Segment Reporting (Tables)

6 Months Ended

Jul. 30, 2022

Segment Reporting

Schedule of Segment Operating Income and Income Before Income Taxes

	THREE MONTHS ENDED				SIX MONTHS ENDED
	JULY 30,		JULY 31,		JULY 30,		JULY 31,
	2022		2021		2022		2021
	(in thousands)
Operating income:
RH Segment	$	237,512	$	257,242	$	466,057	$	445,252
Waterworks		7,222		5,413		15,207		11,655
Employer payroll taxes on option exercise		—		—		(11,717)		—
Non-cash compensation		(4,321)		(5,864)		(10,179)		(11,728)
Asset impairments		(2,231)		(7,354)		(8,154)		(7,354)
Professional fees		(285)		—		(7,469)		—
Compensation settlements		(3,483)		—		(3,483)		—
Recall accrual		—		—		(560)		(500)
Reorganization related costs		—		(449)		—		(449)
Income from operations		234,414		248,988		439,702		436,876
Interest expense—net		26,264		13,581		47,119		26,889
Loss on extinguishment of debt		23,462		3,166		169,578		3,271
Other expense—net		3,195		—		2,852		—
Income before income taxes	$	181,493	$	232,241	$	220,153	$	406,716

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

	THREE MONTHS ENDED
	JULY 30,						JULY 31,
	2022						2021
	RH SEGMENT		WATERWORKS		TOTAL		RH SEGMENT		WATERWORKS		TOTAL
	(in thousands)
Net revenues	$	940,182	$	51,438	$	991,620	$	947,618	$	41,241	$	988,859
Gross profit		495,074		28,144		523,218		467,067		20,609		487,676
Depreciation and amortization		25,671		1,299		26,970		21,484		1,186		22,670

	SIX MONTHS ENDED
	JULY 30,						JULY 31,
	2022						2021
	RH SEGMENT		WATERWORKS		TOTAL		RH SEGMENT		WATERWORKS		TOTAL
	(in thousands)
Net revenues	$	1,849,130	$	99,782	$	1,948,912	$	1,767,441	$	82,210	$	1,849,651
Gross profit		967,896		53,905		1,021,801		853,620		41,033		894,653
Depreciation and amortization		49,195		2,533		51,728		44,164		2,392		46,556

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:

	JULY 30,								JANUARY 29,
	2022								2022
					REAL ESTATE								REAL ESTATE
	RH SEGMENT		WATERWORKS		DEVELOPMENT		TOTAL		RH SEGMENT		WATERWORKS		DEVELOPMENT		TOTAL
	(in thousands)
Goodwill(1)	$	141,098	$	—	$	—	$	141,098	$	141,100	$	—	$	—	$	141,100
Tradenames, trademarks and other intangible assets(2)		56,810		17,000		—		73,810		56,161		17,000		—		73,161
Equity method investments		—		535		97,600		98,135		—		—		100,810		100,810
Total assets		5,531,152		202,695		97,600		5,831,447		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				SIX MONTHS ENDED
	JULY 30,		JULY 31,		JULY 30,		JULY 31,
	2022		2021		2022		2021
	(in thousands)
Furniture	$	699,720	$	699,729	$	1,362,240	$	1,279,740
Non-furniture		291,900		289,130		586,672		569,911
Total net revenues	$	991,620	$	988,859	$	1,948,912	$	1,849,651