Equity-Based Compensation (Tables)

12 Months Ended

Jan. 29, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Outstanding Partnership Interests

A summary of the Partnership Interests is presented below (shares in thousands):

	Number of Shares	Weighted Average Benchmark Price
Outstanding as of January 30, 2022	11,345	$	—
Forfeitures	(34)	—
Exchanged	(692)	—
Outstanding as of January 29, 2023	10,619	$	—

	Number of Shares	Weighted Average Benchmark Price
Unvested as of January 30, 2022	3,056	$	—
Vested	(2,263)	—
Forfeitures	(34)	—
Unvested as of January 29, 2023	759	$	—

Schedule of Non-Vested Partnership Interests

	Number of Shares	Weighted Average Benchmark Price
Unvested as of January 30, 2022	3,056	$	—
Vested	(2,263)	—
Forfeitures	(34)	—
Unvested as of January 29, 2023	759	$	—

Schedule of Weighted-Average Valuation Assumptions

The fair value for these profits units was estimated by management, after considering a third-party valuation specialist’s assessment, at the date of grant based on the expected life of the profits units, using a Black-Scholes pricing model with the following weighted-average assumptions:

	January 30, 2022		January 31, 2021
Risk-free interest rate	0.78%		0.63%
Dividend yield	—%		—%
Expected volatility factor	50%		50%
Discount for lack of marketability	20%		26%
Expected life in years	5.0		5.0
Weighted-average fair value	$	6.27	$	2.99

The risk free interest rate was determined based on an analysis of U.S. Treasury zero-coupon market yields as of the date of the profits units grant for issues having expiration lives similar to the expected life of the profits units. The expected volatility was based on an analysis of the historical volatility of a peer group over the expected life of the profits units. As insufficient data exists to determine the historical life of the profits units, the expected life was determined based on the Company’s estimate of when a liquidity event may occur based on market conditions and prior investments of CD&R.

Schedule of Stock Appreciation Rights

A summary of the stock appreciation rights is presented below (shares in thousands):

	Number of Shares	Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding as of January 30, 2022	581	$	4.67
Exchanged	(25)	5.44
Outstanding as of January 29, 2023	556	$	4.65	$	9
Exercisable as of January 29, 2023	376	$	3.54	$	7

The estimated fair value of the stock appreciation rights when granted was amortized to expense over the vesting or required service period. The fair value for these stock appreciation rights was estimated by management, after considering a third-party valuation specialist’s assessment, at the date of grant based on the expected life of the unit appreciation rights, using a Black-Scholes pricing model with the following weighted-average assumptions:

	January 30, 2022
Risk-free interest rate	0.78%
Dividend yield	—%
Expected volatility factor	50%
Discount for lack of marketability	20%
Expected life in years	5.0
Weighted-average fair value	$	6.27

The risk free interest rate was determined based on an analysis of U.S. Treasury zero-coupon market yields as of the date of the unit appreciation rights grant for issues having expiration lives similar to the expected life of the unit appreciation rights. The expected volatility was based on an analysis of the historical volatility of a peer group over the expected life of the unit appreciation rights. As insufficient data exists to determine the historical life of the unit appreciation rights, the expected life was determined based on the Company’s estimate of when a liquidity event may occur based on market conditions and prior investments of CD&R.

Share-Based Payment Arrangement, Restricted Stock Unit, Activity

A summary of the restricted stock units granted under the Omnibus Incentive Plan is presented below (shares in thousands):

	Number of Shares	Weighted Average Grant Date Fair Value
Outstanding and Unvested as of January 30, 2022	20	$	27.43
Granted	240	21.49
Distributed	(7)	25.37
Forfeited	(4)	23.29
Outstanding and Unvested as of January 29, 2023	249	$	21.84

Share-Based Payment Arrangement, Option, Activity

A summary of the stock options granted under the Omnibus Incentive Plan is presented below (shares in thousands):

	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding as of January 30, 2022	—	$	—
Granted	787	20.81
Forfeitures	(11)	20.81
Outstanding as of January 29, 2023	776	$	20.81	9.1	$	1
Exercisable as of January 29, 2023	11	$	20.81	9.1	$	—

The stock options generally vest over a three-year period and expire after ten years. The estimated grant-date fair value of stock options when granted was amortized to expense over the vesting period. The fair value for these stock options was estimated by management, after considering a third-party valuation specialist’s assessment, at the date of grant based on the expected life of the stock options, using a Black-Scholes pricing model with the following weighted-average assumptions:

	January 29, 2023
Risk-free interest rate	1.85%
Dividend yield	—%
Expected volatility factor	40%
Expected life in years	6.0
Weighted-average fair value	$	8.55

The risk free interest rate was determined based on an analysis of U.S. Treasury zero-coupon market yields as of the date of the stock options grant for issues having expiration lives similar to the expected life of the stock options. The expected volatility was based on an analysis of the historical volatility of a peer group over the expected life of the stock options. The expected term in years for each stock option was calculated using a simplified method based on the average of each option’s vesting term of three years and contractual term of ten years.