BJ’s Wholesale Club (BJ) - 2023 Q4 - Annual Report

Financial Position - As of January 28, 2023, the company had $405.0 million in loans outstanding under the ABL Revolving Facility and$11.5 million in outstanding letters of credit, with an interest rate of 5.63%[190] - The company recorded a net interest expense of $47.462 million for the period ending January 28, 2023, down from$59.444 million in the previous fiscal year[200] - Scheduled future minimum principal payments on debt total $855.0 million, with$405.0 million due in fiscal year 2023 and $450.0 million in 2027[199] - The company had unused capacity of$535.2 million under the ABL Revolving Facility as of January 28, 2023[190] - Company is exposed to changes in market interest rates, which could materially impact cash flow due to variable interest rates on borrowings[590] - As of January 28, 2023, all variable rate debt agreements have transitioned to SOFR, eliminating LIBOR-based borrowings[592] - The magnitude of LIBOR's end on borrowing costs remains uncertain, with potential for higher interest costs depending on replacement rates chosen by lenders[591] Goodwill and Intangible Assets - The carrying value of goodwill increased to $1,008.816 million as of January 28, 2023, up from$924.134 million a year earlier, reflecting an acquisition[202] - Total intangible assets amounted to $344.100 million as of January 28, 2023, with member relationships valued at$245.100 million and private label brands at $8.500 million[202] - The company anticipates amortization expenses related to intangible assets to be approximately$7.873 million for fiscal year 2023[203] Taxation - The total income tax provision for fiscal year 2023 was $176.3 million, compared to$131.1 million in 2022 and $136.8 million in 2021[222] - The effective income tax rate for fiscal year 2023 was 25.5$42.6 million, compared to $53.8 million in 2021 and$32.2 million in 2020[209] - The total intrinsic value of options exercised in fiscal year 2022 was $25.1 million, with a tax benefit of approximately$7.0 million[214] - As of January 28, 2023, the total intrinsic value of options vested and expected to vest was $88.2 million[214] - The Company recognized$1.1 million, $0.8 million, and$0.6 million of expense under the Employee Stock Purchase Plan for fiscal years 2022, 2021, and 2020, respectively[217] - The Company had 1,788 thousand outstanding stock options at the end of the period, with a weighted-average exercise price of $20.35[214] - The fair value of restricted stock as of the vesting date was$40.5 million, while restricted stock units were valued at $1.5 million[216] - As of January 28, 2023, the Company had approximately$53.9 million of unrecognized compensation cost, expected to be recognized over the next three years[209] Workforce and Diversity - The Company had over 34,000 full-time and part-time employees as of January 28, 2023[232] - As of the end of fiscal year 2022, 43% of the total workforce were women and 55% were minorities[234] - During fiscal year 2022, 41% of new hires were women and 66% were minorities[234] - The company offers competitive programs including annual bonuses, 401(k) plans, and stock awards to support team members[235] - The company provides access to various health and wellness programs, including an onsite chiropractor and a health clinic[235] - Training and development programs are in place to help retain and advance team members into future roles[236] - The company has a zero-tolerance policy on discrimination and harassment, with systems for confidential reporting[234] - The company emphasizes the importance of diversity and inclusion through its Inclusion & Diversity Council[234] Legal Proceedings - The company is involved in various legal proceedings typical of a retail business but does not expect any material losses from current proceedings[205] Corporate Structure - The executive team includes Robert W. Eddy as President and CEO, Laura L. Felice as CFO, and Paul Cichocki as Chief Commercial Officer[243] - BJ's Wholesale Club became a publicly traded entity on July 2, 2018, under the ticker symbol "BJ" on the NYSE[238] Charitable Activities - BJ's Charitable Foundation supports nonprofit organizations focused on hunger prevention and education[237]