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Segment Reporting (Tables)

12 Months Ended

Jan. 30, 2021

Summary of Statements of Income Metrics Reviewed by CODM to Evaluate Performance Internally or As required under ASC 280 - Segment Reporting

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


	YEAR ENDED
	JANUARY 30,						FEBRUARY 1,						FEBRUARY 2,
	2021						2020						2019
	RH SEGMENT		WATERWORKS		TOTAL		RH SEGMENT		WATERWORKS		TOTAL		RH SEGMENT		WATERWORKS		TOTAL
Net revenues	$	2,729,422	$	119,204	$	2,848,626	$	2,514,296	$	133,141	$	2,647,437	$	2,375,472	$	130,181	$	2,505,653
Gross profit		1,274,148		51,383		1,325,531		1,038,722		56,289		1,095,011		933,805		51,772		985,577
Depreciation and amortization		95,071		4,969		100,040		96,148		4,591		100,739		86,719		4,653		91,372

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):


	JANUARY 30,								FEBRUARY 1,
	2021								2020
					REAL ESTATE
	RH SEGMENT		WATERWORKS		INVESTMENTS		TOTAL		RH SEGMENT		WATERWORKS		TOTAL
Goodwill ⁽¹⁾	$	141,100	$	—	$	—	$	141,100	$	124,367	$	—	$	124,367
Tradenames, trademarks and other intangible assets ⁽²⁾		54,663		17,000		—		71,663		48,563		37,459		86,022
Equity method investments		—		—		100,603		100,603		—		—		—
Total assets		2,659,944		137,766		100,603		2,898,313		2,301,823		143,871		2,445,694

(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 $35.1 million, of which $20.5 million was recorded in the first quarter of fiscal 2020 and $14.6 million was recorded in fiscal 2018.

Schedule of Segment Operating Income and Income Before Income Taxes

The following table presents, for our retail operating segments, the segment operating income (loss) and income before income taxes (in thousands):


	YEAR ENDED
	JANUARY 30,		FEBRUARY 1,		FEBRUARY 2,
	2021		2020		2019
Operating income (loss):
RH Segment	$	616,523	$	375,315	$	288,106
Waterworks		4,019		3,780		(922)
Non-cash compensation		(117,084)		—		—
Asset impairments and change in useful lives		(12,851)		(21,899)		(7,218)
Gain (loss) on sale leaseback transaction		(9,352)		1,196		(8,497)
Recall accrual		(7,370)		3,988		(1,619)
Reorganization related costs		(7,027)		(1,075)		(9,977)
Legal settlements		—		1,193		5,289
Asset held for sale gain		—		333		—
Distribution center closures		—		—		(3,046)
Impact of inventory step-up		—		—		(380)
Income from operations		466,858		362,831		261,736
Interest expense—net		69,250		87,177		67,769
Goodwill and tradename impairment		20,459		—		32,086
(Gain) loss on extinguishment of debt—net		(152)		6,472		917
Income before income taxes	$	377,301	$	269,182	$	160,964

Net Revenues


	YEAR ENDED
	JANUARY 30,		FEBRUARY 1,		FEBRUARY 2,
	2021		2020		2019
Furniture	$	1,940,658	$	1,762,034	$	1,635,631
Non-furniture		907,968		885,403		870,022
Total net revenues	$	2,848,626	$	2,647,437	$	2,505,653