falsedesktopPLCE2020-10-31000162828020016785{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "\tOctober 31 2020\tFebruary 1 2020\tNovember 2 2019\n\t(unaudited)\t\t(unaudited)\n\t(in thousands except par value)\t\t\nASSETS\t\t\t\nCurrent assets:\t\t\t\nCash and cash equivalents\t64456\t68487\t66059\nAccounts receivable\t31376\t32812\t39471\nInventories\t427629\t327165\t389815\nPrepaid expenses and other current assets\t16159\t21416\t20722\nTotal current assets\t539620\t449880\t516067\nLong-term assets:\t\t\t\nProperty and equipment net\t191544\t236898\t246234\nRight-of-use assets\t297206\t393820\t418151\nTradenames net\t72692\t73291\t73386\nDeferred income taxes\t93697\t12941\t17615\nOther assets\t12184\t14567\t14269\nTotal assets\t1206943\t1181397\t1285722\nLIABILITIES AND STOCKHOLDERS' EQUITY\t\t\t\nLIABILITIES:\t\t\t\nCurrent liabilities:\t\t\t\nRevolving loan\t179360\t170808\t184179\nCurrent portion of long-term debt\t1328\t0\t0\nAccounts payable\t283943\t213115\t235491\nCurrent lease liabilities\t171276\t121868\t124281\nIncome taxes payable\t7445\t5607\t7171\nAccrued expenses and other current liabilities\t133407\t83609\t109476\nTotal current liabilities\t776759\t595007\t660598\nLong-term liabilities:\t\t\t\nLong-term debt\t76307\t0\t0\nLong-term lease liabilities\t232153\t311908\t331615\nOther tax liabilities\t6821\t6782\t5050\nIncome taxes payable\t17589\t17589\t18939\nOther long-term liabilities\t19945\t14924\t15081\nTotal liabilities\t1129574\t946210\t1031283\nCOMMITMENTS AND CONTINGENCIES\t\t\t\nSTOCKHOLDERS' EQUITY:\t\t\t\nPreferred stock $1.00 par value 1000 shares authorized 0 shares issued and outstanding\t0\t0\t0\nCommon stock $0.10 par value 100000 shares authorized; 14641 14762 and 15310 issued; 14586 14711 and 15260 outstanding\t1464\t1476\t1531\nAdditional paid-in capital\t141613\t139041\t145219\nTreasury stock at cost (55 51 and 50 shares)\t(3095)\t(2956)\t(2886)\nDeferred compensation\t3095\t2956\t2886\nAccumulated other comprehensive loss\t(15170)\t(13545)\t(13442)\nRetained earnings (deficit)\t(50538)\t108215\t121131\nTotal stockholders' equity\t77369\t235187\t254439\nTotal liabilities and stockholders' equity\t1206943\t1181397\t1285722\n", "q10k_tbl_1": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\n\t(in thousands except earnings and dividends per share)\t\t\t\nNet sales\t425571\t524796\t1049701\t1357647\nCost of sales (exclusive of depreciation and amortization)\t279506\t326671\t856229\t868701\nGross profit\t146065\t198125\t193472\t488946\nSelling general and administrative expenses\t106639\t120514\t319442\t364937\nDepreciation and amortization\t15809\t18821\t50405\t55877\nAsset impairment charges\t294\t839\t37929\t1308\nOperating income (loss)\t23323\t57951\t(214304)\t66824\nInterest expense\t(3266)\t(2221)\t(7802)\t(6341)\nInterest income\t3\t66\t60\t197\nIncome (loss) before benefit for income taxes\t20060\t55796\t(222046)\t60680\nProvision (benefit) for income taxes\t6740\t12748\t(73917)\t11620\nNet income (loss)\t13320\t43048\t(148129)\t49060\nEarnings (loss) per common share\t\t\t\t\nBasic\t0.91\t2.78\t(10.13)\t3.12\nDiluted\t0.91\t2.77\t(10.13)\t3.10\nWeighted average common shares outstanding\t\t\t\t\nBasic\t14639\t15497\t14628\t15720\nDiluted\t14643\t15546\t14628\t15837\nCash dividends declared per common share\t0\t0.56\t0\t1.68\n", "q10k_tbl_2": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\n\t(in thousands)\t\t\t\nNet income (loss)\t13320\t43048\t(148129)\t49060\nOther comprehensive income (loss):\t\t\t\t\nForeign currency translation adjustment\t216\t1773\t(876)\t1376\nChange in fair value of cash flow hedges net of income taxes\t(949)\t30\t(749)\t116\nOther comprehensive income (loss)\t(733)\t1803\t(1625)\t1492\nTotal comprehensive income (loss)\t12587\t44851\t(149754)\t50552\n", "q10k_tbl_3": "Thirteen Weeks Ended October 31 2020\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\tAccumulated\t\t\t\n\t\t\tAdditional\t\tRetained\tOther\t\t\tTotal\n\tCommon Stock\t\tPaid-In\tDeferred\tEarnings\tComprehensive\tTreasury Stock\t\tStockholders'\n\tShares\tAmount\tCapital\tCompensation\t(Deficit)\tLoss\tShares\tValue\tEquity\n\t(in thousands except dividends per share)\t\t\t\t\t\t\t\t\nBALANCE August 1 2020\t14637\t1464\t138350\t3025\t(63862)\t(14437)\t(52)\t(3025)\t61515\nVesting of stock awards\t4\t\t\t\t\t\t\t\t0\nStock-based compensation\t\t\t3275\t\t\t\t\t\t3275\nPurchase and retirement of shares\t\t\t(12)\t\t4\t\t\t\t(8)\nOther comprehensive income (loss)\t\t\t\t\t\t(733)\t\t\t(733)\nDeferral of common stock into deferred compensation plan\t\t\t\t70\t\t\t(3)\t(70)\t0\nNet income\t\t\t\t\t13320\t\t\t\t13320\nBALANCE October 31 2020\t14641\t1464\t141613\t3095\t(50538)\t(15170)\t(55)\t(3095)\t77369\n", "q10k_tbl_4": "Thirty-nine Weeks Ended October 31 2020\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\tAccumulated\t\t\t\n\t\t\tAdditional\t\tRetained\tOther\t\t\tTotal\n\tCommon Stock\t\tPaid-In\tDeferred\tEarnings\tComprehensive\tTreasury Stock\t\tStockholders'\n\tShares\tAmount\tCapital\tCompensation\t(Deficit)\tLoss\tShares\tValue\tEquity\n\t(in thousands except dividends per share)\t\t\t\t\t\t\t\t\nBALANCE February 1 2020\t14762\t1476\t139041\t2956\t108215\t(13545)\t(51)\t(2956)\t235187\nVesting of stock awards\t171\t17\t(17)\t\t\t\t\t\t0\nStock-based compensation\t\t\t7388\t\t\t\t\t\t7388\nPurchase and retirement of shares\t(292)\t(29)\t(4799)\t\t(10624)\t\t\t\t(15452)\nOther comprehensive income (loss)\t\t\t\t\t\t(1625)\t\t\t(1625)\nDeferral of common stock into deferred compensation plan\t\t\t\t139\t\t\t(4)\t(139)\t0\nNet income (loss)\t\t\t\t\t(148129)\t\t\t\t(148129)\nBALANCE October 31 2020\t14641\t1464\t141613\t3095\t(50538)\t(15170)\t(55)\t(3095)\t77369\n", "q10k_tbl_5": "Thirteen Weeks Ended November 2 2019\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\tAccumulated\t\t\t\n\t\t\tAdditional\t\t\tOther\t\t\tTotal\n\tCommon Stock\t\tPaid-In\tDeferred\tRetained\tComprehensive\tTreasury Stock\t\tStockholders'\n\tShares\tAmount\tCapital\tCompensation\tEarnings\tLoss\tShares\tValue\tEquity\n\t(in thousands except dividends per share)\t\t\t\t\t\t\t\t\nBALANCE August 3 2019\t15719\t1572\t149140\t2816\t113789\t(15245)\t(49)\t(2816)\t249256\nVesting of stock awards\t4\t\t\t\t\t\t\t\t0\nStock-based compensation\t\t\t2351\t\t\t\t\t\t2351\nPurchase and retirement of shares\t(414)\t(41)\t(6640)\t\t(26657)\t\t\t\t(33338)\nDividends declared ($0.56 per share)\t\t\t\t\t(8681)\t\t\t\t(8681)\nUnvested dividends\t\t\t368\t\t(368)\t\t\t\t0\nOther comprehensive income\t\t\t\t\t\t1803\t\t\t1803\nDeferral of common stock into deferred compensation plan\t\t\t\t70\t\t\t(1)\t(70)\t0\nNet income\t\t\t\t\t43048\t\t\t\t43048\nBALANCE November 2 2019\t15309\t1531\t145219\t2886\t121131\t(13442)\t(50)\t(2886)\t254439\n", "q10k_tbl_6": "Thirty-nine Weeks Ended November 2 2019\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\tAccumulated\t\t\t\n\t\t\tAdditional\t\t\tOther\t\t\tTotal\n\tCommon Stock\t\tPaid-In\tDeferred\tRetained\tComprehensive\tTreasury Stock\t\tStockholders'\n\tShares\tAmount\tCapital\tCompensation\tEarnings\tLoss\tShares\tValue\tEquity\n\t(in thousands except dividends per share)\t\t\t\t\t\t\t\t\nBALANCE February 2 2019\t15873\t1588\t146991\t2685\t180792\t(14934)\t(47)\t(2685)\t314437\nASC Topic 842 Adjustment\t\t\t\t\t(1667)\t\t\t\t(1667)\nVesting of stock awards\t470\t46\t(5)\t\t\t\t\t\t41\nStock-based compensation\t\t\t13622\t\t\t\t\t\t13622\nPurchase and retirement of shares\t(1034)\t(103)\t(16297)\t\t(79666)\t\t\t\t(96066)\nDividends declared ($0.56 per share)\t\t\t\t\t(26480)\t\t\t\t(26480)\nUnvested dividends\t\t\t908\t\t(908)\t\t\t\t0\nOther comprehensive income\t\t\t\t\t\t1492\t\t\t1492\nDeferral of common stock into deferred compensation plan\t\t\t\t201\t\t\t(3)\t(201)\t0\nNet income\t\t\t\t\t49060\t\t\t\t49060\nBALANCE November 2 2019\t15309\t1531\t145219\t2886\t121131\t(13442)\t(50)\t(2886)\t254439\n", "q10k_tbl_7": "\tThirty-nine Weeks Ended\t\n\tOctober 31 2020\tNovember 2 2019\n\t(in thousands)\t\nCASH FLOWS FROM OPERATING ACTIVITIES:\t\t\nNet income (loss)\t(148129)\t49060\nReconciliation of net income (loss) to net cash provided by operating activities:\t\t\nNon-cash portion of operating lease expense\t81582\t112316\nDepreciation and amortization\t50405\t55877\nStock-based compensation\t7388\t13622\nDeferred taxes\t(80778)\t745\nAsset impairment charges\t37929\t1308\nOther\t399\t175\nChanges in operating assets and liabilities:\t\t\nInventories\t(100346)\t(86440)\nAccounts receivable and other assets\t2522\t(3027)\nPrepaid expenses and other current assets\t7117\t2622\nIncome taxes payable net of prepayments\t1667\t10888\nAccounts payable and other current liabilities\t120784\t63641\nOther long-term liabilities\t(31271)\t(120221)\nNet cash provided by (used in) operating activities\t(50731)\t100566\nCASH FLOWS FROM INVESTING ACTIVITIES:\t\t\nCapital expenditures\t(23763)\t(42396)\nAcquisition of assets\t0\t(76951)\nChange in deferred compensation plan\t211\t222\nNet cash used in investing activities\t(23552)\t(119125)\nCASH FLOWS FROM FINANCING ACTIVITIES:\t\t\nRepurchase of common stock including shares surrendered for tax withholdings and transaction costs\t(15452)\t(93763)\nPayment of dividends\t0\t(26480)\nBorrowings under revolving loan\t356316\t750981\nRepayments under revolving loan\t(347764)\t(615663)\nProceeds from term loan net of discount\t78750\t0\nPayment of debt issuance costs\t(1164)\t0\nNet cash provided by financing activities\t70686\t15075\nEffect of exchange rate changes on cash and cash equivalents\t(434)\t407\nNet decrease in cash and cash equivalents\t(4031)\t(3077)\nCash and cash equivalents beginning of period\t68487\t69136\nCash and cash equivalents end of period\t64456\t66059\n", "q10k_tbl_8": "\tThirty-nine Weeks Ended\t\n\tOctober 31 2020\tNovember 2 2019\n\t(in thousands)\t\nOTHER CASH FLOW INFORMATION:\t\t\nNet cash paid during the period for income taxes\t4975\t74\nCash paid during the period for interest\t6177\t6233\nIncrease (decrease) in accrued purchases of property and equipment\t(2162)\t797\n", "q10k_tbl_9": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\t\t\t\t\t\t\nNet sales:\t(in thousands)\t\t\t\t\t\t\t\t\t\nSouth\t151374\t176091\t395655\t475801\t\t\t\t\t\t\nNortheast\t97668\t129325\t232435\t319468\t\t\t\t\t\t\nWest\t50896\t77213\t143472\t206344\t\t\t\t\t\t\nMidwest\t61740\t69957\t139243\t173912\t\t\t\t\t\t\nInternational and other\t63893\t72210\t138896\t182122\t\t\t\t\t\t\nTotal net sales\t425571\t524796\t1049701\t1357647\t\t\t\t\t\t\n", "q10k_tbl_10": "\tContract Liability\n\t(in thousands)\nBalance at February 1 2020\t16100\nGift cards sold\t11452\nGift cards redeemed\t(12740)\nGift card breakage\t(2231)\nBalance at October 31 2020\t12581\n", "q10k_tbl_11": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\n\t(in thousands)\t\t\t\nOperating lease cost\t29218\t36348\t108412\t112316\nVariable lease cost (1)\t16871\t16754\t36696\t47520\nTotal lease cost\t46089\t53102\t145108\t159836\n", "q10k_tbl_12": "\tAs of October 31 2020\n\t(in thousands)\nRemainder of 2020\t96913\t\t\t\t\t\t\n2021\t114785\t\t\t\t\t\t\n2022\t82512\t\t\t\t\t\t\n2023\t45951\t\t\t\t\t\t\n2024\t27754\t\t\t\t\t\t\nThereafter\t70010\t\t\t\t\t\t\nTotal lease payments\t437925\t\t\t\t\t\t\nLess: imputed interest\t(34496)\t\t\t\t\t\t\nPresent value of lease liabilities\t403429\t\t\t\t\t\t\n", "q10k_tbl_13": "\t\tOctober 31 2020\t\t\n\tUseful life\tGross amount\tAccumulated amortization\tNet amount\n\t\t(in thousands)\t\t\nGymboree tradename(1)\tIndefinite\t69953\t0\t69953\nCrazy 8 tradename(1)\t5 years\t4000\t(1261)\t2739\nCustomer databases(2)\t3 years\t3000\t(1577)\t1423\nTotal intangibles net\t\t76953\t(2838)\t74115\n", "q10k_tbl_14": "\tThirty-nine Weeks Ended\t\t\t\n\tOctober 31 2020\t\tNovember 2 2019\t\n\tShares\tValue\tShares\tValue\n\t(in thousands)\t\t\t\nShares repurchases related to:\t\t\t\t\n2018 Share Repurchase Program\t292\t15452\t1028\t93763\nShares acquired and held in treasury under Deferred Compensation Plan\t4.3\t139\t2.1\t201\n", "q10k_tbl_15": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\n\t(in thousands)\t\t\t\nDeferred Awards\t2775\t4494\t10282\t14237\nPerformance Awards\t500\t(2143)\t(2894)\t(615)\nTotal stock-based compensation expense (1)\t3275\t2351\t7388\t13622\n", "q10k_tbl_16": "\tNumber of Shares\tWeighted Average Grant Date Fair Value\n\t(in thousands)\t\nUnvested Deferred Awards beginning of period\t377\t97.88\nGranted\t410\t41.73\nVested\t(165)\t107.11\nForfeited\t(73)\t80.75\nUnvested Deferred Awards end of period\t549\t55.47\n", "q10k_tbl_17": "\tNumber of Shares (1)\tWeighted Average Grant Date Fair Value\n\t(in thousands)\t\nUnvested Performance Awards beginning of period\t342\t99.97\nGranted\t144\t41.64\nShares unearned (below target)\t(101)\t118.00\nVested shares\t(3)\t105.86\nForfeited\t(29)\t106.69\nUnvested Performance Awards end of period\t353\t70.37\n", "q10k_tbl_18": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\n\t(in thousands)\t\t\t\nNet income (loss)\t13320\t43048\t(148129)\t49060\nBasic weighted average common shares\t14639\t15497\t14628\t15720\nDilutive effect of stock awards\t4\t49\t0\t117\nDiluted weighted average common shares\t14643\t15546\t14628\t15837\n", "q10k_tbl_19": "\tOctober 31 2020\tFebruary 1 2020\tNovember 2 2019\n\t(in thousands)\t\t\nProperty and equipment:\t\t\t\nLand and land improvements\t3403\t3403\t3403\nBuilding and improvements\t35927\t35568\t35568\nMaterial handling equipment\t56926\t53540\t52506\nLeasehold improvements\t226881\t285955\t299897\nStore fixtures and equipment\t234423\t272158\t271476\nCapitalized software\t295277\t265610\t264574\nConstruction in progress\t12701\t33240\t34287\n\t865538\t949474\t961711\nAccumulated depreciation and amortization\t(673994)\t(712576)\t(715477)\nProperty and equipment net\t191544\t236898\t246234\n", "q10k_tbl_20": "\tOctober 31 2020\tFebruary 1 2020\tNovember 2 2019\n\t(in millions)\t\t\nCredit facility maximum\t360.0\t325.0\t325.0\nBorrowing base\t360.0\t282.1\t325.0\nOutstanding borrowings\t179.4\t170.8\t184.2\nLetters of credit outstanding-standby\t7.8\t6.2\t6.2\nUtilization of credit facility at end of period\t187.2\t177.0\t190.4\nAvailability (1)\t172.8\t105.1\t134.6\nInterest rate at end of period\t3.9%\t3.4%\t3.3%\n", "q10k_tbl_21": "\tYear-To-Date 2020\tFiscal 2019\tYear-To-Date 2019\nAverage end of day loan balance during the period\t233.2\t192.0\t192.1\nHighest end of day loan balance during the period\t275.6\t262.5\t262.5\nAverage interest rate\t3.7%\t4.0%\t4.1%\n", "q10k_tbl_22": "\tOctober 31 2020\n\t(in thousands)\nTerm Loan principal\t80000\nLess: Unamortized discount net\t(1224)\nLess: Unamortized debt issuance costs net\t(1141)\nTerm Loan net\t77635\nLess: Current portion net\t(1328)\nLong-term debt net\t76307\n", "q10k_tbl_23": "Period\tFuture Principal Payments\n\t(in thousands)\nRemainder of 2020\t0\n2021\t3000\n2022\t5500\n2023\t7500\n2024\t64000\nTotal future principal payments\t80000\n", "q10k_tbl_24": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\t\n\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\t\tNovember 2 2019\n\t(in thousands)\t\t\t\t\nNet sales(1):\t\t\t\t\t\nThe Children's Place U.S.\t373625\t467834\t941607\t\t1217215\nThe Children's Place International (2)\t51946\t56962\t108094\t\t140432\nTotal net sales\t425571\t524796\t1049701\t\t1357647\nOperating income (loss)(1):\t\t\t\t\t\nThe Children's Place U.S.\t17491\t48129\t(204468)\t\t55722\nThe Children's Place International\t5832\t9822\t(9836)\t\t11102\nTotal operating income (loss)\t23323\t57951\t(214304)\t\t66824\nOperating income (loss) as a percent of net sales(1):\t\t\t\t\t\nThe Children's Place U.S.\t4.7%\t10.3%\t(21.7\t%)\t4.6%\nThe Children's Place International\t11.2%\t17.2%\t(9.1\t%)\t7.9%\nTotal operating income (loss) as a percent of net sales\t5.5%\t11.0%\t(20.4\t%)\t4.9%\nDepreciation and amortization:\t\t\t\t\t\nThe Children's Place U.S.\t14542\t16971\t46322\t\t50301\nThe Children's Place International\t1267\t1850\t4083\t\t5576\nTotal depreciation and amortization\t15809\t18821\t50405\t\t55877\nCapital expenditures:\t\t\t\t\t\nThe Children's Place U.S.\t9413\t20326\t23046\t\t41741\nThe Children's Place International\t82\t230\t717\t\t655\nTotal capital expenditures\t9495\t20556\t23763\t\t42396\n", "q10k_tbl_25": "\tOctober 31 2020\tFebruary 1 2020\tNovember 2 2019\nTotal assets:\t(in thousands)\t\t\nThe Children's Place U.S.\t1113309\t1080665\t1179493\nThe Children's Place International\t93634\t100732\t106229\nTotal assets\t1206943\t1181397\t1285722\n", "q10k_tbl_26": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\nAverage Translation Rates (1)\t\t\t\t\nCanadian Dollar\t0.7565\t0.7560\t0.7384\t0.7534\nHong Kong Dollar\t0.1290\t0.1276\t0.1290\t0.1276\nChina Yuan Renminbi\t0.1466\t0.1410\t0.1435\t0.1451\n", "q10k_tbl_27": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\t\n\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\t\tNovember 2 2019\nNet sales\t100.0%\t100.0%\t100.0%\t\t100.0%\nCost of sales (exclusive of depreciation and amortization)\t65.7\t62.2\t81.6\t\t64.0\nGross profit\t34.3\t37.8\t18.4\t\t36.0\nSelling general and administrative expenses\t25.1\t23.0\t30.4\t\t26.9\nDepreciation and amortization\t3.7\t3.6\t4.8\t\t4.1\nAsset impairment charges\t0.1\t0.2\t3.6\t\t0.1\nOperating income (loss)\t5.5\t11.0\t(20.4)\t\t4.9\nIncome (loss) before benefit for income taxes\t4.7\t10.6\t(21.2)\t\t4.5\nProvision (benefit) for income taxes\t1.6\t2.4\t(7.0)\t\t0.9\nNet income (loss)\t3.1%\t8.2%\t(14.1\t%)\t3.6%\nNumber of Company-operated stores end of period\t809\t955\t809\t\t955\n", "q10k_tbl_28": "\tThirteen Weeks Ended\t\tThirty-nine Weeks Ended\t\n\tOctober 31 2020\tNovember 2 2019\tOctober 31 2020\tNovember 2 2019\nNet sales:\t(in thousands)\t\t\t\nThe Children's Place U.S.\t373625\t467834\t941607\t1217215\nThe Children's Place International\t51946\t56962\t108094\t140432\nTotal net sales\t425571\t524796\t1049701\t1357647\n", "q10k_tbl_29": "Period\tTotal Number of Shares Purchased\tAverage Price Paid per Share\tTotal Number of Shares Purchased as Part of Publicly Announced Plans or Programs\tApproximate Dollar Value (in thousands) of Shares that May Yet Be Purchased Under the Plans or Programs\n8/2/20-8/29/20 (1)\t3317\t21.99\t114\t92904\n8/30/20-9/3/20 (2)\t161\t22.41\t161\t92900\n9/4/20-10/31/20 (3)\t402\t30.66\t402\t92888\nTotal\t3880\t22.90\t677\t92888\n", "q10k_tbl_30": "31.1(+)\tCertificate of Principal Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002.\n31.2(+)\tCertificate of Principal Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002.\n32(+)\tCertification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.\n101.INS*\tXBRL Instance Document.\n101.SCH*\tXBRL Taxonomy Extension Schema.\n101.CAL*\tXBRL Taxonomy Extension Calculation Linkbase.\n101.DEF*\tXBRL Taxonomy Extension Definition Linkbase.\n101.LAB*\tXBRL Taxonomy Extension Label Linkbase.\n101.PRE*\tXBRL Taxonomy Extension Presentation Linkbase.\n"}{"bs": "q10k_tbl_0", "is": "q10k_tbl_1", "cf": "q10k_tbl_7"}None
(Exact name of registrant as specified in its charter)
Delaware
31-1241495
(State or Other Jurisdiction of
(I.R.S. Employer
Incorporation or Organization)
Identification Number)
500 Plaza Drive
Secaucus, New Jersey
07094
(Address of Principal Executive Offices)
(Zip Code)
(201) 558-2400
(Registrant’s Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act: Common Stock, $0.10 par value
Trading Symbol: PLCE
Name of each exchange on which registered: Nasdaq Global Select Market
___________________________________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yesx No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yesx No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one).
Large accelerated filer x
Accelerated filer o
Non-accelerated filer o
Smaller reporting company o
(Do not check if a smaller reporting company)
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐No x
The number of shares outstanding of the registrant’s common stock with a par value of $0.10 per share, as of November 20, 2020 was 14,587,078 shares.
The Children’s Place, Inc. and subsidiaries (the “Company”, or “we”) is the largest pure-play children’s specialty apparel retailer in North America. The Company provides apparel, footwear, accessories, and other items for children. The Company designs, contracts to manufacture, sells at retail and wholesale, and licenses to sell trend right, high-quality merchandise predominately at value prices, primarily under our proprietary “The Children’s Place”, “Place”, “Baby Place”, and “Gymboree” brand names.
The Company classifies its business into two segments: The Children’s Place U.S. and The Children’s Place International. Included in The Children’s Place U.S. segment are the Company’s U.S. and Puerto Rico-based stores and revenue from its U.S.-based wholesale business. Included in The Children’s Place International segment are its Canadian-based stores, revenue from the Company’s Canada wholesale business, as well as revenue from international franchisees. Each segment includes an e-commerce business located at www.childrensplace.com and www.gymboree.com.
Interim Financial Statements
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted.
In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated financial position of the Company as of October 31, 2020 and November 2, 2019, the results of its consolidated operations for the thirteen and thirty-nine weeks ended October 31, 2020 and November 2, 2019, consolidated cash flows for the thirty-nine weeks ended October 31, 2020 and November 2, 2019 and consolidated stockholders’ equity for the thirteen and thirty-nine weeks ended October 31, 2020 and November 2, 2019. The consolidated financial position as of February 1, 2020 was derived from audited financial statements. Due to the seasonal nature of the Company’s business, the results of operations for the thirty-nine weeks ended October 31, 2020 and November 2, 2019 are not necessarily indicative of operating results for a full fiscal year. These consolidated financial statements should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 1, 2020.
In December 2019, there was an outbreak of a new strain of coronavirus (“COVID-19”) that began in Wuhan, China and has since spread to the other regions of the world. In March 2020, the World Health Organization declared COVID-19 a global pandemic, and the President of the United States declared a national emergency. Federal, state, and local governments and health officials mandated and continue to mandate various restrictions, including closures of businesses and other activities, travel restrictions, restrictions on public gatherings, stay at home orders and advisories, quarantining of people who may have been exposed to the virus, and the adoption of remote or hybrid learning models for schools. The COVID-19 pandemic has significantly negatively affected the global economy, significantly disrupted global supply chains, and created significant disruption of the financial and retail markets, including a significant disruption in consumer demand for children’s clothing and accessories. As such, the comparability of the Company’s operating results has been affected by significant adverse impacts related to the COVID-19 pandemic.
Terms that are commonly used in the Company’s notes to consolidated financial statements are defined as follows:
•Third Quarter 2020 — The thirteen weeks ended October 31, 2020
•Third Quarter 2019 — The thirteen weeks ended November 2, 2019
•Year-To-Date 2020 — The thirty-nine weeks ended October 31, 2020
•Year-To-Date 2019 — The thirty-nine weeks ended November 2, 2019
•FASB — Financial Accounting Standards Board
•SEC — U.S. Securities and Exchange Commission
•U.S. GAAP — Generally Accepted Accounting Principles in the United States
•FASB ASC — FASB Accounting Standards Codification, which serves as the source for authoritative U.S. GAAP, except that rules and interpretive releases by the SEC are also sources of authoritative U.S. GAAP for SEC registrants
Consolidation
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. FASB ASC 810--Consolidation is considered when determining whether an entity is subject to consolidation.
Fiscal Year
The Company’s fiscal year is a 52-week or 53-week period ending on the Saturday on or nearest to January 31.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and amounts of revenues and expenses reported during the period. Actual results could differ from the assumptions used and estimates made by management, which could have a material impact on the Company’s financial position or results of operations. Significant estimates inherent in the preparation of the consolidated financial statements include: reserves for the realizability of inventory; reserves for litigation and other contingencies; useful lives and impairments of long-lived assets; fair value measurements; accounting for income taxes and related uncertain tax positions; insurance reserves; valuation of stock-based compensation awards and related estimated forfeiture rates, among others.
Reclassifications
Certain reclassifications have been made to prior period financial statements to conform to the current period presentation.
Inventories
Inventories, which consist primarily of finished goods, are stated at the lower of cost or net realizable value, with cost determined on an average cost basis. The Company capitalizes certain supply chain costs in inventory, and these costs are reflected within cost of sales as the inventories are sold. Inventory shrinkage is estimated in interim periods based upon the historical results of physical inventory counts in the context of current year facts and circumstances.
Impairment of Long-Lived Assets
The Company periodically reviews its long-lived assets when events indicate that their carrying value may not be recoverable. Such events include historical trends or projected trends of cash flow losses or a future expectation that the Company will sell or dispose of an asset significantly before the end of its previously estimated useful life. In reviewing for impairment, the Company groups its long-lived assets at the lowest possible level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities.
The Company reviews all stores that have reached comparable sales status, or sooner if circumstances should dictate, on at least an annual basis. The Company believes waiting this period of time allows a store to reach a maturity level where a more comprehensive analysis of financial performance can be performed. For each store that shows indications of impairment, the Company projects future cash flows over the remaining life of the lease, adjusted for lease payments, and compares the total undiscounted cash flows to the net book value of the related long-lived assets, including right-of-use (“ROU”) assets. If the undiscounted cash flows are less than the related net book value of the long-lived assets, they are written down to their fair market value. The Company primarily uses discounted future cash flows directly associated with those assets to determine fair market value of long-lived assets and ROU assets. In evaluating future cash flows, the Company considers external and internal factors. External factors comprise the local environment in which the store resides, including mall traffic and competition and their effect on sales trends, as well as macroeconomic factors, such as global pandemics. Internal factors
include the Company’s ability to gauge the fashion taste of its customers, control variable costs such as cost of sales and payroll and, in certain cases, its ability to renegotiate lease costs.
Asset impairment charges during Year-To-Date 2020 were related to underperforming stores identified in our ongoing store portfolio evaluation primarily as a result of decreased net revenues and cash flow projections resulting from the COVID-19 pandemic.
Stock-based Compensation
The Company generally grants time vesting stock awards (“Deferred Awards”) and performance-based stock awards (“Performance Awards”) to employees at management levels. The Company also grants Deferred Awards to its non-employee directors. Deferred Awards are granted in the form of a defined number of restricted stock units that require each recipient to complete a service period. Deferred Awards generally vest ratably over three years, except for those granted to non-employee directors, which generally vest after one year. Performance Awards are granted in the form of restricted stock units which have performance criteria that must be achieved for the awards to vest (the “Target Shares”) in addition to a service period requirement. For Performance Awards, an employee may earn from 0% to 250% of their Target Shares based on the Company’s achievement of certain performance goals established at the beginning of the applicable performance period. The Performance Awards cliff vest, if earned, after completion of the applicable performance period, which is generally three years. The fair value of these Performance Awards granted is based on the closing price of our common stock on the grant date.
Stock-based compensation expense is recognized ratably over the related service period reduced for estimated forfeitures of those awards not expected to vest due to employee turnover. Stock-based compensation expense, as it relates to Performance Awards, is also adjusted based on the probability that the performance criteria will be achieved.
Deferred Compensation Plan
The Company has a deferred compensation plan (the “Deferred Compensation Plan”), which is a nonqualified plan, for eligible senior level employees. Under the plan, participants may elect to defer up to 80% of his or her base salary and/or up to 100% of his or her bonus to be earned for the year following the year in which the deferral election is made. The Deferred Compensation Plan also permits members of the Board of Directors to elect to defer payment of all or a portion of their retainer and other fees to be earned for the year following the year in which a deferral election is made. In addition, eligible employees and directors of the Company may also elect to defer payment of any shares of Company stock that is earned with respect to stock-based awards. Directors may elect to have all or a certain portion of their fees earned for their service on the Board invested in shares of the Company’s common stock. Such elections are irrevocable. The Company is not required to contribute to the Deferred Compensation Plan, but at its sole discretion, can make additional contributions on behalf of the participants. Deferred amounts are not subject to forfeiture and are deemed invested among investment funds offered under the Deferred Compensation Plan, as directed by each participant. Payments of deferred amounts (as adjusted for earnings and losses) are payable following separation from service or at a date or dates elected by the participant at the time the deferral is elected. Payments of deferred amounts are generally made in either a lump sum or in annual installments over a period not exceeding 15 years. All deferred amounts are payable in the form in which they were made, except for board fees invested in shares of the Company’s common stock, which will be settled in shares of Company common stock. Earlier distributions are not permitted except in the case of an unforeseen hardship.
The Company has established a rabbi trust that serves as an investment to shadow the Deferred Compensation Plan liability. The assets of the rabbi trust are general assets of the Company and, as such, would be subject to the claims of creditors in the event of bankruptcy or insolvency. Investments of the rabbi trust consist of mutual funds and Company common stock. The Deferred Compensation Plan liability, excluding Company common stock, is included within other long-term liabilities and changes in the balance, except those relating to payments, are recognized as compensation expense within selling, general, and administrative expenses. The value of the mutual funds is included in other assets and related earnings and losses are recognized as investment income or loss, which is included within selling, general, and administrative expenses. Company stock deferrals are included within the equity section of the Company’s consolidated balance sheet as treasury stock and as a deferred compensation liability. Deferred stock is recorded at fair market value at the time of deferral, and any subsequent changes in fair market value are not recognized.
FASB ASC 820--Fair Value Measurement provides a single definition of fair value, together with a framework for measuring it, and requires additional disclosure about the use of fair value to measure assets and liabilities.
This topic defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a three-level hierarchy, which encourages an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the hierarchy are defined as follows:
•Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities
•Level 2 - inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly
•Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities
Our cash and cash equivalents, accounts receivable, assets of the Company’s Deferred Compensation Plan, accounts payable, and revolving loan are all short-term in nature. As such, their carrying amounts approximate fair value and fall within Level 1 of the fair value hierarchy. The Company stock included in the Deferred Compensation Plan is not subject to fair value measurement.
Our derivative assets and liabilities include foreign exchange forward contracts that are measured at fair value using observable market inputs such as forward rates, our credit risk, and our counterparties’ credit risks. Based on these inputs, our derivative assets and liabilities are classified within Level 2 of the fair value hierarchy.
Our assets measured at fair value on a nonrecurring basis include long-lived assets, such as intangible assets, fixed assets, and ROU assets. We review the carrying amounts of such assets when events indicate that their carrying amounts may not be recoverable. Any resulting asset impairment would require that the asset be recorded at its fair value. The resulting fair value measurements of the assets are considered to fall within Level 3 of the fair value hierarchy.
Recently Issued Accounting Standards
Adopted in Fiscal 2020
In August 2018, the FASB issued guidance related to the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license. We adopted this guidance in the first quarter of fiscal 2020. This adoption did not have a material impact on our consolidated financial statements.
In August 2018, the FASB issued guidance related to disclosure requirements for fair value measurement. The amendments modify current fair value measurement disclosure requirements by removing, adding, or modifying certain fair value measurement disclosures. We adopted this guidance in the first quarter of fiscal 2020. This adoption did not have a material impact on our consolidated financial statements.
In June 2016, the FASB issued guidance related to the accounting for financial instrument credit losses. The guidance provides more decision useful information about the expected credit losses on financial instruments by replacing the incurred loss impairment methodology under current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. We adopted this guidance in the first quarter of fiscal 2020. This adoption did not have a material impact on our consolidated financial statements.
To Be Adopted After Fiscal 2020
In December 2019, the FASB issued guidance related to the accounting for income taxes. The guidance aims to simplify the accounting for income taxes by removing certain exceptions to the general principles within the current guidance and by clarifying and amending the current guidance. The guidance is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2020. We do not expect the guidance to have a material impact on our consolidated financial statements.
Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.
The following table presents our revenues disaggregated by geography:
Thirteen Weeks Ended
Thirty-nine Weeks Ended
October 31, 2020
November 2, 2019
October 31, 2020
November 2, 2019
Net sales:
(in thousands)
South
$
151,374
$
176,091
$
395,655
$
475,801
Northeast
97,668
129,325
232,435
319,468
West
50,896
77,213
143,472
206,344
Midwest
61,740
69,957
139,243
173,912
International and other
63,893
72,210
138,896
182,122
Total net sales
$
425,571
$
524,796
$
1,049,701
$
1,357,647
The Company recognizes revenue, including shipping and handling fees billed to customers, upon purchase at the Company’s retail stores or when received by the customer if the product was purchased via e-commerce, net of coupon redemptions and anticipated sales returns. The Company deferred approximately $7.4 million and $2.5 million as of October 31, 2020 and November 2, 2019, respectively, based upon estimated time of delivery, at which point control passes to the customer, and is recorded in accrued expenses and other current liabilities. Sales tax collected from customers is excluded from revenue.
For the sale of goods with a right of return, the Company recognizes revenue for the consideration it expects to be entitled to and calculates an allowance for estimated sales returns based upon the Company’s sales return experience. Adjustments to the allowance for estimated sales returns in subsequent periods are generally not material based on historical data, thereby reducing the uncertainty inherent in such estimates. The allowance for estimated sales returns, which is recorded in accrued expenses and other current liabilities, was approximately $1.7 million and $2.3 million as of October 31, 2020 and November 2, 2019, respectively.
Our private label credit card is issued to our customers for use exclusively at The Children’s Place stores and online at www.childrensplace.com and www.gymboree.com, and credit is extended to such customers by a third-party financial institution on a non-recourse basis to us. The private label credit card includes multiple performance obligations for the Company, including marketing and promoting the program on behalf of the bank and the operation of the loyalty rewards program. Included in the agreement with the third-party financial institution was an upfront bonus paid to the Company. The upfront bonus is recognized as revenue and allocated between brand and reward obligations. As the license of the Company’s brand is the predominant item in the performance obligation, the amount allocated to the brand obligation is recognized on a straight-line basis over the initial term. The amount allocated to the reward obligation is recognized on a point-in-time basis as redemptions under the loyalty program occur.
In measuring revenue and determining the consideration the Company is entitled to as part of a contract with a customer, the Company takes into account the related elements of variable consideration, such as additional bonuses, including profit-sharing, over the life of the program. Similar to the upfront bonus, the usage-based royalties and bonuses are recognized as revenue and allocated between the brand and reward obligations. The amount allocated to the brand obligation is recognized on a straight-line basis over the initial term. The amount allocated to the reward obligation is recognized on a point-in-time basis as redemptions under the loyalty program occur. In addition, the annual profit-sharing amount is estimated and recognized quarterly within an annual period when earned. The additional bonuses are amortized over the contract term based on anticipated progress against future targets and level of risk associated with achieving the targets.
The Company has a points-based customer loyalty program, in which customers earn points based on purchases and other promotional activities. These points can be redeemed for coupons to discount future purchases. A contract liability is estimated based on the standalone selling price of benefits earned by customers through the program and the related redemption experience under the program. The value of each point earned is recorded as deferred revenue and is included within accrued expenses and other current liabilities. The total contract liabilities related to this program were $2.5 million and $2.9 million as of October 31, 2020 and November 2, 2019, respectively.
The Company’s policy with respect to gift cards is to record revenue as and when the gift cards are redeemed for merchandise. The Company recognizes gift card breakage income in proportion to the pattern of rights exercised by the customer when the Company expects to be entitled to breakage and the Company determines that it does not have a legal obligation to remit the value of the unredeemed gift card to the relevant jurisdiction as unclaimed or abandoned property and is recorded within net sales. Prior to their redemption, gift cards are recorded as a liability, included within accrued expenses and other current liabilities. The total contract liability related to gift cards issued was $12.6 million and $14.7 million as of October 31, 2020 and November 2, 2019, respectively. The liability is estimated based on expected breakage that considers historical patterns of redemption. The following table provides the reconciliation of the contract liability related to gift cards:
Contract Liability
(in thousands)
Balance at February 1, 2020
$
16,100
Gift cards sold
11,452
Gift cards redeemed
(12,740)
Gift card breakage
(2,231)
Balance at October 31, 2020
$
12,581
The Company has an international expansion program through territorial agreements with franchisees. The Company generates revenues from the franchisees from the sale of product and, in certain cases, sales royalties. The Company records net sales and cost of goods sold on the sale of product to franchisees when the franchisee takes ownership of the product. The Company records net sales for royalties when the applicable franchisee sells the product to their customers. Under certain agreements, the Company receives a fee from each franchisee for exclusive territorial rights and based on the opening of new stores. The Company records these territorial fees as deferred revenue and amortizes the fee into net sales over the life of the territorial agreement.
3. LEASES
We have operating leases for retail stores, corporate offices, distribution facilities, and certain equipment. Our leases have remaining lease terms of less than 1 year up to 10 years, some of which may include options to extend the leases for up to five years, and some of which may include options to terminate the lease early.
The lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. For operating leases, the ROU asset is initially and subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, less any accrued lease payments and unamortized lease incentives. For finance leases, the ROU asset is initially measured at cost and subsequently amortized using the straight-line method generally from the lease commencement date to the earlier of the end of its useful life or the end of the lease term.
The discount rate is the rate implicit in the lease unless that rate cannot be readily determined. In that case, the Company is required to use its incremental borrowing rate. The discount rate for a lease is determined based on the information available at lease commencement. In general, the Company accounts for the underlying leased asset and applies a discount rate at the lease level. However, there are certain non-real estate leases for which the Company utilizes the portfolio method by aggregating similar leased assets based on the underlying lease term.
The Company has made an accounting policy election by class of underlying asset to not apply the recognition requirements of FASB ASC 842--Leases (“Topic 842”) to leases with an initial term of 12 months or less. Leases with an initial lease term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.
The Company has lease agreements with lease and non-lease components. The Company has elected a policy to account for lease and non-lease components as a single component for all asset classes.
In certain leases, the Company has the right to exercise lease renewal options. Renewal option periods are included in the measurement of lease ROU assets and lease liabilities where the exercise is reasonably certain to occur.
As of October 31, 2020, the Company’s finance leases were not material to the consolidated balance sheets, consolidated statements of operations, or consolidated statements of cash flows.
We have certain lease agreements structured with both a fixed base rent and a contingent rent based on a percentage of sales over contractual levels, others with only contingent rent based on a percentage of sales, and some with a fixed base rent adjusted periodically for inflation or changes in fair market value of the underlying real estate. Contingent rent is recognized as sales occur. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.
We record all occupancy costs in cost of sales, except administrative office buildings, which are recorded in selling, general, and administrative expenses.
The following components of lease expense are included in the Company’s consolidated statements of operations.
Thirteen Weeks Ended
Thirty-nine Weeks Ended
October 31, 2020
November 2, 2019
October 31, 2020
November 2, 2019
(in thousands)
Operating lease cost
$
29,218
$
36,348
$
108,412
$
112,316
Variable lease cost (1)
16,871
16,754
36,696
47,520
Total lease cost
$
46,089
$
53,102
$
145,108
$
159,836
( 1) Includes short term leases with lease periods of less than 12 months.
As of October 31, 2020, the weighted-average remaining operating lease term was 4.0 years, and the weighted-average discount rate for operating leases was 5.0%.
Cash paid for amounts included in the measurement of operating lease liabilities during Year-To-Date 2020 was approximately $92.9 million.
ROU assets obtained in exchange for new operating lease liabilities were approximately $41.4 million during Year-To-Date 2020.
As of October 31, 2020, the stated future minimum annual lease payments under operating lease agreements were as follows:
The Company acquired certain intellectual property and related assets (the “Gymboree Assets”) of Gymboree Group, Inc. and related entities, which included the worldwide rights to the names “Gymboree” and “Crazy 8” and other intellectual property, including trademarks, domain names, copyrights, and customer databases. These intangible assets, inclusive of acquisition costs, are recorded in the long-term assets section of the consolidated balance sheets.