Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

RH, consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
Accounts payable	166,082)	242,035)	224,906)	180,714)	183,039)	195,313)
Accrued compensation	76,650)	96,859)	84,860)	64,659)	64,192)	47,534)
Accrued occupancy	28,830)	28,088)	17,671)	12,067)	10,784)	8,612)
Accrued sales taxes	18,900)	24,811)	23,706)	19,618)	18,354)	19,525)
Accrued freight and duty	17,497)	21,888)	29,754)	25,170)	20,787)	23,757)
Accrued interest	14,456)	5,185)	—)	—)	—)	—)
Accrued legal reserves	8,921)	1,398)	—)	—)	—)	—)
Accrued professional fees	7,447)	5,892)	5,383)	4,381)	2,050)	3,555)
Accrued catalog costs	4,596)	4,127)	4,354)	8,267)	10,276)	9,000)
Other accrued expenses	31,570)	12,096)	19,401)	15,433)	10,959)	11,469)
Deferred consideration for asset purchase	—)	—)	14,387)	—)	—)	—)
Accounts payable and accrued expenses	374,949)	442,379)	424,422)	330,309)	320,441)	318,765)
Deferred revenue and customer deposits	325,754)	387,933)	280,641)	162,433)	152,595)	149,404)
Convertible senior notes due 2024, net	—)	3,600)	—)	—)	—)	—)
Convertible senior notes due 2023, net	1,696)	9,389)	2,354)	—)	—)	—)
Convertible senior notes due 2020, net	—)	—)	—)	290,532)	—)	—)
Convertible senior notes due 2019, net	—)	—)	—)	—)	343,789)	—)
Current operating lease liabilities	80,384)	73,834)	71,524)	58,924)	—)	—)
Unredeemed gift card and merchandise credit liability	26,733)	22,712)	19,173)	16,625)	17,192)	24,138)
Current portion of term loans	25,000)	20,000)	—)	—)	—)	—)
Allowance for sales returns	20,747)	25,256)	25,559)	19,206)	19,821)	10,565)
Current finance lease liabilities	17,007)	15,511)	14,671)	9,188)	1,074)	471)
Foreign tax payable	4,365)	—)	—)	—)	—)	—)
Current portion of equipment promissory notes	1,160)	13,625)	22,747)	22,009)	892)	6,033)
Federal and state tax payable	—)	31,364)	49,539)	13,591)	—)	5,391)
Promissory notes on asset under construction	—)	—)	—)	53,000)	—)	—)
Provision for legal settlement	—)	—)	—)	—)	50,000)	—)
Other current liabilities	8,178)	18,155)	11,002)	7,095)	12,368)	4,568)
Other current liabilities	103,190)	146,623)	142,691)	140,714)	101,347)	51,166)
Current liabilities	885,973)	1,063,758)	921,632)	982,912)	918,172)	519,335)
Asset based credit facility	—)	—)	—)	—)	57,500)	199,970)
Term loan B, net	1,936,529)	1,953,203)	—)	—)	—)	—)
Term loan B-2, net	469,245)	—)	—)	—)	—)	—)
Term loan, net	—)	—)	—)	—)	—)	79,499)
Real estate loans	17,909)	—)	—)	—)	—)	—)
Convertible senior notes due 2024, net	41,724)	184,461)	281,454)	264,982)	—)	—)
Convertible senior notes due 2023, net	—)	59,002)	282,956)	266,658)	249,151)	—)
Convertible senior notes due 2020, net	—)	—)	—)	—)	271,157)	252,994)
Convertible senior notes due 2019, net	—)	—)	—)	—)	—)	327,731)
Non-current operating lease liabilities	505,809)	540,513)	448,169)	409,930)	—)	—)
Non-current finance lease liabilities	653,050)	560,550)	485,481)	442,988)	7,720)	7,509)
Deferred tax liabilities	6,315)	—)	—)	—)	—)	—)
Financing obligations under build-to-suit lease transactions	—)	—)	—)	—)	228,928)	229,323)
Deferred rent and lease incentives	—)	—)	—)	—)	53,742)	54,983)
Unrecognized tax benefits	2,962)	3,471)	3,114)	3,020)	2,992)	3,728)
Non-current portion of equipment promissory notes, net	—)	1,129)	14,614)	31,053)	—)	—)
Other non-current obligations	5,112)	4,106)	9,406)	25,500)	39,634)	65,130)
Deferred payroll taxes	—)	—)	4,461)	—)	—)	—)
Other non-current obligations	8,074)	8,706)	31,595)	59,573)	42,626)	68,858)
Non-current liabilities	3,638,655)	3,306,435)	1,529,655)	1,444,131)	910,824)	1,220,867)
Total liabilities	4,524,628)	4,370,193)	2,451,287)	2,427,043)	1,828,996)	1,740,202)
Preferred stock, $0.0001 par value per share, no shares issued or outstanding	—)	—)	—)	—)	—)	—)
Common stock, $0.0001 par value per share	2)	2)	2)	2)	2)	2)
Additional paid-in capital	247,076)	620,577)	581,897)	430,662)	356,422)	860,288)
Accumulated other comprehensive income (loss)	(2,403)	(1,410)	2,565)	(2,760)	(2,333)	(171)
Retained earnings (accumulated deficit)	539,986)	551,108)	(137,438)	(409,253)	(376,810)	152,394)
Treasury stock, at cost	—)	—)	—)	—)	(243)	(1,019,849)
Stockholders’ equity (deficit)	784,661)	1,170,277)	447,026)	18,651)	(22,962)	(7,336)
Total liabilities and stockholders’ equity (deficit)	5,309,289)	5,540,470)	2,898,313)	2,445,694)	1,806,034)	1,732,866)

Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).

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Balance sheet item	Description	The company
Current liabilities	Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer.	RH current liabilities increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Non-current liabilities	Amount of obligation due after one year or beyond the normal operating cycle, if longer.	RH non-current liabilities increased from 2021 to 2022 and from 2022 to 2023.
Total liabilities	Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.	RH total liabilities increased from 2021 to 2022 and from 2022 to 2023.
Stockholders’ equity (deficit)	Total of all stockholders’ equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity stockholders’ equity attributable to the parent excludes the amount of stockholders’ equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.	RH stockholders’ equity (deficit) increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

RH (NYSE:RH)

Balance Sheet: Liabilities and Stockholders’ Equity