Segment Reporting (Tables)

9 Months Ended

Oct. 28, 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
	October 28,						October 29,
	2017						2016
	RH Segment		Waterworks		Total		RH Segment		Waterworks		Total
Net revenues	$	563,174	$	29,299	$	592,473	$	521,027	$	28,301	$	549,328
Gross profit	$	203,221	$	11,104	$	214,325	$	166,124	$	9,695	$	175,819
Depreciation and amortization	$	17,474	$	1,072	$	18,546	$	13,966	$	1,070	$	15,036

	Nine Months Ended						Nine Months Ended
	October 28,						October 29,
	2017						2016
	RH Segment		Waterworks		Total		RH Segment		Waterworks		Total
Net revenues	$	1,680,495	$	89,384	$	1,769,879	$	1,499,101	$	49,064	$	1,548,165
Gross profit	$	555,844	$	34,550	$	590,394	$	467,402	$	15,731	$	483,133
Depreciation and amortization	$	47,761	$	3,331	$	51,092	$	39,484	$	1,764	$	41,248

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):

	October 28,						January 28,
	2017						2017
	RH Segment		Waterworks		Total		RH Segment		Waterworks		Total
Goodwill (1)	$	124,409	$	51,144	$	175,553	$	124,374	$	49,229	$	173,603
Trademarks and domain names	$	48,563	$	52,100	$	100,663	$	48,524	$	52,100	$	100,624
Total assets	$	1,649,057	$	152,509	$	1,801,566	$	2,040,346	$	152,174	$	2,192,520

(1) Waterworks goodwill increased $1.9 million during the nine months ended October 28, 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 (loss) and income (loss) before tax (in thousands):

	Three Months Ended						Nine Months Ended
	October 28,			October 29,			October 28,			October 29,
	2017			2016			2017			2016
Operating income (loss):
RH Segment	$	48,724		$	18,660		$	98,332		$	51,687
Waterworks		(719	)		(514	)		(2,143	)		344
Non-cash compensation		—			—			(23,872	)		(3,672	)
Recall accrual		(3,552	)		—			(8,285	)		—
Impact of inventory step-up		(248	)		(1,786	)		(2,108	)		(5,187	)
Distribution center closures		(1,862	)		—			(1,862	)		—
Gain on sale of building and land		819			—			2,119			—
Legal claim		—			—			—			(8,701	)
Reorganization related costs		—			(974	)		—			(5,698	)
Acquisition related costs		—			—			—			(2,847	)
Operating income		43,162			15,386			62,181			25,926
Interest expense—net		18,915			11,091			45,496			32,528
Loss on extinguishment of debt		4,880			—			4,880			—
Income (loss) before tax	$	19,367		$	4,295		$	11,805		$	(6,602	)

Net Revenues

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

	Three Months Ended				Nine Months Ended
	October 28,		October 29,		October 28,		October 29,
	2017		2016		2017		2016
Furniture	$	383,281	$	343,946	$	1,125,220	$	985,639
Non-furniture		209,192		205,382		644,659		562,526
Total net revenues	$	592,473	$	549,328	$	1,769,879	$	1,548,165