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Segment Reporting (Tables)

12 Months Ended

Jan. 29, 2022

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 29,						JANUARY 30,						FEBRUARY 1,
	2022						2021						2020
	RH SEGMENT		WATERWORKS		TOTAL		RH SEGMENT		WATERWORKS		TOTAL		RH SEGMENT		WATERWORKS		TOTAL
Net revenues	$	3,593,842	$	164,978	$	3,758,820	$	2,729,422	$	119,204	$	2,848,626	$	2,514,296	$	133,141	$	2,647,437
Gross profit		1,772,668		82,743		1,855,411		1,274,148		51,383		1,325,531		1,038,722		56,289		1,095,011
Depreciation and amortization		91,252		4,770		96,022		95,071		4,969		100,040		96,148		4,591		100,739

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 29,								JANUARY 30,
	2022								2021
					REAL ESTATE								REAL ESTATE
	RH SEGMENT		WATERWORKS		DEVELOPMENT		TOTAL		RH SEGMENT		WATERWORKS		DEVELOPMENT		TOTAL
Goodwill ⁽¹⁾	$	141,100	$	—	$	—	$	141,100	$	141,100	$	—	$	—	$	141,100
Tradenames, trademarks and other intangible assets ⁽²⁾		56,161		17,000		—		73,161		54,663		17,000		—		71,663
Equity method investments		—		—		100,810		100,810		—		—		100,603		100,603
Total assets		5,259,719		179,941		100,810		5,540,470		2,659,944		137,766		100,603		2,898,313

(1)	The Waterworks reporting unit goodwill of $51 million recognized upon acquisition in fiscal 2016 was fully impaired as of fiscal 2018.

(2)	The Waterworks reporting unit tradename is presented net of an impairment charge of $35 million, with $20 million recorded in fiscal 2020.

Schedule of Segment Operating Income and Income Before Income Taxes

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


	YEAR ENDED
	JANUARY 29,		JANUARY 30,		FEBRUARY 1,
	2022		2021		2020
Operating income:
RH Segment	$	944,881	$	616,523	$	375,315
Waterworks		17,747		4,019		3,780
Non-cash compensation		(23,428)		(117,084)		—
Asset impairments and change in useful lives		(9,630)		(12,851)		(21,899)
Recall accrual		(1,940)		(7,370)		3,988
Reorganization related costs		(449)		(7,027)		(1,075)
(Gain) loss on sale leaseback transaction		—		(9,352)		1,196
Legal settlements		—		—		1,193
Asset held for sale gain		—		—		333
Income from operations		927,181		466,858		362,831
Interest expense—net		64,947		69,250		87,177
(Gain) loss on extinguishment of debt		29,138		(152)		6,472
Other expense—net		2,778		—		—
Tradename impairment		—		20,459		—
Income before income taxes	$	830,318	$	377,301	$	269,182

Net Revenues


	YEAR ENDED
	JANUARY 29,		JANUARY 30,		FEBRUARY 1,
	2022		2021		2020
Furniture	$	2,599,540	$	1,940,658	$	1,762,034
Non-furniture		1,159,280		907,968		885,403
Total net revenues	$	3,758,820	$	2,848,626	$	2,647,437