Segment Reporting (Tables)

3 Months Ended

Apr. 30, 2022

Segment Reporting

Schedule of Segment Operating Income and Income Before Income Taxes and Equity Method Investments

The following table presents segment operating income and income before income taxes and equity method investments:

	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 and equity method investments	$	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