What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2020-12-10 compared with 2020-09-08 · 94 added, 88 removed, 573 unchanged (24% of the section changed)

57 unchanged sentences

Amounts in thousands, except per share amounts)

Quarter Ended Two Quarters Ended

August 2, 2020 August 4, 2019 August 2, 2020 August 4, 2019

Quarter Ended Three Quarters Ended

November 1, 2020 November 3, 2019 November 1, 2020 November 3, 2019

Net revenue $ 1,117,426 $ 916,138 $ 2,672,330 $ 2,581,805

20 unchanged sentences

Amounts in thousands)

Quarter Ended August 2, 2020

Quarter Ended November 1, 2020

Exchangeable Stock Special Voting Stock Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total

Shares Shares Par Value Shares Par Value

Balance at May 3, 2020 5,482 5,482 $ — 124,717 $ 624 $ 334,201 $ 1,786,147 $ ( 285,185 ) $ 1,835,787

Balance at August 2, 2020 5,393 5,393 $ — 124,917 $ 625 $ 358,414 $ 1,872,948 $ ( 230,885 ) $ 2,001,102

Net income 143,643 143,643

4 unchanged sentences

Shares withheld related to net share settlement of stock-based compensation ( 3 ) ( 1 ) ( 925 ) ( 926 )

Balance at August 2, 2020 5,393 5,393 $ — 124,917 $ 625 $ 358,414 $ 1,872,948 $ ( 230,885 ) $ 2,001,102

Quarter Ended August 4, 2019

Balance at November 1, 2020 5,216 5,216 $ — 125,121 $ 626 $ 374,352 $ 2,016,591 $ ( 228,616 ) $ 2,162,953

Quarter Ended November 3, 2019

Exchangeable Stock Special Voting Stock Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total

Shares Shares Par Value Shares Par Value

Balance at May 5, 2019 7,381 7,381 $ — 122,900 $ 615 $ 317,204 $ 1,281,432 $ ( 232,531 ) $ 1,366,720

Balance at August 4, 2019 7,381 7,381 $ — 122,921 $ 615 $ 329,915 $ 1,404,866 $ ( 228,017 ) $ 1,507,379

Net income 125,982 125,982

Foreign currency translation adjustment 9,880 9,880

Common stock issued upon exchange of exchangeable shares ( 421 ) ( 421 ) — 421 2 ( 2 ) —

Stock-based compensation expense 14,065 14,065

2 unchanged sentences

Repurchase of common stock ( 44 ) — ( 66 ) ( 7,927 ) ( 7,993 )

Balance at August 4, 2019 7,381 7,381 $ — 122,921 $ 615 $ 329,915 $ 1,404,866 $ ( 228,017 ) $ 1,507,379

Two Quarters Ended August 2, 2020

Balance at November 3, 2019 6,960 6,960 $ — 123,336 $ 617 $ 343,335 $ 1,522,921 $ ( 218,137 ) $ 1,648,736

Three Quarters Ended November 1, 2020

Exchangeable Stock Special Voting Stock Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total

8 unchanged sentences

Repurchase of common stock ( 369 ) ( 2 ) ( 539 ) ( 63,122 ) ( 63,663 )

Balance at August 2, 2020 5,393 5,393 $ — 124,917 $ 625 $ 358,414 $ 1,872,948 $ ( 230,885 ) $ 2,001,102

Two Quarters Ended August 4, 2019

Balance at November 1, 2020 5,216 5,216 $ — 125,121 $ 626 $ 374,352 $ 2,016,591 $ ( 228,616 ) $ 2,162,953

Three Quarters Ended November 3, 2019

Exchangeable Stock Special Voting Stock Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total

8 unchanged sentences

Repurchase of common stock ( 1,054 ) ( 5 ) ( 1,543 ) ( 171,544 ) ( 173,092 )

Balance at August 4, 2019 7,381 7,381 $ — 122,921 $ 615 $ 329,915 $ 1,404,866 $ ( 228,017 ) $ 1,507,379

Balance at November 3, 2019 6,960 6,960 $ — 123,336 $ 617 $ 343,335 $ 1,522,921 $ ( 218,137 ) $ 1,648,736

See accompanying notes to the unaudited interim consolidated financial statements

2 unchanged sentences

Amounts in thousands)

Two Quarters Ended

August 2, 2020 August 4, 2019

Three Quarters Ended

November 1, 2020 November 3, 2019

Cash flows from operating activities

7 unchanged sentences

Prepaid and receivable income taxes ( 83,113 ) ( 77,330 )

Prepaid expenses and other current and non-current assets ( 76,811 ) ( 45,539 )

Prepaid expenses and other current assets ( 66,778 ) ( 47,660 )

Other non-current assets ( 36,419 ) ( 15,447 )

Accounts payable 73,596 21,085

45 unchanged sentences

It also generates net revenue from outlets, sales from temporary locations, sales to wholesale accounts, and license and supply arrangements.

The Company operates stores in the United States, Canada, the People's Republic of China ("PRC"), Australia, the United Kingdom, Japan, Germany, New Zealand, South Korea, Singapore, France, Malaysia, Sweden, Ireland, the Netherlands, Norway, and Switzerland.

There were 506 and 491 company-operated stores in operation as of August 2, 2020 and February 2, 2020, respectively.

The Company had 515 and 491 company-operated stores as of November 1, 2020 and February 2, 2020, respectively.

On July 7, 2020, the Company acquired Curiouser Products Inc., dba MIRROR, ("MIRROR") which has been consolidated from the date of acquisition.

6 unchanged sentences

The stores in Mainland China reopened during the first quarter of fiscal 2020, and stores in other markets began reopening in accordance with local government and public health authority guidelines during the second quarter of fiscal 2020.

Almost all of the Company's stores were open during the third quarter of fiscal 2020.

The Company's stores are operating with restrictive measures in place such as reduced operating hours and limited occupancy levels.

As of August 2, 2020, 492 of its company-operated stores were open.

The Company's distribution centers in Columbus, Ohio and Sumner, Washington were temporarily closed for one and two weeks, respectively, during the first quarter of fiscal 2020 due to COVID-19.

In response to COVID-19, various government programs have been announced to provide financial relief for affected businesses.

Subsequent to November 1, 2020, while almost all of the Company's retail locations have remained open, it has experienced some temporary closures and is currently operating with tighter capacity restrictions in certain markets.

In response to the COVID-19 pandemic, various government programs have been announced which provide financial relief for affected businesses.

The most significant relief measures which the Company qualifies for are the Employee Retention Credit under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") in the United States, and the Canada Emergency Wage Subsidy ("CEWS") under the COVID-19 Economic Response Plan in Canada.

During the first two quarters of fiscal 2020, the Company recognized payroll subsidies totaling $ 35.5 million under these wage subsidy programs and similar plans in other jurisdictions.

During the third quarter of fiscal 2020 and the first three quarters of fiscal 2020, the Company recognized payroll subsidies totaling $ 1.4 million and $ 37.0 million, respectively, under these wage subsidy programs and similar plans in other jurisdictions.

These subsidies were recorded as a reduction in the associated wage costs which the Company incurred, and were recognized in selling, general and administrative expenses.

The Company also qualifies for and has deferred certain corporate income tax payments and employer payroll tax payments.

The most significant is the deferral of $ 127.5 million of Canadian corporate income tax payments which would otherwise have been paid during the first and second quarters of fiscal 2020 to the third quarter of fiscal 2020.

The Financial Accounting Standards Board ("FASB") staff issued guidance in April 2020 in relation to accounting for lease concessions made in connection with the effects of COVID-19.

The Company also deferred certain corporate income tax payments and employer payroll tax payments.

The most significant was the deferral of $ 127.5 million of Canadian corporate income tax payments from the first and second quarters of fiscal 2020 to the third quarter of fiscal 2020.

The Canadian corporate income payments during the third quarter of fiscal 2020 removed the balance previously included within income taxes payable on the consolidated balance sheets and resulted in a balance being recognized within prepaid and receivable income taxes on the consolidated balance sheets.

The Financial Accounting Standards Board ("FASB") issued guidance in April 2020 in relation to accounting for lease concessions made in connection with the effects of COVID-19.

In accordance with this guidance, the Company has elected to treat COVID-19-related lease concessions as variable lease payments.

The Company is actively negotiating commercially reasonable lease concessions.

No significant lease concessions were recognized in the first two quarters of fiscal 2020.

Temporary store closures as a result of COVID-19 and associated reduction in operating income during the first two quarters of fiscal 2020 are considered to be an indicator of impairment and the Company performed an assessment of recoverability for the long-lived assets and right-of-use assets associated with closed retail locations.

Lease concessions of $ 2.4 million and $ 5.5 million were recognized during the third quarter of fiscal 2020 and the first three quarters of fiscal 2020, respectively.

Temporary closures as a result of COVID-19 and associated reduction in operating income during the first two quarters of fiscal 2020 were considered to be an indicator of impairment and the Company performed an assessment of recoverability

for the long-lived assets and right-of-use assets associated with closed retail locations.

In the first quarter of fiscal 2020, the Company recognized an insignificant impairment charge as a result of this analysis.

Revenue is presented net of an allowance for expected returns, which is estimated based on historic return rates, trends, considering shifts towards increased online shopping by guests, and future expectations.

In light of the store closures, the

Company has extended its return policy.

The increase in the sales return allowance reflects the higher proportion of direct to consumer net revenue and anticipated delays in returns as a result of reduced capacity at retail location and closures.

The increase in the sales return allowance reflects the higher proportion of direct to consumer net revenue and anticipated delays in returns as a result of reduced capacity at retail locations.

The COVID-19 pandemic has materially impacted the Company's operations.

The extent to which COVID-19 continues to impact the Company's operations, and in turn, its operating results and financial position will depend on future developments, which are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity of COVID-19 and the actions taken to contain it or treat its impact.

Continued proliferation of the virus, or resurgence, may result in further or prolonged closures of its retail locations and distribution centers, reduce operating hours, interrupt the Company's supply chain, cause changes in guest behavior, and reduce discretionary spending.

Continued proliferation of the virus, or resurgence, may result in further or prolonged closures of the Company's retail locations and distribution centers, reduce operating hours, interrupt the Company's supply chain, cause changes in guest behavior, and reduce discretionary spending.

Such factors could result in the impairment of long-lived assets and right-of-use assets and the need for an increased provision against the carrying value of the Company's inventories.

Basis of presentation

The unaudited interim consolidated financial statements as of August 2, 2020 and for the quarters and two quarters ended August 2, 2020 and August 4, 2019 are presented in United States dollars and have been prepared by the Company under the rules and regulations of the Securities and Exchange Commission ("SEC").

The unaudited interim consolidated financial statements as of November 1, 2020 and for the quarters and three quarters ended November 1, 2020 and November 3, 2019 are presented in United States dollars and have been prepared by the Company under the rules and regulations of the Securities and Exchange Commission ("SEC").

The financial information is presented in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and, accordingly, does not include all of the information and footnotes required by GAAP for complete financial statements.

The financial information as of February 2, 2020 is derived from the Company's audited consolidated financial statements and related notes for the fiscal year ended February 2, 2020, which are included in Item 8 in the Company's fiscal 2019 Annual Report on Form 10-K filed with the SEC on March 26, 2020.

The financial information as of February 2, 2020 is derived from the Company's audited consolidated financial statements and related notes for the fiscal year ended February 2, 2020, which are includ ed in Item 8 in the Company's fiscal 2019 Annual Report on Form 10-K filed with the SEC on March 26, 2020.

These unaudited interim consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented.

These unaudited interim consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and related notes included in Item 8 in the Company's fiscal 2019 Annual Report on Form 10-K.

Changes in the significant accounting policies of the Company compared to those described in the Company's fiscal 2019 Annual Report on Form 10-K as a result of the acquisition of MIRROR are described below, and Note 2 sets out the impact of recent accounting pronouncements.

Changes in the significant accounting policies of the Company compared to those described in the Company's fiscal 2019 Annual Report on Form 10-K adopted as a result of the acquisition of MIRROR are described below, and Note 2 sets out the impact of recent accounting pronouncements.

The Company's fiscal year ends on the Sunday closest to January 31 of the following year, typically resulting in a 52-week year, but occasionally giving rise to an additional week, resulting in a 53-week year.

13 unchanged sentences

Goodwill and intangible assets

Acquired finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, and are reviewed for impairment when events or circumstances indicate that the asset group to which the intangible assets belong might be impaired.

The Company revises the estimated remaining useful life of these assets when events or changes in circumstances warrant a revision.

55 unchanged sentences

Goodwill relates to benefits expected as a result of the acquisition to MIRROR's business and has been allocated to the MIRROR reporting unit within the Company's other channels.

None of the goodwill is expected to be deductible for income tax purposes.

No ne of the goodwill is expected to be deductible for income tax purposes.

The Company assigned a fair value to and estimated useful lives for the intangible assets acquired as part of the MIRROR business combination.

20 unchanged sentences

Quarter Ended

August 2, 2020 Two Quarters Ended

August 2, 2020

November 1, 2020 Three Quarters Ended

November 1, 2020

(in thousands)

5 unchanged sentences

Income tax effects of acquisition-related expenses $ ( 896 ) $ ( 2,862 )

In the first two quarters of fiscal 2020, the Company recognized an expense of $ 2.9 million for the partial acceleration of vesting of certain stock options held by MIRROR employees, and recognized $ 2.1 million related to deferred consideration.

In the first three quarters of fiscal 2020, the Company recognized $ 9.7 million related to deferred consideration, and recognized an expense of $ 2.9 million for the partial acceleration of vesting of certain stock options held by MIRROR employees.

The Company will recognize a total expense of $ 57.1 million for deferred consideration which is due to certain continuing MIRROR employees, subject to the continued employment of those individuals through various vesting dates up to three years from the acquisition date.

6 unchanged sentences

Effect of foreign currency translation ( 42 )

Balance as of August 2, 2020 $ 386,593

Balance as of November 1, 2020 $ 386,632

INTANGIBLE ASSETS, NET

The carrying value of intangible assets, and their estimated remaining useful lives as of August 2, 2020 were as follows:

The carrying value of intangible assets, and their estimated remaining useful lives as of November 1, 2020 were as follows:

2020 February 2,

15 unchanged sentences

The Company is required to follow certain covenants.

As of August 2, 2020, the Company was in compliance with these covenants.

The Company had no borrowings outstanding under this credit facility as of August 2, 2020 and February 2, 2020.

As of August 2, 2020, the Company had letters of credit of $ 2.3 million outstanding.

As of November 1, 2020, the Company was in compliance with these covenants.

The Company had no borrowings outstanding under this credit facility as of November 1, 2020 and February 2, 2020.

As of November 1, 2020, the Company had letters of credit of $ 2.7 million outstanding.

Mainland China revolving credit facility

6 unchanged sentences

The Company is required to follow certain covenants.

As of August 2, 2020, the Company was in compliance with these covenants.

As of August 2, 2020, there were no borrowings outstanding under this credit facility.

As of November 1, 2020, the Company was in compliance with these covenants.

As of November 1, 2020, there were no borrowings outstanding under this credit facility.

364-Day revolving credit facility

11 unchanged sentences

If an event of default occurs, the credit agreement may be terminated, and the maturity of any outstanding amounts may be accelerated.

As of August 2, 2020, the Company was in compliance with the covenants.

As of August 2, 2020, there were no borrowings outstanding under this credit facility.

As of November 1, 2020, the Company was in compliance with the covenants.

As of November 1, 2020, there were no borrowings outstanding under this credit facility.

On December 4, 2020, the Company gave notice to terminate this 364-day unsecured revolving credit facility.

It will be terminated without penalty on December 11, 2020.

STOCK-BASED COMPENSATION AND BENEFIT PLANS

1 unchanged sentence

The Company's eligible employees participate in various stock-based compensation plans, which are provided by the Company directly.

Stock-based compensation expense charged to income for the plans was $ 24.9 million and $ 23.5 million for the two quarters ended August 2, 2020 and August 4, 2019, respectively.

Total unrecognized compensation cost for all stock-based compensation plans was $ 95.5 million at August 2, 2020, which is expected to be recognized over a weighted-average period of 2.2 years.

A summary of the balances of the Company's stock-based compensation plans as of August 2, 2020, and changes during the first two quarters then ended, is presented below:

Stock-based compensation expense charged to income for the plans was $ 41.9 million and $ 35.7 million for the three quarters ended November 1, 2020 and November 3, 2019, respectively.

Total unrecognized compensation cost for all stock-based compensation plans w as $ 86.1 million at November 1, 2020, which is expected to be recognized over a weighted-average period of 2.1 years.

A summary of the balances of the Company's stock-based compensation plans as of November 1, 2020, and changes during the first three quarters then ended, is presented below:

Stock Options Performance-Based Restricted Stock Units Restricted Shares Restricted Stock Units Restricted Stock Units

6 unchanged sentences

Forfeited/expired 26 157.71 7 158.76 — — 10 163.30 — —

Balance at August 2, 2020 838 $ 134.68 196 $ 145.13 4 $ 296.36 278 $ 157.64 29 $ 325.59

Exercisable at August 2, 2020 175 $ 100.92

Balance at November 1, 2020 820 $ 137.49 198 $ 146.25 4 $ 296.36 278 $ 164.21 15 $ 319.29

Exercisable at November 1, 2020 176 $ 107.43

The grant date fair value of each stock option granted is estimated on the date of grant using the Black-Scholes model.

4 unchanged sentences

Treasury yield curve for the period corresponding with the expected term of the options.

The following are weighted averages of the assumptions that were used in calculating the fair value of stock options granted during the first two quarters of fiscal 2020:

Two Quarters Ended

August 2, 2020

The following are weighted averages of the assumptions that were used in calculating the fair value of stock options granted during the first three quarters of fiscal 2020:

Three Quarters Ended

November 1, 2020

Expected term 3.61 years

13 unchanged sentences

All shares purchased under the ESPP are purchased in the open market.

During the quarter ended August 2, 2020, there were 14.9 thousand shares purchased.

During the quarter ended November 1, 2020, there were 16.0 thousand shares purchased.

Defined contribution pension plans

The Company offers defined contribution pension plans to its eligible employees.

Participating employees may elect to defer and contribute a portion of their eligible compensation to a plan up to limits stated in the plan documents, not to exceed

the dollar amounts set by applicable laws.

Participating employees may elect to defer and contribute a portion of their eligible compensation to a plan up to limits stated in the plan documents, not to exceed the dollar amounts set by applicable laws.

The Company matches 50 % to 75 % of the contribution depending on the participant's length of service, and the contribution is subject to a two year vesting period.

The Company's net expense for the defined contribution plans was $ 4.5 million and $ 4.3 million in the first two quarters of fiscal 2020 and fiscal 2019, respectively.

The Company's net expense for the defined contribution plans was $ 6.7 million and $ 6.4 million in the first three quarters of fiscal 2020 and fiscal 2019, respectively.

FAIR VALUE MEASUREMENT

6 unchanged sentences

The fair value measurement is categorized in its entirety by reference to its lowest level of significant input.

As of August 2, 2020 and February 2, 2020, the Company held certain assets and liabilities that are required to be measured at fair value on a recurring basis:

August 2, 2020 Level 1 Level 2 Level 3 Balance Sheet Classification

As of November 1, 2020 and February 2, 2020, the Company held certain assets and liabilities that are required to be measured at fair value on a recurring basis:

November 1, 2020 Level 1 Level 2 Level 3 Balance Sheet Classification

(In thousands)

31 unchanged sentences

Hedge effectiveness is measured using a method based on changes in forward exchange rates.

The Company recorded no ineffectiveness from net investment hedges during the first two quarters of fiscal 2020.

The Company recorded no ineffectiveness from net investment hedges during the first three quarters of fiscal 2020.

The Company classifies the cash flows at settlement of its net investment hedges within investing activities in the consolidated statements of cash flows.

4 unchanged sentences

The resulting foreign currency gains and losses are recorded in selling, general and administrative expenses.

During the first two quarters of fiscal 2020, the Company entered into certain forward currency contracts designed to economically hedge the foreign exchange revaluation gains and losses that are recognized by its Canadian and Chinese subsidiaries on U.S.

During the first three quarters of fiscal 2020, the Company entered into certain forward currency contracts designed to economically hedge the foreign exchange revaluation gains and losses that are recognized by its Canadian and Chinese subsidiaries on U.S.

dollar denominated monetary assets and liabilities.

4 unchanged sentences

However, the Company's Master International Swap Dealers Association, Inc., Agreements and other similar arrangements allow net settlements under certain conditions.

As of August 2, 2020, there were derivative assets of $ 6.5 million and derivative liabilities of $ 6.6 million subject to enforceable netting arrangements.

As of November 1, 2020, there were derivative assets of $ 7.5 million and derivative liabilities of $ 9.7 million subject to enforceable netting arrangements.

The notional amounts and fair values of forward currency contracts were as follows:

August 2, 2020 February 2, 2020

November 1, 2020 February 2, 2020

Gross Notional Assets Liabilities Gross Notional Assets Liabilities

6 unchanged sentences

Forward currency contracts $ 7,491 $ 9,688 $ 1,735 $ 1,920

The forward currency contracts designated as net investment hedges outstanding as of August 2, 2020 mature on different dates between August 2020 and February 2021.

The forward currency contracts not designated in a hedging relationship outstanding as of August 2, 2020 mature on different dates between August 2020 and January 2021.

The forward currency contracts designated as net investment hedges outstanding as of November 1, 2020 mature on different dates between November 2020 and April 2021.

The forward currency contracts not designated in a hedging relationship outstanding as of November 1, 2020 mature on different dates between November 2020 and April 2021.

The pre-tax gains and losses on foreign exchange forward contracts recorded in accumulated other comprehensive income or loss were as follows:

Quarter Ended Two Quarters Ended

August 2, 2020 August 4, 2019 August 2, 2020 August 4, 2019

Quarter Ended Three Quarters Ended

November 1, 2020 November 3, 2019 November 1, 2020 November 3, 2019

(In thousands)

3 unchanged sentences

The pre-tax net foreign exchange and derivative gains and losses recorded in the consolidated statement of operations were as follows:

Quarter Ended Two Quarters Ended

August 2, 2020 August 4, 2019 August 2, 2020 August 4, 2019

Quarter Ended Three Quarters Ended

November 1, 2020 November 3, 2019 November 1, 2020 November 3, 2019

(In thousands)

10 unchanged sentences

The details of the computation of basic and diluted earnings per share are as follows:

Quarter Ended Two Quarters Ended

August 2, 2020 August 4, 2019 August 2, 2020 August 4, 2019

Quarter Ended Three Quarters Ended

November 1, 2020 November 3, 2019 November 1, 2020 November 3, 2019

(In thousands, except per share amounts)

8 unchanged sentences

All classes of stock have, in effect, the same rights and share equally in undistributed net income.

For the two quarters ended August 2, 2020 and August 4, 2019, 58.2 thousand and 75.1 thousand stock options and awards, respectively, were anti-dilutive to earnings per share and therefore have been excluded from the computation of diluted earnings per share.

For the three quarters ended November 1, 2020 and November 3, 2019, 40.2 thousand and 63.0 thousand stock options and awards, respectively, were anti-dilutive to earnings per share and therefore have been excluded from the computation of diluted earnings per share.

On January 31, 2019, the Company's board of directors approved a stock repurchase program for up to $ 500.0 million of the Company's common shares on the open market or in privately negotiated transactions.

1 unchanged sentence

The timing and actual number of common shares to be repurchased will depend upon market conditions, eligibility to trade, and other factors, in accordance with Securities and Exchange Commission requirements.

As of March 31, 2020, the Company temporarily paused its share repurchase program.

As of August 2, 2020, the remaining aggregate value of shares available to be repurchased under this program was $ 263.6 million.

During the two quarters ended August 2, 2020 and August 4, 2019, 0.4 million and 1.0 million shares, respectively, were repurchased under the program at a total cost of $ 63.7 million and $ 165.1 million, respectively.

Subsequent to August 2, 2020, and up to September 1, 2020, no shares were repurchased.

As of March 31, 2020, the Company temporarily paused its share repurchase program, which has restarted again as of September 22, 2020.

As of November 1, 2020, the remaining aggregate value of shares available to be repurchased under this program was $ 263.6 million.

During the three quarters ended November 1, 2020 and November 3, 2019, 0.4 million and 1.1 million shares, respectively, were repurchased under the program at a total cost of $ 63.7 million and $ 173.1 million, respectively.

Subsequent to November 1, 2020, and up to December 4, 2020, no shares were repurchased.

On December 1, 2020, the Company's board of directors approved an increase in the remaining authorization of its existing stock repurchase program from $ 263.6 million to $ 500.0 million.

The repurchase plan has no time limit and does not require the repurchase of any minimum number of shares.

SUPPLEMENTARY FINANCIAL INFORMATION

2 unchanged sentences

(In thousands)

Finished goods $ 700,034 $ 540,580

Inventories, at cost $ 804,541 $ 540,580

Provision to reduce inventories to net realizable value ( 33,551 ) ( 22,067 )

26 unchanged sentences

Other accrued liabilities

Accrued duty, freight, and other operating expenses $ 93,658 $ 59,403

Accrued freight and other operating expenses $ 94,716 $ 43,225

Accrued duty 19,641 16,178

Sales return allowances 23,923 12,897

13 unchanged sentences

Accordingly, comparative figures have been reclassified to conform to the financial presentation adopted for the current year.

Quarter Ended Two Quarters Ended

August 2, 2020 August 4, 2019 August 2, 2020 August 4, 2019

Quarter Ended Three Quarters Ended

November 1, 2020 November 3, 2019 November 1, 2020 November 3, 2019

(In thousands)

3 unchanged sentences

$ 1,117,426 $ 916,138 $ 2,672,330 $ 2,581,805

Segmented income (loss) from operations:

Segmented income from operations:

Company-operated stores $ 111,780 $ 147,720 $ 76,333 $ 422,948

19 unchanged sentences

The following table disaggregates the Company's net revenue by geographic area.

Quarter Ended Two Quarters Ended

August 2, 2020 August 4, 2019 August 2, 2020 August 4, 2019

Quarter Ended Three Quarters Ended

November 1, 2020 November 3, 2019 November 1, 2020 November 3, 2019

(In thousands)

4 unchanged sentences

The following table disaggregates the Company's net revenue by category.

Quarter Ended Two Quarters Ended

August 2, 2020 August 4, 2019 August 2, 2020 August 4, 2019

Quarter Ended Three Quarters Ended

November 1, 2020 November 3, 2019 November 1, 2020 November 3, 2019

(In thousands)

11 unchanged sentences

The lawsuit alleges that the Company violated various New York labor codes by failing to pay all earned wages, including overtime compensation.

The plaintiffs are seeking an unspecified amount of damages.

The Company intends to vigorously defend this matter.

This matter was settled on September 30, 2020 for an immaterial amount.

On March 23, 2020, a former retail employee filed a representative action in the Los Angeles Superior Court alleging violation of the Private Attorney General Act ("PAGA") based on purported California labor code violations including failure to pay wages, failure to pay overtime, failure to provide accurate itemized statements, and failure to provide meal and rest periods.

5 unchanged sentences

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-Q

Item 1. Financial Statements