Segment Reporting (Tables)

9 Months Ended

Nov. 03, 2018

Segment Reporting [Abstract]

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

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

	Three Months Ended
	November 3,						October 28,
	2018						2017
	RH Segment		Waterworks		Total		RH Segment		Waterworks		Total
Net revenues	$	604,322	$	32,236	$	636,558	$	563,174	$	29,299	$	592,473
Gross profit		241,124		13,387		254,511		203,221		11,104		214,325
Depreciation and amortization		17,121		1,256		18,377		17,474		1,072		18,546

	Nine Months Ended
	November 3,						October 28,
	2018						2017
	RH Segment		Waterworks		Total		RH Segment		Waterworks		Total
Net revenues	$	1,737,933	$	96,829	$	1,834,762	$	1,680,495	$	89,384	$	1,769,879
Gross profit		698,340		39,806		738,146		555,844		34,550		590,394
Depreciation and amortization		49,694		3,486		53,180		47,761		3,331		51,092

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):

	November 3,						February 3,
	2018						2018
	RH Segment		Waterworks		Total		RH Segment		Waterworks		Total
Goodwill (1)	$	124,379	$	17,445	$	141,824	$	124,448	$	17,445	$	141,893
Trademarks and domain names		48,563		52,100		100,663		48,563		52,100		100,663
Total assets		1,715,132		128,193		1,843,325		1,608,290		124,576		1,732,866

(1) The Waterworks reporting unit goodwill is presented net of an impairment charge of $33.7 million, which was recorded in fiscal 2017.

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

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

	Three Months Ended						Nine Months Ended
	November 3,			October 28,			November 3,			October 28,
	2018			2017			2018			2017
Operating income (loss):
RH Segment	$	65,807		$	48,724		$	198,480		$	98,332
Waterworks		20			(719	)		(255	)		(2,143	)
Reorganization related costs		(7,564	)		(1,029	)		(9,285	)		(1,029	)
Asset impairments and lease losses		(3,411	)		—			(3,411	)		—
Recall accrual		(3,986	)		(3,552	)		(2,668	)		(8,285	)
Distribution center closures		(3,850	)		(833	)		(1,778	)		(833	)
Impact of inventory step-up		—			(248	)		(380	)		(2,108	)
Legal settlement		—			—			5,289			—
Non-cash compensation		—			—			—			(23,872	)
Gain on sale of building and land		—			819			—			2,119
Operating income		47,016			43,162			185,992			62,181
Interest expense—net		19,371			18,915			53,886			45,496
Loss on extinguishment of debt		—			4,880			917			4,880
Income before tax	$	27,645		$	19,367		$	131,189		$	11,805

Net Revenues

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

	Three Months Ended				Nine Months Ended
	November 3,		October 28,		November 3,		October 28,
	2018		2017		2018		2017
Furniture	$	418,895	$	383,281	$	1,201,737	$	1,125,220
Non-furniture		217,663		209,192		633,025		644,659
Total net revenues	$	636,558	$	592,473	$	1,834,762	$	1,769,879