Significant Accounting Policies (Tables)

12 Months Ended

Feb. 03, 2018

Schedule of Product Recall Adjustments Effect on Income Before Taxes

The recall adjustments had the following effect on the Company’s income before taxes (in thousands):

	Year Ended
	February 3,		January 28,
	2018		2017
Reduction of net revenues	$	3,207	$	3,441
Incremental cost of goods sold and inventory charges		4,315		535
Impact on gross profit		7,522		3,976
Incremental selling, general and administrative expenses		185		639
Impact on income before income taxes	$	7,707	$	4,615

Schedule of Property and Equipment Useful Lives

Property and equipment is recorded at cost, net of accumulated depreciation and amortization. Depreciation is calculated using the straight-line method, generally using the following useful lives:

Category of Property and Equipment		Useful Life
Building and building improvements		40 years
Machinery, equipment and aircraft		3 to 10 years
Furniture, fixtures and equipment		3 to 7 years
Computer software		3 to 10 years

Summary of RHCA liability for lease losses

The RHCA liability for lease losses fiscal 2017 activity was as follows (in thousands):

Balance at beginning of fiscal year	$	3,188
Payments made under lease agreement		(1,699	)
Payments received under sublease agreement		1,003
Remeasurement		4,417
Interest		191
Balance at end of fiscal year	$	7,100

Summary of Allowance for Sales Returns, Net of Cost of Goods Sold

A summary of the allowance for sales returns, presented net of cost of goods sold, is as follows (in thousands):

	Year Ended
	February 3,			January 28,			January 30,
	2018			2017			2016
Balance at beginning of fiscal year	$	10,077		$	12,688		$	10,235
Waterworks acquisition—beginning balance		—			523			—
Provision for sales returns		108,134			106,508			104,028
Actual sales returns		(107,646	)		(109,642	)		(101,575	)
Balance at end of fiscal year	$	10,565		$	10,077		$	12,688