What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2022-03-23 compared with 2021-03-29 · 417 added, 726 removed, 91 unchanged (93% of the section changed)

Management's Discussion and Analysis of Financial Condition

and Results of Operations:

The following information should

conjunction with the Consolidated

Financial Statements,

including the accompanying Notes appearing in Part

II, Item 8 of this

report on Form 10-K.

generally discusses fiscal 2020

and fiscal 2019

and year-to-year comparisons between

Discussions of

year-to-year comparisons

“Management’s

Management's Discussion and Analysis of Financial Condition and Results of

Discussion and

1 unchanged sentence

of Operations

Company’s Annual Report on Form 10-K

for the fiscal year ended February 1, 2020.

to provide information to assist readers in better

understanding and evaluating our financial condition and

generally discusses

year comparisons between fiscal

2021 and fiscal

2020, as well,

as certain fiscal

“Management’s

Condition and

Operations” in

Annual Report

for the fiscal year ended January 30, 2021.

COVID-19 Update

has adversely

Company's business,

financial condition

operating results

through fiscal

will continue

possibly beyond.

financial impacts associated

with the outbreak

include, but are

not limited to,

(i) lower net

sales in markets

affected by the

actual or potential

outbreak, whether due to

state and local

close stores,

reductions in

store traffic

demand, labor

shortages, or

factors, (ii) lower net sales caused

by the delay of inventory production and fulfillment,

incremental costs

associated with

the outbreak,

including increased

freight and logistics costs and other expenses.

by customers,

government and

adversely impact

first quarter

resulted in state and local orders mandating store closures and other measures to mitigate

the spread of the

Though the Company’s stores

were reopened in the second quarter of fiscal 2020,

they continue to

reduced hours.

Periodic increases

communities where

located may prompt

further governmental

public health

reduce public

and gatherings

adversely affect

consumer confidence.

There continues to

be significant uncertainty

regarding the breadth,

business disruptions

economy, consumer willingness to visit malls and shopping centers, and its impact

on appropriate

associate staffing levels for our stores.

preparing to return

the Company’s

pre-pandemic liquidity

by liquidating

short-term investments

repaying under

its revolving

credit facility.

implemented various

conserve cash,

suspending dividend

payments, reducing

non-committed capital

expenditures (only half of planned new stores were opened during 2020)

and reducing corporate field and

store overhead.

The Company is grateful for

associates in helping to address the

challenges created by

the pandemic.

In recognition of

these efforts and

retention, on March

Compensation Committee approved a

discretionary bonus of

$1.6 million ($1.3

of taxes) to key associates as discussed in more detail in “Other Information”

in Part II, Item 9B.

ultimately impacts the

Company’s business,

condition, results of operations, cash flows, and liquidity may differ from management’s current estimates

due to inherent uncertainties regarding the duration and further spread of the outbreak,

its severity, actions

taken to contain

treat its impact,

and how quickly

extent normal economic

operating conditions can resume.

While the Company

currently anticipates a

continuation of the

adverse impacts of

COVID-19 during

2021 and possibly

beyond, the duration

and severity of

these effects will

depend on the

course of future

developments, which are

highly uncertain, including

the relative speed

and success of,

confidence in, mitigation measures

such as the current

effort to vaccinate substantial

portions of the U.S.

population, emerging

information regarding

potential impact on

current mitigation efforts,

public attitudes toward

continued compliance with

containment and

mitigation measures, and

possible new information

and understanding that

the course and duration of current measures to combat the spread of the virus.

2021 sales remain

below pre-pandemic 2019

comparable period,

significant uncertainty

regarding the

lingering effects

transmissible or

severe, stagnant

vaccination rates

surges of the virus or otherwise impede progress toward the return to pre-pandemic

activities and levels of

continued effects of disruption in the global supply chain, inflation and its

impact on our cost of products,

transportation, wage

other operating

customers’ disposable

uncertainties

others related to

the pandemic will continue

to impact the

Company in fiscal 2022.

The adverse financial

impacts associated with

these continued effects

uncertainties related to,

the COVID-19 pandemic

conditions relating

pandemic, whether

counts, state

orders, reductions in

store traffic and

customer demand, labor shortages,

these factors, (ii)

costs and other expenses.

uncertainties

developments,

uncertainties regarding the duration

and further spread of

the outbreak or its

variants, its severity,

taken to contain the

virus or treat its impact,

and how quickly and to

what extent pre-pandemic economic

and operating conditions can resume.

Results of Operations

The table below sets forth certain financial data of the Company expressed

as a percentage of retail sales for the

years indicated:

The table below sets forth certain financial data of the Company expressed as a percentage of retail

sales for the years indicated:

Fiscal Year Ended

9 unchanged sentences

Fiscal 2021 Compared to Fiscal 2020

Retail sales decreased by 30.5% to $567.5 million

in fiscal 2020 compared to $816.2 million in fiscal 2019.

The decrease in

retail sales in

fiscal 2020 was

primarily due to

a 32% decrease

in same-store sales,

offset by sales

from new store

Retail sales increased by 34.2% to $761.4 million in fiscal 2021 compared to $567.5 million in fiscal 2020.

The increase in retail sales in fiscal 2021 was primarily

due to a 34% increase in same-store sales

new stores, partially offset by permanently closed stores in 2020.

Same-store sales

includes stores that

have been open

Stores that have been relocated or expanded

are also included in the same-store sales calculation after

they have been

2021 increased

primarily due

store operating

store closures

that persisted

March 19, 2020

into the second

quarter of 2020.

Same-store sales includes stores that have been

open more than

In fiscal 2020

and fiscal 2019,

relocated or expanded

the same-store sales

e-commerce sales were

-store sales.

of calculating

same-store sales

varies across

calculation may

comparable to

similarly titled

reported by other

Total revenues, comprised of retail sales and

other revenue (principally

charges and late

fees on customer

accounts receivable, gift card

shipping charges for

and layaway fees),

decreased by 30.3% to

$575.1 million in fiscal 2020

compared to $825.3 million

than 5% of total

sales and same-store sales.

The method of

calculating same-store sales varies across the retail

other companies.

revenues, comprised of retail sales and

other revenue (principally finance

customer accounts

receivable, gift

shipping charges

purchases and layaway

increased by 33.8%

to $769.3 million

in fiscal 2021

The Company operated 1,330

stores at January 30,

compared to $575.1

stores operated at

February 1, 2020.

Company operated 1,311

stores at January

January 30, 2021.

In fiscal 2021, the Company opened 6 new stores

and closed 25 stores.

Other revenue

decrease resulted primarily due to

decreases in finance and

layaway charges, partially offset

by an increase in

e-commerce shipping revenues.

Credit revenue of

$2.7 million represented

0.5% of total

revenue in fiscal

a $0.9 million

credit revenue

total revenue.

increase resulted

primarily due

to reductions

charge income

lower accounts

card breakage

income, e-commerce shipping

layaway charges, partially offset by a decrease in finance charges.

Credit revenue

million decrease

receivable balances.

Credit revenue is comprised of interest earned on the Company’s private label credit card

portfolio and

expenses include

principally payroll,

administrative expenses and totaled

$1.5 million in

fiscal 2020 compared

to $1.8 million

in fiscal 2019.

Consolidated Financial Statements for

a schedule of

credit-related expenses.

segment income before taxes

decreased $0.6 million to

$1.2 million in fiscal

2020 from $1.8 million

Cost of goods sold was $433.2 million, or 76.3% of retail sales, in fiscal 2020

compared to $508.9 million,

of retail sales

in fiscal 2019.

The increase in

percentage of sales

from an increase

in markdown sales due

to liquidating spring and

and deleveraging

Cost of goods sold includes

merchandise costs, net

of discounts and

allowances, buying costs, distribution

costs, occupancy costs, freight

and inventory shrinkage.

Net merchandise costs

and in-bound freight are capitalized as inventory

and distribution costs include payroll, payroll-related costs and

operating expenses for the buying departments

and distribution

expenses include rent,

taxes, insurance,

maintenance, utilities and maintenance

for stores and distribution

margin dollars (retail

sales less cost of

goods sold and excluding

depreciation) decreased by 56.3% to

Credit revenue is comprised of interest earned on the Company’s private label

administrative expenses and

to Consolidated Financial

Statements for

of credit-related

segment income before

taxes decreased $0.6

million to $0.6

million in fiscal

be comparable

administrative expenses

(“SG&A”), which

primarily include

corporate and

payroll, related payroll

benefits, insurance,

supplies, advertising, bank

card processing

fees were $206.7 million

in fiscal 2020 compared

to $263.8 million in

fiscal 2019, a decrease

percent of retail sales,

SG&A was 36.4% compared

to 32.3% in the

dollar decrease in SG&A

expense was primarily

store expenses

due to stores

being closed,

quarter, reduced store

lower corporate expenses

compensation,

from the failure

to meet targets

under the Company’s

annual incentive

plan, partially

Depreciation expense was $14.7

2021 from $1.2

million in fiscal

compared to $15.5 million

in fiscal 2019.

Depreciation expense decreased

from fiscal 2019

fully depreciated older

impairments of leasehold

improvements and fixtures,

partially offset

development and

million, or 76.3% of retail sales, in fiscal 2020.

The decrease in cost of goods sold as a percentage of sales

resulted primarily

from the leveraging of occupancy, buying and distribution costs

due to more normalized

regular priced

distribution costs include payroll, payroll-related costs and operating expenses for the buying departments

and distribution

(retail sales less cost

of goods sold and

excluding depreciation) increased by 129.5% to

$308.3 million in

fiscal 2021 from

$134.3 million in

margin as presented

comparable to that

other companies.

administrative

fees were $267.0 million in

fiscal 2021 compared to $206.7

million in fiscal 2020, an

increase of 29.2%.

retail sales,

35.1% compared

attributable to higher employee benefit/bonus expense, store productivity initiatives

store operating expenses

store operating hours

have increased

substantially compared to

year’s phased

store reopening following the

extended store closure

partially offset by

impairments of

improvements and

technology expenditures.

Interest and other income increased to

Interest and other income decreased to $2.1

million in fiscal 2021 compared to

$6.6 million in fiscal 2020.

compared to $6.1 million in fiscal

The increase is primarily due to a gain

on the sale of land held

for investment, partially offset by a decrease in

short-term investments.

The decrease is primarily due to

a gain on the sale

of land held for investment in

2020 and lower interest rates

on our short-term investments, partially

offset by an increase in short-term investments.

$25.3 million,

expense of $7.3 million, or 0.9% of retail sales in

The income tax benefit was primarily due to the

operating loss

carryback provisions

Coronavirus Aid,

Economic Security Act

(“CARES Act”) and

release of reserve

for uncertain tax

positions due to

expiration of statute

of limitations,

partially offset by

valuation allowances against

state net operating

tax losses, less

income tax credits

upward adjustment in the reserves

for uncertain tax positions specifi

to state income taxes

in the first quarter

The effective

16.9% (Expense)

See Note 12 to the Consolidated Financial

Statements, “Income Taxes,” for further details.

was primarily

uncertain tax positions due

to the expiration

of the statute

of limitations, a

favorable adjustment to

net operating loss carryback and a partial release

of valuation allowances against state net

operating losses.

effective tax rate

was 5.4% (Expense) in

fiscal 2021 compared to

34.8% (Benefit) in fiscal 2020.

to the Consolidated Financial Statements,

“Income Taxes,” for further details.

Off-Balance Sheet Arrangements

Critical Accounting Policies and Estimates

ny’s accounting

to Consolidated

As disclosed in

Notes to Consolidated Financial Statements,

the preparation of the

Company’s financial statements in conformity with generally accepted accounting principles in the

United States

(“GAAP”) requires

management to

make estimates

and assumptions

the amounts reported

in the financial

statements and accompanying

The Company’s

accounting policies are

more fully described

the Consolidated Financial

Statements, the preparation

conformity with

amounts reported

financial statements

accompanying notes.

Future events

their effects

determined with

absolute certainty.

Therefore, the

determination of

results inevitably

estimates, and

differences may be material to

the financial statements.

The most significant accounting

the preparation

Company’s financial

statements include

the allowance

credit losses, inventory

shrinkage, the calculation

of potential asset

impairment, workers’ compensation,

general and auto insurance

liabilities, reserves relating to

self-insured health insurance, and

uncertain tax

determination

credit losses,

inventory shrinkage,

the calculation

asset impairment,

workers’ compensation,

auto insurance liabilities,

reserves relating to

self-insured health insurance,

and uncertain tax

The Company’s critical accounting policies and estimates are discussed with the Audit Committee.

Allowance for Customer Credit Losses

The Company evaluates

the collectability of

customer accounts receivable

and records an

for customer credit

losses based on

the accounts receivable aging

and estimates of

Company evaluates

collectability of

customer accounts

receivable and

credit losses

receivable aging and

actual write-offs.

allowance is reviewed

for adequacy and

adjusted, as necessary,

on a quarterly

estimated uncollectible

charged based

on historical

financial results can

be impacted by

changes in customer

loss write-off

experience and the

quarterly basis.

uncollectible

financial results

customer loss

write-off experience

accounts receivable portfolio.

1 unchanged sentence

The Company’s

inventory is valued

using the weighted

-average cost method

and is stated

the weighted-average

realizable value.

Physical inventories are

conducted throughout the year to calculate

actual shrinkage and

inventory on hand.

Estimates based on actual

shrinkage results are

used to estimate

Physical inventories

are conducted throughout the

year to calculate actual

shrinkage and

actual shrinkage results

inventory shrinkage,

which is accrued

for the period

between the last

physical inventory and the

financial reporting date.

Company regularly

inventory levels

merchandise and

last physical

inventory and

the financial

reporting date.

markdowns to clear slow moving inventory.

Lease Accounting

the Financial

Accounting Standards

Board (“FASB”)

issued Accounting

Codification (“ASC”) 842

amendments issued in

requires lessees to

recognize most

which expenses

guidance modifies

the classification

accounting for sales-type and direct financing leases.

As of February 3, 2019, the Company adopted ASC 842 utilizing the modified retrospective

retrospective approach

selected provides

of transition

recognition of existing

the beginning of

the period of

adoption (i.e., February

3, 2019), and

which does not require the adjustment of comparative periods.

11 for further information.

The Company elected the transition

package of practical expedients that

is permitted by the

The package of practical expedients allows the

Company to not reassess previous accounting conclusions

regarding whether existing arrangements are or contain leases, the classification

of existing leases, and the

initial direct

the hindsight

transition practical

allowed for by the

new standard, which allows entities

to use hindsight when determining

lease term and

impairment of right-of-use assets.

The Company determines whether an arrangement is a lease at inception.

The Company has operating

have remaining

which include

terminate the

considers these

determining the

establish its

right-of-use assets

lease agreements

do not contain any material residual value guarantees or material

restrictive covenants.

determining the present value of lease payments.

See Note 11 for further information.

Impairment of Long-Lived Assets

The Company invests

in leaseholds, right-

equipment primarily in

Company invests

in leaseholds,

and equipment

connection with

1 unchanged sentence

and in computer software and hardware.

The Company periodically

reviews its store locations

and estimates the recoverability

of its long-lived assets,

Company periodically

reviews its store

locations and estimates

the recoverability of

its long-lived assets,

which primarily relate

and equipment,

Leasehold improvements,

Right-of-use assets

Lease liabilities

Information technology equipment

and software.

An impairment

which the carrying

value exceeds the

estimated fair value

when the Company

determines that projected

improvements,

carrying value

estimated fair

determines that

cash flows associated with those long-lived assets will not be sufficient to recover the carrying value.

determination is

including the

determination is based on a

number of factors, including the

store’s historical

operating results

projected cash flows, which

include future sales growth

rates, margin rates

and expense projections.

Company assesses the fair

value of each

lease by considering market

rents and any

lease terms that

adjust market rents

under certain conditions,

an anchor tenant

shopping center not

meeting certain criteria.

in determining when to

close a store,

considers real

estate development

operating results and future

projected cash flows, which include contribution margin projections.

The Company assesses the fair value

of each lease

by considering market

any lease terms

that may adjust

market rents under

conditions, such as the loss of

an anchor tenant or a leased

space in a shopping center not

meeting certain

in determining when

store, the Company considers

real estate development

perceived local

market conditions,

difficult to predict and may be subject to change.

Insurance Liabilities

self-insured for

healthcare, workers’

compensation and

general liability

These costs are significant primarily

due to the large number

of the Company’s retail

locations and

These costs are

significant primarily due to the

large number of the

Company’s retail locations

The Company’s

self-insurance liabilities are based

on the total estimated

costs of claims filed

and estimates

not reported,

reviews current

and historical

in developing

its estimates.

Company also uses information provided by outside actuaries

with respect to healthcare, workers’

self-insurance liabilities are

total estimated costs

of claims filed

compensation and general liability claims.

underlying facts and circumstances of the claims

historical experience

insurance provisions

indicative of

trends, then the

Company may be required

to make adjustments

to the provision

for insurance costs

material to the

Company’s reported

financial condition and

results of operations.

If the underlying facts and

circumstances of the claims change

make adjustments

provision for

insurance costs

financial condition

Historically,

1 unchanged sentence

Uncertain Tax Positions

The Company records

liabilities for uncertain

tax positions primarily

related to state

income taxes as

of the balance sheet date.

These liabilities reflect the Company’s

best estimate of its ultimate

liability based

regulations, and

pronouncements of

the jurisdictions

Estimating our ultimate tax liability involves significant judgments regarding the application of

complex tax reg

ulations across many

records liabilities

for uncertain

tax positions

primarily related

of the balance sheet

These liabilities reflect the

Company’s best

estimate of its ultimate

pronouncements

jurisdictions

Despite the Company’s

belief that the

estimates and

judgments are

reasonable, differences

estimated and

liabilities can

Estimating our ultimate tax liability involves significant judgments regarding the

application of

regulations across

many jurisdictions.

the estimates

from time to time.

These differences may arise from settlements of

tax audits, expiration of the statute of

limitations, or the

evolution and application of

the various jurisdictional

tax codes and

differences will be

recorded in the

period in which

they become known and

material effect

These differences may arise from settlements

of tax audits, expiration of the statute

limitations, or

the evolution

and application

various jurisdictional

and regulations.

differences will

which they become

on the results of operations in the period the adjustment is recorded.

Liquidity, Capital Resources and Market Risk

The Company believes

that its cash,

cash equivalents and

short-term investments, together

flows from operations and borrowings

available under its revolving credit

agreement, will be adequate to

fund the Company’s

regular operating requirements

and capital expenditures

for fiscal 2021

foreseeable future.

In order to preserve liquidity during

the COVID-19 pandemic and in

light of the uncertainties as

economic impact,

suspended its

quarterly dividend,

significantly reduced

planned capital

expenditures and

decreased its

furloughed associates and in

certain instances eliminated positions

primarily at the corporate

Company’s pre

-pandemic liquidity position has

enabled it to offset

the downturn in operating

since the onset of the pandemic by liquidating short-term investments and

drawing and repaying under its

revolving credit facility.

The Company will

continue to focus

on preserving liquidity

while minimizing

capital expenditures

Additionally, the

Company’s $35.0

million revolving

facility allows

Company flexibility in

managing its short-

term investments, as

quarter of 2020

when the credit markets seized during the early phases of the COVID-19

operating activities during

fiscal 2020 was

$30.7 million as

compared to $53.4

provided in fiscal 2019

and $60.2 provided in

by operating activities during

was primarily attributable

loss adjusted for

depreciation, share-based compensation, impairment

and changes in working

The decrease o

$84.1 million for fiscal

2020 compared to fiscal

net operating

lower merchandise

At January 30, 2021, the Company had working capital

of $108.6 million compared to $163.5 million

believes that

cash equivalents

and short-term

investments, together

flows from operations,

will be adequate

Company’s regular

operating requirements including

$71.3 million

obligations and

planned investments

$23.0 million

expenditures for

fiscal 2022 and for the foreseeable future.

$30.7 million used

$53.4 million

Cash provided

depreciation,

compensation, impairment and

working capital.

$90.5 million for

compared to fiscal 2020 is

due to net operating

income versus

a net operating

store impairment

At January 29, 2022, the Company had

working capital of $111.5

million compared

to $108.6 million

and $163.5 million at January

30, 2021 and February 1,

2020, respectively.

The decrease in

is primarily due

to reduction in

and lower inventories, partially

higher accounts

capital compared

to the prior year is primarily

due to higher short-term

cash equivalents,

At January 29,

the Company had an

unsecured revolving credit agreement, which

borrowings of up to $35.0 million less the

balance of any revocable letters of credit

discussed below.

revolving credit agreement is committed until

The credit agreement contains

various financial

covenants and limitations, including the maintenance of specific financial ratios

with which the Company

was in compliance as of January 30, 2021.

There were no borrowings outstanding

under this credit facility

as of the fiscal year ended January 30, 2021 or the fiscal year ended February

outstanding revocable

credit relating

commitments at

January 30, 2021, February 1, 2020 and February 2, 2019.

Expenditures for property and equipment totaled $14.0 million, $8.3 million and $4.4

million in fiscal

2020, 2019 and 2018, respectively.

The expenditures for fiscal 2020 were

primarily for additional

in 76 new stores,

2022, the Company

unsecured revolving credit

agreement, which provided

borrowings of up to $35.0 million less

the balance of any revocable

letters of credit discussed below.

revolving credit

committed until

new revolving credit

agreement and expects this

to be completed

The credit agreement

contains various financial covenants and limitations, including the maintenance of specific financial ratios

outstanding under this credit

facility as of

the fiscal year ended

January 29, 2022

or the fiscal

January 30, 2021.

January 29, 2022, January 30, 2021 and February 1, 2020.

Expenditures for property and equipment totaled $4.1 million, $14.0

million and $8.3 million in fiscal

respectively.

and information

In fiscal 2021, the

is planning to invest approximately $3.0 million in capital expenditures.

investing activities

totaled $25.3

million used for fiscal

2019 and $71.1 million used

in fiscal 2018.

In fiscal 2020, the

cash provided was

primarily attributable

to the increase in net sales of short-term investments,

offset by expenditures

$64.5 million

attributable to the

net purchases of

short-term investments, partially offset by lower

and equipment.

Net cash used by financing activities totaled $31.8 million in fiscal 2021 compared to net cash used of

$41.6 million for

fiscal 2019 and

$45.2 million for

was primarily

$27.2 million for fiscal 2020 and $41.6 million for fiscal 2019.

The Company does not use derivative financial instruments.

Measurements,” for

information regarding the

Company’s financial

Measurements,”

that are measured at fair value.

The Company’s

investment portfolio

was primarily invested

bonds and tax-

taxable governmental debt

securities held in

managed accounts with

underlying ratings of

January 30, 2021.

The state, municipal

and corporate bonds and

asset-backed securities have contractual

maturities which range

from two days

to 7.5 years.

Notes and Certificates

have contractual maturities

which range from

three months to

These securities are classified

available-for-sale

and are recorded as Short

-term investments,

cash, Restricted

and Other assets

on the accompanying

fair value with

primarily invested

taxable governmental

debt securities

managed accounts

with underlying

state, municipal

and corporate bonds

and asset-backed securities

have contractual

maturities which range from three

days to 4.9 years.

Treasury Notes have

contractual maturities

These securities

classified as

available-for-sale and are

recorded as Short-term investments,

Restricted cash, Restricted

short-term investments

and Other assets on

the accompanying

Balance Sheets.

These assets are carried at fair value with unrealized

in Accumulated

other comprehensive

The asset-backed

of auto loans

bonds comprised of

credit cards that

loan asset-backed

by captive auto

units, banks or

The bank credit

card asset-backed

card receivables

JPMorgan Chase,

Additionally, at

equities, which

recorded within Other assets in the Consolidated Balance

At February 1, 2020, the Company had

equities, which are

recorded within

Consolidated Balance

are measured at

fair value using

market prices.

are backed by static pools of auto loans that were originated

and serviced by captive auto finance

finance companies.

asset-backed securities are backed by

receivables generated by account holders

American Express, Citibank,

Additionally,

recorded within Other assets in the

Consolidated Balance Sheets.

At January 30, 2021, the Company had

category securities

and municipal

not be available

active exchanges

for identical

value is principally

market values

by management with assistance of a third-party pricing service.

Since quoted prices in active markets for

by management with assistance of a

third-party pricing service.

Since quoted prices in

active markets for

identical assets

are not available,

are determined

by the pricing

these prices are determined

by the pricing service

using observable

such as quotes from less active markets

and/or quoted

of securities

characteristics,

Deferred compensation plan

assets consist

primarily of life

insurance policies.

other factors.

compensation plan

policies are valued based on the cash surrender value of the insurance contract, which is determined based

the underlying

discounted cash

are therefore

classified within Level 3 of the valuation hierarchy.

The Level 3 liability associated with the life

insurance policies

deferred compensat

ion obligation,

underlying insurance

Other noncurrent

liabilities in

Consolidated Balance Sheets.

These funds are designed

to mirror the return

of existing mutual funds

These funds are

designed to mirror

the return of

existing mutual funds

money market funds that are observable and actively traded.

The following table shows the Company's obligations and commitments

as of January 30, 2021,

to make future payments under noncancellable contractual obligations

(in thousands):

Payments Due During One Year Fiscal Period Ending

Contractual Obligations

commitments for

store leases.

Operating leases

Total Contractual Obligations

(1) In addition to the amounts shown in the table above, $5.9 million of unrecognized tax benefits have been recorded

as liabilities in accordance

with ASC 740 and we are uncertain if or when such amounts may

See Note 12, Income Taxes, of the Consolidated Financial

Statements for additional information.

represent minimum

required lease

payments under

taxes, utilities, insurance and maintenance, which are not included in our estimated lease obligations.

lease obligations.

Recent Accounting Pronouncements

See Note 1, Summary of Significant

Accounting Policies, Recently Adopted Accounting Policies and

1, Summary of

Significant Accounting Policies,

Recently Adopted Accounting

Recently Issued Accounting Pronouncements.

Quantitative and Qualitative Disclosures About Market Risk:

from exposure

financing, investing and cash

management activities, but the

Company does not believe

such exposure is

financing, investing and

cash management activities,

but the Company

believe such exposure

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis