Segment Reporting (Tables)

12 Months Ended

Jan. 28, 2023

Segment Reporting

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

	YEAR ENDED
	JANUARY 28,		JANUARY 29,		JANUARY 30,
	2023		2022		2021
	(in thousands)
Operating income:
RH Segment	$	761,544	$	944,881	$	616,523
Waterworks		28,282		17,747		4,019
Asset impairments		(24,186)		(9,630)		(12,851)
Non-cash compensation		(18,072)		(23,428)		(117,084)
Employer payroll taxes on option exercises		(14,392)		—		—
Professional fees		(7,469)		—		—
Non-cash compensation related to consolidated VIEs		(4,470)		—		—
Compensation settlements		(3,483)		—		—
Recall accrual		(560)		(1,940)		(7,370)
Legal settlement		4,188		—		—
Gain on sale of building and land		775		—		—
Loss on sale leaseback transaction		—		—		(9,352)
Reorganization related costs		—		(449)		(7,027)
Income from operations		722,157		927,181		466,858
Interest expense—net		113,210		64,947		69,250
(Gain) loss on extinguishment of debt		169,578		29,138		(152)
Other expense—net		30		2,778		20,459
Income before income taxes and equity method investments	$	439,339	$	830,318	$	377,301

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

	YEAR ENDED
	JANUARY 28,						JANUARY 29,						JANUARY 30,
	2023						2022						2021
	RH SEGMENT			WATERWORKS		TOTAL	RH SEGMENT			WATERWORKS		TOTAL	RH SEGMENT			WATERWORKS		TOTAL
	(in thousands)
Net revenues	$	3,398,638	$	191,839	$	3,590,477	$	3,593,842	$	164,978	$	3,758,820	$	2,729,422	$	119,204	$	2,848,626
Gross profit		1,708,444		103,541		1,811,985		1,772,668		82,743		1,855,411		1,274,148		51,383		1,325,531
Depreciation and amortization		103,221		5,367		108,588		91,252		4,770		96,022		95,071		4,969		100,040

Summary of Balance Sheet Metrics as Required Under ASC 280 - Segment Reporting

	JANUARY 28,								JANUARY 29,
	2023								2022
	RH SEGMENT		WATERWORKS		REAL ESTATE		TOTAL		RH SEGMENT		WATERWORKS		REAL ESTATE		TOTAL
	(in thousands)
Goodwill(1)	$	141,048	$	—	$	—	$	141,048	$	141,100	$	—	$	—	$	141,100
Tradenames, trademarks and other intangible assets(2)		57,633		17,000		—		74,633		56,161		17,000		—		73,161
Equity method investments		—		623		100,845		101,468		—		—		100,810		100,810
Total assets		4,953,610		217,228		138,451		5,309,289		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) The Waterworks reporting unit tradename is presented net of an impairment charge of $35 million.

Summary of net revenues

	YEAR ENDED
	JANUARY 28,		JANUARY 29,		JANUARY 30,
	2023		2022		2021
	(in thousands)
Furniture	$	2,492,514	$	2,599,540	$	1,940,658
Non-furniture		1,097,963		1,159,280		907,968
Total net revenues	$	3,590,477	$	3,758,820	$	2,848,626

Summary of long-lived assets by geography information

	JANUARY 28,
	2023
	(in thousands)
North America	$	2,261,615
All other countries		184,414
Total long-lived assets	$	2,446,029