The following discussion and analysis of the financial condition and results of
our operations should be read in conjunction with the financial statements and
related notes of Duluth Holdings Inc. included in Item 1of this Quarterly Report
on Form 10-Q and with our audited financial statements and the related notes
included in our Annual Report on Form 10-K for the fiscal year ended February 2,
2020 ("2019 Form 10-K").
The Company's fiscal year ends on the Sunday nearest to January 31 of the
following year. Fiscal 2020 is a 52-week period and ends on January 31, 2021.
Fiscal 2019 was a 52-week period and ended on February 2, 2020. The three months
of fiscal 2020 and fiscal 2019 represent our 13-week periods ended May 3, 2020
and May 5, 2019, respectively.
Unless the context indicates otherwise, the terms the "Company," "Duluth,"
"Duluth Trading," "we," "our," or "us" are used to refer to Duluth Holdings Inc.
Forward-Looking Statements
This Quarterly Report on Form 10-Q contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995 that are
subject to risks and uncertainties. All statements other than statements of
historical or current facts included in this Quarterly Report on Form 10-Q are
forward-looking statements. Forward looking statements refer to our current
expectations and projections relating to our financial condition, results of
operations, plans, objectives, strategies, future performance and business. You
can identify forward-looking statements by the fact that they do not relate
strictly to historical or current facts. These statements may include words such
as "anticipate," "could," "estimate," "expect," "project," "plan," "potential,"
"intend," "believe," "may," "might," "will," "objective," "should," "would,"
"can have," "likely," and other words and terms of similar meaning in connection
with any discussion of the timing or nature of future operating or financial
performance or other events. For example, all statements we make relating to our
estimated and projected earnings, revenue, costs, expenditures, cash flows,
growth rates and financial results, our plans and objectives for future
operations, growth or initiatives, strategies or the expected outcome or impact
of pending or threatened litigation are forward-looking statements. All
forward-looking statements are subject to risks and uncertainties, including the
risks and uncertainties described under Part I, Item 1A "Risk Factors," in our
2019 Form 10-K and other SEC filings, which factors are incorporated by
reference herein. These risks and uncertainties include, but are not limited to,
the following: adverse changes in the economy or business conditions, including
the adverse effects of the COVID-19 pandemic; prolonged effects of the COVID-19
on store traffic and disruptions to our supply chains and operations; our
ability to maintain and enhance a strong brand image; our ability to
successfully open new stores; effectively adapting to new challenges associated
with our expansion into new geographic markets; generating adequate cash from
our existing stores to support our growth; the inability to maintain the
performance of a maturing store portfolio; the impact of changes in corporate
tax regulations; identifying and responding to new and changing customer
preferences; the success of the locations in which our stores are located; our
ability to attract and retain customers in the various retail venues and
locations in which our stores are located; competing effectively in an
environment of intense competition; our ability to adapt to significant changes
in sales due to the seasonality of our business; price reductions or inventory
shortages resulting from failure to purchase the appropriate amount of inventory
in advance of the season in which it will be sold; natural disasters, unusually
adverse weather conditions, boycotts and unanticipated events; increases in
costs of fuel or other energy, transportation or utility costs and in the costs
of labor and employment; failure of our information technology systems to
support our current and growing business, before and after our planned upgrades;
and other factors that may be disclose in our SEC filings or otherwise.
Moreover, we operate in an evolving environment, new risk factors and
uncertainties emerge from time to time and it is not possible for management to
predict all risk factors and uncertainties, nor can we assess the impact of all
factors on our business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those contained in
any forward-looking statement. We qualify all of our forward-looking statements
by these cautionary statements.
We undertake no obligation to update or revise these forward-looking statements,
except as required under the federal securities laws.
Overview
We are a lifestyle brand of men's and women's casual wear, workwear and
accessories sold exclusively through our own omnichannel platform. We offer
products nationwide through our website and catalog. In 2010, we initiated our
omnichannel platform with the opening of our first store. Since then, we have
expanded our retail presence, and as of May 3, 2020, we operated 59 retail store
and three outlet stores.
We offer a comprehensive line of innovative, durable and functional products,
such as our Longtail T® shirts, Buck NakedTM underwear, Fire Hose® work pants,
and No-Yank® Tank, which reflect our position as the Modern, Self-Reliant
American Lifestyle brand. Our brand has a heritage in workwear that transcends
tradesmen and appeals to a broad demographic for everyday and on-the-job use.
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From our heritage as a catalog for those working in the building trades, Duluth
Trading has become a widely recognized brand and proprietary line of innovative
and functional apparel and gear. Over the last decade, we have created strong
brand awareness, built a loyal customer base and generated robust sales
momentum. We have done so by sticking to our roots of "there's gotta be a better
way" and through our relentless focus on providing our customers with quality,
functional products.
A summary of our financial results is as follows:
· Net sales in fiscal 2020 first quarter decreased by 3.8% over the prior year
first quarter to $109.9 million, website and catalog net sales increased 31.7%
and retail store net sales decreased 51.8%;
· Net loss of $15.1 million in fiscal 2020 first quarter compared to the prior
year first quarter net loss of $7.6 million;
· Adjusted EBITDA of $(11.6) million in fiscal 2020 first quarter compared to the
prior year first quarter Adjusted EBITDA of $(4.4) million; and
· We opened one new store in fiscal 2020 first quarter, adding approximately
17,000 of gross square footage.
As of May 3, 2020, the inventory position, although primarily consisting of core
non-seasonal products, does reflect a higher balance than historical levels due
to purchase commitments made prior to scaling back new store openings and a
general slowdown in sales growth over the past 18 months.
See "Reconciliation of Net Income to EBITDA and EBITDA to Adjusted EBITDA"
section for a reconciliation of our net income to EBITDA and EBITDA to Adjusted
EBITDA, both of which are non-U.S. GAAP financial measures. See also the
information under the heading "Adjusted EBITDA" in the section "How We Assess
the Performance of Our Business" for our definition of Adjusted EBITDA.
Our business is seasonal, and as a result, our net sales fluctuate from quarter
to quarter, which often affects the comparability of our results between
quarters. Net sales are historically higher in the fourth quarter of our fiscal
year due to the holiday selling season.
With a focus on profitability we are pursuing several strategies to continue our
growth, including building brand awareness to continue customer acquisition,
continuing selective retail expansion, selectively broadening assortments in
certain men's product categories and growing our women's business.
We continue to grow our omnichannel distribution network which allows the
consumer to interact with us through a consistent customer experience whether on
the company website or at company stores. As we expand our distribution network,
and in conjunction with assessing the similar nature of products sold,
production process, distribution process, target customers and economic
characteristics between segments, we have determined that the historical
structure of separate reporting segments for direct and retail was no longer
representative. Therefore, as of February 3, 2020, we have updated our segment
reporting to one reportable external segment, consistent with our omnichannel
business approach.
Our management's discussion and analysis includes market sales metrics for our
retail stores, website and catalog sales. Market areas are determined by a
third-party that divides the United States and Puerto Rico into 280 unique
geographical areas. Our store market sales metrics include sales from our retail
stores, website and catalog. Our non-store market sales metrics include sales
from our website and catalog.
COVID-19
In March 2020, a novel strain of coronavirus ("COVID-19") was declared a global
pandemic by the World Health Organization. This pandemic has negatively affected
the U.S. and global economies, disrupted global supply chains and financial
markets, led to significant travel and transportation restrictions, including
mandatory business closures and orders to shelter in place.
The Company has focused on protecting the health and safety of our employees,
customers and suppliers, working with our customers, landlords, suppliers and
vendors to minimize potential disruptions and supporting our community, while
managing our business in these unprecedented times. During the three months
ended May 3, 2020, we took the following actions:
· Temporarily closed all stores for a period of seven weeks;
· Made operational changes to accommodate social distancing within our
distribution centers;
· Made work from home accommodations for corporate employees;
· Amended our Credit Agreement to include an incremental delayed draw term loan
of $20.5 million and amended the loan covenants to provide greater flexibility
during peak borrowing periods in fiscal 2020;
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· Partnered with landlords, suppliers and vendors to materially reduce costs,
extend payment terms and cancel merchandise receipts;
· Initiated furloughs of varying lengths with benefits intact for 68% of salaried
staff;
· Reduced planned capital spend levels by 50% primarily by decreasing new store
openings to four in fiscal 2020; and
· Partnered with the American Red Cross to donate a portion of proceeds on key
apparel items.
Our business operations and financial performance for the three months ended May
3, 2020 were impacted by the actions taken above. The Company recognized $1.6
million (or $0.05 decrease to earnings per share) of non-recurring COVID-19
expenses during the quarter, as well as decreases in net revenue and decreases
in overall profitability as compared to the prior year. While the business
environment and above actions did impact current quarter results, our strong
brand awareness and loyal customer base were evident by the surge in direct
sales during the current quarter. Also, as of June 4, 2020, we have re-opened 58
of our 62 retail stores in some capacity and continue to actively evaluate all
federal, state and local regulations to ensure compliance with additional store
openings.
The ultimate impact of COVID-19 on our operational and financial
performance still depends on future developments outside of our control,
including the duration and spread of the pandemic and related actions taken by
federal, state and local government officials, and international governments to
prevent disease spread. Given the uncertainty, we cannot reasonably estimate the
pace and timing of remaining store openings, traffic patterns as stores re-open
and the impact on overall consumer demand.
How We Assess the Performance of Our Business
In assessing the performance of our business, we consider a variety of financial
and operating measures that affect our operating results.
Net Sales
Net sales reflect our sale of merchandise plus shipping and handling revenue
collected from our customers, less returns and discounts. Website and catalog
sales are recognized upon shipment of the product and retail store sales are
recognized at the point of sale. We also use net sales as one of the key
financial metrics in determining our annual bonus compensation for our
employees.
Gross Profit
Gross profit is equal to our net sales less cost of goods sold. Gross profit as
a percentage of our net sales is referred to as gross margin. Cost of goods sold
includes the direct cost of purchased merchandise; inventory shrinkage;
inventory adjustments due to obsolescence, including excess and slow-moving
inventory and lower of cost and net realizable reserves; inbound freight; and
freight from our distribution centers to our retail stores. The primary drivers
of the costs of individual goods are raw material costs. Depreciation and
amortization are excluded from gross profit. We expect gross profit to increase
to the extent that we successfully grow our net sales. Given the size of our
direct segment sales relative to our total net sales, shipping and handling
revenue has had a significant impact on our gross profit and gross profit
margin. Historically, this revenue has partially offset shipping and handling
expense included in selling, general and administrative expenses. We have
experienced declines in shipping and handling revenues, and this trend is
expected to continue. Declines in shipping and handling revenues may have a
material adverse effect on our gross profit and gross profit margin, as well as
Adjusted EBITDA to the extent there are not commensurate declines, or if there
are increases, in our shipping and handling expense. Our gross profit may not be
comparable to other retailers, as we do not include distribution network and
store occupancy expenses in calculating gross profit, but instead we include
them in selling, general and administrative expenses.
Selling, General and Administrative Expenses
Selling, general and administrative expenses include all operating costs not
included in cost of goods sold. These expenses include all payroll and
payroll-related expenses and occupancy expenses related to our stores and to our
operations at our headquarters, including utilities, depreciation and
amortization. They also include marketing expense, which primarily includes
television advertising, catalog production, mailing and print advertising costs,
as well as all logistics costs associated with shipping product to our
customers, consulting and software expenses and professional services fees.
Selling, general and administrative expenses as a percentage of net sales is
usually higher in lower-volume quarters and lower in higher-volume quarters
because a portion of the costs are relatively fixed.
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Our historical sales growth has been accompanied by increased selling, general
and administrative expenses. The most significant components of these increases
are advertising, marketing, rent/occupancy and payroll costs. While we expect
these expenses to increase as we continue to open new stores, increase brand
awareness and grow our organization to support our growing business, we believe
these expenses will decrease as a percentage of sales over time.
Adjusted EBITDA
We believe Adjusted EBITDA is a useful measure of operating performance, as it
provides a clearer picture of operating results by excluding the effects of
financing and investing activities by eliminating the effects of interest and
depreciation costs and eliminating expenses that are not reflective of
underlying business performance. We use Adjusted EBITDA to facilitate a
comparison of our operating performance on a consistent basis from
period-to-period and to provide for a more complete understanding of factors and
trends affecting our business.
We define Adjusted EBITDA as consolidated net income (loss) before depreciation
and amortization, interest expense and provision for income taxes adjusted for
the impact of certain items, including non-cash and other items we do not
consider representative of our ongoing operating performance. We believe
Adjusted EBITDA is less susceptible to variances in actual performance resulting
from depreciation, amortization and other items.
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Results of Operations
The following table summarizes our unaudited consolidated results of operations
for the periods indicated, both in dollars and as a percentage of net sales.
Three Months Ended
May 3, 2020 May 5, 2019
(in thousands)
Net sales 109,917 114,244
Cost of goods sold (excluding depreciation
and amortization) 57,585 53,326
Gross profit 52,332 60,918
Selling, general and administrative expenses 71,306 70,609
Operating loss (18,974) (9,691)
Interest expense 1,350 841
Other income, net 59 204
Loss before income taxes (20,265) (10,328)
Income tax benefit 5,086 2,683
Net loss (15,179) (7,645)
Less: Net loss attributable to noncontrolling
interest (44) (73)
Net loss attributable to controlling interest $ (15,135)$ (7,572)
Percentage of Net sales:
Net sales
100.0 % 100.0 %
Cost of goods sold (excluding depreciation
and amortization) 52.4 % 46.7 %
Gross margin 47.6 % 53.3 %
Selling, general and administrative expenses 64.9 % 61.8 %
Operating loss (17.3) % (8.5) %
Interest expense 1.2 % 0.7 %
Other income, net 0.1 % 0.2 %
Loss before income taxes (18.4) % (9.0) %
Income tax benefit 4.6 % 2.3 %
Net loss (13.8) % (6.7) %
Less: Net loss attributable to noncontrolling
interest - % (0.1) %
Net loss attributable to controlling interest (13.8) % (6.6) %
Three Months Ended May 3, 2020 Compared to Three Months Ended May 5, 2019
Net Sales
Net sales decreased $4.3 million, or 3.8%, to $109.9 million in the three months
ended May 3, 2020 compared to $114.2 million in the three months ended May 5,
2019. The decrease was primarily due to a decrease in store market sales offset
by an increase in non-store market sales.
Store market sales decreased $12.6 million, or 15.8%, to $67.2 million in the
three months ended May 3, 2020 compared to $79.8 million in the three months
ended May 5, 2019. The decrease was due to the temporary closure of all stores
beginning on March 20, 2020 through May 3, 2020, partially offset by an increase
in existing customers shifting from buying in-store to buying online. Non-store
market sales increased $8.7 million, or 26.4%, to $41.5 million in the three
months ended May 3, 2020 compared to $32.8 million in the three months ended May
5, 2019. The increase was driven by an increase in digital advertising to
promote our online warehouse clearance and global sale events, coupled with
extended free shipping offers.
Gross Profit
Gross profit decreased $8.6 million, or 14.1%, to $52.3 million in the three
months ended May 3, 2020 compared to $60.9 million in the three months ended
May 5, 2019. As a percentage of net sales, gross margin decreased to 47.6% of
net sales in the three months ended May 3, 2020, compared to 53.3% of net sales
in the three months ended May 5, 2019. The decrease in gross margin rate was
driven by extending the clearance events and adding a new sitewide sale event to
continue moving inventory during the period of store closures and uncertainty in
customer demand.
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Selling, General and Administrative Expenses
Selling, general and administrative expenses increased $0.7 million, or 1.0%, to
$71.3 million in the three months ended May 3, 2020 compared to $70.6 million in
the three months ended May 5, 2019. Selling, general and administrative expenses
as a percentage of net sales increased to 64.9% in the three months ended May 3,
2020, compared to 61.8% in the three months ended May 5, 2019.
The increase in selling, general and administrative expense was due to the
aforementioned $1.6 million of non-recurring COVID-19 related expenses,
increased retail overhead costs, increased digital advertising spend and
shipping costs to support website sales along with increased depreciation
expense for investments in technology, partially offset by reduced catalog
spend.
Income Tax Benefit
Income tax benefit was $5.1 million in the three months ended May 3, 2020,
compared to $2.7 million in the three months ended May 5, 2019. Our effective
tax rate related to controlling interest was 25% for the three months ended May
3, 2020 compared to 26% for the three months ended May 5, 2019.
Net loss
Net loss was $15.1 million, in the three months ended May 3, 2020 compared to a
net loss of $7.6 million in the three months ended May 5, 2019, primarily due to
the factors discussed above.
Reconciliation of Net Loss to EBITDA and EBITDA to Adjusted EBITDA
The following table presents reconciliations of net loss to EBITDA and EBITDA to
Adjusted EBITDA, both of which are non-U.S. GAAP financial measures, for the
periods indicated below. See the above section titled "How We Assess the
Performance of Our Business," for our definition of Adjusted EBITDA.
Three Months Ended
May 3, 2020 May 5, 2019
(in thousands)
Net loss $ (15,179)$ (7,645)
Depreciation and amortization 6,689 4,392
Interest expense 1,350 841
Amortization of build-to-suit operating leases
capital contribution 199 214
Income tax benefit 5,086 2,683
EBITDA $ (12,027)$ (4,881)
Stock based compensation 463 474
Adjusted EBITDA $ (11,564)$ (4,407)
As a result of the factors discussed above in the "Results of Operations"
section, Adjusted EBITDA decreased $7.2 million to $(11.6) million in the three
months ended May 3, 2020 compared to $(4.4) million in the three months ended
May 5, 2019. As a percentage of net sales, Adjusted EBITDA decreased to (10.5)%
of net sales in the three months ended May 3, 2020 compared to (3.9)% of net
sales in the three months ended May 5, 2019.
Liquidity and Capital Resources
General
Our business relies on cash from operating activities and a credit facility as
our primary sources of liquidity. Our primary cash needs have been for
inventory, marketing and advertising, payroll, store leases, capital
expenditures associated with opening new stores, infrastructure and information
technology. The most significant components of our working capital are cash,
inventory, accounts payable and other current liabilities. At May 3, 2020, our
net working capital was $114.4 million, including $8.9 million of cash and cash
equivalents.
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We expect to spend approximately $15.0 million in fiscal 2020 on capital
expenditures, which is a 50% reduction from previous plans. Capital expenditures
includes a total of approximately $8.0 million for new retail store expansion
and point of sale upgrades. We expect capital expenditures of approximately
$2.0 million and starting inventory of $0.5 million to open a new store. Due to
the seasonality of our business, a significant amount of cash from operating
activities is generated during the fourth quarter of our fiscal year. During the
first three quarters of our fiscal year, we typically are net users of cash in
our operating activities as we acquire inventory in anticipation of our peak
selling season, which occurs in the fourth quarter of our fiscal year. We also
use cash in our investing activities for capital expenditures throughout all
four quarters of our fiscal year.
We believe that our cash flow from operating activities and the availability of
cash under our amended borrowing facility will be sufficient to cover working
capital requirements and anticipated capital expenditures for the foreseeable
future.
Cash Flow Analysis
A summary of operating, investing and financing activities is shown in the
following table.
Three Months Ended
May 3, 2020 May 5, 2019
(in thousands)
Net cash used in operating activities $ (33,491)$ (13,111)
Net cash used in investing activities (4,102) (9,762)
Net cash provided by financing activities 44,653 22,358
Increase (decrease) in cash, cash equivalents
and restricted cash $ 7,060$ (515)
Net Cash used in Operating Activities
Operating activities consist primarily of net income adjusted for non-cash items
that include depreciation and amortization and, stock-based compensation and the
effect of changes in operating assets and liabilities.
While our cash flows from operations for the three months ended May 3, 2020 is
negative, despite disruptions due to COVID-19 and the seasonal nature of our
business, we expect cash flows from operations for the full year fiscal 2020 to
still be positive from operating performance and seasonal reductions in working
capital during the fourth quarter of our fiscal year, which is consistent with
previous full fiscal years.
For the three months ended May 3, 2020, net cash used in operating activities
was $33.5 million, which consisted of net loss of $15.2 million and cash used in
operating assets and liabilities of $25.4 million, partially offset by non-cash
depreciation and amortization of $6.7 million and stock based compensation of
$0.5 million. The cash used in operating assets and liabilities of $25.4 million
primarily consisted of a $27.2 million increase in inventory. The quarter-end
inventory position, although primarily consisting of core non-seasonal products,
does reflect a higher balance than historical levels due to purchase commitments
made prior to scaling back new store openings and a general slowdown in sales
growth over the past 18 months. Net cash used in operating activities
was partially offset by a $5.1 million increase in accrued expenses and
deferred rent obligations, a $3.4 million decrease of income taxes payable and a
$1.0 million decrease in deferred catalog costs.
For the three months ended May 5, 2019, net cash used in operating activities
was $13.1 million, which consisted of net loss of $7.6 million, non-cash
depreciation and amortization of $4.4 million and stock based compensation of
$0.5 million, offset by cash used in operating assets and liabilities of $10.0
million. The cash used in operating assets and liabilities of $10.0 million
primarily consisted of a $6.6 million increase in inventory, primarily due to
the increase in the number of retail stores, a $5.3 million decrease in accrued
expenses and deferred rent obligations and a $2.6 million increase in prepaid
expenses and other current assets due to the adoption of the new lease
accounting standard, a $2.3 million decrease in deferred catalog costs due to a
shift in timing of early spring catalogs, and a $1.2 million increase in trade
accounts payable due to timing of payments.
Net Cash Used in Investing Activities
Investing activities consist primarily of capital expenditures for growth
related to new store openings and information technology.
For the three months ended May 3, 2020, net cash used in investing activities
was $4.1 million and was primarily driven by capital expenditures of $4.1
million for new retail stores, as well as investments in information technology.
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For the three months ended May 5, 2019, net cash used in investing activities
was $9.8 million and was primarily driven by capital expenditures of $8.0
million for new retail store build-out, as well as investments in information
technology, and $1.8 million of capital contributions towards our build-to-suit
stores.
Net Cash Provided by Financing Activities
Financing activities consist primarily of borrowings and payments related to our
revolving line of credit and other long-term debts, as well as payments on
finance lease obligations.
For the three months ended May 3, 2020, net cash provided by financing
activities was $44.6 million, primarily consisting of proceeds of $29.7 million,
net from our term loan and proceeds of $15.7 million, net from our revolving
line of credit to fund working capital.
For the three months ended May 5, 2019, net cash provided by financing
activities was $22.4 million, primarily consisting of proceeds of $22.7 million,
net from our revolving line of credit to fund working capital.
Line of Credit
On May 17, 2018, we entered into a credit agreement (the "Credit Agreement")
which provides for borrowings of up to $80.0 million on a revolving line of
credit and an additional $50.0 million in a delayed draw term loan. The $80.0
million revolving line of credit matures on May 17, 2023 and we had the option
to draw in various amounts on the $50.0 million term loan through May 17, 2020,
with a maturity on May 17, 2023. On April 30, 2020, the Credit Agreement was
amended to include an incremental delayed draw term loan of $20.5 million that
is available to draw upon before March 31, 2021, and matures on April 29, 2021,
for a total credit facility of $150.5 million.
As of May 3, 2020 and for the three months then ended, the Company was in
compliance with all financial and non-financial covenants for all debts
discussed above and expects to be in compliance for the remainder of fiscal
2020.
Contractual Obligations
There have been no significant changes to our contractual obligations as
described in our Annual Report on Form 10-K for the fiscal year ended
February 2, 2020.
Off-Balance Sheet Arrangements
We are not a party to any material off-balance sheet arrangements.
Critical Accounting Policies and Critical Accounting Estimates
The preparation of financial statements in accordance with U.S. GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets, liabilities, revenues, and expenses, as well as the related disclosures
of contingent assets and liabilities at the date of the financial statements. We
evaluate our accounting policies, estimates, and judgments on an on-going basis.
We base our estimates and judgments on historical experience and various other
factors that are believed to be reasonable under the circumstances. Actual
results may differ from these estimates under different assumptions and
conditions and such differences could be material to the consolidated financial
statements.
As of the date of this filing, there were no significant changes to any of the
critical accounting policies and estimates described in our 2019 Form 10-K,
except as discussed below.
Recently Adopted Accounting Pronouncements
On February 3, 2020, we adopted authoritative guidance related to accounting for
costs of implementation activities performed in a cloud computing arrangement
that is a service contract and elected the prospective transition. As such, the
comparative prior period information has not been restated and continues to be
reported under the accounting standards in effect for those periods. Beginning
with the first quarter of fiscal 2020, our financial results reflect adoption of
the standard.
See Note 1 "Nature of Operations and Basis of Presentation," of Notes to
Condensed Consolidated Financial Statements included in Part 1, Item 1, of this
quarterly report on Form 10-Q for further information regarding recently adopted
accounting pronouncements.
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Recent Accounting Pronouncements
See Note 12 "Recent Accounting Pronouncements," of Notes to Condensed
Consolidated Financial Statements included in Part 1, Item 1, of this quarterly
report on Form 10-Q for information regarding recent accounting pronouncements.
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