Subsequent Event

3 Months Ended

Apr. 30, 2016

Subsequent Events [Abstract]

Subsequent Event

NOTE 17—SUBSEQUENT EVENT

On May 27, 2016, Restoration Hardware Holdings, Inc. acquired a controlling interest in Design Investors WW Acquisition Company, LLC, which owns the business operating under the name “Waterworks,” for consideration consisting of approximately $118.4 million in cash, which amount is subject to adjustment for changes in working capital and other items, and was funded from the Company’s existing cash balances. After the transaction, and giving effect to equity interests acquired by management in the business, the Company owns in excess of 90% of the total equity interests in Waterworks.

Waterworks and the Company together are the first fully integrated luxury home platform in the world—offering a complete collection for every room of the home, in every channel, to both design professionals and consumers. During the three months ended April 30, 2016, the Company incurred $2.1 million in costs associated with the transaction, which is included in selling, general and administrative expenses on the condensed consolidated statements of operations.