United States | Europe | Technology Brands | Total | |||||||||||||
Impairments of intangible assets | $ | — | $ | 0.2 | $ | — | $ | 0.2 | ||||||||
Impairments of property, equipment and other assets - store impairments | 2.8 | 0.6 | 1.0 | 4.4 | ||||||||||||
Total | $ | 2.8 | $ | 0.8 | $ | 1.0 | $ | 4.6 |
United States | Canada | Europe | Total | |||||||||||||
Impairments of intangible assets | $ | — | $ | — | $ | 0.3 | $ | 0.3 | ||||||||
Impairments of property, equipment and other assets - store impairments | 0.6 | 0.4 | 0.9 | 1.9 | ||||||||||||
Total | $ | 0.6 | $ | 0.4 | $ | 1.2 | $ | 2.2 |
United States | Canada | Europe | Technology Brands | Total | ||||||||||||||||
Impairments of intangible assets | $ | — | $ | — | $ | 7.4 | $ | 7.0 | $ | 14.4 | ||||||||||
Impairments of property, equipment and other assets - store impairments | 0.3 | 0.2 | 2.3 | 16.6 | 19.4 | |||||||||||||||
Total | $ | 0.3 | $ | 0.2 | $ | 9.7 | $ | 23.6 | $ | 33.8 |
Fiscal Year | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Gains (losses) on the changes in fair value of derivative instruments | $ | 20.0 | $ | (5.2 | ) | $ | 28.9 | |||||
Gains (losses) on the re-measurement of related intercompany loans and foreign currency assets and liabilities | (15.5 | ) | 6.8 | (26.4 | ) | |||||||
Total | $ | 4.5 | $ | 1.6 | $ | 2.5 |
Fiscal Year 2016 | Fiscal Year 2015 | Fiscal Year 2014 | |||||||||||||||||||
Gross Profit | Gross Profit Percent | Gross Profit | Gross Profit Percent | Gross Profit | Gross Profit Percent | ||||||||||||||||
New video game hardware(1) | $ | 154.2 | 11.0 | % | $ | 175.5 | 9.0 | % | $ | 196.6 | 9.7 | % | |||||||||
New video game software | 600.4 | 24.1 | 689.3 | 23.7 | 716.9 | 23.2 | |||||||||||||||
Pre-owned and value video game products | 1,044.1 | 46.3 | 1,114.5 | 46.9 | 1,146.3 | 48.0 | |||||||||||||||
Video game accessories | 235.2 | 34.8 | 255.5 | 36.3 | 246.1 | 37.7 | |||||||||||||||
Digital | 155.5 | 85.9 | 149.6 | 79.4 | 152.0 | 70.3 | |||||||||||||||
Technology Brands(2) | 554.6 | 68.1 | 306.6 | 57.4 | 169.1 | 51.5 | |||||||||||||||
Collectibles | 171.6 | 34.7 | 116.6 | 37.6 | 31.9 | 42.1 | |||||||||||||||
Other(3) | 93.7 | 31.5 | 110.7 | 27.4 | 117.0 | 22.7 | |||||||||||||||
Total | $ | 3,009.3 | 35.0 | % | $ | 2,918.3 | 31.2 | % | $ | 2,775.9 | 29.9 | % |
Fiscal Year 2016 | Fiscal Year 2015 | Fiscal Year 2014 | |||||||||||||||||||
Net Sales | Percent of Total | Net Sales | Percent of Total | Net Sales | Percent of Total | ||||||||||||||||
New video game hardware(1) | $ | 1,396.7 | 16.2 | % | $ | 1,944.7 | 20.8 | % | $ | 2,028.7 | 21.8 | % | |||||||||
New video game software | 2,493.4 | 29.0 | 2,905.1 | 31.0 | 3,089.0 | 33.2 | |||||||||||||||
Pre-owned and value video game products | 2,254.1 | 26.2 | 2,374.7 | 25.4 | 2,389.3 | 25.7 | |||||||||||||||
Video game accessories | 676.7 | 7.9 | 703.0 | 7.5 | 653.6 | 7.1 | |||||||||||||||
Digital | 181.0 | 2.1 | 188.3 | 2.0 | 216.3 | 2.3 | |||||||||||||||
Technology Brands(2) | 814.0 | 9.5 | 534.0 | 5.7 | 328.6 | 3.5 | |||||||||||||||
Collectibles | 494.1 | 5.7 | 309.7 | 3.3 | 75.8 | 0.8 | |||||||||||||||
Other(3) | 297.9 | 3.4 | 404.3 | 4.3 | 514.7 | 5.6 | |||||||||||||||
Total | $ | 8,607.9 | 100.0 | % | $ | 9,363.8 | 100.0 | % | $ | 9,296.0 | 100.0 | % |
15. | Significant Products |
Fiscal Year 2016 | Fiscal Year 2015 | Fiscal Year 2014 | |||||||||||||||||||
Net Sales | Percent of Total | Net Sales | Percent of Total | Net Sales | Percent of Total | ||||||||||||||||
New video game hardware(1) | $ | 1,396.7 | 16.2 | % | $ | 1,944.7 | 20.8 | % | $ | 2,028.7 | 21.8 | % | |||||||||
New video game software | 2,493.4 | 29.0 | 2,905.1 | 31.0 | 3,089.0 | 33.2 | |||||||||||||||
Pre-owned and value video game products | 2,254.1 | 26.2 | 2,374.7 | 25.4 | 2,389.3 | 25.7 | |||||||||||||||
Video game accessories | 676.7 | 7.9 | 703.0 | 7.5 | 653.6 | 7.1 | |||||||||||||||
Digital | 181.0 | 2.1 | 188.3 | 2.0 | 216.3 | 2.3 | |||||||||||||||
Technology Brands(2) | 814.0 | 9.5 | 534.0 | 5.7 | 328.6 | 3.5 | |||||||||||||||
Collectibles | 494.1 | 5.7 | 309.7 | 3.3 | 75.8 | 0.8 | |||||||||||||||
Other(3) | 297.9 | 3.4 | 404.3 | 4.3 | 514.7 | 5.6 | |||||||||||||||
Total | $ | 8,607.9 | 100.0 | % | $ | 9,363.8 | 100.0 | % | $ | 9,296.0 | 100.0 | % |
Fiscal Year 2016 | Fiscal Year 2015 | Fiscal Year 2014 | |||||||||||||||||||
Gross Profit | Gross Profit Percent | Gross Profit | Gross Profit Percent | Gross Profit | Gross Profit Percent | ||||||||||||||||
New video game hardware(1) | $ | 154.2 | 11.0 | % | $ | 175.5 | 9.0 | % | $ | 196.6 | 9.7 | % | |||||||||
New video game software | 600.4 | 24.1 | 689.3 | 23.7 | 716.9 | 23.2 | |||||||||||||||
Pre-owned and value video game products | 1,044.1 | 46.3 | 1,114.5 | 46.9 | 1,146.3 | 48.0 | |||||||||||||||
Video game accessories | 235.2 | 34.8 | 255.5 | 36.3 | 246.1 | 37.7 | |||||||||||||||
Digital | 155.5 | 85.9 | 149.6 | 79.4 | 152.0 | 70.3 | |||||||||||||||
Technology Brands(2) | 554.6 | 68.1 | 306.6 | 57.4 | 169.1 | 51.5 | |||||||||||||||
Collectibles | 171.6 | 34.7 | 116.6 | 37.6 | 31.9 | 42.1 | |||||||||||||||
Other(3) | 93.7 | 31.5 | 110.7 | 27.4 | 117.0 | 22.7 | |||||||||||||||
Total | $ | 3,009.3 | 35.0 | % | $ | 2,918.3 | 31.2 | % | $ | 2,775.9 | 29.9 | % |
(1) | Includes sales of hardware bundles, in which physical hardware and digital or physical software are sold together as a single SKU. |
(2) | Includes mobile and consumer electronics sold through our Technology Brands segment, which includes the operations of our Spring Mobile managed AT&T and Cricket Wireless branded stores and our Simply Mac business. |
(3) | Includes sales of PC entertainment software, interactive game figures, strategy guides, mobile and consumer electronics sold through our Video Game Brands segments, and revenues from PowerUp Pro loyalty members receiving Game Informer magazine in print form. |
8. | Accrued Liabilities |
January 28, 2017 | January 30, 2016 | |||||||
Customer liabilities | $ | 342.5 | $ | 341.6 | ||||
Deferred revenue | 131.5 | 112.8 | ||||||
Employee benefits, compensation and related taxes | 147.7 | 156.4 | ||||||
Checks and transfers yet to be presented for payment from zero balance cash accounts | 268.4 | 264.9 | ||||||
Other taxes | 52.0 | 52.9 | ||||||
Other accrued liabilities(1) | 148.8 | 112.8 | ||||||
Total accrued liabilities | $ | 1,090.9 | $ | 1,041.4 |
(1) | Includes the current portion of acquisition-related contingent consideration of $20.0 million. See Note 3, \"Acquisitions and Divestitures\" for additional information. |
3. | Acquisitions and Divestitures |
Assets acquired | |||
Merchandise inventories | $ | 13.1 | |
Prepaid expenses and other current assets | 0.2 | ||
Property and equipment | 23.9 | ||
Goodwill | 239.1 | ||
Other intangible asset — dealer agreements | 163.0 | ||
Other noncurrent assets | 6.9 | ||
Total assets acquired | 446.2 | ||
Liabilities assumed | |||
Accounts payable | 9.5 | ||
Accrued liabilities | 0.2 | ||
Total liabilities assumed | 9.7 | ||
Total estimated purchase price | $ | 436.5 |
Assets acquired | ||||
Receivables | $ | 6.9 | ||
Merchandise inventories | 25.6 | |||
Prepaid expenses and other current assets | 12.5 | |||
Property and equipment | 0.9 | |||
Deferred income taxes | 2.8 | |||
Other non-current assets | 0.1 | |||
Goodwill | 52.2 | |||
Other intangible assets | 33.4 | |||
Total assets acquired | 134.4 | |||
Liabilities assumed | ||||
Accounts payable | 3.6 | |||
Accrued liabilities | 17.3 | |||
Deferred income taxes | (12.6 | ) | ||
Other long-term liabilities | 0.1 | |||
Total liabilities assumed | 8.4 | |||
Total purchase price | $ | 126.0 |
11. | Commitments and Contingencies |
14. | Employees’ Defined Contribution Plan |
9. | Debt |
January 28, 2017 | January 30, 2016 | ||||||
2019 Senior Notes principal amount | $ | 350.0 | $ | 350.0 | |||
2021 Senior Notes principal amount | 475.0 | — | |||||
Less: Unamortized debt financing costs(1) | (10.0 | ) | (4.6 | ) | |||
Long-term debt, net | $ | 815.0 | $ | 345.4 |
12. | Common Stock and Share-Based Compensation |
Fiscal Year | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Total number of shares purchased | 3.0 | 5.2 | 8.4 | |||||||||
Average price per share | $ | 24.94 | $ | 38.68 | $ | 39.50 | ||||||
Aggregate value of shares purchased | $ | 75.1 | $ | 202.0 | $ | 333.4 |
Shares (Millions) | Weighted- Average Exercise Price | ||||||
Balance, January 30, 2016 | 1.4 | $ | 35.88 | ||||
Exercised | — | 22.58 | |||||
Expired | (0.1 | ) | 47.40 | ||||
Balance, January 28, 2017 | 1.3 | 35.43 |
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Exercise Prices | Number Outstanding (Millions) | Weighted- Average Remaining Life (Years) | Weighted- Average Exercise Price | Number Exercisable (Millions) | Weighted- Average Exercise Price | |||||||||||
$20.32 - $38.52 | 0.9 | 5.26 | $ | 28.97 | 0.8 | $ | 27.88 | |||||||||
$49.95 | 0.4 | 1.02 | 49.95 | 0.4 | 49.95 | |||||||||||
$20.32 - $49.95 | 1.3 | 3.96 | $ | 35.43 | 1.2 | $ | 35.19 |
Shares (Millions) | Weighted- Average Grant Date Fair Value | ||||||
Nonvested shares at January 30, 2016 | 1.5 | $ | 33.77 | ||||
Granted | 0.8 | 30.27 | |||||
Vested | (0.9 | ) | 30.02 | ||||
Forfeited | (0.1 | ) | 33.14 | ||||
Nonvested shares at January 28, 2017 | 1.3 | $ | 34.31 |
13. | Earnings Per Share |
Fiscal Year | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Net income | $ | 353.2 | $ | 402.8 | $ | 393.1 | ||||||
Weighted-average common shares outstanding | 103.4 | 106.0 | 112.2 | |||||||||
Dilutive effect of stock options and restricted stock awards | 0.4 | 0.7 | 1.0 | |||||||||
Weighted-average diluted common shares | 103.8 | 106.7 | 113.2 | |||||||||
Basic earnings per share | $ | 3.42 | $ | 3.80 | $ | 3.50 | ||||||
Diluted earnings per share | $ | 3.40 | $ | 3.78 | $ | 3.47 | ||||||
Anti-dilutive stock options and restricted stock awards | 1.4 | 1.0 | 1.6 |
4. | Fair Value Measurements and Financial Instruments |
January 28, 2017 | January 30, 2016 | |||||||||||||||
Level 2 | Level 3 | Level 2 | Level 3 | |||||||||||||
Assets: | ||||||||||||||||
Foreign currency contracts | ||||||||||||||||
Other current assets | $ | 13.3 | $ | — | $ | 40.6 | $ | — | ||||||||
Other noncurrent assets | 0.1 | — | 0.1 | — | ||||||||||||
Company-owned life insurance(1) | 12.4 | — | 10.1 | — | ||||||||||||
Total assets | $ | 25.8 | $ | — | $ | 50.8 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Foreign currency contracts | ||||||||||||||||
Accrued liabilities | $ | 4.3 | $ | — | $ | 32.3 | $ | — | ||||||||
Other long-term liabilities | 0.1 | — | 0.5 | — | ||||||||||||
Nonqualified deferred compensation(2) | 1.0 | — | 1.1 | — | ||||||||||||
Contingent consideration(3) | — | 43.2 | — | — | ||||||||||||
Total liabilities | $ | 5.4 | $ | 43.2 | $ | 33.9 | $ | — |
(3) | Current portion of $20.0 million recognized in accrued liabilities and noncurrent portion of $23.2 million recognized in other long-term liabilities in our consolidated balance sheet. |
Fiscal Year | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Gains (losses) on the changes in fair value of derivative instruments | $ | 20.0 | $ | (5.2 | ) | $ | 28.9 | |||||
Gains (losses) on the re-measurement of related intercompany loans and foreign currency assets and liabilities | (15.5 | ) | 6.8 | (26.4 | ) | |||||||
Total | $ | 4.5 | $ | 1.6 | $ | 2.5 |
6. | Goodwill and Intangible Assets |
United States | Canada | Australia | Europe | Technology Brands | Total | |||||||||||||||||||
Balance at January 31, 2015 | $ | 1,143.3 | $ | 29.5 | $ | 72.1 | $ | 78.9 | $ | 66.6 | $ | 1,390.4 | ||||||||||||
Acquisitions (Note 3) | 52.2 | — | — | — | 46.3 | 98.5 | ||||||||||||||||||
Foreign currency translation adjustment | — | (2.6 | ) | (6.4 | ) | (3.2 | ) | — | (12.2 | ) | ||||||||||||||
Balance at January 30, 2016 | 1,195.5 | 26.9 | 65.7 | 75.7 | 112.9 | 1,476.7 | ||||||||||||||||||
Acquisitions (Note 3) | 4.2 | — | — | — | 239.1 | 243.3 | ||||||||||||||||||
Foreign currency translation adjustment | — | 1.7 | 4.4 | (0.9 | ) | — | 5.2 | |||||||||||||||||
Balance at January 28, 2017 | $ | 1,199.7 | $ | 28.6 | $ | 70.1 | $ | 74.8 | $ | 352.0 | $ | 1,725.2 |
January 28, 2017 | January 30, 2016 | |||||||||||||||||||||||
Gross Carrying Amount(1) | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
Intangible assets with indefinite lives: | ||||||||||||||||||||||||
Trade names | $ | 43.7 | $ | — | $ | 43.7 | $ | 51.7 | $ | — | $ | 51.7 | ||||||||||||
Dealer agreements | 409.3 | — | 409.3 | 210.6 | — | 210.6 | ||||||||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||||||
Leasehold rights | 86.4 | (51.4 | ) | 35.0 | 87.5 | (46.2 | ) | 41.3 | ||||||||||||||||
Customer relationships | 14.5 | (4.1 | ) | 10.4 | 14.5 | (1.5 | ) | 13.0 | ||||||||||||||||
Other | 39.5 | (30.7 | ) | 8.8 | 39.1 | (25.3 | ) | 13.8 | ||||||||||||||||
Total | $ | 593.4 | $ | (86.2 | ) | $ | 507.2 | $ | 403.4 | $ | (73.0 | ) | $ | 330.4 |
(1) | The change in the gross carrying amount of intangible assets from January 30, 2016 to January 28, 2017 is due to acquisitions (Note 3), impairments (Note 2), and the impact of exchange rate fluctuations. |
Fiscal Year Ending on or around January 31, | Projected Amortization Expense | |||
2018 | $ | 13.5 | ||
2019 | 11.3 | |||
2020 | 8.6 | |||
2021 | 6.0 | |||
2022 | 4.0 | |||
$ | 43.4 |
7. | Income Taxes |
Fiscal Year | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Current tax expense: | ||||||||||||
Federal | $ | 143.8 | $ | 178.7 | $ | 158.4 | ||||||
State | 13.5 | 16.3 | 18.0 | |||||||||
Foreign | 29.2 | 28.9 | 29.6 | |||||||||
186.5 | 223.9 | 206.0 | ||||||||||
Deferred tax expense (benefit): | ||||||||||||
Federal | (1.2 | ) | 0.2 | 29.3 | ||||||||
State | (0.2 | ) | 3.6 | (3.3 | ) | |||||||
Foreign | (33.6 | ) | (5.3 | ) | (16.8 | ) | ||||||
(35.0 | ) | (1.5 | ) | 9.2 | ||||||||
Total income tax expense | $ | 151.5 | $ | 222.4 | $ | 215.2 |
Fiscal Year | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
United States | $ | 446.8 | $ | 553.5 | $ | 558.8 | ||||||
International | 57.9 | 71.7 | 49.5 | |||||||||
Total | $ | 504.7 | $ | 625.2 | $ | 608.3 |
Fiscal Year | |||||||||
2016 | 2015 | 2014 | |||||||
Federal statutory tax rate | 35.0 | % | 35.0 | % | 35.0 | % | |||
State income taxes, net of federal effect | 1.7 | 2.1 | 2.0 | ||||||
Foreign income tax rate differential | (0.9 | ) | (1.0 | ) | (0.4 | ) | |||
Change in valuation allowance | 4.1 | (0.9 | ) | 1.8 | |||||
Change in unrecognized tax benefits | 2.3 | 0.9 | (0.2 | ) | |||||
Subpart F income | 1.3 | 0.9 | 2.7 | ||||||
Interest income from hybrid securities | (0.6 | ) | (1.6 | ) | (5.2 | ) | |||
Realization of losses in foreign operations not previously benefited(1) | (8.3 | ) | — | (2.2 | ) | ||||
Loss on investment in foreign subsidiary | (3.2 | ) | — | — | |||||
Other (including permanent differences)(2) | (1.4 | ) | 0.2 | 1.9 | |||||
30.0 | % | 35.6 | % | 35.4 | % |
(1) | In fiscal 2016, we adopted a plan of reorganization specific to certain foreign operations which resulted in our ability to recognize the benefit of foreign net operating loss carryforwards that were previously unrecognized in affected jurisdictions. As a result, we recognized a tax benefit of $42.1 million in the fourth quarter of fiscal 2016, which is subject to a partial valuation allowance of $14.8 million. The valuation allowance established for this tax benefit is reflected in the line item “Change in valuation allowance.” |
(2) | Other is comprised of numerous items, none of which is greater than 1.75% of earnings before income taxes. |
January 28, 2017 | January 30, 2016 | |||||||
Deferred tax asset: | ||||||||
Inventory | $ | 26.7 | $ | 26.5 | ||||
Deferred rents | 8.3 | 8.9 | ||||||
Stock-based compensation | 12.0 | 16.5 | ||||||
Net operating losses | 89.6 | 52.2 | ||||||
Customer liabilities | 19.5 | 26.1 | ||||||
Property and equipment | 3.4 | — | ||||||
Foreign tax credit carryover | 4.1 | 3.9 | ||||||
Accrued compensation | 26.3 | 25.9 | ||||||
Other | 22.1 | 6.6 | ||||||
Total deferred tax assets | 212.0 | 166.6 | ||||||
Valuation allowance | (39.4 | ) | (18.8 | ) | ||||
Total deferred tax assets, net | 172.6 | 147.8 | ||||||
Deferred tax liabilities: | ||||||||
Property and equipment | — | (11.6 | ) | |||||
Goodwill | (75.5 | ) | (89.0 | ) | ||||
Prepaid expenses | (5.3 | ) | (6.6 | ) | ||||
Intangible assets | (47.9 | ) | (30.3 | ) | ||||
Other | (7.9 | ) | (0.9 | ) | ||||
Total deferred tax liabilities | (136.6 | ) | (138.4 | ) | ||||
Net deferred tax assets | $ | 36.0 | $ | 9.4 | ||||
The above amounts are reflected in the consolidated financial statements as: | ||||||||
Deferred income taxes - assets | $ | 59.0 | $ | 39.0 | ||||
Deferred income taxes - liabilities | $ | (23.0 | ) | $ | (29.6 | ) |
Fiscal Year | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Beginning balance of unrecognized tax benefits | $ | 31.9 | $ | 21.4 | $ | 20.6 | ||||||
Increases related to current period tax positions | 3.5 | 4.0 | 1.0 | |||||||||
Increases related to prior period tax positions | 7.9 | 9.0 | 6.1 | |||||||||
Reductions as a result of a lapse of the applicable statute of limitations | (0.2 | ) | (1.0 | ) | (0.5 | ) | ||||||
Reductions as a result of settlements with taxing authorities | (1.0 | ) | (1.5 | ) | (5.8 | ) | ||||||
Ending balance of unrecognized tax benefits | $ | 42.1 | $ | 31.9 | $ | 21.4 |
5. | Receivables, Net |
January 28, 2017 | January 30, 2016 | |||||||
Bankcard receivables | $ | 39.5 | $ | 37.7 | ||||
Vendor receivables | 143.3 | 119.3 | ||||||
Technology brands carrier receivables | 41.0 | 24.1 | ||||||
Other receivables | 2.8 | 0.8 | ||||||
Allowance for doubtful accounts | (5.7 | ) | (5.4 | ) | ||||
Total receivables, net | $ | 220.9 | $ | 176.5 |
• | In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which delays the effective date of ASU 2014-09 by one year, with the option to adopt the standard as of the original effective date. |
• | In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers, which clarifies how an entity should identify the unit of accounting (i.e. the specified good or service) for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements. |
10. | Leases |
Fiscal Year | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Minimum | $ | 437.4 | $ | 394.5 | $ | 391.4 | ||||||
Percentage rentals | 6.9 | 7.8 | 8.2 | |||||||||
Total rent expense | $ | 444.3 | $ | 402.3 | $ | 399.6 |
Fiscal Year Ending on or around January 31, | ||||
2018 | $ | 388.6 | ||
2019 | 295.9 | |||
2020 | 202.3 | |||
2021 | 121.5 | |||
2022 | 68.6 | |||
Thereafter | 117.7 | |||
$ | 1,194.6 |
17. | Unaudited Quarterly Financial Information |
Fiscal Year 2016 | Fiscal Year 2015 | |||||||||||||||||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter(1) | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter(1) | |||||||||||||||||||||||||
Net sales | $ | 1,971.5 | $ | 1,631.8 | $ | 1,959.2 | $ | 3,045.4 | $ | 2,060.6 | $ | 1,761.9 | $ | 2,016.3 | $ | 3,525.0 | ||||||||||||||||
Gross profit | 675.5 | 617.7 | 708.2 | 1,007.9 | 639.0 | 580.5 | 655.6 | 1,043.2 | ||||||||||||||||||||||||
Operating earnings | 114.0 | 58.3 | 98.8 | 286.6 | 123.9 | 51.7 | 90.7 | 381.9 | ||||||||||||||||||||||||
Net income | 65.8 | 27.9 | 50.8 | 208.7 | 73.8 | 25.3 | 55.9 | 247.8 | ||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Basic(2) | $ | 0.63 | $ | 0.27 | $ | 0.49 | $ | 2.04 | $ | 0.68 | $ | 0.24 | $ | 0.53 | $ | 2.38 | ||||||||||||||||
Diluted(2) | 0.63 | 0.27 | 0.49 | 2.04 | 0.68 | 0.24 | 0.53 | 2.36 | ||||||||||||||||||||||||
Dividend declared per common share | $ | 0.37 | $ | 0.37 | $ | 0.37 | $ | 0.37 | $ | 0.36 | $ | 0.36 | $ | 0.36 | $ | 0.36 |
(1) | The results of operations for the fourth quarter of fiscal 2016 include asset impairments of $33.8 million. The results of operations for the fourth quarter of fiscal 2015 include asset impairments of $4.6 million. |
(2) | The sum of the quarters may not necessarily be equal to the full year net income per common share amount. |
2. | Asset Impairments |
United States | Canada | Europe | Technology Brands | Total | ||||||||||||||||
Impairments of intangible assets | $ | — | $ | — | $ | 7.4 | $ | 7.0 | $ | 14.4 | ||||||||||
Impairments of property, equipment and other assets - store impairments | 0.3 | 0.2 | 2.3 | 16.6 | 19.4 | |||||||||||||||
Total | $ | 0.3 | $ | 0.2 | $ | 9.7 | $ | 23.6 | $ | 33.8 |
United States | Europe | Technology Brands | Total | |||||||||||||
Impairments of intangible assets | $ | — | $ | 0.2 | $ | — | $ | 0.2 | ||||||||
Impairments of property, equipment and other assets - store impairments | 2.8 | 0.6 | 1.0 | 4.4 | ||||||||||||
Total | $ | 2.8 | $ | 0.8 | $ | 1.0 | $ | 4.6 |
United States | Canada | Europe | Total | |||||||||||||
Impairments of intangible assets | $ | — | $ | — | $ | 0.3 | $ | 0.3 | ||||||||
Impairments of property, equipment and other assets - store impairments | 0.6 | 0.4 | 0.9 | 1.9 | ||||||||||||
Total | $ | 0.6 | $ | 0.4 | $ | 1.2 | $ | 2.2 |
January 28, 2017 | January 30, 2016 | |||||||
Bankcard receivables | $ | 39.5 | $ | 37.7 | ||||
Vendor receivables | 143.3 | 119.3 | ||||||
Technology brands carrier receivables | 41.0 | 24.1 | ||||||
Other receivables | 2.8 | 0.8 | ||||||
Allowance for doubtful accounts | (5.7 | ) | (5.4 | ) | ||||
Total receivables, net | $ | 220.9 | $ | 176.5 |
January 28, 2017 | January 30, 2016 | |||||||
Customer liabilities | $ | 342.5 | $ | 341.6 | ||||
Deferred revenue | 131.5 | 112.8 | ||||||
Employee benefits, compensation and related taxes | 147.7 | 156.4 | ||||||
Checks and transfers yet to be presented for payment from zero balance cash accounts | 268.4 | 264.9 | ||||||
Other taxes | 52.0 | 52.9 | ||||||
Other accrued liabilities(1) | 148.8 | 112.8 | ||||||
Total accrued liabilities | $ | 1,090.9 | $ | 1,041.4 |
(1) | Includes the current portion of acquisition-related contingent consideration of $20.0 million. See Note 3, \"Acquisitions and Divestitures\" for additional information. |
Fiscal Year | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Current tax expense: | ||||||||||||
Federal | $ | 143.8 | $ | 178.7 | $ | 158.4 | ||||||
State | 13.5 | 16.3 | 18.0 | |||||||||
Foreign | 29.2 | 28.9 | 29.6 | |||||||||
186.5 | 223.9 | 206.0 | ||||||||||
Deferred tax expense (benefit): | ||||||||||||
Federal | (1.2 | ) | 0.2 | 29.3 | ||||||||
State | (0.2 | ) | 3.6 | (3.3 | ) | |||||||
Foreign | (33.6 | ) | (5.3 | ) | (16.8 | ) | ||||||
(35.0 | ) | (1.5 | ) | 9.2 | ||||||||
Total income tax expense | $ | 151.5 | $ | 222.4 | $ | 215.2 |
January 28, 2017 | January 30, 2016 | ||||||
2019 Senior Notes principal amount | $ | 350.0 | $ | 350.0 | |||
2021 Senior Notes principal amount | 475.0 | — | |||||
Less: Unamortized debt financing costs(1) | (10.0 | ) | (4.6 | ) | |||
Long-term debt, net | $ | 815.0 | $ | 345.4 |
(1) | In fiscal 2016, we adopted a plan of reorganization specific to certain foreign operations which resulted in our ability to recognize the benefit of foreign net operating loss carryforwards that were previously unrecognized in affected jurisdictions. As a result, we recognized a tax benefit of $42.1 million in the fourth quarter of fiscal 2016, which is subject to a partial valuation allowance of $14.8 million. The valuation allowance established for this tax benefit is reflected in the line item “Change in valuation allowance.” |
(2) | Other is comprised of numerous items, none of which is greater than 1.75% of earnings before income taxes. |
Fiscal Year | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Net income | $ | 353.2 | $ | 402.8 | $ | 393.1 | ||||||
Weighted-average common shares outstanding | 103.4 | 106.0 | 112.2 | |||||||||
Dilutive effect of stock options and restricted stock awards | 0.4 | 0.7 | 1.0 | |||||||||
Weighted-average diluted common shares | 103.8 | 106.7 | 113.2 | |||||||||
Basic earnings per share | $ | 3.42 | $ | 3.80 | $ | 3.50 | ||||||
Diluted earnings per share | $ | 3.40 | $ | 3.78 | $ | 3.47 | ||||||
Anti-dilutive stock options and restricted stock awards | 1.4 | 1.0 | 1.6 |
Fiscal Year | |||||||||
2016 | 2015 | 2014 | |||||||
Federal statutory tax rate | 35.0 | % | 35.0 | % | 35.0 | % | |||
State income taxes, net of federal effect | 1.7 | 2.1 | 2.0 | ||||||
Foreign income tax rate differential | (0.9 | ) | (1.0 | ) | (0.4 | ) | |||
Change in valuation allowance | 4.1 | (0.9 | ) | 1.8 | |||||
Change in unrecognized tax benefits | 2.3 | 0.9 | (0.2 | ) | |||||
Subpart F income | 1.3 | 0.9 | 2.7 | ||||||
Interest income from hybrid securities | (0.6 | ) | (1.6 | ) | (5.2 | ) | |||
Realization of losses in foreign operations not previously benefited(1) | (8.3 | ) | — | (2.2 | ) | ||||
Loss on investment in foreign subsidiary | (3.2 | ) | — | — | |||||
Other (including permanent differences)(2) | (1.4 | ) | 0.2 | 1.9 | |||||
30.0 | % | 35.6 | % | 35.4 | % |
(1) | In fiscal 2016, we adopted a plan of reorganization specific to certain foreign operations which resulted in our ability to recognize the benefit of foreign net operating loss carryforwards that were previously unrecognized in affected jurisdictions. As a result, we recognized a tax benefit of $42.1 million in the fourth quarter of fiscal 2016, which is subject to a partial valuation allowance of $14.8 million. The valuation allowance established for this tax benefit is reflected in the line item “Change in valuation allowance.” |
(2) | Other is comprised of numerous items, none of which is greater than 1.75% of earnings before income taxes. |
January 28, 2017 | January 30, 2016 | |||||||||||||||
Level 2 | Level 3 | Level 2 | Level 3 | |||||||||||||
Assets: | ||||||||||||||||
Foreign currency contracts | ||||||||||||||||
Other current assets | $ | 13.3 | $ | — | $ | 40.6 | $ | — | ||||||||
Other noncurrent assets | 0.1 | — | 0.1 | — | ||||||||||||
Company-owned life insurance(1) | 12.4 | — | 10.1 | — | ||||||||||||
Total assets | $ | 25.8 | $ | — | $ | 50.8 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Foreign currency contracts | ||||||||||||||||
Accrued liabilities | $ | 4.3 | $ | — | $ | 32.3 | $ | — | ||||||||
Other long-term liabilities | 0.1 | — | 0.5 | — | ||||||||||||
Nonqualified deferred compensation(2) | 1.0 | — | 1.1 | — | ||||||||||||
Contingent consideration(3) | — | 43.2 | — | — | ||||||||||||
Total liabilities | $ | 5.4 | $ | 43.2 | $ | 33.9 | $ | — |
Fiscal Year Ending on or around January 31, | ||||
2018 | $ | 388.6 | ||
2019 | 295.9 | |||
2020 | 202.3 | |||
2021 | 121.5 | |||
2022 | 68.6 | |||
Thereafter | 117.7 | |||
$ | 1,194.6 |
United States | Canada | Australia | Europe | Technology Brands | Total | |||||||||||||||||||
Balance at January 31, 2015 | $ | 1,143.3 | $ | 29.5 | $ | 72.1 | $ | 78.9 | $ | 66.6 | $ | 1,390.4 | ||||||||||||
Acquisitions (Note 3) | 52.2 | — | — | — | 46.3 | 98.5 | ||||||||||||||||||
Foreign currency translation adjustment | — | (2.6 | ) | (6.4 | ) | (3.2 | ) | — | (12.2 | ) | ||||||||||||||
Balance at January 30, 2016 | 1,195.5 | 26.9 | 65.7 | 75.7 | 112.9 | 1,476.7 | ||||||||||||||||||
Acquisitions (Note 3) | 4.2 | — | — | — | 239.1 | 243.3 | ||||||||||||||||||
Foreign currency translation adjustment | — | 1.7 | 4.4 | (0.9 | ) | — | 5.2 | |||||||||||||||||
Balance at January 28, 2017 | $ | 1,199.7 | $ | 28.6 | $ | 70.1 | $ | 74.8 | $ | 352.0 | $ | 1,725.2 |
Fiscal Year | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
United States | $ | 446.8 | $ | 553.5 | $ | 558.8 | ||||||
International | 57.9 | 71.7 | 49.5 | |||||||||
Total | $ | 504.7 | $ | 625.2 | $ | 608.3 |
January 28, 2017 | January 30, 2016 | |||||||||||||||||||||||
Gross Carrying Amount(1) | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
Intangible assets with indefinite lives: | ||||||||||||||||||||||||
Trade names | $ | 43.7 | $ | — | $ | 43.7 | $ | 51.7 | $ | — | $ | 51.7 | ||||||||||||
Dealer agreements | 409.3 | — | 409.3 | 210.6 | — | 210.6 | ||||||||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||||||
Leasehold rights | 86.4 | (51.4 | ) | 35.0 | 87.5 | (46.2 | ) | 41.3 | ||||||||||||||||
Customer relationships | 14.5 | (4.1 | ) | 10.4 | 14.5 | (1.5 | ) | 13.0 | ||||||||||||||||
Other | 39.5 | (30.7 | ) | 8.8 | 39.1 | (25.3 | ) | 13.8 | ||||||||||||||||
Total | $ | 593.4 | $ | (86.2 | ) | $ | 507.2 | $ | 403.4 | $ | (73.0 | ) | $ | 330.4 |
(1) | The change in the gross carrying amount of intangible assets from January 30, 2016 to January 28, 2017 is due to acquisitions (Note 3), impairments (Note 2), and the impact of exchange rate fluctuations. |
Shares (Millions) | Weighted- Average Grant Date Fair Value | ||||||
Nonvested shares at January 30, 2016 | 1.5 | $ | 33.77 | ||||
Granted | 0.8 | 30.27 | |||||
Vested | (0.9 | ) | 30.02 | ||||
Forfeited | (0.1 | ) | 33.14 | ||||
Nonvested shares at January 28, 2017 | 1.3 | $ | 34.31 |
Fiscal Year 2016 | Fiscal Year 2015 | |||||||||||||||||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter(1) | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter(1) | |||||||||||||||||||||||||
Net sales | $ | 1,971.5 | $ | 1,631.8 | $ | 1,959.2 | $ | 3,045.4 | $ | 2,060.6 | $ | 1,761.9 | $ | 2,016.3 | $ | 3,525.0 | ||||||||||||||||
Gross profit | 675.5 | 617.7 | 708.2 | 1,007.9 | 639.0 | 580.5 | 655.6 | 1,043.2 | ||||||||||||||||||||||||
Operating earnings | 114.0 | 58.3 | 98.8 | 286.6 | 123.9 | 51.7 | 90.7 | 381.9 | ||||||||||||||||||||||||
Net income | 65.8 | 27.9 | 50.8 | 208.7 | 73.8 | 25.3 | 55.9 | 247.8 | ||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Basic(2) | $ | 0.63 | $ | 0.27 | $ | 0.49 | $ | 2.04 | $ | 0.68 | $ | 0.24 | $ | 0.53 | $ | 2.38 | ||||||||||||||||
Diluted(2) | 0.63 | 0.27 | 0.49 | 2.04 | 0.68 | 0.24 | 0.53 | 2.36 | ||||||||||||||||||||||||
Dividend declared per common share | $ | 0.37 | $ | 0.37 | $ | 0.37 | $ | 0.37 | $ | 0.36 | $ | 0.36 | $ | 0.36 | $ | 0.36 |
(1) | The results of operations for the fourth quarter of fiscal 2016 include asset impairments of $33.8 million. The results of operations for the fourth quarter of fiscal 2015 include asset impairments of $4.6 million. |
(2) | The sum of the quarters may not necessarily be equal to the full year net income per common share amount. |
Assets acquired | |||
Merchandise inventories | $ | 13.1 | |
Prepaid expenses and other current assets | 0.2 | ||
Property and equipment | 23.9 | ||
Goodwill | 239.1 | ||
Other intangible asset — dealer agreements | 163.0 | ||
Other noncurrent assets | 6.9 | ||
Total assets acquired | 446.2 | ||
Liabilities assumed | |||
Accounts payable | 9.5 | ||
Accrued liabilities | 0.2 | ||
Total liabilities assumed | 9.7 | ||
Total estimated purchase price | $ | 436.5 |
Fiscal Year | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Minimum | $ | 437.4 | $ | 394.5 | $ | 391.4 | ||||||
Percentage rentals | 6.9 | 7.8 | 8.2 | |||||||||
Total rent expense | $ | 444.3 | $ | 402.3 | $ | 399.6 |
As of and for the Fiscal Year Ended January 28, 2017 | United States | Canada | Australia | Europe | Technology Brands | Consolidated | ||||||||||||||||||
Net sales | $ | 5,488.9 | $ | 382.0 | $ | 609.5 | $ | 1,313.5 | $ | 814.0 | $ | 8,607.9 | ||||||||||||
Segment operating earnings | 430.2 | 22.4 | 34.9 | 26.0 | 44.2 | 557.7 | ||||||||||||||||||
Interest income | 0.8 | |||||||||||||||||||||||
Interest expense | (53.8 | ) | ||||||||||||||||||||||
Earnings before income taxes | $ | 504.7 | ||||||||||||||||||||||
Other Information: | ||||||||||||||||||||||||
Goodwill | $ | 1,199.7 | $ | 28.6 | $ | 70.1 | $ | 74.8 | $ | 352.0 | $ | 1,725.2 | ||||||||||||
Other long-lived assets | 285.5 | 23.0 | 56.5 | 214.6 | 530.4 | 1,110.0 | ||||||||||||||||||
Total assets | 2,583.3 | 271.6 | 434.6 | 567.9 | 1,118.5 | 4,975.9 | ||||||||||||||||||
Income tax expense (benefit) | 140.6 | 6.0 | 7.7 | (15.1 | ) | 12.3 | 151.5 | |||||||||||||||||
Depreciation and amortization | 92.9 | 3.8 | 9.4 | 25.0 | 34.1 | 165.2 | ||||||||||||||||||
Capital expenditures | $ | 61.8 | $ | 1.3 | $ | 15.1 | $ | 25.8 | $ | 38.7 | $ | 142.7 |
As of and for the Fiscal Year Ended January 30, 2016 | United States | Canada | Australia | Europe | Technology Brands | Consolidated | ||||||||||||||||||
Net sales | $ | 6,435.1 | $ | 446.6 | $ | 591.4 | $ | 1,356.7 | $ | 534.0 | $ | 9,363.8 | ||||||||||||
Segment operating earnings | 504.3 | 29.4 | 38.7 | 48.8 | 27.0 | 648.2 | ||||||||||||||||||
Interest income | 0.4 | |||||||||||||||||||||||
Interest expense | (23.4 | ) | ||||||||||||||||||||||
Earnings before income taxes | $ | 625.2 | ||||||||||||||||||||||
Other Information: | ||||||||||||||||||||||||
Goodwill | $ | 1,195.5 | $ | 26.9 | $ | 65.7 | $ | 75.7 | $ | 112.9 | $ | 1,476.7 | ||||||||||||
Other long-lived assets | 329.9 | 17.6 | 47.0 | 200.3 | 321.3 | 916.1 | ||||||||||||||||||
Total assets | 2,698.5 | 259.2 | 382.2 | 401.7 | 588.7 | 4,330.3 | ||||||||||||||||||
Income tax expense | 195.0 | 6.1 | 8.3 | 4.1 | 8.9 | 222.4 | ||||||||||||||||||
Depreciation and amortization | 98.8 | 3.5 | 8.8 | 24.3 | 21.2 | 156.6 | ||||||||||||||||||
Capital expenditures | $ | 76.9 | $ | 4.4 | $ | 12.8 | $ | 20.2 | $ | 58.9 | $ | 173.2 |
As of and for the Fiscal Year Ended January 31, 2015 | United States | Canada | Australia | Europe | Technology Brands | Consolidated | ||||||||||||||||||
Net sales | $ | 6,193.5 | $ | 476.4 | $ | 644.7 | $ | 1,652.8 | $ | 328.6 | $ | 9,296.0 | ||||||||||||
Segment operating earnings | 483.2 | 28.3 | 38.0 | 35.9 | 32.9 | 618.3 | ||||||||||||||||||
Interest income | 0.7 | |||||||||||||||||||||||
Interest expense | (10.7 | ) | ||||||||||||||||||||||
Earnings before income taxes | $ | 608.3 | ||||||||||||||||||||||
Other Information: | ||||||||||||||||||||||||
Goodwill | $ | 1,143.3 | $ | 29.5 | $ | 72.1 | $ | 78.9 | $ | 66.6 | $ | 1,390.4 | ||||||||||||
Other long-lived assets | 324.0 | 18.4 | 46.4 | 214.1 | 185.9 | 788.8 | ||||||||||||||||||
Total assets | 2,734.4 | 252.1 | 382.5 | 527.2 | 344.2 | 4,240.4 | ||||||||||||||||||
Income tax expense (benefit) | 198.1 | 4.2 | 8.4 | (6.7 | ) | 11.2 | 215.2 | |||||||||||||||||
Depreciation and amortization | 102.5 | 3.8 | 9.6 | 30.8 | 7.7 | 154.4 | ||||||||||||||||||
Capital expenditures | $ | 92.3 | $ | 5.1 | $ | 11.2 | $ | 19.9 | $ | 31.1 | $ | 159.6 |
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Exercise Prices | Number Outstanding (Millions) | Weighted- Average Remaining Life (Years) | Weighted- Average Exercise Price | Number Exercisable (Millions) | Weighted- Average Exercise Price | |||||||||||
$20.32 - $38.52 | 0.9 | 5.26 | $ | 28.97 | 0.8 | $ | 27.88 | |||||||||
$49.95 | 0.4 | 1.02 | 49.95 | 0.4 | 49.95 | |||||||||||
$20.32 - $49.95 | 1.3 | 3.96 | $ | 35.43 | 1.2 | $ | 35.19 |
Shares (Millions) | Weighted- Average Exercise Price | ||||||
Balance, January 30, 2016 | 1.4 | $ | 35.88 | ||||
Exercised | — | 22.58 | |||||
Expired | (0.1 | ) | 47.40 | ||||
Balance, January 28, 2017 | 1.3 | 35.43 |
Fiscal Year Ending on or around January 31, | Projected Amortization Expense | |||
2018 | $ | 13.5 | ||
2019 | 11.3 | |||
2020 | 8.6 | |||
2021 | 6.0 | |||
2022 | 4.0 | |||
$ | 43.4 |
16. | Segment Information |
As of and for the Fiscal Year Ended January 28, 2017 | United States | Canada | Australia | Europe | Technology Brands | Consolidated | ||||||||||||||||||
Net sales | $ | 5,488.9 | $ | 382.0 | $ | 609.5 | $ | 1,313.5 | $ | 814.0 | $ | 8,607.9 | ||||||||||||
Segment operating earnings | 430.2 | 22.4 | 34.9 | 26.0 | 44.2 | 557.7 | ||||||||||||||||||
Interest income | 0.8 | |||||||||||||||||||||||
Interest expense | (53.8 | ) | ||||||||||||||||||||||
Earnings before income taxes | $ | 504.7 | ||||||||||||||||||||||
Other Information: | ||||||||||||||||||||||||
Goodwill | $ | 1,199.7 | $ | 28.6 | $ | 70.1 | $ | 74.8 | $ | 352.0 | $ | 1,725.2 | ||||||||||||
Other long-lived assets | 285.5 | 23.0 | 56.5 | 214.6 | 530.4 | 1,110.0 | ||||||||||||||||||
Total assets | 2,583.3 | 271.6 | 434.6 | 567.9 | 1,118.5 | 4,975.9 | ||||||||||||||||||
Income tax expense (benefit) | 140.6 | 6.0 | 7.7 | (15.1 | ) | 12.3 | 151.5 | |||||||||||||||||
Depreciation and amortization | 92.9 | 3.8 | 9.4 | 25.0 | 34.1 | 165.2 | ||||||||||||||||||
Capital expenditures | $ | 61.8 | $ | 1.3 | $ | 15.1 | $ | 25.8 | $ | 38.7 | $ | 142.7 |
As of and for the Fiscal Year Ended January 30, 2016 | United States | Canada | Australia | Europe | Technology Brands | Consolidated | ||||||||||||||||||
Net sales | $ | 6,435.1 | $ | 446.6 | $ | 591.4 | $ | 1,356.7 | $ | 534.0 | $ | 9,363.8 | ||||||||||||
Segment operating earnings | 504.3 | 29.4 | 38.7 | 48.8 | 27.0 | 648.2 | ||||||||||||||||||
Interest income | 0.4 | |||||||||||||||||||||||
Interest expense | (23.4 | ) | ||||||||||||||||||||||
Earnings before income taxes | $ | 625.2 | ||||||||||||||||||||||
Other Information: | ||||||||||||||||||||||||
Goodwill | $ | 1,195.5 | $ | 26.9 | $ | 65.7 | $ | 75.7 | $ | 112.9 | $ | 1,476.7 | ||||||||||||
Other long-lived assets | 329.9 | 17.6 | 47.0 | 200.3 | 321.3 | 916.1 | ||||||||||||||||||
Total assets | 2,698.5 | 259.2 | 382.2 | 401.7 | 588.7 | 4,330.3 | ||||||||||||||||||
Income tax expense | 195.0 | 6.1 | 8.3 | 4.1 | 8.9 | 222.4 | ||||||||||||||||||
Depreciation and amortization | 98.8 | 3.5 | 8.8 | 24.3 | 21.2 | 156.6 | ||||||||||||||||||
Capital expenditures | $ | 76.9 | $ | 4.4 | $ | 12.8 | $ | 20.2 | $ | 58.9 | $ | 173.2 |
As of and for the Fiscal Year Ended January 31, 2015 | United States | Canada | Australia | Europe | Technology Brands | Consolidated | ||||||||||||||||||
Net sales | $ | 6,193.5 | $ | 476.4 | $ | 644.7 | $ | 1,652.8 | $ | 328.6 | $ | 9,296.0 | ||||||||||||
Segment operating earnings | 483.2 | 28.3 | 38.0 | 35.9 | 32.9 | 618.3 | ||||||||||||||||||
Interest income | 0.7 | |||||||||||||||||||||||
Interest expense | (10.7 | ) | ||||||||||||||||||||||
Earnings before income taxes | $ | 608.3 | ||||||||||||||||||||||
Other Information: | ||||||||||||||||||||||||
Goodwill | $ | 1,143.3 | $ | 29.5 | $ | 72.1 | $ | 78.9 | $ | 66.6 | $ | 1,390.4 | ||||||||||||
Other long-lived assets | 324.0 | 18.4 | 46.4 | 214.1 | 185.9 | 788.8 | ||||||||||||||||||
Total assets | 2,734.4 | 252.1 | 382.5 | 527.2 | 344.2 | 4,240.4 | ||||||||||||||||||
Income tax expense (benefit) | 198.1 | 4.2 | 8.4 | (6.7 | ) | 11.2 | 215.2 | |||||||||||||||||
Depreciation and amortization | 102.5 | 3.8 | 9.6 | 30.8 | 7.7 | 154.4 | ||||||||||||||||||
Capital expenditures | $ | 92.3 | $ | 5.1 | $ | 11.2 | $ | 19.9 | $ | 31.1 | $ | 159.6 |
1. | Nature of Operations and Summary of Significant Accounting Policies |
• | In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which delays the effective date of ASU 2014-09 by one year, with the option to adopt the standard as of the original effective date. |
• | In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers, which clarifies how an entity should identify the unit of accounting (i.e. the specified good or service) for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements. |
Fiscal Year | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Beginning balance of unrecognized tax benefits | $ | 31.9 | $ | 21.4 | $ | 20.6 | ||||||
Increases related to current period tax positions | 3.5 | 4.0 | 1.0 | |||||||||
Increases related to prior period tax positions | 7.9 | 9.0 | 6.1 | |||||||||
Reductions as a result of a lapse of the applicable statute of limitations | (0.2 | ) | (1.0 | ) | (0.5 | ) | ||||||
Reductions as a result of settlements with taxing authorities | (1.0 | ) | (1.5 | ) | (5.8 | ) | ||||||
Ending balance of unrecognized tax benefits | $ | 42.1 | $ | 31.9 | $ | 21.4 |