Segment Reporting (Tables)

9 Months Ended

Oct. 29, 2022

Segment Reporting

Schedule of Segment Operating Income and Income Before Income Taxes

	THREE MONTHS ENDED				NINE MONTHS ENDED
	OCTOBER 29,		OCTOBER 30,		OCTOBER 29,		OCTOBER 30,
	2022		2021		2022		2021
	(in thousands)
Operating income:
RH Segment	$	173,162	$	276,091	$	639,219	$	721,343
Waterworks		7,187		2,619		22,394		14,274
Asset impairments		(10,926)		—		(19,080)		(7,354)
Non-cash compensation		(4,136)		(5,831)		(14,315)		(17,559)
Employer payroll taxes on option exercise		—		—		(11,717)		—
Professional fees		—		—		(7,469)		—
Compensation settlements		—		—		(3,483)		—
Recall accrual		—		(340)		(560)		(840)
Legal settlement		4,188		—		4,188		—
Gain on sale of building and land		775		—		775		—
Reorganization related costs		—		—		—		(449)
Income from operations		170,250		272,539		609,952		709,415
Interest expense—net		31,417		13,223		78,536		40,112
Loss on extinguishment of debt		—		18,513		169,578		21,784
Other expense—net		1,989		—		4,841		—
Income before income taxes	$	136,844	$	240,803	$	356,997	$	647,519

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

	THREE MONTHS ENDED
	OCTOBER 29,						OCTOBER 30,
	2022						2021
	RH SEGMENT		WATERWORKS		TOTAL		RH SEGMENT		WATERWORKS		TOTAL
	(in thousands)
Net revenues	$	821,260	$	47,806	$	869,066	$	964,859	$	41,569	$	1,006,428
Gross profit		394,947		25,831		420,778		484,363		20,891		505,254
Depreciation and amortization		26,785		1,247		28,032		23,878		941		24,819

	NINE MONTHS ENDED
	OCTOBER 29,						OCTOBER 30,
	2022						2021
	RH SEGMENT		WATERWORKS		TOTAL		RH SEGMENT		WATERWORKS		TOTAL
	(in thousands)
Net revenues	$	2,670,390	$	147,588	$	2,817,978	$	2,732,300	$	123,779	$	2,856,079
Gross profit		1,362,843		79,736		1,442,579		1,337,983		61,924		1,399,907
Depreciation and amortization		75,980		3,780		79,760		68,042		3,333		71,375

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:

	OCTOBER 29,								JANUARY 29,
	2022								2022
	RH SEGMENT		WATERWORKS		REAL ESTATE		TOTAL		RH SEGMENT		WATERWORKS		REAL ESTATE		TOTAL
	(in thousands)
Goodwill(1)	$	141,021	$	—	$	—	$	141,021	$	141,100	$	—	$	—	$	141,100
Tradenames, trademarks and other intangible assets(2)		57,269		17,000		—		74,269		56,161		17,000		—		73,161
Equity method investments		—		539		96,466		97,005		—		—		100,810		100,810
Total assets		5,573,649		207,153		102,913		5,883,715		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 prior fiscal years.

Net Revenues

	THREE MONTHS ENDED				NINE MONTHS ENDED
	OCTOBER 29,		OCTOBER 30,		OCTOBER 29,		OCTOBER 30,
	2022		2021		2022		2021
	(in thousands)
Furniture	$	597,520	$	706,750	$	1,959,760	$	1,986,490
Non-furniture		271,546		299,678		858,218		869,589
Total net revenues	$	869,066	$	1,006,428	$	2,817,978	$	2,856,079