Segment Reporting (Tables)

3 Months Ended

Apr. 30, 2022

Segment Reporting

Schedule of Segment Operating Income and Income Before Income Taxes

The following table presents segment operating income and income before income taxes:

	THREE MONTHS ENDED
	APRIL 30,		MAY 1,
	2022		2021
	(in thousands)
Operating income:
RH Segment	$	228,545	$	188,010
Waterworks		7,985		6,242
Employer payroll taxes on option exercise		(11,717)		—
Professional fee		(7,184)		—
Asset impairments		(5,923)		—
Non-cash compensation		(5,858)		(5,864)
Recall accrual		(560)		(500)
Income from operations		205,288		187,888
Interest expense—net		20,855		13,308
Loss on extinguishment of debt		146,116		105
Other income—net		(343)		—
Income before income taxes	$	38,660	$	174,475

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

	THREE MONTHS ENDED
	APRIL 30,						MAY 1,
	2022						2021
	RH SEGMENT		WATERWORKS		TOTAL		RH SEGMENT		WATERWORKS		TOTAL
	(in thousands)
Net revenues	$	908,948	$	48,344	$	957,292	$	819,823	$	40,969	$	860,792
Gross profit		472,822		25,761		498,583		386,553		20,424		406,977
Depreciation and amortization		23,524		1,234		24,758		22,680		1,206		23,886

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:

	APRIL 30,								JANUARY 29,
	2022								2022
					REAL ESTATE								REAL ESTATE
	RH SEGMENT		WATERWORKS		DEVELOPMENT		TOTAL		RH SEGMENT		WATERWORKS		DEVELOPMENT		TOTAL
	(in thousands)
Goodwill(1)	$	141,092	$	—	$	—	$	141,092	$	141,100	$	—	$	—	$	141,100
Tradenames, trademarks and other intangible assets(2)		56,488		17,000		—		73,488		56,161		17,000		—		73,161
Equity method investments		—		520		100,030		100,550		—		—		100,810		100,810
Total assets		5,595,677		192,230		100,030		5,887,937		5,259,719		179,941		100,810		5,540,470

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

(2) Presented net of an impairment charge of $35 million recognized in previous fiscal years.

Net Revenues

	THREE MONTHS ENDED
	APRIL 30,		MAY 1,
	2022		2021
	(in thousands)
Furniture	$	662,520	$	580,011
Non-furniture		294,772		280,781
Total net revenues	$	957,292	$	860,792