0001628280-21-005818 | 10-K | XBRL Viewer

numberofstorestestedforimpairment

749

972

net book value

$ 65,000

$ 81,400

Less accumulated depreciation and amortization

$ (671,340)

(712,576)

$ (671,340)

(712,576)

Property and equipment, net

181,801

236,898

181,801

236,898

Asset impairment charges

598

4,731

^[1]

38,527

$ 6,039

$ 6,096

Number of underperforming stores

Land and land improvements

Building and improvements

3,403

$ 3,403

Material handling equipment

36,133

35,568

36,133

35,568

58,034

53,540

58,034

53,540

Leasehold improvements

Store fixtures and equipment

216,989

285,955

216,989

285,955

226,404

272,158

226,404

272,158

Capitalized software

296,967

265,610

296,967

265,610

Construction in progress

$ 15,211

$ 33,240

$ 15,211

$ 33,240

[1]


	Fiscal Year Ended February 1, 2020
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	(in thousands, except earnings per share)
Net sales	$	412,382	$	420,470	$	524,796	$	513,019
Gross profit	151,976		138,846		198,125		166,358
Selling, general, and administrative expenses	128,006		116,417		120,514		113,183
Asset impairment charges	348		121		839		4,731
Other (income) costs	—		—		—		—
Depreciation and amortization	18,584		18,472		18,821		18,911
Operating income	5,038		3,836		57,951		29,533
Income before provision for income taxes	3,327		1,558		55,796		27,736
Provision (benefit) for income taxes	(1,163)		35		12,748		3,497
Net income	$	4,490	$	1,523	$	43,048	$	24,239

Diluted earnings per share	$	0.28	$	0.10	$	2.77	$	1.61
Diluted weighted average common shares outstanding	16,107		15,859		15,546		15,101

Cash dividends declared and paid per common share	$	0.56	$	0.56	$	0.56	$	0.56

CREDIT FACILITY (Details) - USD ($)
$ in Millions

12 Months Ended

Jan. 30, 2021

Feb. 01, 2020

Deferred financing costs, remaining unamortized balance

Sublimit availability

$ 41.8

$ 43.8

1.2

0.9

Line of Credit Facility, Maximum Borrowing Capacity

360.0

325.0

Line of credit facility, current borrowing capacity

282.2

282.1

Outstanding borrowings

169.8

170.8

Utilization of credit facility at end of period

178.0

177.0

Availability

^[1]

$ 104.2

$ 105.1

Interest rate at end of period (as a percent)

4.20%

3.40%

Average loan balance during the period

$ 216.2

$ 192.0

Highest end of day loan balance during the period

$ 275.6

$ 262.5

Average interest rate (as a percent)

3.80%

4.00%

Standby Letters of Credit [Member]

Letters of credit outstanding

$ 8.2

$ 6.2

Credit Agreement

Letters of Credit sublimit

$ 50.0

Line of credit facility, unused line fee percentage (as a percent)

0.25%

Deferred financing costs gross

$ 5.9

Deferred financing costs, remaining unamortized balance

$ 1.2

Credit Agreement | Prime rate

Basis spread on variable rate, low end of range (as a percent)

1.75%

Basis spread on variable rate, high end of range (as a percent)

1.88%

Credit Agreement | Letter of Credit [Member]

Letters of credit facility fee, low end of range (as a percent)

1.25%

Letters of credit facility fee, high end of range (as a percent)

1.38%

Credit Agreement | Standby Letters of Credit [Member]

Letters of credit facility fee, low end of range (as a percent)

2.00%

Letters of credit facility fee, high end of range (as a percent)

2.25%

[1]	The sub-limit availability for letters of credit was $41.8 million and $43.8 million at January 30, 2021 and February 1, 2020, respectively.

PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid Expenses (Details) - USD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020
PREPAID EXPENSES AND OTHER CURRENT LIABILITIES [Abstract]
Prepaid property expense	$ 281	$ 435
Prepaid income taxes	43,752	3,698
Prepaid marketing	800	1,700
Prepaid maintenance contracts	2,433	3,144
Other	5,558	7,209
Prepaid expenses and other current assets	$ 55,860	$ 21,416

ACCRUED EXPENSES AND OTHER CURRENT LIABILTIES Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020
Accrued Expenses [Abstract]
Customer liabilities	$ 12,904,000	$ 16,100
Accrued salaries and benefits	33,817,000	17,731
Sales taxes and other taxes payable	13,936,000	3,544
Accrued store expenses	3,893,000	3,993
Deferred revenue	5,300	1,900
Accrued real estate expenses	5,756,000	5,450
Accrued construction-in-progress	3,443,000	4,254
Accrued insurance	4,113,000	3,409
Accrued marketing	3,206,000	3,993
Accrued freight	4,811,000	3,703
Deferred revenue for MyPlace Rewards loyalty program	2,669,000	1,559
Accrued professional fees	1,488,000	1,215
Other	20,162,000	15,896
Accrued expenses and other current liabilities	$ 116,504	$ 83,609

COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Jan. 30, 2021 USD ($)
Purchase Commitments Construction [Member]
Operating Leased Assets [Line Items]
Unrecorded Unconditional Purchase Obligation	$ 15.1
Purchase Commitments Merchandise [Member]
Operating Leased Assets [Line Items]
Unrecorded Unconditional Purchase Obligation	$ 276.4

INCOME TAXES (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Jan. 30, 2021

May 02, 2020

Feb. 01, 2020

May 04, 2019

Jan. 30, 2021

Feb. 01, 2020

Feb. 02, 2019

Current Income Tax Expense (Benefit), Continuing Operations [Abstract]

U.S.

$ (250,876)

$ 36,660

$ 49,820

Foreign

39,118

51,757

58,704

Income (loss) from continuing operations before income taxes

$ 10,288

$ (174,983)

$ 27,736

^[1]

$ 3,327

(211,758)

88,417

108,524

Federal

(45,072)

1,810

594

State

212

1,186

2,519

Foreign

5,728

6,757

10,019

Total current

(39,132)

9,753

13,132

Federal

(14,274)

4,240

(3,418)

State

(15,968)

1,066

(2,324)

Foreign

(2,019)

174

Total deferred

(32,660)

5,364

(5,568)

Total tax provision

2,524

(60,173)

3,497

^[1]

(1,163)

$ (71,393)

$ 15,117

$ 7,564

Effective tax rate from continuing operations (as a percent)

33.70%

17.10%

7.00%

Deferred Income Taxes, Current –

Calculated income tax provision at federal statutory rate

$ (44,471)

$ 18,568

$ 22,790

State income taxes, net of federal benefit

(12,447)

1,779

154

Foreign tax rate differential

(5,791)

(5,019)

(3,801)

Nondeductible expenses

2,654

1,491

861

Excess tax benefits related to stock compensation

3,800

4,300

7,200

Share-based Payment Arrangement, Exercise of Option, Tax Benefit

2,051

(1,914)

U.S. transition taxes on deemed repatriation of foreign earnings

Revaluation of deferred tax assets and liabilities

Unrecognized tax expense (benefit)

(1,150)

(1,304)

(1,092)

Foreign tax credits

(10)

(21)

(62)

Other

(117)

(310)

Total tax provision

2,524

(60,173)

3,497

^[1]

(1,163)

(71,393)

15,117

7,564

Assets

Inventory

1,880

1,620

1,880

1,620

Noncurrent –

Property and equipment

(7,406)

(13,016)

(7,406)

(13,016)

Equity compensation

843

2,288

843

2,288

Reserves and other

16,302

8,994

16,302

8,994

Net Operating Loss Carryover

11,240

Valuation allowance

(916)

Net noncurrent

45,579

12,941

45,579

12,941

Total deferred tax asset, net

45,579

12,941

45,579

12,941

Beginning Balance

$ 6,655

$ 5,002

6,655

5,002

Additions for current year tax positions

1,256

1,399

Additions for prior year tax positions

120

270

Reductions for prior year tax positions

Settlements

(57)

Reductions due to a lapse of the applicable statute of limitations

Unrecognized Tax Benefits, Ending Balance

8,060

6,655

8,060

6,655

$ 5,002

Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]

Prepaid expenses

(817)

(735)

(817)

(735)

Foreign and state tax on unremitted earnings

(1,554)

(1,561)

(1,554)

(1,561)

Deferred Tax Assets, Capital Loss Carryforwards

$ 0

$ (270)

$ 0

$ (270)

[1]


	Fiscal Year Ended February 1, 2020
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	(in thousands, except earnings per share)
Net sales	$	412,382	$	420,470	$	524,796	$	513,019
Gross profit	151,976		138,846		198,125		166,358
Selling, general, and administrative expenses	128,006		116,417		120,514		113,183
Asset impairment charges	348		121		839		4,731
Other (income) costs	—		—		—		—
Depreciation and amortization	18,584		18,472		18,821		18,911
Operating income	5,038		3,836		57,951		29,533
Income before provision for income taxes	3,327		1,558		55,796		27,736
Provision (benefit) for income taxes	(1,163)		35		12,748		3,497
Net income	$	4,490	$	1,523	$	43,048	$	24,239

Diluted earnings per share	$	0.28	$	0.10	$	2.77	$	1.61
Diluted weighted average common shares outstanding	16,107		15,859		15,546		15,101

Cash dividends declared and paid per common share	$	0.56	$	0.56	$	0.56	$	0.56

SEGMENT INFORMATION (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Jan. 30, 2021

Feb. 01, 2020

Jan. 30, 2021

Feb. 01, 2020

Feb. 02, 2019

Segment information

Impairment of Long-Lived Assets Held-for-use

$ 598

$ 4,731

^[1]

$ 38,527

$ 6,039

$ 6,096

Percentage of entity-wide sales qualifying purchaser as major customer (as a percent)

10.00%

Net sales:

Revenue from Contract with Customer, Including Assessed Tax

472,897

513,019

^[1]

$ 1,522,598

1,870,667

1,938,084

Gross Profit:

Gross Profit

139,779

166,358

^[1]

333,251

655,305

683,596

Operating income (loss):

Total operating income (loss)

14,389

29,533

^[1]

$ (199,915)

$ 96,358

$ 111,328

Operating income (loss) as a percent of net sales:

Total operating income (loss) (as a percent)

(13.10%)

5.20%

5.70%

Depreciation and amortization:

Total depreciation and amortization

16,000

18,911

^[1]

$ 66,405

$ 74,788

$ 68,884

Capital expenditures:

Total capital expenditures

30,585

57,502

71,114

Business Exit Costs

(1,055)

Total assets:

Total assets

1,140,127

1,181,397

1,140,127

1,181,397

Disclosure on Geographic Areas, Long-Lived Assets in Entity's Country of Domicile

^[2]

547,465

718,576

547,465

718,576

The Children's Place U.S.

Net sales:

Revenue from Contract with Customer, Including Assessed Tax

1,671,165

1,727,907

Operating income (loss):

Total operating income (loss)

$ (196,565)

$ 77,989

$ 86,983

^[3]

Operating income (loss) as a percent of net sales:

Total operating income (loss) (as a percent)

(14.30%)

4.70%

5.00%

Depreciation and amortization:

Total depreciation and amortization

$ 61,074

$ 67,416

$ 61,487

Capital expenditures:

Total capital expenditures

29,955

56,598

67,476

Total assets:

Total assets

1,054,339

1,080,665

1,054,339

1,080,665

Disclosure on Geographic Areas, Long-Lived Assets in Entity's Country of Domicile

^[2]

521,304

673,432

521,304

673,432

The Children's Place Canada [Member]

Net sales:

Revenue from Contract with Customer, Including Assessed Tax

^[4]

150,519

199,502

Operating income (loss):

Total operating income (loss)

$ (3,350)

$ 18,369

$ 24,345

Operating income (loss) as a percent of net sales:

Total operating income (loss) (as a percent)

(2.20%)

9.20%

11.60%

Depreciation and amortization:

Total depreciation and amortization

$ 5,331

$ 7,372

$ 7,397

Capital expenditures:

Total capital expenditures

630

904

$ 3,638

Total assets:

Total assets

85,788

100,732

85,788

100,732

Disclosure on Geographic Areas, Long-Lived Assets in Entity's Country of Domicile

^[2]

25,355

44,236

25,355

44,236

The Children's Place Asia [Member] [Member]