Business Combinations	12 Months Ended
Jan. 28, 2023
Business Combinations
Business Combinations	NOTE 6—BUSINESS COMBINATIONS On August 28, 2020, we acquired a business for total consideration of $15 million funded through available cash, of which $1.9 million was deposited into an escrow account for any potential post-closing adjustments. We deposited into escrow an additional $5.0 million, which represented a deferred acquisition related payment subject to mutually agreed to conditions and was paid over two years. Acquisition related escrow deposits, included within prepaid expense and other current assets on the consolidated balance sheets, were $4.0 million as of January 29, 2022 and were paid in fiscal 2022. On December 7, 2020, we acquired the net assets of a business for $4.7 million funded through available cash, of which $0.5 million was deposited into an escrow account for any potential post-closing adjustments and was fully paid in fiscal 2020. Additional consideration of $4.6 million is expected to be paid over five years, of which $2.3 million was paid as of January 28, 2023. During fiscal 2020, we incurred acquisition-related costs associated with these transactions such as financial, legal and accounting advisors, as well as employment related costs, which are included in selling, general and administrative expenses on the consolidated statements of income. No additional acquisition-related costs were incurred in fiscal 2021 or fiscal 2022. Results of operations of the acquired companies have been included in our consolidated statements of income since their respective acquisition dates. Pro forma results of the acquired businesses have not been presented as the results were not considered material to our consolidated financial statements for all periods presented and would not have been material had the acquisitions occurred at the beginning of fiscal 2020. We believe that these additions to the RH platform further position us as a leader in the luxury design market as we continue to enhance the RH product assortment. Results of operations of the acquired companies have been included in our consolidated statements of income since their respective acquisition dates.

Business Combinations

12 Months Ended

Jan. 28, 2023

NOTE 6—BUSINESS COMBINATIONS

On August 28, 2020, we acquired a business for total consideration of $15 million funded through available cash, of which $1.9 million was deposited into an escrow account for any potential post-closing adjustments. We deposited into escrow an additional $5.0 million, which represented a deferred acquisition related payment subject to mutually agreed to conditions and was paid over two years. Acquisition related escrow deposits, included within prepaid expense and other current assets on the consolidated balance sheets, were $4.0 million as of January 29, 2022 and were paid in fiscal 2022.

On December 7, 2020, we acquired the net assets of a business for $4.7 million funded through available cash, of which $0.5 million was deposited into an escrow account for any potential post-closing adjustments and was fully paid in fiscal 2020. Additional consideration of $4.6 million is expected to be paid over five years, of which $2.3 million was paid as of January 28, 2023.

During fiscal 2020, we incurred acquisition-related costs associated with these transactions such as financial, legal and accounting advisors, as well as employment related costs, which are included in selling, general and administrative expenses on the consolidated statements of income. No additional acquisition-related costs were incurred in fiscal 2021 or fiscal 2022.

Results of operations of the acquired companies have been included in our consolidated statements of income since their respective acquisition dates. Pro forma results of the acquired businesses have not been presented as the results were not considered material to our consolidated financial statements for all periods presented and would not have been material had the acquisitions occurred at the beginning of fiscal 2020.

We believe that these additions to the RH platform further position us as a leader in the luxury design market as we continue to enhance the RH product assortment. Results of operations of the acquired companies have been included in our consolidated statements of income since their respective acquisition dates.