Stockholders' Equity

3 Months Ended

May 04, 2024

Equity [Abstract]

Stockholders' Equity

Stockholders' Equity

Share Repurchase Program

During fiscal 2022, the Board of Directors authorized a $200 million share repurchase program (the “2021 Share Repurchase Program”). On March 14, 2022, the Board of Directors expanded the repurchase authorization under the 2021 Share Repurchase Program by $100 million. In January 2024, the Board of Directors expanded the repurchase authorization by approximately $1.4 million to cover the repurchases associated with the January 2024 issuance of additional 3.75% convertible senior notes due 2028 (the “January Additional 2028 Notes”). As of February 3, 2024, the Company had no remaining authority under the 2021 Share Repurchase Program to purchase its common stock.

On March 25, 2024, the Board of Directors authorized a new $200 million share repurchase program (the “2024 Share Repurchase Program”). Repurchases under the 2024 Share Repurchase Program may be made on the open market or in privately negotiated transactions, pursuant to Rule 10b5-1 trading plans or other available means. There is no minimum or maximum number of shares to be repurchased under the program and the program may be discontinued at any time without prior notice.

During the three months ended May 4, 2024, the Company repurchased 0.3 million shares under its 2024 Share Repurchase Program at an aggregate cost of $10.3 million. These shares were repurchased through broker assisted market transactions in connection with the March 2024 exchange of 2024 Notes for additional 3.75% convertible senior notes due 2028 (the “March Additional 2028 Notes”, together with the January Additional 2028 Notes, the “Additional 2028 Notes”). During the three months ended April 29, 2023, the Company repurchased 2.2 million shares under its 2021 Share Repurchase Program at an aggregate cost of $42.8 million, including excise tax. As of May 4, 2024, the Company had remaining authority under the 2024 Share Repurchase Program to purchase $189.7 million of its common stock.

Dividends

The following sets forth the cash dividend declared per share:

	Three Months Ended
	May 4, 2024		Apr 29, 2023
Cash dividend declared per share	$	2.550	$	0.225

The indenture governing the 2024 Notes required an adjustment to the conversion rate and the conversion price of the 2024 Notes for quarterly dividends exceeding $0.1125 per share. The indenture governing the 2028 Notes requires an adjustment to the conversion rate and the conversion price of the 2028 Notes for quarterly dividends exceeding $0.225 per share.

On May 24, 2023, the Company announced an increase to its regular quarterly cash dividend from $0.225 to $0.30 per share on the Company’s common stock. On March 20, 2024, the Company announced a special cash dividend of $2.25 per share on the Company’s common stock in addition to the quarterly cash dividend of $0.30 per share. The dividends were paid on May 3, 2024 to shareholders of record as of the close of business on April 17, 2024. In accordance with the terms of the indentures governing the 2028 Notes, the Company has adjusted the conversion rate and the conversion price of the 2028 Notes for quarterly dividends exceeding $0.225 per share. Corresponding adjustments have been made to the strike prices with respect to the convertible note hedges and the warrants entered into by the Company in connection with the offering of the 2028 Notes, each of which was decreased in accordance with the terms of the applicable convertible note hedge confirmations and warrant confirmations. Refer to Note 11 for more information.

For each of the periods presented, dividends paid also included the impact from vesting of restricted stock units that are considered non-participating securities and are only entitled to dividend payments once the respective awards vest.

Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) (“AOCL”), net of related income taxes, are (in thousands):

	Foreign Currency Translation Adjustment		Derivative Financial Instruments Designated as Cash Flow Hedges		Defined Benefit Plans		Total
	Three Months Ended May 4, 2024
Balance at February 3, 2024	$	(136,115)	$	(544)	$	(351)	$	(137,010)
Gains (losses) arising during the period	(2,993)		1,145		233		(1,615)
Reclassification to net earnings (loss) for (gains) losses realized	—		1,620		(43)		1,577
Net other comprehensive income (loss)	(2,993)		2,765		190		(38)
Balance at May 4, 2024	$	(139,108)	$	2,221	$	(161)	$	(137,048)

	Three Months Ended Apr 29, 2023
Balance at January 28, 2023	$	(129,168)	$	(1,584)	$	(3,321)	$	(134,073)
Gains (losses) arising during the period	1,021		(942)		(161)		(82)
Reclassification to net earnings (loss) for (gains) losses realized	—		(5,343)		21		(5,322)
Net other comprehensive income (loss)	1,021		(6,285)		(140)		(5,404)
Balance at April 29, 2023	$	(128,147)	$	(7,869)	$	(3,461)	$	(139,477)

Details on reclassifications out of AOCL to net earnings (loss) are (in thousands):

	Three Months Ended				Location of (Gain) Loss Reclassified from AOCL into Earnings
	May 4, 2024		Apr 29, 2023
Derivative financial instruments designated as cash flow hedges:
Foreign exchange currency contracts	$	2,045	$	(5,893)	Cost of product sales
Interest rate swap	(155)		(128)		Interest expense
Less income tax effect	(270)		678		Income tax benefit
	1,620		(5,343)
Defined benefit plans:
Net actuarial (gain) loss amortization	(3)		62		Other income (expense)
Prior service credit amortization	(40)		(39)		Other income (expense)
Less income tax effect	—		(2)		Income tax benefit
	(43)		21
Total reclassifications during the period	$	1,577	$	(5,322)