | $ 100 | ||
Employee Stock Purchase Plan | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Qualifying age | 18 years | ||
Matching percent of investment | 15.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 03, 2018 | Feb. 02, 2019 | |
Income Taxes [Line Items] | |||||
U.S. federal corporate tax rate | 21.00% | 21.00% | 21.00% | 35.00% | |
CARES act of 2020, net operating loss carryback period | 5 years | ||||
Net operating loss | $ 27,643,000 | $ 10,160,000 | |||
Valuation allowances | 25,628,000 | 12,263,000 | |||
Foreign tax credit carryovers | $ 3,000,000 | 900,000 | |||
Foreign tax credit carryovers expiration date | 2028 | ||||
Deferred tax asset related to State income tax credit carryforwards, net of federal tax | $ 7,500,000 | 7,400,000 | |||
Deferred tax asset related to State income tax credit, net of federal tax, minimum carryforwards years | 16 years | ||||
Deferred tax asset related to State income tax credit carryforwards, net of federal tax, expiration period begins | 2024 | ||||
Valuation allowances of state income tax credit carryovers | $ 1,800,000 | 1,800,000 | |||
Deferred tax assets, capital losses | $ 4,213,000 | 4,471,000 | |||
Capital losses, carryforward period | 5 years | ||||
Valuation allowance on deferred tax asset to capital losses | $ 4,200,000 | 4,500,000 | |||
Deferred tax assets, Other long term assets | 8,208,000 | ||||
Valuation allowance on deferred tax assets to other long term assets | 8,200,000 | ||||
Undistributed foreign earnings | 87,800,000 | ||||
Deferred income taxes | $ (12,850,000) | (34,890,000) | $ 6,541,000 | ||
Percent of dividends received as deduction for tax act | 100.00% | ||||
Unrecognized tax benefits | $ 3,259,000 | 2,563,000 | 2,781,000 | $ 6,534,000 | |
Unrecognized tax benefits that would affect effective income tax rate if recognized | 2,600,000 | 2,000,000 | |||
Increase (decrease) in unrecognized tax benefits | 700,000 | (200,000) | 3,800,000 | ||
Reasonably possible amount of reduction in unrecognized tax benefit over the next twelve months | 1,000,000 | ||||
Accrued interest and penalties related to unrecognized tax benefits | 900,000 | 700,000 | |||
Income tax expense (benefit) | $ 139,293,000 | $ (82,999,000) | $ 54,021,000 | ||
Effective income tax benefit rate | 24.90% | 28.40% | 22.00% | ||
Retained Earnings | |||||
Income Taxes [Line Items] | |||||
Deferred income taxes | $ 0 | ||||
Federal | |||||
Income Taxes [Line Items] | |||||
Net operating loss | 15,300,000 | ||||
State | |||||
Income Taxes [Line Items] | |||||
Net operating loss | 6,100,000 | ||||
Foreign | |||||
Income Taxes [Line Items] | |||||
Net operating loss | 6,200,000 | ||||
Deferred Tax Asset Operating Loss Carryforwards State | |||||
Income Taxes [Line Items] | |||||
Valuation allowances | 2,700,000 | ||||
Deferred Tax Asset Operating Loss Carryforwards Foreign | |||||
Income Taxes [Line Items] | |||||
Valuation allowances | 6,100,000 | $ 4,300,000 | |||
Deferred Tax Asset Other Foreign | |||||
Income Taxes [Line Items] | |||||
Valuation allowances | 1,600,000 | 800,000 | |||
Deferred Tax Asset Tax Credit Carryforwards Foreign | |||||
Income Taxes [Line Items] | |||||
Valuation allowances | $ 1,000,000 | $ 900,000 |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 520,952 | $ (294,208) | $ 229,906 |
Foreign | 37,970 | 1,935 | 15,372 |
income (loss) before income taxes | $ 558,922 | $ (292,273) | $ 245,278 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jan. 29, 2022 | Jan. 30, 2021 |
Deferred tax assets: | ||
Operating lease ROU assets | $ 380,117 | $ 389,604 |
Net Operating Loss | 27,643 | 10,160 |
Employee compensation and benefits | 20,521 | 3,124 |
Accruals not currently deductible | 11,645 | 8,538 |
Deferred compensation | 8,429 | 7,400 |
Other long term assets | 8,208 | |
State tax credits | 7,546 | 7,407 |
Inventories | 5,220 | 3,267 |
Capital Loss | 4,213 | 4,471 |
Allowance for Doubtful Accounts | 3,201 | 750 |
Foreign tax credits | 2,982 | 943 |
Other | 5,757 | 2,093 |
Gross deferred tax assets | 485,482 | 437,757 |
Valuation allowance | (25,628) | (12,263) |
Total deferred tax assets | 459,854 | 425,494 |
Deferred tax liabilities: | ||
Operating lease liabilities | (308,299) | (310,888) |
Property and equipment | (87,192) | (56,487) |
Convertible Senior Note | (15,384) | (20,589) |
Prepaid expenses | (2,215) | (2,294) |
Other | (2,597) | (2,191) |
Total deferred tax liabilities | (415,687) | (392,449) |
Total deferred tax assets, net | $ 44,167 | $ 33,045 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Current: | |||
Federal | $ 107,493 | $ (59,080) | $ 25,745 |
Foreign taxes | 19,671 | 7,443 | 8,137 |
State | 24,979 | 3,528 | 13,598 |
Total current | 152,143 | (48,109) | 47,480 |
Deferred: | |||
Federal | (12,637) | (17,286) | 12,289 |
Foreign taxes | (1,284) | (4,622) | (1,213) |
State | 1,071 | (12,982) | (4,535) |
Total deferred | (12,850) | (34,890) | 6,541 |
(Benefit) Provision for income taxes | $ 139,293 | $ (82,999) | $ 54,021 |
Income Taxes - Activity Related
Income Taxes - Activity Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, beginning of the year balance | $ 2,563 | $ 2,781 | $ 6,534 |
Increases in current period tax positions | 251 | 602 | 422 |
Increases in tax positions of prior periods | 688 | 1 | 151 |
Settlements | 0 | (450) | (2,223) |
Lapse of statute of limitations | (93) | (289) | (720) |
Decreases in tax positions of prior periods | (150) | (82) | (1,383) |
Unrecognized tax benefits, end of the year balance | $ 3,259 | $ 2,563 | $ 2,781 |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between Statutory Federal Income Tax Rate and Effective Income Tax Rate (Detail) | 12 Months Ended | |||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Federal income tax rate | 21.00% | 21.00% | 21.00% | 35.00% |
State income taxes, net of federal income tax effect | 4.10% | 3.10% | 3.60% | |
Foreign rate differential | 0.60% | 0.30% | (0.60%) | |
International provisions of Tax Act | (0.50%) | 0.00% | (2.10%) | |
Rate differential on CARES Act NOL carryback | 0.00% | 8.10% | 0.00% | |
Valuation allowance changes, net | 0.20% | (2.60%) | 0.30% | |
Non-deductible executive compensation | 1.30% | (2.10%) | 0.60% | |
Change in unrecognized tax benefits | 0.10% | (0.10%) | 0.10% | |
Share Based Payments | (0.80%) | 0.40% | (0.50%) | |
Other | (1.10%) | 0.30% | (0.40%) | |
Effective Income Tax Rate Reconciliation, Percent, Total | 24.90% | 28.40% | 22.00% |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Jan. 29, 2022USD ($)Segment | Jan. 30, 2021USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | 2 | |
Number of reportable segments | 2 | |
Operating lease right-of-use assets | $ | $ 1,193,021 | $ 1,155,965 |
Segment Reporting - Summary of
Segment Reporting - Summary of Reportable Segment Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |||||
Segment Reporting Information [Line Items] | |||||||
Total net revenue | [1] | $ 5,010,785 | $ 3,759,113 | $ 4,308,212 | |||
Operating income (Ioss) | [1] | 591,065 | (271,345) | 233,345 | |||
Asset impairment charges | 11,944 | [1],[2] | 249,163 | [3] | 66,252 | [4] | |
Impairment, restructuring and COVID-19 related charges | 11,944 | 279,826 | [1] | 80,494 | [1] | ||
Adjusted operating income (loss) | [1] | 603,009 | 8,481 | 313,839 | |||
Depreciation and amortization | [1] | 166,781 | 162,402 | 179,050 | |||
Capital expenditures | [1] | 233,847 | 127,975 | 210,360 | |||
Operating Segments | American Eagle | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net revenue | 3,555,706 | 2,733,849 | 3,479,592 | ||||
Operating income (Ioss) | 785,729 | 93,029 | 484,078 | ||||
Asset impairment charges | 10,231 | ||||||
Impairment, restructuring and COVID-19 related charges | 144,486 | 41,657 | |||||
Adjusted operating income (loss) | 795,960 | 237,515 | 525,735 | ||||
Depreciation and amortization | 59,641 | 63,019 | 75,889 | ||||
Capital expenditures | 47,106 | 36,606 | 98,699 | ||||
Operating Segments | Aerie | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net revenue | 1,376,269 | 989,989 | 801,035 | ||||
Operating income (Ioss) | 212,287 | 60,298 | 47,465 | ||||
Asset impairment charges | 1,713 | ||||||
Impairment, restructuring and COVID-19 related charges | 52,849 | 20,261 | |||||
Adjusted operating income (loss) | 214,000 | 113,147 | 67,726 | ||||
Depreciation and amortization | 33,834 | 26,647 | 22,578 | ||||
Capital expenditures | 80,062 | 32,723 | 56,283 | ||||
Corporate and Other, Non-Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net revenue | [5] | 78,810 | 35,275 | 27,585 | |||
Operating income (Ioss) | [5] | (406,951) | (424,672) | (298,198) | |||
Impairment, restructuring and COVID-19 related charges | [5] | 82,491 | 18,576 | ||||
Adjusted operating income (loss) | [5] | (406,951) | (342,181) | (279,622) | |||
Depreciation and amortization | [5] | 73,306 | 72,736 | 80,583 | |||
Capital expenditures | [5] | $ 106,679 | $ 58,646 | $ 55,378 | |||
[1] | The difference between Operating income (loss) and Income (loss) before income taxes includes the following, which are not allocated to our reportable segments: - For Fiscal 2021: interest expense (income), net of $ 34.6 million and other income, net of $ 2.5 million - For Fiscal 2020: interest expense (income), net of $ 24.6 million and other income, net of $ 3.7 million - For Fiscal 2019: interest expense (income), net of ($ 6.2 ) million and other income, net of $ 5.7 million | ||||||
[2] | The Company recorded impairment charges of $ 11.9 million in Fiscal 2021, primarily related to store property and equipment and operating lease ROU assets. | ||||||
[3] | In Fiscal 2020, the Company recorded impairment charges of $ 249.2 million. Included in this amount are retail store impairment charges of $ 203.2 million, of which $ 154.8 million relates to operating lease ROU assets and $ 48.4 million relates to store property and equipment (fixtures and equipment and leasehold improvements). We also recorded $ 28.0 million related to the impairment of certain corporate property and equipment, as well as $ 18.0 million of certain cost and equity method investments. | ||||||
[4] | In Fiscal 2019, the Company recorded asset impairment charges of $ 64.5 million on the assets of 20 retail stores. Of the total, $ 39.5 million related to the impairment of leasehold improvements and store fixtures, and $ 25.0 million related to the impairment of operating lease ROU assets. The Company also concluded that certain goodwill was impaired resulting in a $ 1.7 million charge in Fiscal 2019. | ||||||
[5] | Corporate and Other includes revenue and operating results of the Todd Snyder brand, Unsubscribed brand, and Supply Chain Platform, which have been identified as separate operating segments, but are not material to disclose as separate reportable segments. Corporate operating costs represents certain costs that are not directly attributable to another reportable segment. |
Segment Reporting - Summary o_2
Segment Reporting - Summary of Reportable Segment Information (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |
Segment Reporting [Abstract] | |||
Interest expense (income), net | $ 34,632 | $ 24,610 | $ (6,202) |
Other income, net | $ 2,489 | $ 3,682 | $ 5,731 |
Segment Reporting - Summary o_3
Segment Reporting - Summary of Geographical Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenue | [1] | $ 5,010,785 | $ 3,759,113 | $ 4,308,212 |
Long-lived assets, net: | ||||
Total long-lived assets, net | 2,295,410 | 1,850,105 | ||
United States | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenue | 4,336,806 | 3,295,028 | 3,710,270 | |
Long-lived assets, net: | ||||
Total long-lived assets, net | 2,137,835 | 1,705,561 | ||
Foreign | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenue | [2] | 673,979 | 464,085 | $ 597,942 |
Long-lived assets, net: | ||||
Total long-lived assets, net | $ 157,575 | $ 144,544 | ||
[1] | The difference between Operating income (loss) and Income (loss) before income taxes includes the following, which are not allocated to our reportable segments: - For Fiscal 2021: interest expense (income), net of $ 34.6 million and other income, net of $ 2.5 million - For Fiscal 2020: interest expense (income), net of $ 24.6 million and other income, net of $ 3.7 million - For Fiscal 2019: interest expense (income), net of ($ 6.2 ) million and other income, net of $ 5.7 million | |||
[2] | Amounts represent sales from American Eagle and Aerie international retail stores, and e-commerce sales that are billed to and/or shipped to foreign countries and international franchise royalty revenue. |
Summary of Impairment,Restructu
Summary of Impairment,Restructuring and COVID-19 Related Charges (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Jan. 29, 2022 | Jan. 30, 2021 | Feb. 01, 2020 | |||||
Restructuring Cost And Reserve [Line Items] | |||||||
Long-lived asset Impairment charges | $ 11,944 | [1],[2] | $ 249,163 | [3] | $ 66,252 | [4] | |
Incremental COVID-19 related expenses | [5] | 26,930 | |||||
Severance and related employee costs | 3,733 | 6,691 | |||||
Other restructuring charges | [6] | 7,551 | |||||
Total impairment, restructuring, and COVID-19 related charges | $ 11,944 | $ 279,826 | [2] | $ 80,494 | [2] | ||
[1] | The Company recorded impairment charges of $ 11.9 million in Fiscal 2021, primarily related to store property and equipment and operating lease ROU assets. | ||||||
[2] | The difference between Operating income (loss) and Income (loss) before income taxes includes the following, which are not allocated to our reportable segments: - For Fiscal 2021: interest expense (income), net of $ 34.6 million and other income, net of $ 2.5 million - For Fiscal 2020: interest expense (income), net of $ 24.6 million and other income, net of $ 3.7 million - For Fiscal 2019: interest expense (income), net of ($ 6.2 ) million and other income, net of $ 5.7 million | ||||||
[3] | In Fiscal 2020, the Company recorded impairment charges of $ 249.2 million. Included in this amount are retail store impairment charges of $ 203.2 million, of which $ 154.8 million relates to operating lease ROU assets and $ 48.4 million relates to store property and equipment (fixtures and equipment and leasehold improvements). We also recorded $ 28.0 million related to the impairment of certain corporate property and equipment, as well as $ 18.0 million of certain cost and equity method investments. | ||||||
[4] | In Fiscal 2019, the Company recorded asset impairment charges of $ 64.5 million on the assets of 20 retail stores. Of the total, $ 39.5 million related to the impairment of leasehold improvements and store fixtures, and $ 25.0 million related to the impairment of operating lease ROU assets. The Company also concluded that certain goodwill was impaired resulting in a $ 1.7 million charge in Fiscal 2019. | ||||||
[5] | Incremental COVID-19 related expenses consisting of personal protective equipment and supplies for our associates and customers. | ||||||
[6] | Other restructuring charges consists of $ 4.2 million of joint business venture exit charges, $ 1.8 million of Japan market transition costs and $ 1.5 million of China restructuring in Fiscal 2019. |
Summary of Impairment,Restruc_2
Summary of Impairment,Restructuring and COVID-19 Related Charges (Parenthetical) (Detail) | 12 Months Ended | |||||
Jan. 29, 2022USD ($)Store | Jan. 30, 2021USD ($) | Feb. 01, 2020USD ($)Store | ||||
Restructuring Cost And Reserve [Line Items] | ||||||
Asset impairment charges | $ 11,944,000 | [1],[2] | $ 249,163,000 | [3] | $ 66,252,000 | [4] |
Number of retail stores | Store | 1,000 | |||||
Goodwill impairment | $ 0 | 0 | 1,700,000 | |||
Joint business venture exit charges | 4,200,000 | |||||
Japan | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Market transition costs | 1,800,000 | |||||
China | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring | 1,500,000 | |||||
Retail Stores | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Asset impairment charges | 203,200,000 | $ 64,500,000 | ||||
Number of retail stores | Store | 20 | |||||
Impairment of operating lease ROU assets | 154,800,000 | $ 25,000,000 | ||||
Leasehold Improvements and Store Fixtures | Retail Stores | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Asset impairment charges | $ 39,500,000 | |||||
Corporate Property and Equipment | Retail Stores | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Asset impairment charges | 28,000,000 | |||||
Store Property and Equipment (Fixtures and Equipment and Leasehold Improvements) | Retail Stores | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Asset impairment charges | 48,400,000 | |||||
Cost And Equity Method Investments | Retail Stores | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Asset impairment charges | $ 18,000,000 | |||||
[1] | The Company recorded impairment charges of $ 11.9 million in Fiscal 2021, primarily related to store property and equipment and operating lease ROU assets. | |||||
[2] | The difference between Operating income (loss) and Income (loss) before income taxes includes the following, which are not allocated to our reportable segments: - For Fiscal 2021: interest expense (income), net of $ 34.6 million and other income, net of $ 2.5 million - For Fiscal 2020: interest expense (income), net of $ 24.6 million and other income, net of $ 3.7 million - For Fiscal 2019: interest expense (income), net of ($ 6.2 ) million and other income, net of $ 5.7 million | |||||
[3] | In Fiscal 2020, the Company recorded impairment charges of $ 249.2 million. Included in this amount are retail store impairment charges of $ 203.2 million, of which $ 154.8 million relates to operating lease ROU assets and $ 48.4 million relates to store property and equipment (fixtures and equipment and leasehold improvements). We also recorded $ 28.0 million related to the impairment of certain corporate property and equipment, as well as $ 18.0 million of certain cost and equity method investments. | |||||
[4] | In Fiscal 2019, the Company recorded asset impairment charges of $ 64.5 million on the assets of 20 retail stores. Of the total, $ 39.5 million related to the impairment of leasehold improvements and store fixtures, and $ 25.0 million related to the impairment of operating lease ROU assets. The Company also concluded that certain goodwill was impaired resulting in a $ 1.7 million charge in Fiscal 2019. |
Rollforward of Restructuring Li
Rollforward of Restructuring Liabilities Recognized in Consolidated Balance Sheets (Detail) $ in Thousands | 12 Months Ended |
Jan. 29, 2022USD ($) | |
Restructuring and Related Activities [Abstract] | |
Accrued liability as of January 30, 2021 | $ 2,812 |
Add: Costs incurred, excluding non-cash charges | 1,367 |
Less: Cash payments and adjustments | (2,812) |
Accrued liability as of January 29, 2022 | $ 1,367 |