Revenue Recognition (Tables)

6 Months Ended

Aug. 04, 2018

Revenue Recognition

Schedule of cumulative effect of changes in adoption of ASU 606

The cumulative effect of the changes made to our February 3, 2018 balance sheet for the adoption of ASU 606 (in thousands):

	Reported				Adjusted
	Balance at		Impact of		Balance at
	February 3,		Adoption of		February 3,
	2018		ASU 606		2018
Assets:
Accounts receivable, net	$	79,783	$	(303)	$	79,480
Inventories		851,931		(17,837)		834,094
Other current assets		78,252		2,753		81,005
Liabilities:
Accrued expenses and other current liabilities		285,537		32,378		317,915
Deferred taxes, net and other liabilities		164,191		(11,941)		152,250
Equity:
Accumulated deficit		(479,166)		(35,824)		(514,990)

In accordance with ASC 606, the following tables reflect the impact on our fiscal 2018 condensed consolidated income statement and balance sheet as if we had continued to apply accounting standards in effect last year (“Legacy GAAP”) (amounts in thousands):

Statement of Earnings
	For the Three Months Ended August 4, 2018
	As		Amounts Under		Effect of Change
	Reported		Legacy GAAP		Increase/(Decrease)
Net sales:
Total retail sales	$	767,914	$	762,538	$	(5,376)
Corporate apparel clothing product		55,516		57,394		1,878
Costs and expenses:
Total retail cost of sales		413,912		413,640		(272)
Total corporate apparel clothing product cost of sales		40,616		42,054		1,438
Selling, general and administrative expenses		242,255		241,847		(408)
Provision for income taxes		9,884		9,172		(712)
Net earnings		49,238		45,694		(3,544)
Diluted net earnings per common share	$	0.97	$	0.90	$	(0.07)
	For the Six Months Ended August 4, 2018
	As		Amounts Under		Effect of Change
	Reported		Legacy GAAP		Increase/(Decrease)
Net sales:
Total retail sales	$	1,522,757	$	1,520,626	$	(2,131)
Corporate apparel clothing product		118,637		123,896		5,259
Costs and expenses:
Total retail cost of sales		839,986		839,966		(20)
Total corporate apparel clothing product cost of sales		87,282		91,529		4,247
Selling, general and administrative expenses		493,349		492,604		(745)
Provision for income taxes		14,265		14,200		(65)
Net earnings		63,147		62,858		(289)
Diluted net earnings per common share	$	1.24	$	1.24	$	—

Balance Sheet	August 4, 2018
	As		Amounts Under		Effect of Change
	Reported		Legacy GAAP		Increase/(Decrease)
Assets:
Accounts receivable, net	$	65,099	$	67,978	$	2,879
Inventories		786,510		799,258		12,748
Other current assets		87,491		84,904		(2,587)
Liabilities:
Accrued expenses and other current liabilities		313,319		262,711		(50,608)
Deferred taxes, net and other liabilities		146,484		134,517		(11,967)
Equity:
Accumulated deficit	$	(470,377)	$	(434,842)	$	35,535

Schedule of disaggregation of revenue

Revenues

The following table depicts the disaggregation of revenue by major source (in thousands):

	For the Three Months Ended				For the Six Months Ended
	August 4, 2018		July 29, 2017		August 4, 2018		July 29, 2017
Net sales:
Men's tailored clothing product	$	356,504	$	341,182	$	712,241	$	673,812
Men's non-tailored clothing product		229,105		234,093		464,711		462,792
Women's clothing product		17,447		18,100		37,029		37,927
Other (1)		2,732		1,619		5,451		4,048
Total retail clothing product		605,788		594,994		1,219,432		1,178,579
Rental services		125,095		151,978		225,322		246,798
Alteration services		37,031		37,227		75,452		75,613
Retail dry cleaning services (2)		—		8,799		2,551		17,313
Total alteration and other services		37,031		46,026		78,003		92,926
Total retail sales		767,914		792,998		1,522,757		1,518,303
Corporate apparel clothing product		55,516		57,760		118,637		115,361
Total net sales	$	823,430	$	850,758	$	1,641,394	$	1,633,664

⁽¹⁾ Other consists of franchise and licensing revenues and gift card breakage.  Franchise revenues are generally recognized at a point in time while licensing revenues consist primarily of minimum guaranteed royalty amounts recognized over an elapsed time period.

⁽²⁾ On March 3, 2018, we completed the divestiture of our MW Cleaners business.  Please see Note 2 for additional information.

Schedule of opening and closing balance of contract liabilities

The following table summarizes the opening and closing balances of our contract liabilities (in thousands):

	Balance at		Increase		Balance at
	February 3, 2018		(Decrease)		August 4, 2018
	As Adjusted
Contract liabilities	$	141,552	$	21,858	$	163,410