Annual report pursuant to Section 13 and 15(d)

REVENUE RECOGNITION (Tables)

v3.19.1
REVENUE RECOGNITION (Tables)
12 Months Ended
Feb. 02, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]  
Schedule of disaggregation of revenue

The following table sets forth supplemental products and services sales information for the Company (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

 

2018

    

2017

    

2016

 

Net sales:

 

 

    

 

 

    

 

 

    

 

Men's tailored clothing product

 

$

1,385,320

 

$

1,351,881

 

$

1,343,875

 

Men's non-tailored clothing product

 

 

988,973

 

 

1,008,663

 

 

1,018,907

 

Women's clothing product

 

 

68,518

 

 

70,630

 

 

73,509

 

Other (1)

 

 

11,936

 

 

8,643

 

 

9,631

 

Total retail clothing product

 

 

2,454,747

 

 

2,439,817

 

 

2,445,922

 

Rental services

 

 

399,146

 

 

428,355

 

 

457,444

 

Alteration services

 

 

148,067

 

 

150,005

 

 

161,895

 

Retail dry cleaning services (2)

 

 

2,551

 

 

34,844

 

 

33,140

 

Total alteration and other services

 

 

150,618

 

 

184,849

 

 

195,035

 

Total retail sales

 

 

3,004,511

 

 

3,053,021

 

 

3,098,401

 

Corporate apparel clothing product

 

 

235,391

 

 

251,325

 

 

280,302

 

Total net sales

 

$

3,239,902

 

$

3,304,346

 

$

3,378,703

 


(1)

Other consists of franchise and licensing revenues and gift card breakage.  Franchise revenues are generally recognized at a point in time while licensing revenues consist primarily of minimum guaranteed royalty amounts recognized over an elapsed time period.

(2)

On March 3, 2018, we completed the divestiture of our MW Cleaners business.  See Note 3 for additional information.

Schedule of opening and closing balance of contract liabilities

The following table summarizes the opening and closing balances of our contract liabilities (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at

 

Increase

 

Balance at

 

 

    

February 3, 2018

    

(Decrease)

    

February 2, 2019

 

 

 

As Adjusted

 

 

 

 

 

 

 

Contract liabilities

 

$

141,552

 

$

(18,724)

 

$

122,828

 

 

ASU 2014-09  
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]  
Schedule of cumulative effect of changes in adoption of ASU 606

The following table depicts the cumulative effect of the changes made to our February 3, 2018 balance sheet for the adoption of ASC 606 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

 

 

 

Adjusted

 

 

 

Balance at

 

Impact of

 

Balance at

 

 

 

February 3,

 

Adoption of

 

February 3,

 

 

    

2018

    

ASC 606

    

2018

 

Assets:

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

$

79,783

 

$

(303)

 

$

79,480

 

Inventories

 

 

851,931

 

 

(17,837)

 

 

834,094

 

Other current assets

 

 

78,252

 

 

2,753

 

 

81,005

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

Accrued expenses and other current liabilities

 

 

285,537

 

 

32,378

 

 

317,915

 

Deferred taxes, net and other liabilities

 

 

164,191

 

 

(11,941)

 

 

152,250

 

Equity:

 

 

 

 

 

 

 

 

 

 

Accumulated deficit

 

 

(479,166)

 

 

(35,824)

 

 

(514,990)

 

 

Impact of Adoption of ASU 606 | ASU 2014-09  
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]  
Schedule of cumulative effect of changes in adoption of ASU 606

In accordance with ASC 606, the following tables reflect the impact on our fiscal 2018 consolidated statement of earnings and balance sheet as if we had continued to apply accounting standards in effect last year (“Legacy GAAP”) (in thousands, except per share amounts):

 

 

 

 

 

 

 

 

 

 

 

Statement of Earnings

 

For the Year Ended February 2, 2019

 

 

 

As

 

Amounts Under

 

Effect of Change

 

 

    

Reported

    

Legacy GAAP

    

Increase/(Decrease)

 

Net sales:

 

 

 

 

 

 

 

 

 

 

Total retail sales

 

$

3,004,511

 

$

2,979,703

 

$

(24,808)

 

Corporate apparel clothing product

 

 

235,391

 

 

243,610

 

 

8,219

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

Total retail cost of sales

 

 

1,691,963

 

 

1,690,986

 

 

(977)

 

Total corporate apparel clothing product cost of sales

 

 

170,472

 

 

177,124

 

 

6,652

 

Selling, general and administrative expenses

 

 

974,054

 

 

970,703

 

 

(3,351)

 

Provision for income taxes

 

 

19,436

 

 

15,856

 

 

(3,580)

 

Net earnings

 

 

83,240

 

 

67,907

 

 

(15,333)

 

Diluted net earnings per common share

 

$

1.64

 

$

1.34

 

$

(0.30)

 

 

 

 

 

 

 

 

 

 

 

 

The decrease of $0.30 between the as reported and amounts under legacy GAAP columns primarily relates to the changes to our loyalty programs of $17.6 million, or $0.28 per diluted share.

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet

 

February 2, 2019

 

 

 

As

 

Amounts Under

 

Effect of Change

 

 

    

Reported

    

Legacy GAAP

    

Increase/(Decrease)

 

Assets:

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

$

73,073

 

$

74,932

 

$

1,859

 

Inventories

 

 

830,426

 

 

840,769

 

 

10,343

 

Other current assets

 

 

70,712

 

 

67,523

 

 

(3,189)

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

Accrued expenses and other current liabilities

 

 

282,029

 

 

229,962

 

 

(52,067)

 

Deferred taxes, net and other liabilities

 

 

125,022

 

 

113,055

 

 

(11,967)

 

Equity:

 

 

 

 

 

 

 

 

 

 

Accumulated deficit

 

$

(468,048)

 

$

(447,557)

 

$

20,491