Restoration Hardware 2014 Annual Report Download - page 47

January 31,
2015
February 1,
2014
February 2,
2013
January 28,
2012
January 29,
2011
(in thousands)
Balance Sheet Data:
Cash and cash equivalents $ 148,934 $ 13,389 $ 8,354 $ 8,512 $ 13,364
Working capital (excluding cash and cash
equivalents) (10) 419,136 284,785 267,905 156,506 103,894
Total assets 1,525,999 1,025,103 789,613 586,810 501,991
Convertible senior notes 287,487 — — — —
Revolving line of credit — 85,425 82,501 107,502 111,837
Term loan — — — 14,798 —
Financing obligations under build-to-suit lease
transactions 124,770 33,165 — — —
Notes payable for share repurchases 19,285 2,710 — — —
Total debt (including current portion) (11) 439,284 123,496 87,029 131,040 116,995
Total stockholders’ equity 702,916 545,272 451,611 250,463 215,804
(1) 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 year
ended February 2, 2013, we released all of our U.S. valuation allowance of $57.2 million against net
deferred tax assets.
(2) Direct revenues include sales through our Source Books and websites.
(3) Stores data represents retail stores plus outlet stores.
(4) Comparable brand revenue growth includes retail comparable store sales, including Baby & Child
Galleries, and direct net revenues. Comparable brand revenue growth excludes retail non-comparable store
sales, closed store sales and outlet store net revenues. Comparable store sales have been calculated based
upon retail stores, excluding outlet 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. Because fiscal
2012 was a 53-week year, comparable brand revenue growth percentage for fiscal 2012 excludes the extra
week of revenue.
(5) Retail data has been calculated based upon retail stores, which includes our Baby & Child Galleries and
excludes outlet stores.
(6) 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.
(7) 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, as well as
exterior sales space located outside a store, such as courtyards, gardens and rooftops. Leased selling square
footage for fiscal 2011 through fiscal 2014 includes approximately 4,500 square feet related to one owned
store location.
(8) Average square footage (leased or leased selling, as applicable) is calculated for each quarter by taking the
total applicable square footage at the beginning of the quarter plus the total applicable square footage at the
end of the quarter and dividing by two. Average square footage for periods of six, nine and twelve months
is calculated by averaging the average square footage for the quarters within such periods.
(9) Adjusted net income is a supplemental measure of financial performance that is not required by, or
presented in accordance with, generally accepted accounting principles (“GAAP”). We define adjusted net
income as consolidated net income (loss), adjusted for the impact of certain non-recurring and other items
that we do not consider representative of our ongoing operating performance. Adjusted net income is
included in this filing because management believes that adjusted net income provides meaningful
supplemental information for investors regarding the performance of our business and facilitates a
meaningful evaluation of actual results on a comparable basis with historical results. Our management uses
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