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Redeemable preferred shares | 3 Months Ended
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May 01, 2021
Temporary Equity [Abstract] |
Redeemable preferred shares | Redeemable preferred shares On October 5, 2016, the Company issued 625,000 shares of Series A Redeemable Convertible Preference Shares (“Preferred Shares”) to certain affiliates of Leonard Green & Partners, L.P., for an aggregate purchase price of $625.0 million, or $1,000 per share (the “Stated Value”) pursuant to the investment agreement dated August 24, 2016. Preferred shareholders are entitled to a cumulative dividend at the rate of 5% per annum, payable quarterly in arrears either in cash or by increasing the stated value of the Preferred Shares. The Company declared the Preferred Share dividend during the fourth quarter of Fiscal 2021 payable “in-kind” by increasing the Stated Value of the Preferred Shares. The Stated Value of the Preferred Shares increased by $12.97 per share during the first quarter of Fiscal 2022 when this dividend was paid, all of which will become payable upon liquidation of the Preferred Shares. The Company has declared the first quarter Fiscal 2022 Preferred Share dividend (payable during the second quarter of Fiscal 2022) payable in cash. Refer to Note 7 for additional discussion of the Company’s dividends on Preferred Shares.
(in millions, except conversion rate and conversion price) | May 1, 2021 |  | January 30, 2021 |  | May 2, 2020
Conversion rate | 12.2297 |  |  | 12.2297 |  |  | 12.2297 |
Conversion price | $ | 81.7682 |  |  | $ | 81.7682 |  |  | $ | 81.7682 |
Potential impact of preferred shares if-converted to common shares | 8.0 |  |  | 7.9 |  |  | 7.6 |
Liquidation preference (1) | $ | 665.0 |  |  | $ | 656.8 |  |  | $ | 632.8 |
(1) Includes the stated value of the Preferred Shares plus any declared but unpaid dividends In connection with the issuance of the Preferred Shares, the Company incurred direct and incremental expenses of $13.7 million. These direct and incremental expenses originally reduced the Preferred Shares carrying value and will be accreted through retained earnings as a deemed dividend from the date of issuance through the first possible known redemption date in November 2024. Accumulated accretion recorded in the condensed consolidated balance sheets was $7.7 million as of May 1, 2021 (January 30, 2021 and May 2, 2020: $7.3 million and $6.1 million, respectively). Accretion of $0.4 million was recorded to Preferred Shares in the condensed consolidated balance sheets during the 13 weeks ended May 1, 2021 ($0.4 million for the 13 weeks ended May 2, 2020).

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- Definition The entire disclosure for terms, amounts, nature of changes, rights and privileges, dividends, and other matters related to preferred stock. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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- References No definition available. + Details
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