Segment Reporting (Tables)

12 Months Ended

Feb. 03, 2018

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

The following table presents the statements of income metrics reviewed by the CODM to evaluate performance internally or as required under ASC 280—Segment Reporting (in thousands):

	Year Ended
	February 3,						January 28,
	2018						2017
	RH Segment		Waterworks		Total		RH Segment		Waterworks		Total
Net revenues	$	2,319,332	$	120,842	$	2,440,174	$	2,060,044	$	74,827	$	2,134,871
Gross profit		801,999		47,068		849,067		656,191		23,596		679,787
Depreciation and amortization		65,666		4,469		70,135		54,480		2,515		56,995

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

The following table presents the balance sheet metrics as required under ASC 280—Segment Reporting (in thousands):

	Year Ended
	February 3,						January 28,
	2018						2017
	RH Segment		Waterworks		Total		RH Segment		Waterworks		Total
Goodwill ⁽¹⁾	$	124,448	$	17,445	$	141,893	$	124,374	$	49,229	$	173,603
Trademarks and domain names		48,563		52,100		100,663		48,524		52,100		100,624
Total assets		1,608,290		124,576		1,732,866		2,040,346		152,174		2,192,520

(1)

The Company recorded goodwill impairment of $33.7 million related to the Waterworks reporting unit in fiscal 2017. Refer to “Impairment” within Note 3—Significant Accounting Policies. Prior to being impaired, the Waterworks goodwill increased $1.9 million during fiscal 2017 due to purchase price accounting adjustments. Refer to Note 3—Business Combination.

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

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

	Year Ended
	February 3,			January 28,
	2018			2017
Operating income:
RH Segment	$	173,414		$	105,274
Waterworks		(2,116	)		(2,360	)
Non-cash compensation		(23,872	)		(3,672	)
Recall accrual		(7,707	)		(4,615	)
Distribution center closures		(5,795	)		—
Asset impairments and lease losses		(4,417	)		(12,743	)
Impact of inventory step-up		(2,527	)		(6,835	)
Anti-dumping exposure		2,202			—
Gain on sale of building and land		2,119			—
Legal claim		—			(8,701	)
Reorganization related costs		—			(5,698	)
Aircraft impairment		—			(4,767	)
Acquisition related costs		—			(2,847	)
Operating income		131,301			53,036
Interest expense—net		62,570			44,482
Goodwill impairment		33,700			—
Loss on extinguishment of debt		4,880			—
Income before tax	$	30,151		$	8,554

Net Revenues

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

	Year Ended
	February 3,		January 28,		January 30,
	2018		2017		2016
Furniture	$	1,543,404	$	1,334,526	$	1,295,486
Non-furniture		896,770		800,345		813,520
Total net revenues	$	2,440,174	$	2,134,871	$	2,109,006