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Segment Reporting (Tables)

12 Months Ended

Feb. 01, 2020

The following table presents the statements of operations metrics reviewed by the CODM to evaluate performance internally or as required under ASC 280—Segment Reporting (in thousands):


	Year Ended
	February 1,						February 2,						February 3,
	2020						2019						2018
	RH Segment		Waterworks		Total		RH Segment		Waterworks		Total		RH Segment		Waterworks		Total
Net revenues	$	2,514,296	$	133,141	$	2,647,437	$	2,375,472	$	130,181	$	2,505,653	$	2,319,332	$	120,842	$	2,440,174
Gross profit		1,038,722		56,289		1,095,011		933,805		51,772		985,577		791,730		47,568		839,298
Depreciation and amortization		96,148		4,591		100,739		86,719		4,653		91,372		78,772		4,404		83,176

Summary of Balance Sheet Metrics as Required Under ASC 280 - Segment Reporting

The following table presents the balance sheet metrics as required under ASC 280—Segment Reporting (in thousands):


	February 1,						February 2,
	2020						2019
	RH Segment		Waterworks		Total		RH Segment		Waterworks		Total
Goodwill ⁽¹⁾	$	124,367	$	—	$	124,367	$	124,379	$	—	$	124,379
Tradenames, trademarks and domain names ⁽²⁾		48,563		37,459		86,022		48,563		37,459		86,022
Total assets		2,301,823		143,871		2,445,694		2,273,951		149,067		2,423,018

(1)	The Waterworks reporting unit goodwill of $51.1 million recognized upon acquisition in fiscal 2016 was fully impaired as of February 2, 2019, with $17.4 million and $33.7 million impairment recorded in fiscal 2018 and fiscal 2017, respectively.

(2)	The Waterworks reporting unit tradename is presented net of an impairment charge of $14.6 million recorded in fiscal 2018.

Schedule of Segment Operating Income and Income Before Income Taxes

The following table presents segment operating income and income before income taxes (in thousands):


	Year Ended
	February 1,		February 2,		February 3,
	2020		2019		2018
Operating income:
RH Segment	$	375,315	$	288,106	$	161,111
Waterworks		3,780		(922)		(1,615)
Asset impairments and lease losses		(21,899)		(7,218)		(4,417)
Reorganization related costs		(1,075)		(9,977)		(949)
Recall accrual		3,988		(1,619)		(7,707)
Asset held for sale gain (loss)		1,529		(8,497)		—
Legal settlements		1,193		5,289		—
Distribution center closures		—		(3,046)		(7,230)
Impact of inventory step-up		—		(380)		(2,527)
Executive non-cash compensation		—		—		(23,872)
Anti-dumping exposure		—		—		2,202
Gain on sale of building and land		—		—		2,119
Income from operations		362,831		261,736		117,115
Interest expense—net		87,177		67,769		56,002
Goodwill and tradename impairment		—		32,086		33,700
Loss on extinguishment of debt—net		6,472		917		4,880
Income before income taxes	$	269,182	$	160,964	$	22,533

Net Revenues


	Year Ended
	February 1,		February 2,		February 3,
	2020		2019		2018
Furniture	$	1,794,317	$	1,625,553	$	1,543,404
Non-furniture		853,120		880,100		896,770
Total net revenues	$	2,647,437	$	2,505,653	$	2,440,174