| Basis of Presentation and Summary of Significant Accounting Policies | (1)
Basis of Presentation and Summary of Significant Accounting Policies
(a)
Description of Business Ollie’s Bargain Outlet Holdings, Inc. and subsidiaries (collectively referred to as the “Company” or “Ollie’s”) principally buys overproduced,
overstocked, and closeout merchandise from manufacturers, wholesalers, and other retailers. In addition, the Company augments its name-brand closeout deals with directly sourced private label products featuring names exclusive to Ollie’s in order to
provide consistently value-priced goods in select key merchandise categories. Since its first store opened in 1982, the Company has grown to 525 retail locations in 31 states as of August 3, 2024. Ollie’s Bargain Outlet retail locations are
located in Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania,
Rhode Island, South Carolina, Tennessee, Texas, Vermont, Virginia, Wisconsin, and West Virginia.
(b)
Fiscal Year Ollie’s follows a 52/53-week
fiscal year, which ends on the Saturday nearer to January 31 st
(c)
Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The
condensed consolidated financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly the Company’s results of operations, financial condition, and cash flows for all periods presented. The
condensed consolidated balance sheets as of August 3, 2024 and July 29, 2023, and the condensed consolidated statements of income and stockholders’ equity for the thirteen and twenty-six weeks ended August 3, 2024 and July 29, 2023, and the
condensed consolidated statements of cash flows for the twenty-six weeks ended August 3, 2024 and July 29, 2023 have been prepared by the Company and are unaudited. The Company’s business is seasonal in nature and results of operations for the
interim periods presented are not necessarily indicative of operating results for 2024 or any other period. All intercompany accounts, transactions, and balances have been eliminated in consolidation. The . For purposes of the disclosure requirements for segments of a business enterprise, it has been determined that the Company is comprised of one operating segment.
(d)
Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
(e)
Fair Value Disclosures Fair value is defined as the price which the Company would receive to sell an asset or pay to transfer a liability (an exit price) in an orderly
transaction between market participants on the measurement date. In determining fair value, GAAP establishes a three ‑
•
Level 1 inputs are quoted prices available for identical assets and liabilities in active markets.
•
Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets or other inputs
that are observable or can be corroborated by observable market data.
•
Level 3 inputs are unobservable, developed using the Company’s estimates and assumptions, which reflect those that market participants would use. The Company’s financial instruments consist of cash and cash equivalents, investment securities, accounts receivable, accounts payable and the
Company’s credit facilities. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable are representative of their respective fair value because of their short-term nature. The carrying amount of the Company’s credit
facilities approximates its fair value because the interest rates are adjusted regularly based on current market conditions. Under the fair value hierarchy, the fair market values of cash equivalents and the investments in treasury bonds and corporate bonds are Level 1 while the
investments in municipal bonds are Level 2. Since quoted prices in active markets for identical assets are not available, these prices are determined by the third-party pricing service using observable market information such as quotes from less
active markets and quoted prices of similar securities As of August 3, 2024, February 3, 2024, and July 29, 2023, the Company’s investment securities are classified as held-to-maturity since the Company
has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following:
As of August 3, 2024
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Fair Market Value
(in thousands)
Short-term:
Treasury bonds
$
104,762
$
35
$
(48
)
$
104,749
Municipal bonds
27,515
-
(398
)
27,117
Corporate bonds 50,267 101 (47 ) 50,321
Total
$
182,544
$
136
$
(493
)
$
182,187
As of February 3, 2024
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Fair Market Value
(in thousands)
Short-term:
Treasury bonds
$
49,765
$
16
$
-
$
49,781
Municipal bonds
10,136
-
(139
)
9,997
Corporate bonds 27,079 22 - 27,101
Total
$
86,980
$
38
$
(139
)
$
86,879
As of July 29, 2023
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Fair Market Value
(in thousands)
Short-term:
Treasury bonds
$
88,891
$
-
$
(813
)
$
88,078
Municipal bonds
39,878
-
(473
)
39,405
Total
$
128,769
$
-
$
(1,286
)
$
127,483 Short-term investment securities as of August 3, 2024, February 3, 2024, and July 29, 2023 all mature in one year or less. |
