Segment Reporting (Tables)

9 Months Ended

Oct. 29, 2022

Segment Reporting

Schedule of Segment Operating Income and Income Before Income Taxes


		THREE MONTHS ENDED						NINE MONTHS ENDED
		OCTOBER 29,			OCTOBER 30,			OCTOBER 29,			OCTOBER 30,
		2022			2021			2022			2021

		(in thousands)
Operating income:
RH Segment		$	173,162		$	276,091		$	639,219		$	721,343
Waterworks			7,187			2,619			22,394			14,274
Asset impairments			(10,926)			—			(19,080)			(7,354)
Non-cash compensation			(4,136)			(5,831)			(14,315)			(17,559)
Employer payroll taxes on option exercise			—			—			(11,717)			—
Professional fees			—			—			(7,469)			—
Compensation settlements			—			—			(3,483)			—
Recall accrual			—			(340)			(560)			(840)
Legal settlement			4,188			—			4,188			—
Gain on sale of building and land			775			—			775			—
Reorganization related costs			—			—			—			(449)
Income from operations			170,250			272,539			609,952			709,415
Interest expense—net			31,417			13,223			78,536			40,112
Loss on extinguishment of debt			—			18,513			169,578			21,784
Other expense—net			1,989			—			4,841			—
Income before income taxes		$	136,844		$	240,803		$	356,997		$	647,519

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


		THREE MONTHS ENDED
		OCTOBER 29,									OCTOBER 30,
		2022									2021

		RH SEGMENT			WATERWORKS			TOTAL			RH SEGMENT			WATERWORKS			TOTAL

		(in thousands)
Net revenues		$	821,260		$	47,806		$	869,066		$	964,859		$	41,569		$	1,006,428
Gross profit			394,947			25,831			420,778			484,363			20,891			505,254
Depreciation and amortization			26,785			1,247			28,032			23,878			941			24,819


		NINE MONTHS ENDED
		OCTOBER 29,									OCTOBER 30,
		2022									2021

		RH SEGMENT			WATERWORKS			TOTAL			RH SEGMENT			WATERWORKS			TOTAL

		(in thousands)
Net revenues		$	2,670,390		$	147,588		$	2,817,978		$	2,732,300		$	123,779		$	2,856,079
Gross profit			1,362,843			79,736			1,442,579			1,337,983			61,924			1,399,907
Depreciation and amortization			75,980			3,780			79,760			68,042			3,333			71,375

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:


		OCTOBER 29,												JANUARY 29,
		2022												2022

		RH SEGMENT			WATERWORKS			REAL ESTATE			TOTAL			RH SEGMENT			WATERWORKS			REAL ESTATE			TOTAL

		(in thousands)
Goodwill⁽¹⁾		$	141,021		$	—		$	—		$	141,021		$	141,100		$	—		$	—		$	141,100
Tradenames, trademarks and other intangible assets⁽²⁾			57,269			17,000			—			74,269			56,161			17,000			—			73,161
Equity method investments			—			539			96,466			97,005			—			—			100,810			100,810
Total assets			5,573,649			207,153			102,913			5,883,715			5,259,719			179,941			100,810			5,540,470

(1)	The Waterworks reporting unit goodwill of $51 million recognized upon acquisition in fiscal 2016 was fully impaired as of fiscal 2018.

(2)	Presented net of an impairment charge of $35 million recognized in prior fiscal years.


		THREE MONTHS ENDED						NINE MONTHS ENDED
		OCTOBER 29,			OCTOBER 30,			OCTOBER 29,			OCTOBER 30,
		2022			2021			2022			2021

		(in thousands)
Furniture		$	597,520		$	706,750		$	1,959,760		$	1,986,490
Non-furniture			271,546			299,678			858,218			869,589
Total net revenues		$	869,066		$	1,006,428		$	2,817,978		$	2,856,079