Accounts Payable, Accrued Expenses and Other Current Liabilities

6 Months Ended

Aug. 03, 2019

Payables And Accruals [Abstract]

Accounts Payable, Accrued Expenses and Other Current Liabilities

NOTE 5—ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accounts payable and accrued expenses consist of the following (in thousands):

	August 3,		February 2,
	2019		2019
Accounts payable	$	145,583	$	183,039
Accrued compensation		47,979		64,192
Accrued freight and duty		24,115		20,787
Accrued sales taxes		18,743		18,354
Accrued catalog costs		14,490		10,276
Accrued occupancy		11,528		10,839
Accrued professional fees		3,442		2,050
Other accrued expenses		23,833		10,960
Total accounts payable and accrued expenses	$	289,713	$	320,497

Other current liabilities consist of the following (in thousands):

	August 3,		February 2,
	2019		2019
Provision for legal settlement (1)	$	50,171	$	50,000
Allowance for sales returns		22,380		19,821
Current portion of debt		21,514		892
Unredeemed gift card and merchandise credit liability		17,177		17,192
Finance lease liabilities		8,127		9,184
Product recall reserve		4,647		7,767
Federal tax payable		2,413		719
Other current liabilities		5,454		3,881
Total other current liabilities	$	131,883	$	109,456

(1) Refer to Note 15—Commitments and Contingencies.

Contract Liabilities

The Company defers revenue associated with merchandise delivered via the home-delivery channel. The Company expects that substantially all of the deferred revenue, customer deposits and deferred membership fees as of August 3, 2019 will be recognized within the next six months as the performance obligations are satisfied.

In addition, the Company defers revenue when cash payments are received in advance of performance for unsatisfied obligations related to its gift cards and merchandise credits. During the three months ended August 3, 2019 and August 4, 2018, the Company recognized $4.6 million and $4.8 million, respectively, of revenue related to previous deferrals related to its gift cards and merchandise credits. During the six months ended August 3, 2019 and August 4, 2018, the Company recognized $9.3 million and $9.7 million, respectively, of revenue related to previous deferrals related to its gift cards and merchandise credits. During both the three months ended August 3, 2019 and August 4, 2018, the Company recorded gift card breakage of $0.4 million. During both the six months ended August 3, 2019 and August 4, 2018, the Company recorded gift card breakage of $0.8 million. The Company expects that approximately 70% of the remaining gift card and merchandise credit liabilities as of August 3, 2019 will be recognized within the next twelve months as the gift cards are redeemed by customers.