Segment Reporting (Tables)

6 Months Ended

Jul. 29, 2017

Segment Reporting [Abstract]

Summary of Statements of Operations Metrics Reviewed by CODM to Evaluate Performance Internally

The following table presents the statements of operations metrics reviewed by the CODM to evaluate performance internally (in thousands):

	Three Months Ended						Three Months Ended
	July 29,						July 30,
	2017						2016
	RH Segment		Waterworks		Total		RH Segment		Waterworks		Total
Net revenues	$	583,793	$	31,533	$	615,326	$	522,618	$	20,763	$	543,381
Gross profit	$	192,996	$	12,817	$	205,813	$	173,803	$	6,036	$	179,839
Depreciation and amortization	$	15,386	$	1,140	$	16,526	$	12,964	$	694	$	13,658

	Six Months Ended						Six Months Ended
	July 29,						July 30,
	2017						2016
	RH Segment		Waterworks		Total		RH Segment		Waterworks		Total
Net revenues	$	1,117,321	$	60,085	$	1,177,406	$	978,074	$	20,763	$	998,837
Gross profit	$	352,623	$	23,446	$	376,069	$	301,278	$	6,036	$	307,314
Depreciation and amortization	$	30,287	$	2,259	$	32,546	$	25,518	$	694	$	26,212

Summary of Balance Sheet Metrics Reviewed by CODM to Evaluate Performance Internally

The following table presents the balance sheet metrics reviewed by the CODM to evaluate performance internally (in thousands):

	July 29,						January 28,
	2017						2017
	RH Segment		Waterworks		Total		RH Segment		Waterworks		Total
Goodwill (1)	$	124,448	$	51,144	$	175,592	$	124,374	$	49,229	$	173,603
Trademarks and domain names	$	48,563	$	52,100	$	100,663	$	48,524	$	52,100	$	100,624
Total assets	$	1,665,328	$	154,081	$	1,819,409	$	2,040,346	$	152,174	$	2,192,520

(1) Waterworks goodwill increased $1.9 million during the six months ended July 29, 2017 due to purchase price accounting adjustments. Refer to Note 3—Business Combination.

Schedule of Segment Operating Income and Income (Loss) Before Tax

The following table shows segment operating income and income (loss) before tax (in thousands):

	Three Months Ended						Six Months Ended
	July 29,			July 30,			July 29,			July 30,
	2017			2016			2017			2016
Operating income (loss):
RH Segment	$	39,550		$	32,317		$	49,608		$	33,027
Waterworks		358			858			(1,424	)		858
Non-cash compensation		(23,872	)		(3,672	)		(23,872	)		(3,672	)
Recall accrual		(4,733	)		—			(4,733	)		—
Impact of inventory step-up		(480	)		(3,401	)		(1,860	)		(3,401	)
Gain on sale of building and land		1,300			—			1,300			—
Reorganization related costs		—			(3,309	)		—			(4,724	)
Acquisition related costs		—			(778	)		—			(2,847	)
Legal claim		—			—			—			(8,701	)
Operating income		12,123			22,015			19,019			10,540
Interest expense—net		14,402			10,909			26,581			21,437
Income (loss) before tax	$	(2,279	)	$	11,106		$	(7,562	)	$	(10,897	)

Net Revenues

Net revenues in each category were as follows (in thousands):

	Three Months Ended				Six Months Ended
	July 29,		July 30,		July 29,		July 30,
	2017		2016		2017		2016
Furniture	$	388,983	$	351,267	$	741,939	$	641,693
Non-furniture		226,343		192,114		435,467		357,144
Total net revenues	$	615,326	$	543,381	$	1,177,406	$	998,837