Restoration Hardware 2012 Annual Report Download - page 104

general and administrative expenses and net income (loss) for all periods presented. The table below
presents the impact to our net income (loss) as a result of this change in accounting policy. The impact to
fiscal 2009 was immaterial and there was no impact for years prior to 2009. See Note 3—Change in
Accounting Principle—Stock-Based Compensation to our audited consolidated financial statements.
Year Ended
January 28,
2012
January 29,
2011
(in thousands)
Net income (loss)—as reported $20,341 $(8,074)
Change in accounting policy adjustment 247 1,023
Net income (loss)—as revised $20,588 $(7,051)
(2) As of the end of fiscal 2012, our U.S. operations achieved a position of cumulative profits (adjusted for
permanent differences) for the most recent three-year period. We concluded that this record of cumulative
profitability in recent years, coupled with our business plan for profitability in future periods, provided
assurance that our future tax benefits more likely than not would be realized. Accordingly, in the three and
twelve months ended February 2, 2013, we released all of our U.S. valuation allowance of $57.2 million
against net deferred tax assets.
(3) Stores data represents retail stores plus outlet stores.
(4) Retail data has been calculated based upon our retail stores, and excludes our outlet stores.
(5) Comparable store sales have been calculated based upon retail stores that were open at least fourteen full
months as of the end of the reporting period and did not change square footage by more than 20% between
periods. If a store is closed for seven days during a month, that month will be excluded from comparable
store sales. Comparable store net revenues exclude revenues from outlet stores. Because fiscal 2012 was a
53-week year, comparable store sales percentage for fiscal 2012 excludes the extra week of sales.
(6) Leased selling square footage is retail space at our stores used to sell our products. Leased selling square
footage excludes backrooms at retail stores used for storage office space or similar matters. Leased selling
square footage excludes exterior sales space located outside a store, such as courtyards, gardens and
rooftops. Leased selling square footage for fiscal 2012, fiscal 2011 and fiscal 2010 includes approximately
4,500 square feet related to one owned store location.
(7) Retail sales per leased selling square foot is calculated by dividing total net revenues for all retail stores,
comparable and non-comparable, by the average leased selling square footage for the period.
Average leased selling square footage for the 2008 Predecessor period is calculated by adding the average leased
selling square footage for the first quarter of the year ended January 31, 2009, and for the period May 4, 2008,
through June 16, 2008, and dividing by two. Average leased selling square footage for the period May 4, 2008,
through June 16, 2008, is calculated by taking the total leased selling square footage at the beginning of the period
plus the total leased selling square footage at the end of the period and dividing by two.
Average leased selling square footage for the 2008 Successor period is calculated by adding the average
leased selling square footage for three periods, being the period June 17, 2008, through August 2, 2008, the
third quarter of the year ending January 31, 2009, and the fourth quarter of the year ended January 31, 2009,
and dividing by three. Average leased selling square footage for the period June 17, 2008, through August 2,
2008, is calculated by taking the total leased selling square footage at the beginning of the period plus the
total leased selling square footage at the end of the period and dividing by two.
(8) The catalogs and catalog pages circulated from period to period do not take into account different page sizes
per catalog distributed. Page sizes and page counts vary for different catalog mailings and we sometimes
mail different versions of a catalog at the same time. Accordingly, period to period comparisons of catalogs
circulated and catalog pages circulated do not take these variations into account.
(9) Direct revenues include sales through our catalogs and websites.
(10) EBITDA and adjusted EBITDA are supplemental measures of financial performance that are not required
by, or presented in accordance with, GAAP. We define EBITDA as consolidated net income (loss) before
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