10K1home20170128x10k.

htm10K
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UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549

FORM10K

ANNUALREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934

ForthefiscalyearendedJanuary28,2017

or

TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF
1934

CommissionFileNumber:00137849

ATHOMEGROUPINC.
(Exactnameofregistrantasspecifiedinitscharter)

Delaware 453229563
(Stateofotherjurisdictionofincorporationororganization) (I.R.S.EmployerIdentificationNo.)

1600EastPlanoParkway
Plano,Texas 75074
(Addressofprincipalexecutiveoffices) (ZipCode)

(972)2656227
(Registrantstelephonenumber,includingareacode)

SecuritiesregisteredpursuanttoSection12(b)oftheAct:

Titleofeachclass Nameofeachexchangeonwhichregistered
CommonStock,parvalue$0.01pershare NewYorkStockExchange

SecuritiesregisteredpursuanttoSection12(g)oftheAct:None

Indicatebycheckmarkiftheregistrantisawellknownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.YesNo

Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof
1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjectto
suchfilingrequirementsforthepast90days.YesNo

IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyandpostedonitscorporateWebsite,ifany,everyInteractiveDataFile
requiredtobesubmittedandpostedpursuanttoRule405ofRegulationST(232.405ofthischapter)duringthepreceding12months(orforsuch
shorterperiodthattheregistrantwasrequiredtosubmitandpostsuchfiles).YesNo

IndicatebycheckmarkifdisclosureofdelinquentfilerspursuanttoItem405ofRegulationSKisnotcontainedherein,andwillnotbecontained,
tothebestoftheregistrant'sknowledge,indefinitiveproxyorinformationstatementsincorporatedbyreferenceinPartIIIofthisForm10Kor
anyamendmenttothisForm10K.YesNo

Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anonacceleratedfiler,orasmallerreporting
company.Seethedefinitionsoflargeacceleratedfiler,acceleratedfilerandsmallerreportingcompanyinRule12b2oftheExchangeAct.

Largeacceleratedfiler Acceleratedfiler Nonacceleratedfiler Smallerreportingcompany

Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b2oftheExchangeAct).YesNo

TheaggregatemarketvalueofthecommonstockoftheRegistrantheldbynonaffiliatesoftheRegistrantonAugust4,2016,baseduponthe
closingpriceof$15.00oftheRegistrant'scommonstockasreportedontheNewYorkStockExchange,was$129,840,000.TheRegistranthas
electedtouseAugust4,2016asthecalculationdate,whichwastheinitialtradingdateoftheRegistrant'scommonstockontheNewYorkStock
Exchange,becauseasofJuly30,2016,thelastbusinessdayoftheregistrantsmostrecentlycompletedsecondfiscalquarter,therewasno
establishedpublicmarketfortheregistrantscommonstock.

Therewere60,366,768sharesoftheregistrantscommonstock,parvalue$0.01pershare,outstandingasofMarch31,2017.

DOCUMENTSINCORPORATEDBYREFERENCE

Portionsoftheregistrant'sdefinitiveProxyStatementforits2017AnnualMeetingofStockholdersareincorporatedbyreferenceintoPartIIIof
thisAnnualReportonForm10K.TheProxyStatementwillbefiledwiththeSecuritiesandExchangeCommissionwithin120daysofthe
registrantsfiscalyearendedJanuary28,2017.

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ATHOMEGROUPINC.

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Page

PARTI

Item1. Business 1

Item RiskFactors 11
1A.

Item UnresolvedStaffComments 31
1B.

Item2. Properties 32

Item3. LegalProceedings 32

Item4. MineSafetyDisclosures 32

PARTII

Item5. MarketforRegistrantsCommonEquity,RelatedStockholderMattersandIssuerPurchases 33
ofEquitySecurities

Item6. SelectedFinancialData 35

Item7. ManagementDiscussionandAnalysisofFinancialConditionandResultsofOperations 36

Item QuantitativeandQualitativeDisclosuresaboutMarketRisk 61
7A.

Item8. ConsolidatedFinancialStatementsandSupplementaryData 62

Item9. ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure 62

Item ControlsandProcedures 62
9A.

Item OtherInformation 62
9B.

PARTIII

Item Directors,ExecutiveOfficersandCorporateGovernance 63
10.

Item ExecutiveCompensation 63
11.

Item SecurityOwnershipofCertainBeneficialOwnersandManagementandRelated 63
12. StockholderMatters

Item CertainRelationshipsandRelatedTransactions,andDirectorIndependence 63
13.

Item PrincipalAccountantFeesandServices 63
14.

PARTIV

Item ExhibitsandFinancialStatementSchedules 64
15.

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PARTI

ThisAnnualReportonForm10Kcontainsforwardlookingstatementswithinthemeaningof
theU.S.PrivateSecuritiesLitigationReformActof1995.Youcangenerallyidentifyforwardlooking
statementsbyouruseofforwardlookingterminologysuchasanticipate,believe,continue,
could,estimate,expect,intend,may,might,plan,potential,predict,seek,
vision,orshould,orthenegativethereoforothervariationsthereonorcomparableterminology.In
particular,statementsaboutourexpectednewstoreopenings,ourrealestatestrategy,growthtargetsand
potentialgrowthopportunitiesandfuturecapitalexpendituresandourexpectations,beliefs,plans,
strategies,objectives,prospects,assumptionsorfutureeventsorperformancecontainedinthisreportare
forwardlookingstatements.

Wehavebasedtheseforwardlookingstatementsonourcurrentexpectations,assumptions,
estimatesandprojections.Whilewebelievetheseexpectations,assumptions,estimatesandprojections
arereasonable,suchforwardlookingstatementsareonlypredictionsandinvolveknownandunknown
risksanduncertainties,includingtheimportantfactorsdescribedintheItem1A.RiskFactorssection
ofthisAnnualReportonForm10K,manyofwhicharebeyondourcontrol.Theseandotherimportant
factorsmaycauseouractualresults,performanceorachievementstodiffermateriallyfromanyfuture
results,performanceorachievementsexpressedorimpliedbytheseforwardlookingstatements.Given
theserisksanduncertainties,youarecautionednottoplaceunduerelianceonsuchforwardlooking
statements.Theforwardlookingstatementscontainedinthisreportarenotguaranteesoffuture
performanceandouractualresultsofoperations,financialconditionandliquidity,andthedevelopment
oftheindustryinwhichweoperate,maydiffermateriallyfromtheforwardlookingstatementscontained
inthisreport.Inaddition,evenifourresultsofoperations,financialconditionandliquidity,andevents
intheindustryinwhichweoperate,areconsistentwiththeforwardlookingstatementscontainedinthis
report,theymaynotbepredictiveofresultsordevelopmentsinfutureperiods.

AnyforwardlookingstatementthatwemakeinthisAnnualReportonForm10Kspeaksonlyas
ofthedateofsuchstatement.Exceptasrequiredbylaw,wedonotundertakeanyobligationtoupdateor
revise,ortopubliclyannounceanyupdateorrevisionto,anyoftheforwardlookingstatements,whether
asaresultofnewinformation,futureeventsorotherwise,afterthedateofthisreport.

Unlessthecontextotherwiserequires,referencesinthisAnnualReportonForm10Ktothe
Company,AtHome,we,us,andourrefertoAtHomeGroupInc.anditsconsolidated
subsidiaries.

ITEM1.BUSINESS

HistoryandCompanyOverview

AtHomeistheleadinghomedcorsuperstorebasedonthenumberofourlocationsandour
largeformatstoresthatwebelievededicatemorespaceperstoretohomedcorthananyotherplayerin
theindustry.Wearefocusedonprovidingthebroadestassortmentofproductsforanyroom,inanystyle,
foranybudget.Weutilizeourspaceadvantagetooutassortourcompetition,offeringover50,000SKUs
throughoutourstores.Ourdifferentiatedmerchandisingstrategyallowsustoidentifyontrendproducts
andthenvalueengineerthoseproductstoprovidedesirableaestheticsatattractivepricepointsforour
customers.Over70%ofourproductsareunbranded,privatelabelorspecificallydesignedforus.We
believethatourbroadandcomprehensiveofferingandcompellingvaluepropositioncombinetocreatea
leadingdestinationforhomedcorwiththeopportunitytocontinuetakingmarketshareinalarge,
fragmentedandgrowingmarket.

AtHome(formerlyknownasGardenRidge)wasfoundedin1979inGardenRidge,Texas,a
suburbofSanAntonio.WequicklygainedaloyalfollowinginourTexashomemarketandexpanded
thereafter.Throughoutourhistory,wehavecultivatedapassionatecustomerbasethatshopsourstoresfor
theunique,wideassortmentofproductsofferedatvaluepricepoints.AfterourCompanywasacquiredin
2011byaninvestmentgroupledbyAEAInvestorsLP("AEA"),whichincludedaffiliatesofStarr
InvestmentHoldings,LLC("StarrInvestments"and,togetherwithAEA,theSponsors),webegana
seriesofstrategicinvestmentsinthebusiness.Webelievethatthecorestrengthsofour

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businesscombinedwiththesignificantinvestmentsmadeintheyearsfollowingouracquisitionbyour
Sponsorspositionustogrowsalesandexpandourstorebase.

AsofJanuary28,2017,ourstorebaseiscomprisedof123storesacross30states,averaging
approximately115,000squarefeetperstore.Weutilizeaflexibleanddisciplinedrealestatestrategythat
allowsustosuccessfullyopenandoperatestoresfrom80,000to165,000squarefeetacrossawiderange
offormatsandmarkets.Allofourstoresthatwereopenasofthebeginningofthefiscalyearare
profitable,andstoresthathavebeenopenformorethanayearaverageover$6millioninnetsales.Duein
parttoourpastinvestments,ourdistributioncentershouldbeabletosupportuptoapproximately220
stores.Inaddition,basedonourinternalanalysisandresearchconductedforusbyBuxtonCompany,a
leadingrealestateanalyticsfirm(referredtohereinasBuxton),webelievethatwehavethepotentialto
expandtoatleast600storesintheUnitedStatesoverthelongtermalthoughwedonotcurrentlyhavean
anticipatedtimeframetoreachthispotential.

Wehavedevelopedahighlyefficientoperatingmodelthatseekstodrivegrowthand
profitabilitywhileminimizingoperatingrisk.Ourmerchandising,sourcingandpricingstrategies
generatestrongandconsistentperformanceacrossourproductofferingandthroughouttheentireyear.
Throughspecializedinstoremerchandisingandvisualnavigationelements,weenableaselfservice
modelthatminimizesinstorestaffingneedsandallowsustodeliverexceptionalvaluetoourcustomers.

Webelievethatourdifferentiatedhomedcorconcept,flexiblerealestatestrategyandhighly
efficientoperatingmodelcreatecompetitiveadvantagesthathavedrivenourfinancialsuccess.

InitialPublicOffering
OnAugust3,2016,ourRegistrationStatementonFormS1relatingtoourinitialpublicoffering
wasdeclaredeffectivebytheSecuritiesandExchangeCommission(SEC)pursuanttowhichwe
registeredanaggregateof9,967,050sharesofourcommonstock(including1,300,050sharessubjectto
theunderwriters'overallotmentoption).Weissuedandsold8,667,000ofthesharesregisteredataprice
of$15.00pershareonAugust9,2016,resultinginnetproceedsof$120.9millionafterdeducting
underwriters'discountsandcommissionsof$9.1million.OnSeptember8,2016,weissuedandsolda
further863,041sharesofourcommonstockpursuanttotheunderwriterspartialexerciseoftheover
allotmentoption.Thisexerciseoftheoverallotmentoptionresultedinnetproceedstousof$12.0
millionafterdeductingunderwritersdiscountsandcommissionsof$0.9million.

Weusedthenetproceedsfromtheinitialpublicofferingandpartialexerciseoftheover
allotmentoption,afterdeductingunderwritersdiscountsandcommissions,torepayinfullthe$130.0
millionofprincipalamountofindebtednessoutstandingunderour$130.0millionsecondlientermloan
(theSecondLienTermLoan).

OurcommonstockbegantradingontheNewYorkStockExchange(theNYSE),onAugust4,
2016underthetickersymbol"HOME".

OurGrowthStrategies

Weexpecttocontinueourstrongsalesgrowthandleadingprofitabilitybypursuingthe
followingstrategies:

ExpandOurStoreBase

Webelievethereisatremendouswhitespaceopportunitytoexpandinbothexistingandnew
marketsintheUnitedStates.Overthelongterm,webelievewehavethepotentialtoexpandtoatleast
600storesintheUnitedStatesbasedonourinternalanalysisandresearchconductedbyBuxton.During
fiscalyear2017,weopened23newstores,netofonerelocation.Duringfiscalyear2018,weplantoopen
25netnewstoresandweplantoopenatleast25newstoresineachsubsequentyearfortheforeseeable
future.Therateoffuturegrowthinanyparticularperiodisinherentlyuncertainandissubjectto
numerousfactorsthatareoutsideofourcontrol.Asaresult,wedonotcurrentlyhaveananticipated
timeframetoreachourlongtermpotential.Inaddition,dueinparttoourinvestments,oursystems,
processesandcontrolsshouldbeabletosupportuptoapproximately220storeswithlimitedincremental
investment.

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Wehaveusedoursiteselectionmodeltoscoreover20,000bigboxretaillocationsthroughout
theUnitedStates,whichpositionsustobeabletoactquicklyaslocationsbecomeavailable,andwehave
developeddetailedmarketmapsforeachU.S.marketthatguideourdeliberateexpansionstrategy.We
haveopenedstoresinamixofexistingandnewmarkets.Newstoresinexistingmarketshaveincreased
ourtotalmarketshareduetohigherbrandawareness.Webelievethereisstillconsiderableopportunityto
continueaddinglocationsinevenourmostestablishedmarkets.Inaddition,weanticipatealimited
numberofrelocationsperiodicallyasweevaluateourpositioninthemarketupontheimpending
expirationofleaseterms.Wehavedemonstratedourabilitytoopenstoressuccessfullyinadiverserange
ofnewmarketsacrossthecountry.Ourportableconcepthasdeliveredconsistentstoreeconomicsacross
allmarkets,fromsmaller,lessdenselocationstolarger,moreheavilypopulatedmetropolitanareas.We
havedeliveredover20%yearoveryearnetsalesgrowthineachofthepastelevenconsecutivequarters.

Ournewstoremodelcombineshighaverageunitvolumesandhighmarginswithlownetcapital
investmentandoccupancycosts,resultingincashflowgenerationearlyinthelifeofastore.Ourstores
typicallymaturewithinsixmonthsofopening.Wetargetfirstyearannualizedsalesof$5million.Our
newstoresrequire,onaverage,approximately$3millionofnetinvestment,varyingbasedonourlease,
purchaseorbuilddecisions,butwithatargetpaybackperiodoflessthantwoyears.

DriveComparableStoreSales

Wehaveachievedpositivecomparablestoresalesineachofthelasttwelveconsecutivefiscal
quarters,rangingfrom0.9%to11.4%,andaveraging5.2%growthovertheperiod.Comparablestoresales
canbeimpactedbyvariousfactorsfromperiodtoperiod,includingourrecentrebranding,asdiscussedin
Item7.ManagementsDiscussionandAnalysisofFinancialConditionandResultsofOperationsHow
WeAssessthePerformanceofOurBusiness.Wewillseektocontinuetodrivedemandandcustomer
spendbyprovidingatargeted,excitingproductselectionandadifferentiatedshoppingexperience,
includingthefollowingspecificstrategicinitiatives:

Continuouslyintroducenewandontrendproductstoappealtoawiderangeofcustomersand
improvethemixofourassortment(good/better/bestproductoffering)

Enhanceinventoryplanningandallocationcapabilitiestogettherightproductsintheright
storeattherighttime

Continuetostrengthenourvisualmerchandisingsuchasvignettes,endcapsandfeaturetables
toinspireourcustomersandgenerateinstoredemandand

GrowtheAtHomebrandthroughmarketingandadvertisingaswellascommunity
engagementsthattargetthehomedcorenthusiasttodriveincreasedtraffictoourstores.

BuildtheAtHomeBrandandCreateAwareness

Duringfiscalyear2015,welaunchedtheAtHomebrand,whichwebelievebetter
communicatesourpositioningastheleadinghomedcorsuperstore.Additionally,wereestablisheda
marketingfunctionandreinstatedmarketingspendtohighlightournewbrand,broadproductoffering
andcompellingvalueproposition.GiventhenewnessandrelativelylimitedawarenessoftheAtHome
brand,webelievethereisasignificantopportunitytogrowourbrandandbuildawarenessforexisting
andnewmarkets.

Toaddressthisopportunity,weintendtoallocateourmarketingspendacrossarangeofstrategic
initiativesinordertohighlightourdifferentiatedvalueproposition.Wewillinvolvebothtraditional
mediaplatformsandunique,targetedstrategiesaimedatreachingthehomedcorenthusiast.Our
marketingandbrandbuildingeffortswillbeenhancedbyengaginginanongoingdialoguewithour
customersthroughgrowingsocialandmobilechannels.Webelievewehaveanopportunitytoleverage
ourgrowingsocialmediaandonlinepresencetodrivebrandexcitementandincreasestorevisitswithin
existingandnewmarkets.

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Wehaveloyal,enthusiasticanddiversecustomerswhoaredeeplypassionateabout,andloveto
decorate,theirhomes.Basedonresearchcompletedbyathirdpartyduringfiscalyear2016,ourcurrent
customerdemographicconsistsprimarilyofwomenandweappealtoabroadincomedemographic.Our
customersaverage46yearsofage,whilecustomersunder34yearsofagecomprisealmost30%ofour
demographic,representingthefastestgrowingsegmentandindicatingourcrossgenerationalappeal.
Regardlessofageorincome,wefocusoncustomerswhoarehighlyengagedin,andspendsubstantial
timeandmoneyonhomedcor.

Throughourextensivecustomerresearch,wehavelearnedthatmanyhomedcorenthusiasts
browseonlineforideas,inspirationandgeneralproductinformationbeforevisitingspecificstores.In
fiscalyear2017,weupgradedourwebsitetoenableourcustomerstoviewourproductassortmentonline
withrobustsearchfunctionalityandamobilefriendlywebsite.Thisenhancementfocusesonan
inspirationalshoppingexperiencethatshowcasesdecoratingideastodrivetrafficintoourstores.Weare
exploringopportunitiestoprovidevariouslevelsofecommercecapabilitiesbutintendtofocuson
initiativesthatmaintainourindustryleadingprofitability.

Webelieveincreasedbrandawarenesswillnotonlydrivetraffictoexistingstores,butalso
strengthenourbusinessasweexpandintonewmarkets.

OurIndustry

Wecompeteinthelarge,growingandhighlyfragmentedhomefurnishingsanddcormarket.
Theindustryhadtotalsalesofapproximately$189billionin2015accordingtoHomeFurnishingsNews,
andhasenjoyedstablegrowthatanannualrateofapproximately2.3%peryearoverthelastfiveyears
accordingtoEuromonitor.Weattributethisgrowthtotheindustrysbroadconsumerappeal,coupledwith
strongpositivetailwindsfromagrowinghousingmarket,risingpropertyvaluesandhomesalesand
growingdisposableincomes.Thisgrowthtrendisexpectedtocontinue,withaforecastedgrowthrateof
approximately2.2%overthenextfiveyearsaccordingtoEuromonitor.

Unlikeotherbigboxretailcategories(e.g.,officesupplies,homeimprovementandelectronics)
wherethetopretailersholdasignificantshareoftheoverallmarket,thetopthreeretailersinthehome
dcorandfurnishingscategorymakeuplessthan25%ofthemarketshare.Webelieveweareuniquely
positionedinthemarket,focusedonprovidingthebroadestassortmentofhomedcorproductsatvalue
pricepoints.Inaddition,thesizeofourstoresenablesustocarryabroadofferingoffullyassembled,
largermerchandise,unlikemanyofourcompetitors,whoarespaceconstrainedfromprovidingasimilar
offering.Webelieveourfocusonabroadassortmentatvaluepricepointsalsouniquelypositionsusfor
thosetimeswhentheindustryisgrowingbelowtrend,asitallowsustogainshareinafragmentedmarket
whilealsosupportingourcustomerspassionabout,andlovefor,decoratingherhome.

Thehomefurnishingsanddcormarketincludesadiversesetofcategoriesandretailformats.
However,webelievethatwedonothaveadirectcompetitor,asnoretailermatchesoursize,scaleor
scopeoftheproductassortmentthatweofferateverydaylowprices.Whilewehavenodirectcompetitor,
certainproductsthatweofferdocompetewithofferingsbycompaniesinthefollowingsegments:

SpecialtyHomeDcor/OrganizationandFurnitureretailers(e.g.,BedBath&Beyond,The
ContainerStore,EthanAllen,Havertys,HomeGoods,Pier1ImportsandWilliamsSonoma)
havestoresthataretypicallysmaller(approximately10,000to30,000squarefeet)andwe
believetheirhomedcorproductofferingismuchnarrowerthanoursandoftenispricedata
substantialpremium.

Mass/Clubretailers(e.g.,Costco,TargetandWalMartStores)onlydedicateasmallportionof
theirsellingspacestohomedcorproductsandfocusonthemostpopularSKUs.

Arts/Craft/Hobbyretailers(e.g.,HobbyLobby,JoAnnStoresandMichaelsStores)target
customerswhoprefertocreatetheproductthemselves,whereasourcustomerprefersfinished
products.

Discountretailers(e.g.,BigLots,BurlingtonandTuesdayMorning)haveahomedcorproduct
offeringthatistypicallylimited,offeredatdeepdiscountsandoftendependentontheirability
topurchasecloseoutorliquidatedmerchandisefrommanufacturers.

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HomeImprovementretailers(e.g.,HomeDepotandLowes)haveaproductofferingthatis
primarilyfocusedonhomeimprovementandrepairitems,althoughwedocompetewiththem
inseasonalandoutdoorproducts.

OnlineHomeDcorretailers(e.g.,Wayfair)offerabroadselectionofproductsinhome
furnishingsanddcorthatistypicallyweightedtowardmoreexpensiveitems(typically$200
to$300pertransaction)thatcanjustifythehighshipping,returnsanddamagecostsandoverall
economicsoftheirmodel.Conversely,wefocusprimarilyontheattractivedecorativeaccents
andaccessoriesportionofthemarket,generatinganaveragebasketofapproximately$65,
wherewecanemployourefficientoperatingmodeltogenerateattractiveeconomics.For
similarproducts,webelieveweareabletooffercomparablebreadthofassortmenttoonline
retailers.

OurMerchandise
Wehavethelargestassortmentofhomedcorproductsamongallbigboxretailers.Witheight
maindesignarchetypes,fromtraditionaltocountryandfromvintagetomodern,wecoverthefull
spectrumofhomedcorstylesandwebelievewehavesomethingforeveryone.Overthepastfouryears,
wehaveevolvedourmerchandisingstrategytoincreaseourproductofferingofbetterandbestlevel
products,resultinginanincreaseinaveragebasketsize.Weareadvantageouslysituatedasavalueplayer
inthehomedcormarket,withanaveragepricepointoflessthan$15andtypicalcustomerspendof
approximately$65pervisit.

Ourmerchantorganizationisfocusedonfindingorcreatingproductsthatmeetourcustomers
aestheticrequirementsatattractivepricepoints.Acoregoalofourbuyersistoensurewedeliverour
targetedsellingmarginsacrossourentireproductportfolioand,asaresult,weenjoystronggrossmargins
thatareconsistentacrossourproductoffering.
Ourproductdesignprocessbeginswithinspiration.Weseektocapitalizeonexistingtrendsand
homedcorfashionsacrossvariouspricepointsandmakethemaccessibleratherthandrivenewtrends.
Wemonitoremergingtrendsthroughawiderangeofhomedcorindustrysourcesincludingcompetitors,
mediasources,vendors,tradeshows,variousonlineoutletsandusergeneratedcontent(e.g.,Pinterestand
Houzz)tostaycurrentwithconsumerpreferences.Wethenidentifynewproductopportunitiesorany
gapsinourofferingandworkcloselywithourvendorstodesignproductstomeetherneedsataccessible
pricepoints.Ourmerchandisingteamalsocloselymonitorsoursalestrendsandnewproductlaunchesto
ensureourstoreofferingremainsfreshandrelevant.
Weemployaneverydaylowpricingstrategythatoffersourcustomersthebestpossiblepricing
withouttheneedforperiodicdiscountsorpromotions.Whencustomersviewourprices,theycanbe
confidentinthevaluetheyreceiveanddonotneedtowaitforsalesorcouponstomakepurchasing
decisions.Webelievethisresultsinconsistenttraffictoourstores.Over80%ofournetsalesoccuratfull
price,withthebalanceattributabletoselectivemarkdownsusedtoclearslowmovinginventoryor
postdatedseasonalproduct.Forthelimitedsetofproductsthataredirectlycomparabletoproducts
offeredbyotherretailers,weseektoofferpricessignificantlybelowourspecialtycompetitorsandator
belowourmassretailcompetitors.Weallowformerchandisetobereturnedwithin60daysfromthe
purchasedate.

Ourmerchantteamconsistsofapproximately65peopleandincludesaChiefMerchandising
Officer,divisionalmerchandisingmanagers,buyers,assistantbuyersandaninventoryplanningand
allocationteam.Ourinventoryplannersworkwithourbuyerstoensurethattheappropriatelevelof
inventoryforeachproductisstockedacrossourstorebase.Wepurchaseourinventorythroughacentral
systemthatbuysfortheentirechainversusindividualstores.Webelievethisstrategyallowsustotake
advantageofvolumediscountsandimprovescontrolsoverinventoryandproductmixtoensurethatwe
aredisciplinedaboutthelevelofinventorywecarry.

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ProductMix

Ourbroadanddeepofferingincludesthefollowingproducts:

Accentfurniture Frames Pottery
Barstools Gardendecor Rugsandmats
Bedding&bath Halloween Sculptures
products decorations
Bedsandmattresses Harvestdecorations Silkflowers
Candles Homeorganization Sofas
Chairs Kitchenware Stands
Christmasdecorations Lamps Storage
Consumables Mirrors Tables
Easterdecorations Patio Vases
Floorplantsandtrees Petitems Wallart
Foodpreparation Pillowsandcushions Windowtreatments
items

Homefurnishings,whichgenerallyconsistsofaccentfurniture,furniture,mirrors,patiocushions,
rugsandwallart,comprisedapproximately48%,48%and47%oftotalnetsalesforfiscalyears2017,
2016and2015,respectively.Inaddition,accentdcor,whichgenerallyconsistsofartificialflowersand
trees,bedding,candles,gardenandoutdoordcor,holidayaccessories,homeorganization,pillows,
pottery,vasesandwindowtreatments,comprisedapproximately49%,49%and49%oftotalnetsalesfor
fiscalyears2017,2016and2015,respectively.Oursuperstoreformatanduniqueapproachto
merchandisingresultinourabilitytooffermultiplestyles,colorsanddesignelementsmostotherretailers
areunabletocarry.

Sourcing

Webelieveoursourcingmodelprovidesuswithsignificantflexibilitytocontrolourproduct
costs.Weworkverycloselywithover500vendorstovalueengineerproductsatpricepointsthatdeliver
excellentvaluetoourcustomers.Infiscalyear2017,approximately40%ofourmerchandisewas
purchasedfromdomesticvendorsand60%waspurchasedfromforeignvendorsincountriessuchas
China,HongKong,BelgiumandTaiwan.Leadtimesvarydependingontheproduct,rangingfromone
weektoninemonths.Weplantoestablishanoverseassourcingofficeinthefuture.Anoverseasoffice
wouldallowustocontinuetoincreaseourdirectpurchasesfromoverseasfactoriesinAsia,ratherthan
purchasingthroughdomesticagentsortradingcompanies.Webelievethisrepresentsanopportunityto
increaseouraccesstouniqueandqualityproducts.

Weseektobuildlongtermrelationshipswithourvendorpartners,whocanprovidesupportfor
ourvariousmarketingandinstoremerchandisinginitiatives.However,webelievewearenotdependent
onanyonevendorandhavenolongtermpurchasecommitmentsorarrangements.Formanyofour
vendors,wearetheirfastestgrowingand,sometimes,largestaccount,whichpromotescollaboration
betweenourcompanies.Infiscalyear2017,ourtoptenvendorsaccountedforapproximately20%oftotal
purchases,withourlargestvendorrepresentinglessthan5%.Webelieveourvendorpartnerrelationships
willcontinuetosupportourbusinessgrowth.

OurStores

Wecurrentlyoperate127storesin31statesacrosstheUnitedStates.Asummaryofourstore
locationsbystateasofJanuary28,2017isincludedinItem2.Properties.

StoreLayout

Ourstoresvaryinsizebetween80,000and165,000squarefeetwithanaverageof
approximately115,000squarefeet.Ourlocationshaveasimilarstorelayoutthatisspecificallydesigned
toengageourcustomers.Wedesignourstoresasshoppablewarehouseswithwideaisles,aninteriorrace
trackandclearsignagethatenablecustomerstoeasilynavigatethestore.Wealsohavestoremaps
availableattheentrancesforourcustomertousewhilesheshops.

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Throughoutourstores,wemerchandiseproductslogicallybycolor,designandsizeinordertoappealto
ourcoreshoppersbuyingpreferencesandusefeaturetablesandendcapstocreatecontinuousvisual
interestandtohighlightvalue.Additionally,weutilizeproductvignettesthatofferdesigninspirationand
coordinatedproductideastoourcustomers.Ourlargestoreformatallowsustomaintainhighinstock
positionsandselllargersizedandfullyassembledproducts.Tomakehershoppingexperienceeasierand
supportourefficientoperatingmodel,weinstallfixtureshelveslowertothegroundsothatproductsare
easilyreachableandrequireminimalstaffassistance.Wealsoutilizespecialfixturesforourproductssuch
aswallart,mirrorsandrugstoalloweasyviewing,improvedshopabilityandminimizedproductdamage.
Wehaveacentralizedcheckoutlanewithmultipleregistersthatmakesthecheckoutprocesssimpleand
efficient.

Toenhanceourcustomer'sselfhelpshoppingexperienceinconnectionwithourlargersized
products,weofferhertheopportunitytoengageSelectExpress,athirdpartydeliveryservice,toprovide
homedelivery.Throughthisservice,sheisabletointerfacedirectlywiththeprovidertoschedulea
convenientdeliverytime.Deliveriestypicallyoccurwithin48hours,butnextdayserviceisalso
available.SelectExpresshasexperiencenationwidewithmanymajorretailers.Nonetheless,deliveries
fromourstoresfollowcompletionofthesalestransactionwithourcustomer,thusminimizingany
exposurewemighthaveinconnectionwiththedelivery.

StoreOperations

Wecentralizemajordecisionsrelatingtomerchandising,inventoryandpricinginordertoallow
ourinstoreteamtofocusoncreatingacleanandorganizedshoppingenvironment.Ourstoresare
typicallyledbyastoredirector,astoremanagerandhaveageneralstaffaveraging25employees.Store
employeesarebroadlysplitintotwofunctionalgroups,customerserviceandoperations,thereby
allowingustomaximizeefficiencieswhilealigningemployeestothefunctionthatbestsuitstheirskills.
Ourproprietarylabormodeloptimizesstaffinglevelsbasedonhourlysalesandtrafficvolumes.
Additionally,employeesutilizedowntimetostockshelvesanddisplayswithnewinventory.Thismodel
providesuswiththeflexibilitytomeetvariousseasonaldemandswhileenablingconsistentlabormargins
throughouttheyear.OverallstoresupervisionismanagedbyourDirectorofStoreOperations,two
regionalmanagersandtwelvedistrictmanagers.

Ouremployeesareacriticalcomponentofoursuccessandwearefocusedonattracting,retaining
andpromotingthebesttalentinourstores.Werecognizeandrewardteammemberswhomeetourhigh
performancestandards.Allemployeesareeligibletoparticipateinourbonusincentiveprogramandstore
directorsareabletoparticipateinanunlimitedbonusincentiveprogrambasedprimarilyonexceeding
storelevelsalestargets.Wealsorecognizeindividualperformancethroughinternalpromotionsand
provideopportunitiesforadvancementthroughoutourorganization.Weprovidetrainingforallnewhires
andongoingtrainingforexistingemployees.

Ourstoresaretypicallyopensevendaysaweekacrossthechainwithregularhoursof9a.m.to
10p.m.MondaythroughSaturdayand9a.m.to9p.m.onSunday.

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RealEstateStrategy

ExpansionOpportunities

Ourretailconcepthasbeensuccessfulacrossanumberofgeographicmarketsspanning
populationsof150,000tooverfivemillionpeople.Ourstoresthathavebeenopenformorethantwelve
monthsasofJanuary28,2017performconsistentlyacrosssmall,midlevelandlargemarketsandgenerate
averagenetsalesofapproximately$6.0millionto$7.0millionacrossthesemarkets.Overthepastfive
fiscalyears,wehavesuccessfullyopened77newstoresinamixofexistingandnewmarkets.Ourrecent
storegrowthissummarizedinthefollowingtable:

FiscalYearEnded
January26,2013 January25,2014 January31,2015 January30,2016 January28,2017
Beginningofperiod 51 58 68 81 100
Openings 7 10 16 20 24
Relocations (2) (1)
Closures (1) (1)
Totalstoresatend
ofperiod 58 68 81 100 123

Webelievewehavethewhitespacetoopenatleast25newstoresperyearfortheforeseeable
future.Duringfiscalyear2017,weopened23newstores,netofonerelocatedstore.Duringfiscalyear
2018,weplantoopen25netnewstores.Basedonourinternalanalysisandresearchconductedforusby
Buxton,webelievethatwehavethepotentialtoexpandtoatleast600storesintheUnitedStatesover
thelongterm,orapproximatelyfivetimesourfootprintof123storesasofJanuary28,2017.Therateof
futuregrowthinanyparticularperiodisinherentlyuncertainandissubjecttonumerousfactorsthatare
outsideofourcontrol.Asaresult,wedonotcurrentlyhaveananticipatedtimeframetoreachthis
potential.Inaddition,dueinparttoourinvestments,oursystems,processesandcontrolsshouldbeableto
supportuptoapproximately220storeswithlimitedincrementalinvestment.Weexpecttocontinuetobe
disciplinedinourapproachtoopeningnewstores,focusingonexpandingourpresenceinexisting
marketswhileenteringadjacentgeographies.Wealsoplantoactoncompellingopportunitiesweidentify
innewmarkets.

Ourstoregrowthissupportedbynewstoreeconomicsthatwebelievearecompelling.Ournew
storesgenerateanaverageof$6millionofnetsaleswithinthefirstfullyearofoperationsandreach
maturitywithinthefirstsixmonths.Theaverageinvestmentvariesbythetypeofsiteandwhetherthe
storeisleased,purchasedorbuiltfromthegroundup.Eachstorerequiresnetinvestmentonaverageof
approximately$3million.Basedonourmodelandhistoricalresults,weexpectournewstorestopay
backtheinitialinvestmentwithintwoyears.
SiteSelectionandAvailability
Wehavedevelopedahighlyanalyticalapproachtorealestatesiteselectionwithastringentnew
storeapprovalprocess.Ourdedicatedrealestateteamspendsconsiderabletimeevaluatingprospective
sitesbeforesubmittingacomprehensiveapprovalpackagetoourrealestatecommittee,comprisedofour
ChiefExecutiveOfficer,ChiefFinancialOfficerandChiefDevelopmentOfficer.Wetargetmarketsthat
meetourspecificdemographicandsiteevaluationcriteriaandcompletesubstantialresearchbefore
openinganewsite.Weuseaproprietarymodelwhichtakesintoaccountseveraldemandfactors
includingpopulationdensityofourtargetcustomer,medianhouseholdincome,homeownershiprates,
retailadjacencies,competitorpresenceandlocaleconomicgrowthmetrics.Primarysiteevaluationcriteria
includeavailabilityofattractiveleaseterms,sufficientboxsize,cotenancy,convenientparking,traffic
patterns,visibilityandaccessfrommajorroadways.Wetypicallyfavorlocationsnearotherbigbox
retailersthatdrivestrongcustomertraffictothearea.
WebelievetherewillcontinuetobeanamplesupplyoflargeformatrealestateintheUnited
Statesthatisattractivetous,drivenbymultichain,nationalretailersrelocatingorclosingstores,a
numberofretailersshiftingtosmallerlocationsandtherelativelackofnewretailconceptsusinglarger
storeformats.Webelieveweareoneoftheonlygrowing,largeformatretailersinthecountry.Asaresult,
wehavebecomeadirectbeneficiaryofthisavailablerealestateandofvariousretailerslookingto
quicklyshedstores.Wetypicallyofferaconvenientsolutiontoanysellingorleasingpartyasweareable
totakeawidevarietyofboxes,movequicklyandrequirelittleinvestmentintime,resourcesorcapitalon
theirpart.Wetakeadisciplinedapproachtohowweenterandbuildoutourpresenceinmarketsandseek
tooptimizesalesinadeliberate,carefullyplannedmanner.Inordertoactquicklyonnewopportunities,
wehavescored

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over20,000bigboxretaillocationsintheUnitedStateswithaproprietarysiteselectionmodel.Asa
resultofourproventrackrecord,wehavedevelopedstrongrelationshipswithbrokers,landlordsandbig
boxretailersandareoftenthefirsttoreceiveacallwhenlocationsbecomeavailable.
SiteDevelopmentandFinancing
Wehaveaflexibleandbalancedapproachtositedevelopmentthatallowsustooptimizethe
investmentcharacteristicsofeachnewstoreandmaintainourrobustnewstorepipeline.Wecanleasea
secondgenerationproperty,purchaseasecondgenerationbuildingorbuildanewlocationfromthe
groundup.

Forpurchasedpropertiesornewdevelopmentbuilds,wecanextractcapitalusing
saleleasebacksthroughaprovenanddisciplinedapproach.Wehaverelationshipswithanumberofthe
majorpubliclytradedREITs,manyofwhichhavedemonstratedinterestinourportfolioofassets.We
havecompletedsixsaleleasebacktransactionsgeneratingapproximately$188millioninproceedsinthe
pastfouryearsatacapitalizationratebetween6.46%and6.99%.

Wehavedevelopedanefficientprocessfromsiteselectionthroughnewstoreopening.Ourthree
prongedapproachtositedevelopmentallowsustonegotiateveryfavorablerealestatetermsthat
typicallyincludelowoccupancycosts,theabilitytounilaterallyoptoutofleasedlocations,andother
featuresthatprovideuswithflexibilitytomanageourstoreportfolio.

Marketing

Ourmarketingandadvertisingstrategiesseektoeffectivelyandefficientlycommunicateour
compellingvaluepropositiontoanincreasingbaseofhomedcorenthusiasts.Ourgoalistodevelopa
continuousdialoguewithourcorecustomers,whileattractingnewcustomersbybuildingadistinctive
connectiontotheAtHomebrand.Wereinvigoratedourmarketingefforts,increasingspendfromnearly
zeroinfiscalyear2013to2.0%ofnetsalesineachoffiscalyears2015and2016and2.6%ofnetsalesin
fiscalyear2017.

Thehomedcorenthusiastviewsherhomeasaplacethatisconstantlyevolvingwitheach
seasonaswellaseverydayeventsinherlife.Weconnectwithheronanongoingbasisbyinspiringher
withallofthewaysshecanrefreshherhomewithourwiderangeofdcorstylesforanyroom,inany
style,foranybudget.Weengagewithheracrossvariousmarketingchannelsbefore,duringandafterher
storevisit.Wehaveincreasedourfocusinsocialmediabuildingrelationshipswithhomedcor
influencersaswellasfacilitatingthesharingofhomedcorideasthroughusergeneratedcontent
strategiesleveragingPinterest,Facebook,Instagram,Twitterandvariousblogs.Weuseweeklyemail
marketingtoinspireherwithseasonallyrelevantdcor,andwillbegrowingthereachoftheseeffortsas
wefocusonsignificantlybuildingourcustomerdatabase(currentlyover2.3million)throughinstore
emailcapture.WehaveenteredintoanagreementwithSynchronyBanktoprovideforacobrandedand
privatelabelconsumercreditcardprogramthatincludesloyaltyincentivesforourcustomers.This
programisexpectedtolaunchduringfiscalyear2018andwillallowAtHomecardholderstotake
advantageofpromotionalfinancingoffersonqualifyingpurchases,exclusivediscounts,loyaltyrewards
andotherbenefits,includingmobileaccountservicing.

Wealsousetraditionalmediaplatforms(outdoor,radioandonlineadvertising)tobuildbroader
brandawarenessinmarketswherewecanachievethehighestimpact.Tolaunchourbrandduringnew
storeopenings,wehaveevolvedourstrategythroughtacticaltestingtogettoaneffectiveandcost
efficientmixofdirectmail,radio,outdoor,social,digital,publicrelationsandevents.Additionally,we
leveragethissamemediamixinselectmarketstodrivetrafficduringthekeysummerseasonwithour
outdoorproductofferingandduringtheimportantholidayseasonwithourbroadholidaydcor
assortments.

Throughourcustomerresearch,wehavelearnedthatmanyhomedcorenthusiastsbrowse
onlineforideas,inspirationandgeneralproductinformationbeforevisitingspecificstores.Infiscalyear
2017,weupgradedourwebsitetoenableourcustomerstoviewourproductassortmentonlinewitha
robustsearchfunctionalityandmobilefriendlywebsitefocusedonaninspirationalshoppingexperience
thatshowcasesdecoratingideaswithourbroadproductassortmenttodrivetrafficintoourstores.Weare
exploringopportunitiestoprovidevariouslevelsofecommercecapabilitiesbutwillfocusonstrategies
thatmaintainourindustryleadingprofitability.

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Webelievethateffectivemarketingwillcontinuetogrowourawarenesswhichwilldrivebrand
excitement,increaseourcustomerengagementleadingtoincreasedstorevisitsandsales.

Distribution

Weoperatea592,000squarefootdistributioncenterinPlano,Texas,whichalsoservesasour
corporateheadquarters.Wealsohaveanadditionalapproximately420,000squarefeetofwarehouse
premisesinGarland,Texas,forinitialinventorybuildupfornewstoreopenings.Weupgradedthe
distributioncenteroverthepastfouryearsanditshouldbeabletosupportuptoapproximately220
stores.Wehavealsoinvestedover$9millioninautomatingourfacility,implementingwarehouse
managementsoftwareandroboticstoefficientlyhandledailyproductdeliveries.Thisautomationwill
continuetosupportourneedsasweexpandourstorebase.

Thevastmajorityofourproductsareshippeddirectlytoourdistributioncenter,whichservesas
acrossdockfacility,storingverylimitedinventoryonsite.Inordertostreamlinestoreoperationsand
reducelaborrequirements,allofthemerchandiseinourdistributioncenterispreparedforthesalesfloor
priortotransport.Vendorspreticketitemswiththeappropriatepricetags.Productsaresortedontopallets
byzonesuchthattheycanbeeasilyloadedontotrucksandthenunloadedandplaceddirectlyinthesales
zonewithminimalbackroomstorage.Wearrangeshipmentsintrucksinthemostlogicalmannerto
expediteunloadinganddelivery.Thisapproachtodistributionsupportsourefficientstoreoperating
model.

Realtimeproductreplenishmentinstoresensuresthatourcustomershavethebroadestselection
availableandthatwedonotcarryextrainventory.Wegenerallyshipmerchandisetoourstoresbetween
oneandfivetimesaweek,dependingontheseasonandthevolumeofaspecificstore,utilizingcontract
carriersforallshipments.

InformationSystems

Webelievethatourmanagementinformationsystemswillsupportourgrowthandenhanceour
competitiveposition.Ourefficientoperatingmodelissupportedbyusingindustrystandardapplications
intheareasofmerchandising,storesystems,replenishment,distributionandfinancialsystems.Weusea
combinationoftheseindustrystandardsystemsalongwithautomatedandeasytouseproprietarysystems
tosupportallareasofourbusiness.Overthepastfouryears,wehaveinvestedinITsystemsand
infrastructure,includinginvestmentsinmerchandising,planningandallocation(JDA),POSsystems
(IBM/Toshiba),distributioncenter(PKMS)andfinanceandaccounting(SAP)toensureoursystemsare
robustandscalable.Additionally,overthepastfouryearswehaveinvestedinadditionalITteam
memberstoprovideappropriatesupportandprojectdeliverycapabilitiesneededforthegrowthofthe
Company.

Employees

AsofJanuary28,2017,weemployedapproximately3,172employees,including2,913store
employeesand259otheremployeesacrossthecorporateanddistributioncenterfunctions.Ofthe2,913
storeemployees,364werefulltimesalariedlevelstaffandtheremainingemployeesconsistedofamixof
fulltimeandparttimehourlyworkers.Allofourfulltimeemployeesearnaminimumwageof$10.00per
hourandallofourparttimeemployeesearnaminimumwageof$9.00perhour.Basedonthelevelof
transactionsexperiencedatdifferenttimesoftheday,weekandyear,storelaborisplannedtoserve
customerseffectivelyduringpeakperiodswhileminimizingoveralllaborcosts.Noneofouremployees
arecurrentlycoveredunderanycollectivebargainingagreements.

IntellectualProperty

WeownaU.S.trademarkregistrationforthetrademarkathomeanddesign,whichwas
registeredbytheUnitedStatesPatent&TrademarkOfficeonJuly7,2015foratenyeartermandis
renewableeverytenyearsthereafter.Wealsoownthedomainnameathome.comandanumberofother
registeredtrademarks,pendingtrademarkapplicationsanddomainnamesthatweuseinourbusiness.
Collectively,weconsiderourtrademarksanddomainnamestobeimportantassetsofouroperationsand
seektoactivelymonitorandprotectourinterestinthisproperty.

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GovernmentRegulation

Wearesubjecttolaborandemploymentlaws,lawsgoverningtruthinadvertising,privacylaws,
environmentallaws,safetyregulationsandotherlaws,includingconsumerprotectionregulationsthat
regulateretailersandgovernthepromotionandsaleofmerchandiseandtheoperationofstoresand
warehousefacilities.Wemonitorchangesintheselawsandbelievethatweareinmaterialcompliance
withapplicablelaws.

AvailableInformation
WearesubjecttotheinformationalrequirementsoftheSecuritiesExchangeActof1934,as
amended(theExchangeAct),andinaccordancetherewith,wefilereports,proxyandinformation
statementsandotherinformationwiththeSEC.OurAnnualReportonForm10K,QuarterlyReportson
Form10Q,CurrentReportsonForm8K,andanyamendmentstothesereportsfiledorfurnishedpursuant
toSection13(a)or15(d)oftheExchangeActareavailablethroughtheinvestorrelationssectionofour
websiteatinvestor.athome.com.Reportsareavailablefreeofchargeassoonasreasonablypracticable
afterweelectronicallyfilethemwith,orfurnishthemto,theSEC.Theinformationcontainedonour
websiteisnotincorporatedbyreferenceintothisAnnualReportonForm10K.
Inadditiontoourwebsite,youmayreadandcopypublicreportswefilewithorfurnishtothe
SECattheSECsPublicReferenceRoomat100FStreet,NE,Washington,DC20549.Youmayobtain
informationontheoperationofthePublicReferenceRoombycallingtheSECat1800SEC0330.The
SECmaintainsanInternetsitethatcontainsourreports,proxyandinformationstatements,andother
informationthatwefileelectronicallywiththeSECatwww.sec.gov.

ITEM1A.RISKFACTORS
ThefollowingriskfactorsmaybeimportanttounderstandinganystatementinthisAnnual
ReportonForm10Korelsewhere.Ourbusiness,financialconditionandoperatingresultscanbe
affectedbyanumberoffactors,whethercurrentlyknownorunknown,includingbutnotlimitedtothose
describedbelow.Anyoneormoreofsuchfactorscoulddirectlyorindirectlycauseouractualresultsof
operationsandfinancialconditiontovarymateriallyfrompastoranticipatedfutureresultsof
operationsandfinancialcondition.Anyofthesefactors,inwholeorinpart,couldmateriallyand
adverselyaffectourbusiness,financialcondition,resultsofoperationsandstockprice.
RisksRelatingtoOurBusiness

Generaleconomicfactorsmaymateriallyadverselyaffectourbusiness,revenueand
profitability.
GeneralconditionsintheUnitedStatesandglobaleconomythatarebeyondourcontrolmay
materiallyadverselyaffectourbusinessandfinancialperformance.Asaretailerthatisdependentupon
consumerdiscretionaryspendingforhomedcorproducts,ourcustomersmayallocatelessmoneyfor
discretionarypurchasesasaresultofincreasedlevelsofunemployment,reducedconsumerdisposable
income,higherinterestrates,higherfuelandotherenergycosts,highertaxratesandotherchangesintax
laws,foreclosures,bankruptcies,fallinghomeprices,reducedavailabilityofconsumercredit,higher
consumerdebtlevels,adeclineinconsumerconfidence,inflation,deflation,recession,anoverall
economicslowdownandotherfactorsthatinfluenceconsumerspending.Anyreduceddemandforthe
merchandisethatwesellcouldresultinasignificantdeclineincustomertrafficandsalesanddecreased
inventoryturnover.Therefore,ifeconomicconditionsworsen,theremaybeamaterialadverseimpacton
ourbusiness,revenueandprofitability.

Inaddition,ourcostsandexpensescouldbemateriallyadverselyimpactedbygeneraleconomic
factorssuchashigherinterestrates,higherfuelandotherenergycosts,highertransportationcosts,higher
commoditycosts,highercostsoflabor,insuranceandhealthcare,increasedrentalexpense,inflationin
othercosts,highertaxratesandotherchangesinthetaxlawandchangesinotherlawsandregulations.
Theeconomicfactorsthataffectouroperationsalsoaffecttheoperationsandeconomicviabilityofour
suppliersfromwhomwepurchasegoods,afactorthatcanresultinanincreaseinthecosttousof
merchandiseweselltoourcustomers.

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Volatilityordisruptioninthefinancialmarketscouldmateriallyadverselyaffectourbusiness
andthetradingpriceofourcommonstock.
Werelyonstableandefficientfinancialmarkets.Anydisruptioninthecreditandcapitalmarkets
couldadverselyimpactourabilitytoobtainfinancingonacceptableterms.Volatilityinthefinancial
marketscouldalsoresultindifficultiesforfinancialinstitutionsandotherpartiesthatwedobusiness
with,whichcouldpotentiallyaffectourabilitytoaccessfinancingunderourexistingarrangements.We
areexposedtotheimpactofanyglobalordomesticeconomicdisruption,includinganypotentialimpact
oftherecentvotebytheUnitedKingdomtoexittheEuropeanUnion,commonlyreferredtoasBrexit.
Althoughwegenerallygeneratefundsfromouroperationsandourexistingcreditfacilitiestopayour
operatingexpensesandfundourcapitalexpenditures,ourabilitytocontinuetomeetthesecash
requirementsoverthelongtermmayrequireaccesstoadditionalsourcesoffunds,includingequityand
debtcapitalmarkets,andmarketvolatilityandgeneraleconomicconditionsmayadverselyaffectour
abilitytoaccesscapitalmarkets.Inaddition,theinabilityofourvendorstoaccesscapitalandliquidity
withwhichtomaintaintheirinventory,productionlevelsandproductqualityandtooperatetheir
businesses,ortheinsolvencyofourvendors,couldleadtotheirfailuretodelivermerchandise.Ifweare
unabletopurchaseproductswhenneeded,oursalescouldbemateriallyadverselyimpacted.Accordingly,
volatilityordisruptioninthefinancialmarketscouldimpairourabilitytoexecuteourgrowthstrategy
andcouldhaveamaterialadverseeffectonthetradingpriceofourcommonstock.

Consumerspendingonhomedcorproductscoulddecreaseorbedisplacedbyspendingon
otheractivitiesasdrivenbyanumberoffactors.
Consumerspendingonhomedcorproductscoulddecreaseorbedisplacedbyspendingon
otheractivitiesasdrivenbyanumberoffactorsincluding:

shiftsinbehaviorawayfromhomedecoratinginfavorofotherproductsoractivities,suchas
fashion,mediaorelectronics

generaleconomicconditionsandotherfactorsthataffectconsumerdiscretionaryspending

naturaldisasters,includinghurricanes,tornadoes,floods,droughts,heavysnow,iceorrain
storms,whichdisrupttheabilityofconsumerstocontinuespendingonhomedcorproducts

manmadedisasters,suchasterrorismorwar,aswellasothernationalandinternationalsecurity
concernsand

othermattersthatinfluenceconsumerconfidenceandspending.

Totalconsumerspendingmaynotcontinuetoincreaseathistoricalratesduetoslowed
populationgrowthandshiftsinpopulationdemographics,anditmaynotincreaseincertainproduct
marketsgivenchangesinconsumerinterests.Further,asweexpandintonewmarkets,wemaynot
accuratelypredictconsumerpreferencesinthatmarket,whichcouldresultinlowerthanexpectedsales.If
consumerspendingonhomedcorproductsdecline,ourresultsofoperationscouldbematerially
adverselyaffected.

Wemaynotbeabletosuccessfullyimplementourgrowthstrategyonatimelybasisoratall,
whichcouldharmourgrowthandresultsofoperations.
Ourgrowthisdependentonourabilitytoopenprofitablenewstores.Ourabilitytoincreasethe
numberofourstoreswilldependinpartontheavailabilityofexistingbigboxretailstoresorstoresites
thatmeetourspecifications.Wemayfacecompetitionfromotherretailersforsuitablelocationsandwe
mayalsofacedifficultiesinnegotiatingleasesonacceptableterms.Inaddition,alackofavailable
financingontermsacceptabletorealestatedevelopersoratighteningcreditmarketmayadverselyaffect
theretailsitesavailabletous.Risingrealestatecostsandacquisition,constructionanddevelopmentcosts
andavailableleasefinancingcouldalsoinhibitourabilitytoopenoracquirenewstores.

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Openingoracquiringstoresinvolvescertainrisks,includingconstructing,furnishing,supplying
andstaffingastoreinatimelyandcosteffectivemannerandaccuratelyassessingthedemographicor
retailenvironmentforaparticularlocation,aswellasaddressinganyenvironmentalissuesrelatedtosuch
locations.Wecannotpredictwhethernewstoreswillbesuccessful.Ourfuturesalesatnewstoresmaynot
meetourexpectations,whichcouldadverselyimpactourreturnoninvestment.Forexample,thecostsof
openingandoperatingnewstoresmayoffsettheincreasedsalesgeneratedbytheadditionalstores.
Therefore,therecanbenoassurancethatournewstoreswillgeneratesaleslevelsnecessarytoachieve
storelevelprofitabilityorprofitabilitycomparabletothatofexistingstores.Newstoresalsomayface
greatercompetitionandhaveloweranticipatedsalesvolumesrelativetopreviouslyopenedstoresduring
theircomparableyearsofoperation.Inaddition,asignificantportionofourmanagementstimeand
energymaybeconsumedwithissuesrelatedtostoreexpansionandwemaybeunabletohireasufficient
numberofqualifiedstorepersonnelorsuccessfullyintegratethenewstoresintoourbusiness.
Furthermore,ourvendorsmaybeunabletomeettheincreaseddemandofadditionalstoresinatimely
manner.Wecannotguaranteethatwewillbeabletoobtainanddistributeadequatemerchandisetonew
storesormaintainadequatewarehousinganddistributioncapabilityatacceptablecosts.

Inaddition,ourexpansioninexistingandnewmarketsmaypresentcompetitive,distribution,
merchandisingandregulatorychallengesthatdifferfromourcurrentchallenges,includingcompetition
amongourstores,diminishednoveltyofourstoredesignandconcept,addedstrainonourdistribution
center,additionalinformationtobeprocessedbyourinformationtechnologysystemsanddiversionof
managementattentionfromoperations.Newstoresinnewmarkets,wherewearelessfamiliarwiththe
populationandarelesswellknown,mayfacedifferentoradditionalrisksandincreasedcostscompared
tostoresoperatinginexistingmarketsornewstoresinexistingmarkets.Forexample,wemayneedto
increasemarketingandadvertisingexpendituresinneworsmallermarketsinwhichwehavelessstore
density.Additionally,wemaynotaccuratelypredictconsumerpreferencesinnewmarkets,whichcould
resultinlowerthanexpectedsales.Expansionintonewmarketscouldalsobringusintodirect
competitionwithretailerswithwhomwehavenopastexperienceasdirectcompetitors.Totheextentthat
wearenotabletomeetthesenewchallenges,oursalescoulddecreaseandouroperatingcostscould
increase.Furthermore,ourmarginsmaybeimpactedinperiodsinwhichincrementalexpensesare
incurredasaresultofnewstoreopenings.Additionally,althoughourdistributioncentercurrentlyshould
beabletosupportastorebaseofuptoapproximately220stores,anyunanticipatedfailureoforinability
tosupportourgrowingstorebasecouldhaveamaterialadverseeffectonourbusiness.Therefore,there
canbenoassurancethatwewillbesuccessfulinopening,acquiringoroperatinganynewstoresona
profitablebasis.

Accordingly,wecannotassureyouthatwewillachieveourplannedgrowthor,evenifweare
abletogrowourstorebaseasplanned,thatanynewstoreswillperformasplanned.Ifwefailto
successfullyimplementourgrowthstrategy,wewillnotbeabletosustainthegrowthinsalesandprofits
thatweexpect,whichwouldlikelyhaveanadverseimpactonthepriceofourcommonstock.

Failuretomanageourinventoryeffectivelyandinabilitytosatisfychangingconsumer
demandsandpreferencescouldmateriallyadverselyimpactouroperations.
Duetothenatureofourbusiness,wemakedecisionsregardingmerchandiseseveralmonthsin
advanceofeachoftheseasonsinwhichsuchmerchandisewillbesold,particularlywithrespecttoour
merchandisethatismanufactured,purchasedandimportedfromcountriesaroundtheworld.Wemust
maintainsufficientinventorylevelstooperateourbusinesssuccessfully.However,ifwemisjudge
consumerpreferencesordemands,wecouldhaveexcessinventorythatmayneedtobeheldforalong
periodoftime,writtendownordiscardedinordertoclearexcessinventory,especiallyseasonaland
holidaymerchandise.Conversely,ifweunderestimateconsumerdemand,wemaynotbeabletoprovide
certainproductsinatimelymannertoourcustomersinordertomeettheirdemand,whichcanresultin
lostsales.Eithereventcouldhaveamaterialadverseimpactonourbusiness,financialconditionand
resultsofoperations.Inaddition,werecentlyupgradedtoanewinventoryplanningandallocation
system.Ifthenewinventoryplanningandallocationsystemisunsuccessful,ourabilitytoproperly
allocateinventorytostorescouldbeadverselyaffected.

Therecanbenoassurancethatwewillbeabletocontinuetoofferassortmentsofproductsthat
appealtoourcustomersorthatwewillsatisfychangingconsumerdemandsandpreferencesinthefuture.
Accordingly,ourbusiness,financialconditionandresultsofoperationscouldbemateriallyadversely
affectedif:

wemiscalculateeitherthemarketforthemerchandiseinourstoresorourcustomers
purchasinghabits

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consumerdemandunexpectedlyshiftsawayfromthemerchandiseweofferorifthereare
unanticipatedshiftsinconsumerpreferencesinsomeseasonsor

weareunabletoanticipate,identifyandrespondtochangingconsumerdemandsoremerging
trends,includingshiftsinthepopularityofcertainproductsorincreasedconsumerdemandfor
moreenhancedcustomerserviceandassistance,homedeliveryoronlinesalesandservices.

Inaddition,inventoryshrinkage(inventorytheft,lossordamage)ratescouldnegativelyimpact
ourfinancialresults.Furthermore,failuretocontrolmerchandisereturnscouldalsoadverselyaffectour
business.Wehaveestablishedaprovisionforestimatedmerchandisereturnsbaseduponhistorical
experienceandotherknownfactors.However,ifactualreturnsaregreaterthanthoseprojectedby
management,additionalreductionsofrevenuecouldberecordedinthefuture.Inaddition,totheextent
thatreturnedmerchandiseisdamagedorotherwisenotappealingtoourcustomers,wemaynotreceive
fullretailvaluefromtheresaleorliquidationofthereturnedmerchandise.

Ourbusinessmodelcurrentlyreliesonpurchasingallinventorycentrallythroughourhome
officeinPlano,Texas.Atthisoffice,allproductsamplesaredevelopedand/orreceivedandreviewedin
addition,allpurchaseordersareplaced,fulfilledandallocatedfromthesamelocation.Majorcatastrophic
eventssuchasnaturaldisasters,localizedlaborissuesorwagesincreases,fireorflooding,malfunctionor
disruptionoftheinformationsystems,adisruptionincommunicationservices,poweroutagesorshipping
interruptionscoulddelayorotherwiseadverselyaffectinventorypurchasingorallocation,aswellasthe
ultimatedistributionofinventorytoourstoresandcustomers.Suchdisruptionscouldhaveanegative
impactonoursalesandresultsofoperations.Ourbusinessmodelofcentralpurchasingcouldalsofailto
accountfordifferencesinconsumerpreferencesbymarket.Insuchcases,andwhereourfocusof
providingthebroadestassortmentofproductsforanyroomsimilarlydidnotaccountfordifferencesin
consumerpreferencesbymarket,oursalesandresultsofoperationscouldbeadverselyaffected.

Thelossof,ordisruptionin,orourinabilitytoefficientlyoperateourdistributionnetwork
couldhaveamateriallyadverseimpactonourbusiness.
WeoperateasinglecrossdockdistributioncenterinPlano,Texas,whichservicesallofour
stores,aswellaswarehousepremisesinGarland,Texas.Themajorityofourinventoryisshippeddirectly
fromsupplierstoourdistributioncenterwheretheinventoryisprocessedandthenshippedtoourstores.
Onlymattressesandsomefooditemsareshippeddirectlytostores.Werelyinlargepartontheorderly
operationofthisreceivinganddistributionprocess,whichdependsonourautomateddistributionsystem,
adherencetoshippingschedulesandeffectivemanagementofourdistributionnetwork.Ifcomplications
arisewithourdistributionfacilityorifthefacilityorwarehousepremises(orasignificantportionof
inventorylocatedthere)isseverelydamagedordestroyed,ourabilitytoreceiveanddeliverinventoryon
atimelybasiswillbesignificantlyimpaired.Therecanbenoassurancethatdisruptionsinoperationsdue
tonaturalormanmadedisasters,fire,flooding,terrorismorothercatastrophicevents,systemfailure,labor
disagreementsorshippingproblemswillnotresultindelaysinthedeliveryofmerchandisetoourstores.
Suchdelayscouldmateriallyadverselyimpactourbusiness.Inaddition,wecouldincursignificantly
highercostsandlongerleadtimesassociatedwithdistributingmerchandisetoourstoresduringthetime
ittakesforustoreopenorreplaceourdistributioncenter.Moreover,ourbusinessinterruptioninsurance
maynotbeadequatetocoverorcompensateusforanylossesthatmayoccur.Inaddition,ourdistribution
centershouldhavethecapacitytosupportuptoapproximately220stores.Totheextentthatwegrowto
largerthan220stores,wewillneedtoexpandourcurrentdistributioncenterand/oraddnewdistribution
capabilities.

Werelyuponvariousmeansoftransportationthroughthirdparties,includingshipmentsbyair,
sea,railandtruck,todeliverproductstoourdistributioncenterfromvendorsandfromourdistribution
centertoourstores,aswellasfordirectshipmentsfromvendorstostores.Laborshortagesorcapacity
constraintsinthetransportationindustry,disruptionstothenationalandinternationaltransportation
infrastructure,fuelshortagesortransportationcostincreases(suchasincreasesinfuelcostsorportfees)
couldmateriallyadverselyaffectourbusinessandoperatingresults,particularlyaswereceiveanddeliver
ourseasonalandholidaymerchandise.

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Wearesubjecttoanumberofrisksbecauseweimportasignificantportionofourmerchandise.
Approximately60%ofourmerchandisewaspurchasedfromvendorsinforeigncountriessuchas
China,HongKong,BelgiumandTaiwanduringfiscalyear2017.Inaddition,manyofourdomestic
vendorspurchaseaportionoftheirproductsfromforeignsources.Forexample,wepurchasemerchandise
fromdomesticvendorsthatisimportedfromChinaorthatismanufacturedinChinaandassembledinthe
UnitedStates.Currently,wedonotemployanyresourcesonthegroundinAsiatomanageour
procurementprocessandvariousvendorrelationships.Instead,weoftenrelyontradingcompaniesto
handlesourcingandlogisticswithAsianfactories.

Foreignsourcingsubjectsustoanumberofrisksgenerallyassociatedwithdoingbusiness
abroadsuchasthefollowing:

longleadtimes

workstoppagesandstrikes

delaysinshipment,shippingportandoceancarrierconstraints

freightcostincreases

productqualityissues

rawmaterialshortagesandfactoryconsolidations

employeerightsissuesandothersocialconcerns

epidemicsandnaturaldisasters

politicalinstability,internationalconflicts,war,threatsofwar,terroristactsorthreats,
especiallythreatstoforeignandU.S.portsandpiracy

economicconditions,includinginflation

theimpositionoftariffs,duties,quotas,taxes,importandexportcontrolsandothertrade
restrictions

governmentalpoliciesandregulationsand

thestatusoftraderelationswithforeigncountries,includingthelossofmostfavorednation
statuswiththeUnitedStatesforaparticularforeigncountry.

Adverseeventscouldhaveagreaterimpactonusthanifouroperationswereinmoredispersed
geographicalregions.
Wecurrentlyoperate127storesin31states,primarilyintheSouthCentral,Southeasternand
MidwesternregionsoftheUnitedStates,including25storesinTexas.Inaddition,weoperateasingle
distributioncenterandwarehousepremisesinTexas,whichserviceallofourstores.Accordingly,the
effectonusofadverseeventsintheseregions,especiallyinTexas,suchasweather(includinghurricanes,
tornadoes,floods,droughts,heavysnow,iceorrainstorms),naturalormanmadedisasters,catastrophic
events,terrorism,blackouts,widespreadillnessorunfavorableregionaleconomicconditions,maybe
greaterthanifouroperationsorinventoryweremoregeographicallydispersedthroughoutthecountryor
abroad.Sucheventscouldresultinphysicaldamagetoordestructionordisruptionofoneormoreofour
properties,physicaldamagetoordestructionofourinventory,theclosureofoneormorestores,thelack
ofanadequateworkforceinpartsorallofouroperations,supplychaindisruptions,dataand
communicationsdisruptionsandtheinabilityofourcustomerstoshopinourstores.

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Inaddition,increasesinourselling,generalandadministrativeexpensesduetooverheadcosts
couldaffectourprofitabilitymorenegativelythanifwehadalargerstorebase.Oneormoreunsuccessful
newstores,oradeclineinsalesorprofitabilityatanexistingstore,willhaveamoresignificanteffecton
ourresultsofoperationsthanifwehadalargerstorebase.

Becauseofourinternationaloperations,wecouldbeadverselyaffectedbyviolationsofthe
U.S.ForeignCorruptPracticesActandsimilarworldwideanti briberyandanti kickbacklaws.
Wesourceoverhalfofourproductsabroad.TheU.S.ForeignCorruptPracticesActandother
similarlawsandregulationsgenerallyprohibitcompaniesandtheirintermediariesfrommakingimproper
paymentstononU.S.officialsforthepurposeofobtainingorretainingbusiness.Whileourpolicies
mandatecompliancewiththeseantibriberylaws,wecannotassureyouthatwewillbesuccessfulin
preventingouremployeesorotheragentsfromtakingactionsinviolationoftheselawsorregulations.
Suchviolations,orallegationsofsuchviolations,coulddisruptourbusinessandresultinamaterial
adverseeffectonourfinancialcondition,resultsofoperationsandcashflows.

Ourrebrandingmaynotbesuccessful.
Duringfiscalyear2015,welaunchedasignificantrebrandinginitiativethroughwhichwespent
over$20millionincapitalandexpensestochangeourbrandandcorporatenameandconvertandrefresh
allofourstores.Thereisnoassurancethatourrebrandinginitiativewillbesuccessfulorresultina
positivereturnoninvestment.Inaddition,wehavealimitedoperatinghistoryundertheAtHomebrand.
Webelievethatmaintainingandenhancingourbrandisintegraltoourbusinessandtothe
implementationofourstrategiesforexpandingourbusiness.Therefore,wecouldberequiredtodevote
significantadditionalresourcestoadvertisingandmarketing,whichcouldhaveanadverseimpactonour
operations.

Wearesubjecttorisksassociatedwithleasingsubstantialamountsofspace.
Weleasecertainofourretailproperties,ourdistributioncenterandourcorporateoffice.The
profitabilityofourbusinessisdependentonoperatingourcurrentstorebasewithfavorablemargins,
openingandoperatingnewstoresatareasonableprofit,renewingleasesforstoresindesirablelocations
and,ifnecessary,identifyingandclosingunderperformingstores.Weleaseasignificantnumberofour
storelocations,rangingfromshorttermtolongtermleases.Typically,alargeportionofastores
operatingexpenseisthecostassociatedwithleasingthelocation.

Theoperatingleasesforourretailproperties,distributioncenterandcorporateofficeexpireat
variousdatesthrough2036.Anumberoftheleaseshaverenewaloptionsforvariousperiodsoftimeat
ourdiscretion.Wearetypicallyresponsiblefortaxes,utilities,insurance,repairsandmaintenancefor
theseretailproperties.RentexpenseforthefiscalyearsendedJanuary31,2015,January30,2016and
January28,2017totaledapproximately$42.9million,$52.3millionand$68.1million,respectively.Our
futureminimumrentalcommitmentsforalloperatingleasesinexistenceasofJanuary28,2017forfiscal
year2018isapproximately$70.8millionandtotalapproximately$856.2millionforfiscalyears2019
through2035.Weexpectthatmanyofthenewstoresweopenwillalsobeleasedtousunderoperating
leases,whichwillfurtherincreaseouroperatingleaseexpendituresandrequiresignificantcapital
expenditures.Wedependoncashflowsfromoperationstopayourleaseexpensesandtofulfillourother
cashneeds.Ifourbusinessdoesnotgeneratesufficientcashflowfromoperatingactivities,andsufficient
fundsarenototherwiseavailabletousfromborrowingsunderourAssetBasedLendingCreditFacility
(ABLFacility),asdescribedinNote5RevolvingLineofCredit,toourauditedconsolidatedfinancial
statementsincludedinItem15.ExhibitsandFinancialStatementSchedules,orothersources,wemay
notbeabletoserviceourleaseexpensesorfundourotherliquidityandcapitalneeds,whichwould
materiallyaffectourbusiness.

Overtimecurrentstorelocationsmaynotcontinuetobedesirablebecauseofchangesin
demographicswithinthesurroundingareaoradeclineinshoppingtraffic,includingtrafficgeneratedby
othernearbystores.Althoughwehavetherighttoterminatesomeofourleasesunderspecifiedconditions
bymakingcertainpayments(typicallywithintwotothreeyearsafteropeningastore),wemaynotbe
abletoterminateaparticularleaseiforwhenwewouldliketodoso.Ifwedecidetoclosestores,weare
generallyrequiredtoeithercontinuetopayrentandoperatingexpensesforthebalanceoftheleaseterm
or,forcertainlocations,payexerciserightstoterminate,whichineithercasecouldbeexpensive.Evenif
weareabletoassignorsubleasevacatedlocationswhereourleasecannotbeterminated,wemayremain
liableontheleaseobligationsiftheassigneeorsublesseedoesnotperform.

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Inaddition,whenleasesforthestoresinourongoingoperationsexpire,wemaybeunableto
negotiaterenewals,eitheroncommerciallyacceptableterms,oratall,whichcouldcauseustoclosestores
inlocationsthatmaybedesirable.Wemaybeunabletorelocatethesestorescosteffectivelyoratalland
therecanbenoassurancethatanyrelocatedstoreswillbesuccessful.

Wearesubjecttorisksassociatedwithoursale leasebackstrategy.
Fromtimetotime,weengageinsaleleasebacktransactions.Thenetproceedsfromsuch
transactionshavebeenusedtoreduceoutstandingdebtandfundfuturecapitalexpendituresfornewstore
development.However,thesaleleasebackmarketmayceasetobeareliablesourceofadditionalcash
flowsforusinthefutureifcapitalizationratesbecomelessattractive,otherunfavorablemarketconditions
developortheperceivedvalueofourownedpropertydeclines.Forexample,shouldthesaleleaseback
marketrequiresignificantlyhigheryields(whichmayoccurasinterestratesrise),wemaynotenterinto
saleleasebacktransactions,whichcouldadverselyaffectourabilitytoreduceoutstandingdebtandfund
capitalexpendituresforfuturestoredevelopment.

Weoperateinahighlycompetitiveretailenvironment.
Theretailbusinessishighlycompetitive.Themarketplaceforhomedcorproductsishighly
fragmentedasmanydifferentretailerscompeteformarketsharebyusingavarietyofstoreformatsand
merchandisingstrategies,dedicatingaportionoftheirsellingspacetoalimitedselectionofhomedcor,
seasonalandholidaymerchandise.Althoughwearetheonlybigboxconceptsolelydedicatedtothe
homedcorspace,forallofourmajorproductswecompetewithadiversegroupofretailers,including
massmerchants(suchasTargetandWalMart),homeimprovementstores(suchasHomeDepotand
Lowes),craftretailers(suchasHobbyLobby,JoAnnStoresandMichaelsStores),homespecialty/dcor
retailers(suchasBedBath&Beyond,TheContainerStore,HomeGoodsandPier1Imports),aswellas
variousothersmall,independentretailers.Inaddition,toalesserextent,wecompetewithInternetbased
retailers(suchasWayfair),whichcompetitioncouldintensifyinthefuture.

Wecompetewiththeseandotherretailersforcustomers,retaillocations,managementandother
personnel.Someofourcompetitorsarelargerandhavegreaterresources,morecustomersandgreaterstore
brandrecognition.Theymaysecurebettertermsfromvendors,adoptmoreaggressivepricinganddevote
moreresourcestotechnology,distributionandmarketing.Competitivepressuresorotherfactorscould
causeustolosecustomers,salesandmarketshare,whichmayrequireustolowerprices,increase
marketingandadvertisingexpendituresorincreasetheuseofdiscountingorpromotionalcampaigns,
eachofwhichcouldmateriallyadverselyaffectourmarginsandcouldresultinadecreaseinour
operatingresultsandprofitability.Wecannotguaranteethatwewillcontinuetobeabletocompete
successfullyagainstexistingorfuturecompetitors.Further,althoughwedonotcurrentlyengagein
ecommerce,thereisnoassurancethatwewillnotinthefuture,andtheuseofecommercebyour
competitorscouldhaveamaterialadverseeffectonourbusiness.Expansionintomarketsservedbyour
competitors,entryofnewcompetitors,expansionofexistingcompetitorsintoourmarketsortheadoption
bycompetitorsofinnovativestoreformatsandretailsalemethods,includingecommerce,couldcauseus
tolosemarketshareandcouldbedetrimentaltoourbusiness,financialconditionandresultsof
operations.

Wefacerisksrelatedtooursubstantialindebtedness.
AsofJanuary28,2017,wehadtotaloutstandingdebtof$403.2million.Oursubstantial
leveragecouldadverselyaffectourabilitytoraiseadditionalcapitaltofundouroperations,limitour
abilitytoreacttochangesintheeconomyorourindustry,exposeustointerestrateriskassociatedwith
ourvariableratedebtandpreventusfrommeetingourobligationsunderourABLFacilityand$300
millionseniorsecuredtermloan(theTermLoan).Oursubstantialindebtednesscouldhaveimportant
consequencestous,including:

makingitmoredifficultforustosatisfyourobligationswithrespecttoourdebt,andany
failuretocomplywiththeobligationsunderourdebtinstruments,includingrestrictive
covenants,couldresultinaneventofdefaultundertheagreementsgoverningourindebtedness
increasingourvulnerabilitytogeneraleconomicandindustryconditions

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requiringasubstantialportionofourcashflowfromoperationstobededicatedtothepayment
ofprincipalandinterestonourdebt,therebyreducingourabilitytouseourcashflowtofund
ouroperations,capitalexpenditures,sellingandmarketingefforts,productdevelopment,future
businessopportunitiesandotherpurposes

exposingustotheriskofincreasedinterestratesassubstantiallyallofourborrowingsareat
variablerates

restrictingusfrommakingstrategicacquisitions

limitingourabilitytoobtainadditionalfinancingforworkingcapital,capitalexpenditures,
productdevelopment,debtservicerequirements,acquisitions,andgeneralcorporateorother
purposesand

limitingourabilitytoplanfor,oradjustto,changingmarketconditionsandplacingusata
competitivedisadvantagecomparedtoourcompetitorswhomaybelesshighlyleveraged.

Theoccurrenceofanyoneoftheseeventscouldhaveanadverseeffectonourbusiness,financial
condition,resultsofoperations,andabilitytosatisfyourobligationsunderourindebtedness.

Weandoursubsidiariesmaybeabletoincursubstantialadditionalindebtednessinthefuture,
subjecttotherestrictionscontainedinthecreditagreementsgoverningourABLFacilityandTermLoan.

TheABLFacilityandTermLoanimposesignificantoperatingandfinancialrestrictionsonus
andoursubsidiariesthatmaypreventusfrompursuingcertainbusinessopportunitiesandrestrictour
abilitytooperateourbusiness.
ThecreditagreementsgoverningourABLFacilityandTermLoancontaincovenantsthatrestrict
ourandoursubsidiariesabilitytotakevariousactions,suchas:

incurorguaranteeadditionalindebtednessorissuecertaindisqualifiedorpreferredstock

paydividendsormakeotherdistributionson,orredeemorpurchase,anyequityinterestsor
makeotherrestrictedpayments

makecertainacquisitionsorinvestments

createorincurliens

transferorsellassets

incurrestrictionsonthepaymentsofdividendsorotherdistributionsfromourrestricted
subsidiaries

alterthebusinessthatweconduct

enterintotransactionswithaffiliatesand

consummateamergerorconsolidationorsell,assign,transfer,leaseorotherwisedisposeofall
orsubstantiallyallofourassets.

TherestrictionsinthecreditagreementsgoverningourABLFacilityandTermLoanalsolimit
ourabilitytoplanfororreacttomarketconditions,meetcapitalneedsorotherwiserestrictouractivities
orbusinessplansandadverselyaffectourabilitytofinanceouroperations,enterintoacquisitionsorto
engageinotherbusinessactivitiesthatcouldbeinourinterest.

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Inaddition,ourabilitytoborrowundertheABLFacilityislimitedbytheamountofour
borrowingbase.Anynegativeimpactontheelementsofourborrowingbase,suchasaccountsreceivable
andinventory,couldreduceourborrowingcapacityundertheABLFacility.

Wearedependentupontheservicesofourseniormanagementandourbuyers.
Wearedependentontheservices,abilitiesandexperiencesofourseniormanagementteam.Any
lossorinterruptionoftheservicesofourseniormanagement,oranygeneralinstabilityinthecomposition
ofourseniormanagementteam,couldsignificantlyreduceourabilitytoeffectivelymanageour
operations.LeeBird,ourChiefExecutiveOfficer,joinedusinDecember2012and,togetherwithour
seniormanagementteam,hasplayedaninstrumentalroleindevelopingandexecutingourbusinessand
operatingstrategies,whichwebelievearecriticaltoourabilitytomaintainstrongmargins.Therefore,the
lossofMr.Birdsservices,oranymembersofourseniormanagement,couldhaveamaterialadverse
impactonourbusiness,operatingresultsandprofitabilityandtherecanbenoassurancethatwewillbe
abletofindappropriatereplacementsforourseniormanagementasneeded.Inaddition,certainmembers
ofourmanagementteamarerelativelynewtoourbusinessandhavenotworkedasateamwithother
membersofmanagementforasignificantperiodoftime.Therefore,therecanbenoassurancethatany
newmembersofourmanagementteamwillbeabletosuccessfullyexecuteourbusinessandoperating
strategiesorcontinuetofollowthesamestrategies.

Inaddition,anumberofourbuyershavebeenwithusformanyyearsandhavedevelopedadeep
understandingofourbusinessandourcustomers.Themarketforbuyersishighlycompetitiveanditmay
bedifficulttofindsuitablereplacementsifweloseanyofourbuyers.Ifweareunabletofindsuitable
replacements,wemayexperiencedifficultiesinselectingandsourcingmerchandise,whichcould
materiallyadverselyimpactourbusiness,revenueandprofitability.

Failuretoattractandretainqualityemployeescouldmateriallyadverselyaffectour
performance.
Ourperformancedependsonattractingandretainingqualitypeopleatalllevels,including
corporate,stores,thedistributioncenterandotherareas.Manyofourstoreemployeesareinentrylevelor
parttimepositionswithhistoricallyhighratesofturnover.Ourabilitytomeetourlaborneedswhile
controllinglaborcostsissubjecttoexternalfactorssuchasunemploymentlevels,prevailingwagerates,
minimumwagelegislation,changingdemographics,healthandotherinsurancecostsandgovernmental
laborandemploymentrequirements.Intheeventofchangesinthefederalorstateminimumwage,living
wagerequirementsorchangesinotherwageorworkplaceregulations,including,forexample,healthcare
oremployeeleaveregulations,ifouroverallcompensationandbenefitsfailtoremaincompetitive,then
thequalityofourworkforcecoulddecline,whileincreasingourcostscouldimpairourprofitability.Ifwe
donotcontinuetoattractandretainqualityemployees,ourperformancecouldbemateriallyadversely
affected.

Althoughnoneofouremployeesarecurrentlycoveredundercollectivebargainingagreements,
therecanbenoassurancethatouremployeeswillnotelecttoberepresentedbylaborunionsinthefuture.
Ifsomeorallofourworkforceweretobecomeunionizedandcollectivebargainingagreementtermswere
significantlydifferentfromourcurrentcompensationarrangementsorworkpractices,itcouldhavea
materialadverseeffectonourbusiness,financialconditionandresultsofoperations.

Difficultieswithourvendorsmayadverselyimpactourbusiness.
Ourperformancedependsonourabilitytopurchasemerchandiseatsufficientlevelsandat
competitivepricesfromvendorswhocandeliverproductsinatimelyandefficientmannerandin
compliancewithourvendorstandardsandallapplicablelawsandregulations.Wecurrentlyhaveover
500vendorrelationships.Generally,wedonothaveanylongtermpurchaseagreementsorother
contractualassurancesofcontinuedsupply,pricingoraccesstonewproducts,andanyvendorcould
discontinuesellingtousatanytime.Historically,wehavenotreliedonanysinglevendorforour
productsandhavenothaddifficultiesreplacingvendorsforvariousproductswesell.However,inthe
futurethereisnoassurancethatwewillcontinuetobeabletoacquiredesiredmerchandiseinsufficient
quantitiesorontermsacceptabletous,orbeabletodeveloprelationshipswithnewvendorstoreplace
anydiscontinuedvendors.Ourinabilitytoacquiresuitablemerchandiseinthefutureorourfailureto
replaceanyoneormorevendorsmayhaveamaterialadverseeffectonourbusiness,resultsofoperations
andfinancialcondition.Inaddition,anysignificantchangeinthepaymenttermsthatwehavewithour
supplierscouldadverselyaffectourliquidity.

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Manyofoursuppliersaresmallfirmsthatproducealimitednumberofitems.Thesesmaller
vendorsgenerallyhavelimitedresources,productioncapacitiesandoperatinghistories,andsomeofour
vendorshavelimitedthedistributionoftheirmerchandiseinthepast.Accordingly,thesevendorsmaybe
susceptibletocashflowissues,downturnsineconomicconditions,productiondifficulties,quality
controlissuesanddifficultydeliveringagreeduponquantitiesonscheduleandincompliancewith
regulatoryrequirements.Ifavendorfailstodeliveronitscommitments,whetherduetofinancial
difficultiesorotherreasons,wecouldexperiencemerchandiseoutofstocksthatcouldleadtolostsales,
especiallywithrespecttoseasonalandholidaymerchandise.Inaddition,thereisnoassurancethatwe
wouldbeable,ifnecessary,toreturnproducttothesevendors,obtainrefundsofourpurchasepriceor
obtainreimbursementorindemnificationfromanyofourvendorsshouldwesodesire,andfromtimeto
time,wemaybeinlitigationwithoneormorevendors.Manyofthesesuppliersrequireextensive
advancenoticeofourrequirementsinordertosupplyproductsinthequantitiesweneed.Thislonglead
timerequiresustoplaceordersfarinadvanceofthetimewhencertainproductswillbeofferedforsale,
exposingustoshiftsinconsumerdemandanddiscretionaryspending.

Ourbusinessismoderatelyseasonalandweakperformanceduringoneofourhistorically
strongseasonalperiodscouldhaveamaterialadverseeffectonouroperatingresultsfortheentirefiscal
year.
Ourbusinessismoderatelyseasonal,withameaningfulportionofoursalesdedicatedtoseasonal
andholidaymerchandise,resultingintherealizationofhigherportionsofnetsalesandoperatingincome
inthesecondandfourthfiscalquarters.Duetotheimportanceofourpeaksalesperiods,whichinclude
thespringandyearendholidaydecoratingseasons,thesecondandfourthfiscalquartershavehistorically
contributed,andareexpectedtocontinuetocontribute,significantlytoouroperatingresultsfortheentire
fiscalyear.Inanticipationofseasonalincreasesinsalesactivityduringtheseperiods,weincursignificant
additionalexpensepriortoandduringourpeakseasonalperiods,whichwemayfinancewithadditional
shorttermborrowings.Theseexpensesmayincludetheacquisitionofadditionalinventory,seasonal
staffingneedsandothersimilaritems.Asaresult,anyfactorsnegativelyaffectingusduringtheseperiods,
includingadverseweatherandunfavorableeconomicconditions,couldhaveamaterialadverseeffecton
ourresultsofoperationsfortheentirefiscalyear.

Ourquarterlyoperatingresultsmayfluctuatesubstantiallyandhistoricalquarterlyoperating
resultsmaynotbeameaningfulindicatoroffutureperformance.
Ourquarterlyresultsofoperationshavefluctuatedinthepastandmayfluctuatesignificantlyin
thefutureasaresultofavarietyoffactors,manyoutsideofourcontrol,including:

generaleconomicandpoliticalconditions

themixofmerchandisesold

shiftsinconsumertastesandchangesindemandfortheproductsthatweofferinourstores

calendarshiftsofholidayorseasonalperiods

thetimingofnewstoreopeningsandthelevelofpreopeningexpensesassociatedwithnew
stores

theamountandtimingofsalescontributedbynewstores

storeclosingsorrelocationsandcostsrelatedthereto

expansionofexistingorentryofnewcompetitorsintoourmarkets

pricingandotheractionstakenbyourcompetitors

changesinpromotions,advertisingorotheractionstakenbyusorourexistingorpossiblenew
competitors

thetimingandlevelofmarkdowns

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delaysintheflowofmerchandisetoourstores

changesinouroperatingexpenses

changesincommoditypricesandthecostoffuel

foreignexchangerates

litigation

adverseweatherconditionsinourmarkets,particularlyonweekends

naturalormanmadedisasters

thetimingofincometaxrefundstoourcustomers

thetimingoreliminationofcertainstateandlocaltaxholidaysand

changesinothertenantsorlandlordsorsurroundinggeographiccircumstancesintheareasin
whichwearelocated.

Anyoftheseeventscouldhaveamaterialadverseeffectonourbusiness,financialconditionand
operatingresultsforthefiscalquarterinwhichsucheventoccursaswellasfortheentirefiscalyear.
Therefore,periodtoperiodcomparisonsofhistoricalquarterlyoperatingresultsmaynotbeameaningful
indicatoroffutureperformance.

Wemaynotbeabletoprotectourimportantintellectualpropertyandwecouldincur
substantialcostsifwearesubjecttoclaimsthatouroperationsinfringeontheproprietaryrightsof
others.
Werelyonourproprietaryintellectualproperty,includingtrademarks,tomarket,promoteand
sellourproductsinourstores,particularlyourAtHomeprivatelabelproducts.Wemonitorandprotect
againstactivitiesthatmightinfringe,diluteorotherwiseviolateourtrademarksandotherintellectual
propertyandrelyonthetrademarkandotherlawsoftheUnitedStates.However,wemaybeunableto
preventthirdpartiesfromusingourintellectualpropertywithoutourauthorization.Totheextentwe
cannotprotectourintellectualproperty,unauthorizeduseandmisuseofourintellectualpropertycould
harmourcompetitivepositionandhaveamaterialadverseeffectonourfinancialcondition,cashflowsor
resultsofoperations.

Additionally,wecannotbecertainthatwedonotorwillnotinthefutureinfringeonthe
intellectualpropertyrightsofthirdparties.Fromtimetotime,wehavebeensubjecttoclaimsfromthird
partiesthatwehaveinfringedupontheirintellectualpropertyrightsandwefacetheriskofsuchclaimsin
thefuture.Anyintellectualpropertyinfringementclaimsagainstuscouldbecostly,timeconsuming,
harmfultoourreputationorresultininjunctiveorotherequitablereliefthatmayrequireustomake
changestoourbusiness,anyofwhichcouldhaveamaterialadverseeffectonourfinancialcondition,
cashflowsorresultsofoperations.

Increasesincommoditypricesandsupplychaincostscouldmateriallyadverselyaffectour
resultsofoperations.
Variouscommoditiesareusedinourmerchandise,suchaspetroleum,resin,copper,steel,cotton
andlumber.Thesecommoditiesaresubjecttoinflation,pricefluctuationsandothermarketdisturbances,
includingsupplyshortages.Increasesincommoditypricesorthecostsrelatedtooursupplychainand
distributionnetwork,includingcurrencyexchangerates,tariffs,labor,fuelandothertransportationcosts,
couldhaveamaterialadverseeffectonourgrossmargin,expensesandresultsofoperations.Duetothe
uncertaintyofthesepricefluctuationsandourstrategytomaintaineverydaylowprices,wemaynotbe
abletopasssomeoralloftheseincreasedcostsontoourcustomers.Evenifweareabletopassthese
increasedcostsontoourcustomers,wemaynotbeabletodosoonatimelybasis,ourgrossmargins
coulddeclineandwemaynotbeabletoimplementotherpriceincreasesforourmerchandise.

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Ifwearerequiredtomakesignificantinvestmentsinadvertising,marketingorpromotions,our
marginsandprofitabilitycouldmateriallydecline.
Ingeneral,weemployaneverydaylowpricingstrategythatavoidshighlowpricingand
promotionsandallowsustominimizeadvertisingandmarketingexpensesincurredbyotherretailers.
However,thereisnoassurancethatwecancontinuetobesuccessfulwithoutsignificantadvertising,
marketingandpromotions,particularlyasweopenstoresinnewmarkets.Wespentover$20millionin
capitalandexpensesinconnectionwithourrebrandinginitiativeduringfiscalyear2015andmayneedto
incuradditionalexpensestopromoteournewbrand.Inaddition,ifwechoosetoinvestinadvertising,
marketingandpromotionsinthefuture,thereisnoassurancethatsucheffortswillbesuccessfulorresult
inapositivereturnoninvestment.Therefore,ifwearerequiredtomakesignificantinvestmentsin
advertising,marketingorpromotionsandrelatedexpenditures,ourmarginsandprofitabilitycould
materiallydeclineevenifsalesincrease.
Anyonlineservicesore commerceactivitiesthatwemaylaunchinthefuturemayrequire
substantialinvestmentandmaynotbesuccessful.
Wedonotcurrentlyengageinecommerceandhavealimitedonlinepresencethroughour
websiteandotherformsofsocialmedia.However,aspartofourgrowthstrategy,weareexploring
expansionofouronlineservicesandcouldengageinecommerceactivitiesinthefuture,whichwould
requiresubstantialinvestment.Thesuccessofanyonlineservicesorecommercebusinesswoulddepend,
inpart,onfactorsoverwhichwemaynotcontrol.Wewouldneedtosuccessfullyrespondtochanging
consumerpreferencesandbuyingtrendsrelatingtoonlineorecommerceusage.Wewouldalsobe
vulnerabletoincreasedrisksanduncertaintiesincluding:changesinrequiredtechnologyinterfaces
websitedowntimeandothertechnicalfailurescostsandtechnicalissuesrelatedtoupgradingwebsite
softwarecomputerviruseschangesinapplicablefederalandstateregulationssecuritybreaches
consumerprivacyconcernsandkeepinguptodatewithcompetitivetechnologytrends,includingthe
useofneworimprovedtechnology,creativeuserinterfacesandotheronlineorecommercemarketing
tools.Inaddition,anyecommerceplatformmaybeunprofitable,cannibalizesalesfromourexisting
storesornotbeabletocompetesuccessfullyagainstotherInternetbasedretailerswhosellsimilar
merchandise.Ourfailuretosuccessfullyrespondtotheserisksanduncertaintiesmightadverselyaffect
salesinanyecommercebusinessthatweestablishinthefutureandcoulddamageourreputationand
brand.Further,intheeventthatweengageinecommerceinthefuture,wewillneedtoestablisha
shippinganddeliverysystemforitemspurchasedonline,forwhichwedonotcurrentlyhaveadequate
capability.Ourbusinesscouldbeadverselyaffectedifwearenotabletosuccessfullydevelopand
integratesuchashippinganddeliverysysteminconnectionwithanyecommercebusinessinwhichwe
mayengageinthefuture.
Disruptionstoourinformationsystems,orourfailuretoadequatelysupport,maintainand
upgradethesesystems,couldnegativelyimpactouroperationsandfinancialresults.
Wedependonourinformationtechnologysystemsformanyaspectsofourbusiness.Wehave
madesignificantinvestmentsininformationtechnology,includinginvestmentsinsystemsand
applicationsforfinanceandaccountingfunctions,supplychainmanagementsoftwareforretail
operationsanddatawarehousemanagementsystemsandanautomateddistributionsystemforour
distributioncenteroperations.Wepurchaseourinventorythroughacentralizedinventorymanagement
systemthatoperatesfortheentirechain.Merchandiseisbarcoded,enablingmanagementtocontrol
inventoryandpricingbySKU.Salesareupdateddailyinthemerchandisereportingsystemsbypolling
allsalesinformationfromeachstorespointofsaleterminals.Storesarethenstaffedbasedona
statisticallydevelopedlabormodelwhichincorporatesthedailyandhourlystoresalesvolume.We
attempttomitigatetheriskofpossiblebusinessinterruptionscausedbydisruptionstoourinformation
systemsbymaintainingadisasterrecoveryplan,whichincludesmaintainingbackupsystemsoffsite.
However,despitesafeguardsandcarefulcontingencyplanning,oursystemsarestillsubjecttopower
outages,computerviruses,computerandtelecommunicationfailures,employeeusageerrors,security
breaches,terrorism,naturalormanmadedisastersandothercatastrophicevents.Amajordisruptionofour
informationsystemsandbackupmechanismsmaycauseustoincursignificantcoststorepairoursystems
andexperienceacriticallossofdata.Systemfailurescouldalsodisruptourabilitytotrack,recordand
analyzesalesandinventoryandcouldcausedisruptionsofouroperations,including,amongotherthings,
ourabilitytoprocessandshipinventory,processfinancialinformationincludingcreditcardtransactions,
processpayrollsorvendorpaymentsorengageinothersimilarnormalbusinessactivities.

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Inaddition,wemaybeunabletoimprove,upgrade,integrateorexpanduponourexisting
systemsandanycostsandpotentialproblemsandinterruptionsassociatedwiththeimplementationof
neworupgradedsystemsandtechnologycouldalsodisruptorreducetheefficiencyofouroperations.

Unauthorizeddisclosureofsensitiveorconfidentialcustomerinformationcouldharmour
businessandstandingwithourcustomers.
Theprotectionofourcustomer,employeeandothercompanydataiscriticaltous.Werelyon
commerciallyavailablesystems,software,toolsandmonitoringtoprovidesecurityforprocessing,
transmissionandstorageofconfidentialcustomerinformation,suchaspaymentcardandpersonal
information.Despitethesecuritymeasureswehaveinplace,ourfacilitiesandsystems,andthoseofour
thirdpartyserviceproviders,maybevulnerabletosecuritybreaches,actsofvandalism,paymentcard
terminaltampering,computerviruses,misplaced,lostorstolendata,programmingorhumanerrorsor
othersimilarevents.Therisksassociatedwithourprocessingofsensitivecustomerdatamaybe
heightenediftheamountofsuchdatacollectedisincreased,includingviathecobrandedandprivate
labelcreditcardandcustomerloyaltyprogramsthatweareexpectingtolaunchduringfiscalyear2018.
Anysecuritybreachinvolvingthemisappropriation,lossorotherunauthorizeddisclosureofconfidential
information,whetherbyusorourthirdpartyserviceproviders,coulddamageourreputation,exposeusto
riskoflitigationandliability,disruptouroperationsandharmourbusiness.Inaddition,asaresultof
recentsecuritybreachesatanumberofprominentretailers,themediaandpublicscrutinyofinformation
securityandprivacyhasbecomemoreintense.Asaresult,wemayincursignificantcoststochangeour
businesspracticesormodifyourserviceofferingsinconnectionwiththeprotectionofpersonally
identifiableinformation.

Regulatoryorlitigationdevelopmentscouldmateriallyadverselyaffectourbusinessoperations
andfinancialperformance.
Wearesubjecttonumerousstatutory,regulatoryandlegalrequirementsatalocal,state,national
andinternationallevelbecauseofourbusinessoperations,storelocations,workforce,salestoconsumers
andimportationofmerchandise.Inaddition,asapubliclytradedcompanywemaybeexposedtotherisk
ofstockholderlitigationifourstockpricedeclines.Lawsandregulationsaffectingourbusinessmay
change,sometimesfrequentlyandsignificantly,asaresultofpolitical,economic,socialorotherevents.
Changesintheregulatoryenvironmentintheareasofproductsafety,environmentalprotection,privacy
andinformationsecurity,healthcare,laborandemployment,U.S.customs,advertisingandtaxes,among
others,couldpotentiallyimpactouroperationsandfinancialresults.Forexample,morestringentand
variedrequirementsoflocalandstategovernmentalbodieswithrespecttozoning,landuseand
environmentalfactorscoulddelayorpreventdevelopmentofnewstoresinparticularlocations.
Environmentallawsandregulationsalsogovern,amongotherthings,dischargesofpollutantsintotheair
andwateraswellasthepresence,handling,releaseanddisposalofandexposuretohazardoussubstances.
Theselawsprovideforsignificantfinesandpenaltiesfornoncompliance.Thirdpartiesmayalsomake
personalinjury,propertydamageorotherclaimsagainstusassociatedwithactualorallegedreleaseof,or
exposureto,hazardoussubstancesatourproperties.Wecouldalsobestrictlyliable,withoutregardto
fault,forcertainenvironmentalconditionsatpropertiesweformerlyownedoroperatedaswellasatour
currentproperties.Wecouldbenegativelyimpactedbydevelopmentsintheseareasduetothecostsof
compliance,andifwefailtocomplywithalaworregulation,wemaybesubjecttoclaims,lawsuits,
fines,penalties,lossofalicenseorpermitandadversepublicityorotherconsequencesthatcouldhavea
materialadverseeffectonourbusinessandresultsofoperations.

Productrecallsand/orproductliability,aswellaschangesinproductsafetyandother
consumerprotectionlaws,mayadverselyimpactouroperations,merchandiseofferings,reputation,
resultsofoperations,cashflowandfinancialcondition.
Wearesubjecttoregulationsbyavarietyoffederal,stateandinternationalregulatory
authorities,includingTheConsumerProductSafetyCommission.Alargeportionofourmerchandiseis
manufacturedinforeigncountries.Assuch,oneormoreofourvendorsmightnotadheretoproductsafety
requirementsorourqualitycontrolstandards,andwemightnotidentifythedeficiencybefore
merchandiseshipstoourstores.Ifourmerchandiseofferingsdonotmeetapplicablesafetystandardsor
ourcustomersexpectationsregardingsafety,wecouldexperiencelostsalesandincreasedcostsandbe
exposedtolegalandreputationalrisk.Wecouldberequiredtorecallsomeofthoseproductsorcould
exposeourselvestogovernmentenforcementactionorprivatelitigation,suchasproductliabilityclaims,
whichcould

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resultinsignificantfines,penalties,monetarydamagesandotherremediesaswellasharmtoour
reputation.Wecouldalsobesubjecttolitigationrelatedtoinjuriesorotheraccidentsatourstoresor
distributioncenter.

Moreover,changesinproductsafetyorotherconsumerprotectionlawscouldleadtoincreased
coststousforcertainmerchandise,oradditionallaborcostsassociatedwithreadyingmerchandisefor
sale.Longleadtimesonmerchandiseorderingcyclesincreasethedifficultyforustoplanandpreparefor
potentialchangestoapplicablelaws.Inparticular,TheConsumerProductSafetyImprovementActof
2008imposessignificantrequirementsonmanufacturing,importing,testingandlabelingrequirementsfor
someofourproducts.Intheeventthatweareunabletotimelycomplywithregulatorychanges,
significantfinesorpenaltiescouldresult,andcouldadverselyaffectourreputation,resultsofoperations,
cashflowandfinancialcondition.

Inadequacyofourinsurancecoveragecouldhaveamaterialadverseeffectonourbusiness.
Wemaintainthirdpartyinsurancecoverageagainstvariousliabilityrisksandrisksofproperty
lossandbusinessinterruption,aswelldirectorsandofficersliabilityinsurancecoverage.Whilewe
believethesearrangementsareaneffectivewaytoinsureagainstliabilityandpropertydamagerisks,the
potentialliabilitiesassociatedwiththoserisksorothereventscouldexceedthecoverageprovidedby
sucharrangements.SignificantuninsuredliabilitiescouldhaveamaterialadverseeffectonourCompany.

OurcontinuedsuccessissubstantiallydependentonpositiveperceptionsofAtHome.
Wearehighlydependentonourreputationamongsthomedcorenthusiasts.Toremain
successfulinthefuture,wemustcontinuetopreserve,growandutilizethevalueofourreputationasthe
destinationretailerforourcustomershomedcorneeds.Reputationalvalueisbasedinlargeparton
perceptionsofsubjectivequalities,andevenisolatedincidentsmayerodetrustandconfidence.Events
thatcandamageourreputationinclude,butarenotlimitedto,legalviolations,litigation,actualor
perceivedethicalproblems,productsafetyissues,actualorperceivedpooremployeerelations,actualor
perceivedpoorcustomerservice,storeappearanceoroperationalissues,unauthorizeduseorother
misappropriationofourtradename,datasecurityoreventsoutsideofourcontrolthatcouldgenerate
negativepublicitywithrespecttoAtHome,whetherintraditionalmediaorsocialmediaoutlets.Any
eventthathasthepotentialtonegativelyimpactourtradenameorourreputationwithcustomers,
employees,suppliers,communities,governmentalofficialsandotherscouldhaveamaterialadverseeffect
onourbusinessandresultsofoperations.

Ouroperatingresultsandfinancialpositioncouldbenegativelyimpactedbyaccounting
policies,rulesandregulations.
Ouroperatingresultsandfinancialpositioncouldbenegativelyimpactedbyimplementationof
ourvariousaccountingpoliciesaswellaschangestoaccountingrulesandregulationsornew
interpretationsofexistingaccountingstandards.Thesechangesmayinclude,withoutlimitation,changes
toleaseaccountingstandards.Forexample,whilewearestillevaluatingtheimpactofourpending
adoptionofASUNo.201602,Leasesonourconsolidatedfinancialstatements,weexpectthatupon
adoptionwewillrecognizerightofuseassetsandliabilitiesthatcouldbematerialtoourfinancial
statements.Inaddition,fromtimetotime,wecouldincurimpairmentchargesthatadverselyaffectour
operatingresults.Forexample,changesineconomicoroperatingconditionsimpactingourestimatesand
assumptionscouldresultintheimpairmentofintangibleassets(suchasourgoodwillortradename)or
longlivedassetsinaccordancewithapplicableaccountingguidance.Intheeventthatwedetermineour
intangibleorlonglivedassetsareimpaired,wemayberequiredtorecordasignificantchargetoearnings
inourfinancialstatementsthatcouldhaveamaterialadverseeffectonourresultsofoperations.

Weincurrednetlossesinfiscalyears2014and2015andwemayexperiencenetlossesinthe
future.
Weexperiencednetlossesof$22.3millionand$0.4million,respectively,forthefiscalyears
endedJanuary25,2014andJanuary31,2015.Thereisnoguaranteethatwewillbesuccessfulin
realizingnetincomeorotherwiseachievingprofitabilityorsustainingpositivecashflowinfuture
periods.Anyfailuretoachievenetincomecould,amongotherthings,impairourabilitytocomplete
futurefinancingsorthecostofobtainingfinancingorforceustoseekadditionalcapitalthroughsalesof
ourequitysecurities,whichcoulddilutethevalueofcurrentlyoutstandingsharesofourcommonstock.
Inaddition,alackofprofitabilitycouldadverselyaffectthepriceofourcommonstock.

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Changesinoureffectiveincometaxratecouldaffectourresultsofoperations.
Oureffectiveincometaxrateisinfluencedbyanumberoffactors.Changesinthetaxlaws,the
interpretationofexistinglawsorourfailuretosustainourreportingpositionsonexaminationcould
adverselyaffectoureffectivetaxrate.Further,oureffectivetaxrateinagivenfinancialstatementperiod
maybemateriallyimpactedbychangesinthemixandlevelofearningsorbychangestoexisting
accountingrulesorregulations.

Weareaholdingcompanywithnooperationsofourown,andwedependonoursubsidiaries
forcash.
Weareaholdingcompanyanddonothaveanymaterialassetsoroperationsotherthan
ownershipofequityinterestsofoursubsidiaries.Ouroperationsareconductedalmostentirelythrough
oursubsidiaries,andourabilitytogeneratecashtomeetourobligationsortopaydividends,ifany,is
highlydependentontheearningsof,andreceiptoffundsfrom,oursubsidiariesthroughdividendsor
intercompanyloans.Theabilityofoursubsidiariestogeneratesufficientcashflowfromoperationsto
allowusandthemtomakescheduledpaymentsonourdebtobligationswilldependontheirfuture
financialperformance,whichwillbeaffectedbyarangeofeconomic,competitiveandbusinessfactors,
manyofwhichareoutsideofourcontrol.Wecannotassureourstockholdersthatthecashflowand
earningsofouroperatingsubsidiarieswillbeadequateforoursubsidiariestoservicetheirdebt
obligations.Ifoursubsidiariesdonotgeneratesufficientcashflowfromoperationstosatisfycorporate
obligations,wemayhavetoundertakealternativefinancingplans(suchasrefinancing),restructuredebt,
sellassets,reduceordelaycapitalinvestments,orseektoraiseadditionalcapital.Wecannotassureour
stockholdersthatanysuchalternativerefinancingwouldbepossible,thatanyassetscouldbesold,or,if
sold,ofthetimingofthesalesandtheamountofproceedsrealizedfromthosesales,thatadditional
financingcouldbeobtainedonacceptableterms,ifatall,orthatadditionalfinancingwouldbepermitted
underthetermsofourvariousdebtinstrumentsthenineffect.Ourinabilitytogeneratesufficientcash
flowtosatisfyourobligations,ortorefinanceourobligationsoncommerciallyreasonableterms,could
haveamaterialadverseeffectonourbusiness,financialconditionandresultsofoperations.

Furthermore,weandoursubsidiariesmayincursubstantialadditionalindebtednessinthefuture
thatmayseverelyrestrictorprohibitoursubsidiariesfrommakingdistributions,payingdividends,ifany,
ormakingloanstous.

RisksRelatingtoOwnershipofOurCommonStock

Themarketpriceofourcommonstockmaybehighlyvolatile,andourstockholdersmaynotbe
abletoreselltheirsharesofourcommonstockatorabovethepricetheypaidforthem.
Thetradingpriceofourcommonstockcouldbevolatile,andourstockholderscanloseallorpart
oftheirinvestment.Thefollowingfactors,inadditiontootherfactorsdescribedinthis"RiskFactors"
sectionandelsewhereinthisAnnualReportonForm10K,mayhaveasignificantimpactonthemarket
priceofourcommonstock:

quarterlyvariationsinouroperatingresultscomparedtomarketexpectations

changesinthepreferencesofourcustomers

lowcomparablestoresalesgrowthcomparedtomarketexpectations

delaysintheplannedopeningsofnewstores

thefailureofsecuritiesanalyststocovertheCompanyorchangesinanalystsfinancial
estimates

economic,legal,regulatoryandpoliticalfactorsunrelatedtoourperformance

changesinconsumerspendingorthehousingmarket

increasedcompetitionorstockpriceperformanceofourcompetitors

futuresalesofourcommonstockortheperceptionthatsuchsalesmayoccur

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changesinseniormanagementorkeypersonnel

investorperceptionsofusandtheretailindustry

newregulatorypronouncementsandchangesinregulatoryguidelines

lawsuits,enforcementactionsandotherclaimsbythirdpartiesorgovernmentalauthorities

actionbyinstitutionalstockholdersorotherlargestockholders

failuretomeetanyguidancegivenbyusoranychangeinanyguidancegivenbyus,or
changesbyusinourguidancepractices

speculationinthepressorinvestmentcommunity

eventsbeyondourcontrol,suchaswar,terroristattacks,transportationandfuelprices,natural
disasters,severeweatherandwidespreadillnessand

theotherfactorslistedinthisRiskFactorssection.

Inaddition,ourstockpricemaybevolatile.Thestockmarketingeneralhasexperiencedextreme
priceandvolumefluctuationsthathaveoftenbeenunrelatedordisproportionatetotheoperating
performanceofcompanieslikeus.Accordingly,thesebroadmarketandindustryfactorsmaysignificantly
reducethemarketpriceofourcommonstock,regardlessofouroperatingperformance.

BecausetheSponsorscontrolasignificantpercentageofourcommonstock,theymaycontrol
allmajorcorporatedecisionsandtheirinterestsmayconflictwithyourinterestsasanownerofour
commonstockandthoseoftheCompany.
WearecontrolledbytheSponsors,whichcurrentlyindirectlyownapproximately85%ofour
commonstock.Accordingly,theSponsorscurrentlycontroltheelectionofthemajorityofourdirectors
andcouldexerciseacontrollinginterestoverourbusiness,affairsandpolicies,includingtheappointment
ofourmanagementandtheenteringintoofbusinesscombinationsordispositionsandothercorporate
transactions.Thedirectorssoelectedhavetheauthoritytoincuradditionaldebt,issueorrepurchase
stock,declaredividendsandmakeotherdecisionsthatcouldbedetrimentaltostockholders.Inaddition,
pursuanttothestockholdersagreement,foraperiodoftwoyearsfollowingourinitialpublicoffering,
subjecttocertainexceptions,StarrInvestmentshasagreedtovoteorcausetobevoted9,611,804oftheir
sharesofourcommonstockonallmatterspresentedtothestockholdersinthesamemannerthatAEA
votesonsuchmatters.Inaddition,followingourinitialpublicoffering,andforsolongascertainaffiliates
ofAEA,ontheonehand,andStarrInvestments,ontheotherhand,respectivelyintheaggregatehold
least10%ofouroutstandingcommonstock,eachofsuchSponsorsshallbeentitledtonominateatleast
oneindividualforelectiontoourboard,andourboardandnominatingcommitteethereofshallnominate
andrecommendtoourstockholdersthatsuchindividualbeelectedtoourboard,andeachpartytothe
stockholdersagreementagreestovotealloftheirsharestoelectsuchindividualtoourboard.

TheSponsorsmayhaveintereststhataredifferentfromourotherstockholdersandmayvoteina
waywithwhichourotherstockholdersdisagreeandwhichmaybeadversetoourotherstockholders
interests.Further,AEAandStarrInvestmentsmayhavedifferingviewsfromeachother,neitherofwhich
mayalignwithotherstockholdersinterests.Inaddition,theSponsorsconcentrationofownershipcould
havetheeffectofdelayingorpreventingachangeincontrolorotherwisediscouragingapotential
acquirerfromattemptingtoobtaincontrolofus,whichcouldcausethemarketpriceofourcommonstock
todeclineorpreventstockholdersfromrealizingapremiumoverthemarketpricefortheircommonstock.

Additionally,theSponsorsareinthebusinessofmakinginvestmentsincompaniesandmayfrom
timetotimeacquireandholdinterestsinbusinessesthatcompetedirectlyorindirectlywithusorsupply
uswithgoodsandservices.

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TheSponsorsmayalsopursueacquisitionopportunitiesthatmaybecomplementarytoourbusinessand,
asaresult,thoseacquisitionopportunitiesmaynotbeavailabletous.Stockholdersshouldconsiderthat
theinterestsoftheSponsorsmaydifferfromtheirinterestsinmaterialrespects.

Salesofasubstantialnumberofsharesofourcommonstockinthepublicmarketbyour
existingstockholderscouldcauseourstockpricetofall.
Salesofasubstantialnumberofsharesofourcommonstockinthepublicmarket,orthe
perceptionthatthesesalesmightoccur,coulddepressthemarketpriceofourcommonstockandcould
impairourabilitytoraisecapitalthroughthesaleofadditionalequitysecurities.
Moreover,holdersofanaggregateofapproximately85%ofouroutstandingcommonstockhave
rightstorequireustofileregistrationstatementscoveringtheirsharesortoincludetheirsharesin
registrationstatementsthatwemayfileforourselvesorotherstockholders.Registrationoftheseshares
undertheSecuritiesActof1933,asamended,ortheSecuritiesAct,wouldresultinthesharesbecoming
freelytradablewithoutrestrictionundertheSecuritiesAct,exceptforsharesheldbyouraffiliatesas
definedinRule144undertheSecuritiesAct.Anysalesofsecuritiesbythesestockholderscouldhavea
materialadverseeffectonthetradingpriceofourcommonstock.
IfsecuritiesorindustryanalystsdonotpublishorceasepublishingresearchorreportsaboutAt
Home,oriftheyissueunfavorablecommentaryaboutusorourindustryordowngradeourcommon
stock,thepriceofourcommonstockcoulddecline.
Thetradingmarketforourcommonstockwilldependinpartontheresearchandreportsthat
thirdpartysecuritiesanalystspublishaboutAtHomeandtheretailindustry.Oneormoreanalystscould
downgradeourcommonstockorissueothernegativecommentaryaboutAtHomeorourindustry.In
addition,wemaybeunableorslowtoattractresearchcoverage.Alternatively,ifoneormoreofthese
analystsceasecoverageofAtHome,wecouldlosevisibilityinthemarket.Asaresultofoneormoreof
thesefactors,thetradingpriceofourcommonstockcoulddecline.

SomeprovisionsofourcharterdocumentsandDelawarelawmayhaveanti takeovereffects
thatcoulddiscourageanacquisitionofusbyothers,evenifanacquisitionwouldbebeneficialtoour
stockholders,andmaypreventattemptsbyourstockholderstoreplaceorremoveourcurrent
management.
Provisionsinouramendedandrestatedcertificateofincorporationandouramendedandrestated
bylaws,aswellasprovisionsoftheDelawareGeneralCorporationLaw,orDGCL,couldmakeitmore
difficultforathirdpartytoacquireusorincreasethecostofacquiringus,evenifdoingsowouldbenefit
ourstockholders,includingtransactionsinwhichstockholdersmightotherwisereceiveapremiumfor
theirshares.Theseprovisionsinclude:

establishingaclassifiedboardofdirectorssuchthatnotallmembersoftheboardareelectedat
onetime

allowingthetotalnumberofdirectorstobedeterminedexclusively(subjecttotherightsof
holdersofanyseriesofpreferredstocktoelectadditionaldirectors)byresolutionofourboard
ofdirectorsandgrantingtoourboardthesolepower(subjecttotherightsofholdersofany
seriesofpreferredstockorrightsgrantedpursuanttothestockholdersagreement)tofillany
vacancyontheboard

limitingtheabilityofstockholderstoremovedirectorswithoutcauseifAEAceasestoown,or
havetherighttodirectthevoteof,50%ormoreofthevotingpowerofourcommonstock

authorizingtheissuanceofblankcheckpreferredstockbyourboardofdirectors,without
furtherstockholderapproval,tothwartatakeoverattempt

prohibitingstockholderactionbywrittenconsent(and,thus,requiringthatallstockholder
actionsbetakenatameetingofourstockholders),ifAEAceasestoown,orhavetherightto
directthevoteof,50%ormoreofthevotingpowerofourcommonstock

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eliminatingtheabilityofstockholderstocallaspecialmeetingofstockholders,exceptfor
AEA,solongasAEAowns,orhastherighttodirectthevoteof,50%ormoreofthevoting
powerofourcommonstock

establishingadvancenoticerequirementsfornominationsforelectiontotheboardofdirectors
orforproposingmattersthatcanbeacteduponatannualstockholdermeetingsand

requiringtheapprovaloftheholdersofatleasttwothirdsofthevotingpowerofall
outstandingstockentitledtovotethereon,votingtogetherasasingleclass,toamendorrepeal
ourcertificateofincorporationorbylawsifAEAceasestoown,orhavetherighttodirectthe
voteof,50%ormoreofthevotingpowerofourcommonstock.

Inaddition,whilewehaveoptedoutofSection203oftheDGCL,ouramendedandrestated
certificateofincorporationcontainssimilarprovisionsprovidingthatwemaynotengageincertain
businesscombinationswithanyinterestedstockholderforathreeyearperiodfollowingthetimethat
thestockholderbecameaninterestedstockholder,unless:

priortosuchtime,ourboardofdirectorsapprovedeitherthebusinesscombinationorthe
transactionthatresultedinthestockholderbecominganinterestedstockholder

uponconsummationofthetransactionthatresultedinthestockholderbecominganinterested
stockholder,theinterestedstockholderownedatleast85%ofourvotingstockoutstandingat
thetimethetransactioncommenced,excludingcertainsharesor

atorsubsequenttothattime,thebusinesscombinationisapprovedbyourboardofdirectors
andbytheaffirmativevoteofholdersofatleasttwothirdsofouroutstandingvotingstockthat
isnotownedbytheinterestedstockholder.

Generally,abusinesscombinationincludesamerger,assetorstocksaleorothertransaction
providedfororthroughourCompanyresultinginafinancialbenefittotheinterestedstockholder.Subject
tocertainexceptions,aninterestedstockholderisapersonwhoowns15%ormoreofouroutstanding
votingstockandtheaffiliatesandassociatesofsuchperson.Forpurposesofthisprovision,voting
stockmeansanyclassorseriesofstockentitledtovotegenerallyintheelectionofdirectors.Our
amendedandrestatedcertificateofincorporationprovidesthatAEA,StarrInvestments,theirrespective
affiliatesandanyoftheirrespectivedirectorindirectdesignatedtransferees(otherthanincertainmarket
transfersandgifts)andanygroupofwhichsuchpersonsareapartydonotconstituteinterested
stockholdersforpurposesofthisprovision.

Undercertaincircumstances,thisprovisionwillmakeitmoredifficultforapersonwhoqualifies
asaninterestedstockholdertoeffectcertainbusinesscombinationswithourCompanyforathreeyear
period.Thisprovisionmayencouragecompaniesinterestedinacquiringustonegotiateinadvancewith
ourboardofdirectorsinordertoavoidthestockholderapprovalrequirementifourboardofdirectors
approveseitherthebusinesscombinationorthetransactionthatresultsinthestockholderbecomingan
interestedstockholder.Theseprovisionsalsomayhavetheeffectofpreventingchangesinourboardof
directorsandmaymakeitmoredifficulttoaccomplishtransactionsthatourstockholdersmayotherwise
deemtobeintheirbestinterests.

Theseantitakeoverdefensescoulddiscourage,delayorpreventatransactioninvolvingachange
incontrolofourCompany.Theseprovisionscouldalsodiscourageproxycontestsandmakeitmore
difficultforourstockholderstoelectdirectorsoftheirchoosingandcauseustotakecorporateactions
otherthanthosethatourstockholdersdesire.

WeareexposedtorisksrelatingtoevaluationsofcontrolsrequiredbySection404ofthe
Sarbanes OxleyAct.
Weareintheprocessofevaluatingourinternalcontrolssystemstoallowmanagementtoreport
on,andourindependentauditorstoaudit,ourinternalcontrolsoverfinancialreporting.Wewillbe
performingthesystemandprocessevaluationandtesting(andanynecessaryremediation)requiredto
complywiththemanagementcertification

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and,oncerequired,theauditorattestationrequirementsofSection404oftheSarbanesOxleyAct.We
willberequiredtocomplywiththemanagementcertificationrequirementsofSection404inourannual
reportonForm10KfortheyearfollowingourfirstannualreportthatisfiledwiththeSEC(subjecttoany
changeinapplicableSECrules).BeginningwithourannualreportonForm10Kfortheyearended
January27,2018,wewillberequiredtoprovideamanagementreportoninternalcontroloverfinancial
reporting.Inpreparationforbeingabletoprovidesuchareport,wecontinuetomakeprogressin
documenting,assessingandtestingourinternalcontroloverfinancialreporting.Whenwearenolonger
anemerginggrowthcompany,ourmanagementreportoninternalcontroloverfinancialreportingwill
needtobeattestedtobyourindependentregisteredpublicaccountingfirm.Wedonotexpecttohaveour
independentregisteredpublicaccountingfirmattesttoourmanagementreportoninternalcontrolover
financialreportingwhileweareanemerginggrowthcompany.Furthermore,uponcompletionofthis
process,wemayidentifycontroldeficienciesofvaryingdegreesofseverityunderapplicableSECand
PCAOBrulesandregulationsthatremainunremediated.Asapubliccompany,wearerequiredtoreport,
amongotherthings,controldeficienciesthatconstituteamaterialweaknessorchangesininternal
controlsthat,orthatarereasonablylikelyto,materiallyaffectinternalcontrolsoverfinancialreporting.A
materialweaknessisadeficiency,oracombinationofdeficiencies,ininternalcontroloverfinancial
reporting,suchthatthereisareasonablepossibilitythatamaterialmisstatementofourannualorinterim
financialstatementswillnotbepreventedordetectedonatimelybasis.Asignificantdeficiencyisa
deficiency,oracombinationofdeficiencies,ininternalcontroloverfinancialreportingthatislesssevere
thanamaterialweakness,yetimportantenoughtomeritattentionbythoseresponsibleforoversightof
ourfinancialreporting.

Tocontinuetocomplywiththerequirementsofbeingapubliccompany,wehaveundertaken
variousactions,andmayneedtotakeadditionalactions,suchasimplementingandenhancingour
internalcontrolsandproceduresandhiringadditionalaccountingorinternalauditstaff.Testingand
maintaininginternalcontrolscandivertourmanagementsattentionfromothermattersthatareimportant
totheoperationofourbusiness.Additionally,whenevaluatingourinternalcontroloverfinancial
reporting,wemayidentifymaterialweaknessesthatwemaynotbeabletoremediateintimetomeetthe
applicabledeadlineimposeduponusforcompliancewiththerequirementsofSection404.Forexample,
inthepast,certainmattersinvolvingourinternalcontrolsoverfinancialreportingthatconstituted
materialweaknesseswereidentifiedandhavesincebeenremediated,whichrelatedtoourlimited
accountingpersonnelandotherresourcesatthetime,aswellasouradoptionofpubliccompany
standards.Ifweidentifyanyadditionalmaterialweaknessesinourinternalcontroloverfinancial
reportingorareunabletocomplywiththerequirementsofSection404inatimelymannerorassertthat
ourinternalcontroloverfinancialreportingiseffective,ifwearerequiredtomakefurtherrestatementsof
ourfinancialstatements,orifourindependentregisteredpublicaccountingfirmisunabletoexpressan
opinionastotheeffectivenessofourinternalcontroloverfinancialreportingoncewearenolongeran
emerginggrowthcompany,investorsmayloseconfidenceintheaccuracy,completenessorreliabilityof
ourfinancialreportsandthetradingpriceofourcommonstockmaybeadverselyaffected,andwecould
becomesubjecttosanctionsorinvestigationsbytheNYSE,theSECorotherregulatoryauthorities,
whichcouldrequireadditionalfinancialandmanagementresources.Inaddition,ifwefailtoremedyany
materialweakness,ourfinancialstatementscouldbeinaccurateandwecouldfacerestrictedaccesstothe
capitalmarkets.

Wedonotcurrentlyexpecttopayanycashdividends.
Thecontinuedoperationandexpansionofourbusinesswillrequiresubstantialfunding.
Accordingly,wedonotcurrentlyexpecttopayanycashdividendsonsharesofourcommonstock.Any
determinationtopaydividendsinthefuturewillbeatthediscretionofourboardofdirectorsandwill
dependuponresultsofoperations,financialcondition,contractualrestrictions,restrictionsimposedby
applicablelawandotherfactorsthatourboardofdirectorsdeemsrelevant.Weareaholdingcompany,
andsubstantiallyallofouroperationsarecarriedoutbyouroperatingsubsidiaries.UnderourABL
FacilityandTermLoan,ouroperatingsubsidiariesaresignificantlyrestrictedintheirabilitytopay
dividendsorotherwisetransferassetstous,andweexpecttheselimitationstocontinueinthefuture.Our
abilitytopaydividendsmayalsobelimitedbythetermsofanyfuturecreditagreementoranyfuturedebt
orpreferredequitysecuritiesofoursorofoursubsidiaries.

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Therequirementsofbeingapubliccompany,includingcompliancewiththereporting
requirementsoftheExchangeActandtherequirementsoftheSarbanes OxleyActandtheNYSE,may
strainourresources,increaseourcostsanddivertmanagementsattention,andwemaybeunableto
complywiththeserequirementsinatimelyorcost effectivemanner.
Asapubliccompany,wearesubjecttothereportingrequirementsoftheSecuritiesExchange
Actof1934,asamended,ortheExchangeAct,andthecorporategovernancestandardsofthe
SarbanesOxleyActandtheNYSE.Theserequirementsplaceastrainonourmanagement,systemsand
resourcesandweincursignificantlegal,accounting,insuranceandotherexpensesthatwedidnotincur
asaprivatecompany.TheExchangeActrequiresustofileannual,quarterlyandcurrentreportswith
respecttoourbusinessandfinancialconditionwithinspecifiedtimeperiodsandtoprepareaproxy
statementwithrespecttoourannualmeetingofstockholders.TheSarbanesOxleyActrequiresthatwe
maintaineffectivedisclosurecontrolsandproceduresandinternalcontrolsoverfinancialreporting.The
NYSErequiresthatwecomplywithvariouscorporategovernancerequirements.Tomaintainandimprove
theeffectivenessofourdisclosurecontrolsandproceduresandinternalcontrolsoverfinancialreporting
andcomplywiththeExchangeActandtheNYSEsrequirements,significantresourcesandmanagement
oversightarerequired.Thismaydivertmanagementsattentionfromotherbusinessconcernsandleadto
significantcostsassociatedwithcompliance,whichcouldhaveamaterialadverseeffectonusandthe
priceofourcommonstock.

Theexpensesincurredbypubliccompaniesgenerallyforreportingandcorporategovernance
purposeshavebeenincreasing.Weexpectthatcontinuingcompliancewiththeserulesandregulations
willincreaseourlegalandfinancialcompliancecostsandtomakesomeactivitiesmoretimeconsuming
andcostly.Theselawsandregulationscouldalsomakeitmoredifficultorcostlyforustoobtaincertain
typesofinsurance,includingdirectorandofficerliabilityinsurance,andwemaybeforcedtoaccept
reducedpolicylimitsandcoverageorincursubstantiallyhighercoststoobtainthesameorsimilar
coverage.Theselawsandregulationscouldalsomakeitmoredifficultforustoattractandretainqualified
personstoserveonourboardofdirectors,ourboardcommitteesorasourexecutiveofficers.Advocacy
effortsbystockholdersandthirdpartiesmayalsopromptevenmorechangesingovernanceandreporting
requirements.Wecannotpredictorestimatetheamountofadditionalcostswemayincurorthetimingof
thesecosts.Furthermore,ifweareunabletosatisfyourobligationsasapubliccompany,wecouldbe
subjecttodelistingofourcommonstock,fines,sanctionsandotherregulatoryactionandpotentiallycivil
litigation.

WeareacontrolledcompanywithinthemeaningoftheNYSErulesand,asaresult,qualify
for,andrelyon,exemptionsfromcertaincorporategovernancerequirements.
TheSponsorscontrolamajorityofthevotingpowerofouroutstandingcommonstock.Asa
result,weareacontrolledcompanywithinthemeaningoftheNYSEcorporategovernancestandards.
Acompanyofwhichmorethan50%ofthevotingpowerisheldbyanindividual,agrouporanother
companyisacontrolledcompanywithinthemeaningoftheNYSErulesandmayelectnottocomply
withcertaincorporategovernancerequirementsoftheNYSE,including:

therequirementthatamajorityofourboardofdirectorsconsistofindependentdirectors

therequirementthatwehaveanominating/corporategovernancecommitteethatiscomposed
entirelyofindependentdirectorswithawrittencharteraddressingthecommitteespurposeand
responsibilities

therequirementthatwehaveacompensationcommitteethatiscomposedentirelyof
independentdirectorswithawrittencharteraddressingthecommitteespurposeand
responsibilitiesand

therequirementforanannualperformanceevaluationofthenominatingandcorporate
governanceandcompensationcommittees.

Weintendtocontinuetorelyonalloftheexemptionslistedaboveforsolongasweareeligible
todoso.Totheextentweutilizetheseexemptions,wewillnothaveamajorityofindependentdirectors
andournominatingandcorporategovernanceandcompensationcommitteeswillnotconsistentirelyof
independentdirectors.Asaresult,ourboardofdirectorsandthosecommitteesmayhavemoredirectors
whodonotmeettheNYSEsindependencestandardsthantheywouldifthosestandardsweretoapply.
Theindependencestandardsareintendedtoensurethatdirectorswho

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meetthosestandardsarefreeofanyconflictinginterestthatcouldinfluencetheiractionsasdirectors.
Accordingly,ourstockholdersmaynothavethesameprotectionsaffordedtostockholdersofcompanies
thataresubjecttoallofthecorporategovernancerequirementsoftheNYSE.

Takingadvantageofthereduceddisclosurerequirementsapplicabletoemerginggrowth
companiesmaymakeourcommonstocklessattractivetoinvestors.
Asacompanywithlessthan$1.0billioninrevenueduringourlastfiscalyear,wequalifyasan
emerginggrowthcompanyasdefinedintheJOBSAct.Anemerginggrowthcompanymaytake
advantageofspecifiedreducedreportingandotherrequirementsthatareotherwiseapplicablegenerally
topubliccompanies.Theseprovisionsinclude:
wearenotrequiredtoengageanauditortoreportonourinternalcontrolsoverfinancial
reportingpursuanttoSection404(b)oftheSarbanesOxleyAct
wearenotrequiredtocomplywithanyrequirementthatmaybeadoptedbythePCAOB
regardingmandatoryauditfirmrotationorasupplementtotheauditorsreportproviding
additionalinformationabouttheauditandthefinancialstatements(i.e.,anauditordiscussion
andanalysis)
wearenotrequiredtosubmitcertainexecutivecompensationmatterstostockholderadvisory
votes,suchassayonpay,sayonfrequencyandsayongoldenparachutesand
wearenotrequiredtodisclosecertainexecutivecompensationrelateditemssuchasthe
correlationbetweenexecutivecompensationandperformanceandcomparisonsofthechief
executiveofficerscompensationtomedianemployeecompensation.
Wemaytakeadvantageoftheseprovisionsuntilthelastdayofourfiscalyearfollowingthefifth
anniversaryofourinitialpublicofferingorsuchearliertimethatwearenolongeranemerginggrowth
company.Wewouldceasetobeanemerginggrowthcompanyifwehavemorethan$1.0billionin
annualrevenue,havemorethan$700millioninmarketvalueofourcommonstockheldbynonaffiliates,
orissuemorethan$1.0billionofnonconvertibledebtoverathreeyearperiod.

TheJOBSActpermitsanemerginggrowthcompanylikeustotakeadvantageofanextended
transitionperiodtocomplywithneworrevisedaccountingstandardsapplicabletopubliccompanies.We
arechoosingtoirrevocablyoptoutofthisprovisionand,asaresult,wewillcomplywithnewor
revisedaccountingstandardsasrequiredwhentheyareadopted.
Wecannotpredictifinvestorswillfindourcommonstocklessattractivetotheextentwe
continuetorelyontheseexemptions,oriftakingadvantageoftheseexemptionswouldresultinless
activetradingormorevolatilityinthepriceofourcommonstock.
OuramendedandrestatedcertificateofincorporationdesignatestheCourtofChanceryofthe
StateofDelawareastheexclusiveforumforcertainlitigationthatmaybeinitiatedbyourstockholders,
whichcouldlimitourstockholdersabilitytoobtainafavorablejudicialforumfordisputeswithus.
OuramendedandrestatedcertificateofincorporationprovidesthattheCourtofChanceryofthe
StateofDelawarewillbethesoleandexclusiveforumfor(i)anyderivativeactionorproceedingbrought
onourbehalf,(ii)anyactionassertingaclaimofbreachofafiduciarydutyowedtousorourstockholders
byanyofourdirectors,officers,employeesoragents,(iii)anyactionassertingaclaimagainstusarising
undertheDGCLor(iv)anyactionassertingaclaimagainstusthatisgovernedbytheinternalaffairs
doctrine.Ourstockholdersaredeemedtohavenoticeofandhaveconsentedtotheprovisionsofour
amendedandrestatedcertificateofincorporationrelatedtochoiceofforum.Thechoiceofforum
provisioninouramendedandrestatedcertificateofincorporationmaylimitourstockholdersabilityto
obtainafavorablejudicialforumfordisputeswithus.

ITEM1B.UNRESOLVEDSTAFFCOMMENTS

None.

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ITEM2.PROPERTIES

Weleaseourcorporateheadquarters,distributioncentersandthemajorityofourstoreproperties.
Ourstorelocationsaregenerallyanchor,standaloneormallenclosedlocationsthatrangebetween
80,000and165,000squarefeet,averagingapproximately115,000squarefeetperstore.AsofJanuary28,
2017,weoperated123storesacrosstheUnitedStates,ofwhich111areleasedand12areowned
locations.Ourleasesgenerallyhaveatermof5to20years,withrenewaloptionsthatgenerallyrange
from5to20yearsandaresubjecttoescalatingrentincreases.Wearetypicallyresponsiblefortaxes,
utilities,insurance,repairsandmaintenanceforthesestoreproperties.Certainleasesrequirethepayment
ofcontingentrentbasedonaspecifiedpercentageofstoresgrosssales,asdefinedintheleaseagreement,
andaresubjecttocertainlimitations.AsummaryofourstorelocationsbystateasofJanuary28,2017is
below:

Location Store(s) Location Store(s)

Alabama 3 Missouri 7
Arizona 5 Nebraska 1
Arkansas 1 NewMexico 1
Colorado 3 NewYork 2
Florida 3 NorthCarolina 5
Georgia 7 Ohio 5
Illinois 3 Oklahoma 3
Indiana 3 Pennsylvania 4
Iowa 2 SouthCarolina 2
Kansas 2 SouthDakota 1
Kentucky 3 Tennessee 6
Louisiana 3 Texas 26
Michigan 6 Utah 4
Minnesota 2 Virginia 5
Mississippi 3 Wisconsin 2

Total 123

Weleasea592,000squarefootdistributioncenterinPlano,Texas,whichalsoservesasour
corporateheadquarters.Theleasewillexpirein2036andwehaveoptionstorenewtheleaseforan
additionalperiodofupto20years.Webelievethatourcurrentfacilitywillbesufficienttosupportastore
baseofuptoapproximately220stores.Wealsoleaseanadditional420,000squarefeetwarehouse
premiseslocatedinGarland,Texas,forinitialinventorybuildupfornewstoreopenings.

ITEM3.LEGALPROCEEDINGS

Wearesubjecttovariouslitigations,claimsandotherproceedingsthatarisefromtimetotime
intheordinarycourseofbusiness.Webelievetheseactionsareroutineandincidentaltothebusiness.
Whiletheoutcomeoftheseactionscannotbepredictedwithcertainty,wedonotbelievethatanywill
haveamaterialadverseimpactonourbusiness.

ITEM4.MINESAFETYDISCLOSURES

Notapplicable.

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PARTII

ITEM5.MARKETFORREGISTRANTSCOMMONEQUITY,RELATEDSTOCKHOLDER
MATTERSANDISSUERPURCHASESOFEQUITYSECURITIES

MarketInformation

OurcommonstockhasbeenlistedontheNewYorkStockExchange(theNYSE)underthe
symbolHOMEsinceourinitialpublicofferingonAugust4,2016.Priortothatdate,therewasno
publicmarketforourcommonstock.AsofJanuary28,2017,therewereapproximately85holdersof
recordofourcommonstock.Thenumberofholdersofrecordisbasedupontheactualnumberofholders
registeredatsuchdateanddoesnotincludeholdersofsharesinstreetnamesorpersons,partnerships,
associates,corporationsorotherentitiesidentifiedinsecuritypositionlistingmaintainedbydepositories.
Thefollowingtablesetsforth,fortheperiodsindicated,thehighandlowsalespriceofourcommonstock
asreportedbytheNYSE:

FiscalYearEndedJanuary28,2017
High Low

ThirdQuarter(1) $ 16.35 $ 11.18
FourthQuarter $ 16.07 $ 10.53

(1) ThestockpricesindicatedrepresenttheperiodfromAugust4,2016throughOctober29,2016,theendofourthirdquarter.

DividendPolicy

Wedonotcurrentlyexpecttopayanycashdividendsonourcommonstockfortheforeseeable
future.Instead,weintendtoretainfutureearnings,ifany,forthefutureoperationandexpansionofour
businessandtherepaymentofdebt.Anydeterminationtopaydividendsinthefuturewillbeatthe
discretionofourboardofdirectorsandwilldependuponourresultsofoperations,cashrequirements,
financialcondition,contractualrestrictions,restrictionsimposedbyapplicablelawsandotherfactorsthat
ourboardofdirectorsmaydeemrelevant.Ourbusinessisconductedthroughoursubsidiaries.Dividends,
distributionsandotherpaymentsfrom,andcashgeneratedby,oursubsidiarieswillbeourprincipal
sourcesofcashtorepayindebtedness,fundoperationsandpaydividends.Accordingly,ourabilitytopay
dividendstoourstockholdersisdependentontheearningsanddistributionsoffundsfromour
subsidiaries.Inaddition,thecovenantsintheagreementsgoverningourexistingindebtedness
significantlyrestricttheabilityofoursubsidiariestopaydividendsorotherwisetransferassetstous.For
informationregardingrestrictionsonthepaymentofdividendsimposedbyagreementsforindebtedness,
SeeNote5RevolvingLineofCredit,toourauditedconsolidatedfinancialstatementsincludedinItem15.
ExhibitsandFinancialStatementSchedules,whichisincorporatedhereinbyreference.

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PerformanceGraph

ThefollowinggraphshowsacomparisonofcumulativetotalreturntoholdersofsharesofAt
HomeGroupInc.scommonstockagainstthecumulativetotalreturnofS&P500IndexandS&P500
SpecialtyRetailIndexfromAugust4,2016(thedateourcommonstockcommencedtradingonthe
NYSE)throughJanuary28,2017.Thecomparisonofthecumulativetotalreturnsforeachinvestment
assumesthat$100wasinvestedinAtHomeGroupInc.commonstockandtherespectiveindiceson
August4,2016throughJanuary28,2017includingreinvestmentofanydividends.Historicalshareprice
performanceshouldnotberelieduponasanindicationoffuturesharepriceperformance.

Thisperformancegraphandrelatedinformationshallnotbedeemedsolicitingmaterialorto
befiledforpurposesofSection18oftheExchangeActorotherwisesubjecttotheliabilitiesunderthat
Section,andshallnotbedeemedtobeincorporatedbyreferenceintoanyfuturefilingunderthe
SecuritiesActorExchangeAct,excepttotheextentthatwespecificallyincorporateitbyreferenceinto
suchfiling.

08/03/2016 10/29/2016 01/28/2017

AtHomeGroupInc $ 100.00 $ 75.00 $ 100.93
S&P500Index 100.00 98.25 106.03
S&P500SpecialtyRetailIndex

100.00 91.37 97.95

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ITEM6.SELECTEDFINANCIALANDOPERATINGDATA

ThefollowingselectedconsolidatedfinancialdataforeachoftheyearsendedJanuary28,2017,
January30,2016andJanuary31,2015,andtheselectedconsolidatedbalancesheetdataasofJanuary28,
2017andJanuary30,2016havebeenderivedfromourauditedconsolidatedfinancialstatements,which
areincludedinItem15.ExhibitsandFinancialStatementSchedules.Theselectedconsolidatedbalance
sheetdataasofJanuary31,2015havebeenderivedfromourauditedconsolidatedfinancialstatements,
whicharenotincludedinthisAnnualReportonForm10K.

Weoperateonafiscalcalendarwhich,inagivenfiscalyear,consistsofa52or53weekperiod
endingonthelastSaturdayinJanuary.Thereportingperiodscontainedinourauditedconsolidated
financialstatementsincludedinthisreportcontain52weeksofoperationsinfiscalyearendedJanuary
28,2017,52weeksofoperationsinthefiscalyearendedJanuary30,2016and53weeksofoperationsin
thefiscalyearendedJanuary31,2015.Thehistoricalresultspresentedbelowarenotnecessarily
indicativeoftheresultstobeexpectedforanyfutureperiod.Youshouldreadtheselectedconsolidated
financialandoperatingdatafortheperiodspresentedinconjunctionwithItem1A.RiskFactors,Item
7.ManagementsDiscussionandAnalysisofFinancialConditionandResultsofOperationsandour
consolidatedfinancialstatementsandtherelatednotes,whichareincludedelsewhereinthisAnnual
ReportonForm10K.

FiscalYearEnded
January28,2017 January30,2016 January31,2015
StatementofOperationsData:
Netsales $ 765,635 $ 622,161 $ 497,733
Costofsales 518,155 421,750 335,617
Grossprofit 247,480 200,411 162,116
OperatingExpenses
Selling,generalandadministrativeexpenses 170,556 135,716 110,503
Depreciationandamortization 4,247 2,476 5,310
Totaloperatingexpenses 174,803 138,192 115,813
Operatingincome 72,677 62,219 46,303
Interestexpense,net 27,174 36,759 42,382
Lossonextinguishmentofdebt 2,715 36,046
Income(loss)beforeincometaxes 42,788 (10,586) 3,921
Incometaxprovision(benefit) 15,722 (14,160) 4,357
Netincome(loss) $ 27,066 $ 3,574 $ (436)
PerShareData:
Netincome(loss)percommonshare:
Basic $ 0.49 $ 0.07 $ (0.01)
Diluted $ 0.48 $ 0.07 $ (0.01)
Weightedaveragesharesoutstanding:
Basic 55,414,037 50,836,727 50,836,727
Diluted 56,892,183 51,732,752 50,836,727
BalanceSheetData:
Cashandcashequivalents $ 7,092 $ 5,428 $ 4,706
Inventories,net 243,795 176,388 142,256
Propertyandequipment,net 340,358 272,776 220,084
Totalassets 1,213,393 1,054,810 968,315
Currentportionoflongtermdebtandfinancing
obligations 3,691 3,789 758
Longtermdebt 299,606 422,610 369,990
Financingobligations 19,937 19,017 19,683
TotalShareholders'equity 534,870 369,153 360,916
OperationalData:
Totalstoresatendofperiod 123 100 81
Newstoresopened 24 20 16
Comparablestoresales 3.7% 3.9% 8.3%

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ITEM7.MANAGEMENTSDISCUSSIONANDANALYSISOFFINANCIALCONDITIONAND
RESULTSOFOPERATIONS

Thisdiscussionandanalysisofthefinancialconditionandresultsofouroperationsshouldbe
readinconjunctionwithItem6.SelectedFinancialandOperatingDataandourconsolidated
financialstatementsandrelatednotesofAtHomeGroupInc.includedinItem15ofthisAnnualReport
onForm10K.YoushouldreviewItem1A.RiskFactorssectionofthisfilingforadiscussionof
importantfactorsthatcouldcauseactualresultstodiffermateriallyfromtheresultsdescribedinor
impliedbyanyforwardlookingstatementscontainedinthefollowingdiscussionandanalysis.

Weoperateonafiscalcalendarwidelyusedbytheretailindustrythatresultsinagivenfiscal
yearconsistingofa52or53weekperiodendingonthelastSaturdayinJanuary.Ina52weekfiscal
year,eachquartercontains13weeksofoperationsina53weekfiscalyear,eachofthefirst,secondand
thirdquartersincludes13weeksofoperationsandthefourthquarterincludes14weeksofoperations.
Referencestoafiscalyearmeantheyearinwhichthatfiscalyearends.Referenceshereintofiscalyear
2017relatetothe52weeksendingJanuary28,2017,referenceshereintofiscalyear2016relateto
the52weeksendedJanuary30,2016,referenceshereintofiscalyear2015relatetothe53weeks
endedJanuary31,2015andreferenceshereintofiscalyear2014relatetothe52weeksended
January25,2014.

Overview

AtHomeistheleadinghomedcorsuperstorebasedonthenumberofourlocationsandour
largeformatstoresthatwebelievededicatemorespaceperstoretohomedcorthananyotherplayerin
theindustry.Wearefocusedonprovidingthebroadestassortmentofproductsforanyroom,inanystyle,
foranybudget.Weutilizeourspaceadvantagetooutassortourcompetition,offeringover50,000SKUs
throughoutourstores.Ourdifferentiatedmerchandisingstrategyallowsustoidentifyontrendproducts
andthenvalueengineerthoseproductstoprovidedesirableaestheticsatattractivepricepointsforour
customers.Over70%ofourproductsareunbranded,privatelabelorspecificallydesignedforus.We
believethatourbroadandcomprehensiveofferingandcompellingvaluepropositioncombinetocreatea
leadingdestinationforhomedcorwiththeopportunitytocontinuetakingmarketshareinalarge,
fragmentedandgrowingmarket.

Wewerefoundedin1979inGardenRidge,Texas,asuburbofSanAntonio.Afterwewere
acquiredin2011byagroupofinvestorsledbyAEA,includingaffiliatesofStarrInvestments,webegana
seriesofstrategicinvestmentsinourbusinessthatwebelievehavelaidthefoundationforcontinued
profitablegrowth.Duringfiscalyears2014and2015,weinvestedapproximately$85millionincapital
inconnectionwiththefollowingstrategicinitiatives:

WemovedourCompanyheadquartersfromHoustontoPlanototakeadvantageofthe
concentrationofretailtalentintheDallas/FortWortharea.

Wesignificantlyincreasedthenumberofpeoplewithinallfunctionalareas,resultinginawell
roundedteamwithadeepbenchofexperience,inadditiontobuildingoutourexecutiveteam.

Weimplementedrigorous,systematicprocesseswhichhaveallowedustoacceleratenewstore
openingswhiledeliveringstrongfinancialresults.

Weupgradedandautomatedourdistributioncenterandexpandeditscapacitytoserviceour
growingstorebase.

WecompletedarebrandingofourCompanyfromGardenRidgetoAtHomeinfiscalyear
2015,animportantmilestonewhichhasstrengthenedourbrandmessageandbetter
communicatesourpositionastheleadinghomedcorsuperstore.

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Ourstrengthenedmanagementteam,newbrandidentity,improvedrealestatecapabilities,
upgradedandautomateddistributioncenterandenhancedinformationsystemsshouldenableusto
expandourstorebasewhilemaintainingourindustryleadingprofitability.

AsofJanuary28,2017,ourstorebaseiscomprisedof123largeformatstoresacross30states,
averagingapproximately115,000squarefeetperstore.Overthepastfivecompletedfiscalyearswehave
opened77newstoresandwebelievethereissignificantwhitespaceopportunitytoincreaseourstore
countinbothexistingandnewmarkets.

TrendsandOtherFactorsAffectingOurBusiness

Varioustrendsandotherfactorsaffectorhaveaffectedouroperatingresults,including:

Overalleconomictrends.Theoveralleconomicenvironmentandrelatedchangesinconsumer
behaviorhaveasignificantimpactonourbusiness.Ingeneral,positiveconditionsinthebroader
economypromotecustomerspendinginourstores,whileeconomicweaknessresultsinareductionof
customerspending.Macroeconomicfactorsthatcanaffectcustomerspendingpatterns,andtherebyour
resultsofoperations,includeemploymentrates,businessconditions,changesinthehousingmarket,the
availabilityofcredit,interestrates,taxratesandfuelandenergycosts.

Consumerpreferencesanddemand.Ourabilitytomaintainourappealtoexistingcustomersand
attractnewcustomersdependsonourabilitytooriginate,developandofferacompellingproduct
assortmentresponsivetocustomerpreferencesanddesigntrends.Ifwemisjudgethemarketforour
products,wemaybefacedwithexcessinventoriesforsomeproductsandmayberequiredtobecomemore
promotionalinoursellingactivities,whichwouldimpactournetsalesandgrossprofit.

Newstoreopenings.Weexpectnewstoreswillbethekeydriverofthegrowthinoursalesand
operatingprofitinthefuture.Ourresultsofoperationshavebeenandwillcontinuetobematerially
affectedbythetimingandnumberofnewstoreopenings.Theperformanceofnewstoresmayvary
dependingonvariousfactorssuchasthestoreopeningdate,thetimeofyearofaparticularopening,the
amountofstoreopeningcosts,theamountofstoreoccupancycostsandthelocationofthenewstore,
includingwhetheritislocatedinaneworexistingmarket.Forexample,wetypicallyincurhigherthan
normalemployeecostsatthetimeofanewstoreopeningassociatedwithsetupandotheropeningcosts.
Inaddition,inresponsetotheinterestandexcitementgeneratedwhenweopenanewstore,thenew
storesgenerallyexperiencehighernetsalesduringtheinitialperiodofonetothreemonthsafterwhich
thenewstoresnetsaleswillbegintonormalizeasitreachesmaturitywithinsixmonthsofopening,as
furtherdiscussedbelow.

Ourplannedstoreexpansionwillplaceincreaseddemandsonouroperational,managerial,
administrativeandotherresources.Managingourgrowtheffectivelywillrequireustocontinueto
enhanceourstoremanagementsystems,financialandmanagementcontrolsandinformationsystems.We
willalsoberequiredtohire,trainandretainstoremanagementandstorepersonnelwhich,togetherwith
increasedmarketingcosts,canaffectouroperatingmargins.

Anewstoretypicallyreachesmaturity,meaningthestoresannualizedtargetedsalesvolumehas
beenreached,withinsixmonthsofopening.Newstoresareincludedinthecomparablestorebaseduring
thesixteenthfullfiscalmonthfollowingthestoresopening,whichwebelieverepresentsthemost
appropriatecomparison.Wealsoperiodicallyexploreopportunitiestorelocatealimitednumberof
existingstorestoimprovelocation,leaseterms,storelayoutorcustomerexperience.Relocatedstores
typicallyachievealevelofoperatingprofitabilitycomparabletoourcompanywideaverageforexisting
storesmorequicklythannewstores.

Rebrandinginitiative.DuringthefiscalyearendedJanuary31,2015,welaunchedasignificant
rebrandinginitiativethroughwhichwespentover$20millionincapitalandexpensestochangeour
brandandcorporatenameandconvertandrefreshallofourstores.WechangedournamefromGarden
RidgetoAtHome,anamethatwebelievebettercommunicatesourpositioningastheleadinghome
dcorsuperstore.Wecompletedtherebrandinginitiativeduringthefirstninemonthsoffiscalyear2015
andnowallofourstoresoperateundertheAtHomebrand.

Infrastructureinvestment.Ourhistoricaloperatingresultsreflecttheimpactofourongoing
investmentstosupportourgrowth.Wehavemadesignificantinvestmentsinourbusinessthatwebelieve
havelaidthefoundationfor

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continuedprofitablegrowth.Webelievethatourstrengthenedmanagementteam,newbrandidentity,
upgradedandautomateddistributioncenterandenhancedinformationsystems,includingourwarehouse
managementandPOSsystems,enableustoreplicateourprofitablestoreformatanddifferentiated
shoppingexperience.Inaddition,duringfiscalyear2016,weimplementedamerchandiseplanning
systemandupgradedourinventoryallocationsystemtobettermanageinventoryforeachstoreand
correspondingcustomerbase.Weexpecttheseinfrastructureinvestmentstosupportoursuccessful
operatingmodeloverasignificantlyexpandedstorebase.

Pricingstrategy.Wearecommittedtoprovidingourproductsateverydaylowprices.Wevalue
engineerproductsincollaborationwithoursupplierstorecreatethelookthatwebelieveourcustomer
wantswhileeliminatingthecostlyconstructionelementsthatourcustomerdoesnotvalue.Webelieve
ourcustomerviewsshoppingAtHomeasaninpersonexperiencethroughwhichourcustomercansee
andfeelthequalityofourproductsandphysicallyassembleadesiredaesthetic.Thisdesignapproach
allowsustodeliveranattractivevaluetoourcustomers,asourproductsaretypicallylessexpensivethan
otherbrandedproductswithasimilarlook.Weemployasimpleeverydaylowpricingstrategythat
consistentlydeliverssavingstoourcustomerswithouttheneedforextensivepromotions,asevidencedby
80%ofournetsalesoccurringatfullprice.

Ourabilitytosourceanddistributeproductseffectively.Ournetsalesandgrossprofitare
affectedbyourabilitytopurchaseourproductsinsufficientquantitiesatcompetitiveprices.Whilewe
believeourvendorshaveadequatecapacitytomeetourcurrentandanticipateddemand,ourlevelofnet
salescouldbeadverselyaffectedintheeventofconstraintsinoursupplychain,includingtheinabilityof
ourvendorstoproducesufficientquantitiesofsomemerchandiseinamannerthatisabletomatchmarket
demandfromourcustomers,leadingtolostsales.

Fluctuationinquarterlyresults.Ourquarterlyresultshavehistoricallyvarieddependingupona
varietyoffactors,includingourproductofferings,promotionalevents,storeopeningsandshiftsinthe
timingofholidays,amongotherthings.Asaresultofthesefactors,ourworkingcapitalrequirementsand
demandsonourproductdistributionanddeliverynetworkmayfluctuateduringtheyear.

Inflationanddeflationtrends.Ourfinancialresultscanbeexpectedtobedirectlyimpactedby
substantialincreasesinproductcostsduetocommoditycostincreasesorgeneralinflationwhichcould
leadtoareductioninoursalesaswellasgreatermarginpressureascostsmaynotbeabletobepassedon
toconsumers.Todate,changesincommoditypricesandgeneralinflationhavenotmateriallyimpacted
ourbusiness.Inresponsetoincreasingcommoditypricesorgeneralinflation,weseektominimizethe
impactofsucheventsbysourcingourmerchandisefromdifferentvendors,changingourproductmixor
increasingourpricingwhennecessary.

Refinancings.InJune2015,weenteredintotheTermLoanandtheSecondLienTermLoan
(togetherwiththeTermLoan,theTermLoanFacilities).Theproceedsofthesetermloanswereusedto
refinanceandredeeminfullour10.75%seniorsecurednotesdue2019,whichreducedouroverallcostof
capital.Inaddition,weusednetproceedsfromourinitialpublicofferingandpartialexerciseoftheover
allotmentoptiontorepayinfullthe$130.0millionofprincipalamountofindebtednessoutstanding
undertheSecondLienTermLoanwhichfurtherreducedourcostofcapitalanddebtserviceobligations.
Formoreinformation,pleaseseeLiquidityandCapitalResources.

53rdweek.Ourfiscalyear2015consistedof53weeks.Fiscalyears2017and2016each
consistedof52weeks.The53rdweekoffiscalyear2015contributed$7.8milliontonetsales.Pleasesee
ResultsofOperationsbelowforfurtherdiscussionoftheimpactofthe53rdweekonnetsales.

HowWeAssessthePerformanceofOurBusiness

Inassessingourperformance,weconsideravarietyofperformanceandfinancialmeasures.The
keymeasuresincludenetsales,grossprofitandgrossmargin,andselling,generalandadministrative
expenses.Inaddition,wealsoreviewotherimportantmetricssuchasAdjustedEBITDA,Storelevel
AdjustedEBITDAandAdjustedNetIncome(Loss).

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NetSales

Netsalesarederivedfromdirectretailsalestocustomersinourstores,netofmerchandisereturns
anddiscounts.Growthinnetsalesisimpactedbyopeningnewstoresandincreasesincomparablestore
sales.

Newstoreopenings

Thenumberofnewstoreopeningsreflectsthenewstoresopenedduringaparticularreporting
period,includinganyrelocationsofexistingstoresduringsuchperiod.Beforeweopennewstores,we
incurpreopeningcosts,asdescribedbelow.Thetotalnumberofnewstoresperyearandthetimingof
storeopeningshas,andwillcontinuetohave,animpactonourresultsasdescribedaboveinTrends
andOtherFactorsAffectingOurBusiness.

Comparablestoresales

Astoreisincludedinthecomparablestoresalescalculationonthefirstdayofthesixteenthfull
fiscalmonthfollowingthestore'sopening,whichiswhenwebelievecomparabilityisachieved.Whena
storeisbeingrelocatedorremodeled,weexcludesalesfromthatstoreinthecalculationofcomparable
storesalesuntilthefirstdayofthesixteenthfullfiscalmonthafteritreopens.Inaddition,when
applicable,weadjustfortheeffectofthe53rdweek.Theremaybevariationsinthewayinwhichsomeof
ourcompetitorsandotherretailerscalculatecomparableorsamestoresales.Asaresult,datainthis
reportregardingourcomparablestoresalesmaynotbecomparabletosimilardatamadeavailablebyother
retailers.

Comparablestoresalesallowustoevaluatehowourstorebaseisperformingbymeasuringthe
changeinperiodoverperiodnetsalesinstoresthathavebeenopenfortheapplicableperiod.Various
factorsaffectcomparablestoresales,including:

consumerpreferences,buyingtrendsandoveralleconomictrends

ourabilitytoidentifyandrespondeffectivelytocustomerpreferencesandtrends

ourabilitytoprovideanassortmentofhighqualityandtrendrightproductofferingsthat
generatenewandrepeatvisitstoourstores

thecustomerexperienceweprovideinourstores

ourabilitytosourceandreceiveproductsaccuratelyandtimely

changesinproductpricing,includingpromotionalactivities

thenumberofitemspurchasedperstorevisit

weatherand

timingandlengthofholidayshoppingperiods.

Openingnewstoresisanimportantpartofourgrowthstrategy.Aswecontinuetopursueour
growthstrategy,weanticipatethatanincreasingpercentageofournetsaleswillcomefromstoresnot
includedinourcomparablestoresalescalculation.Accordingly,comparablestoresalesareonlyone
measureweusetoassessthesuccessofourgrowthstrategy.

GrossProfitandGrossMargin

Grossprofitisdeterminedbysubtractingcostofsalesfromournetsales.Grossmarginmeasures
grossprofitasapercentageofnetsales.

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Costofsalesconsistsofvariousexpensesrelatedtothecostofsellingourmerchandise.Costof
salesconsistsofthefollowing:(1)costofmerchandise,netofinventoryshrinkage,damagesandvendor
allowances(2)inboundfreightandinternaltransportationcostssuchasdistributioncentertostore
freightcosts(3)costsofoperatingourdistributioncenter,includinglabor,occupancycosts,supplies,and
depreciationand(4)storeoccupancycostsincludingrent,insurance,taxes,commonareamaintenance,
utilities,repairsandmaintenanceanddepreciation.Thecomponentsofourcostofsalesexpensesmaynot
becomparabletootherretailers.

Selling,GeneralandAdministrativeExpenses

Selling,generalandadministrativeexpenses(SG&A)consistofvariousexpensesrelatedto
supportingandfacilitatingthesaleofmerchandiseinourstores.Thesecostsincludepayroll,benefitsand
otherpersonnelexpensesforcorporateandstoreemployees,includingstockbasedcompensation
expense,consulting,legalandotherprofessionalservicesexpenses,marketingandadvertisingexpenses,
occupancycostsforourcorporateheadquartersandvariousotherexpenses.

SG&Aincludesbothfixedandvariablecomponentsand,therefore,isnotdirectlycorrelated
withnetsales.Inaddition,thecomponentsofourSG&Aexpensesmaynotbecomparabletothoseof
otherretailers.WeexpectthatourSG&Aexpenseswillincreaseinfutureperiodsduetoourcontinuing
storegrowth.Inaddition,anyincreaseinfuturestockoptionorotherstockbasedgrantsormodifications
willincreaseourstockbasedcompensationexpenseincludedinSG&A.Inparticular,theonetimebonus
grantofstockoptionstocertainmembersofourseniormanagementinconnectionwithourinitialpublic
offeringwhichwillresultinincrementalnoncashstockbasedcompensationexpenseofapproximately
$20.0million,whichisbeingexpensedoverthederivedserviceperiodbeginninginthethirdquarterof
fiscal2017andcontinuingoverthefollowingeightquarters.

AdjustedEBITDA

AdjustedEBITDAisakeymetricusedbymanagementandourboardofdirectorstoassessour
financialperformance.AdjustedEBITDAisalsothebasisforperformanceevaluationunderourcurrent
executivecompensationprograms.Inaddition,AdjustedEBITDAisfrequentlyusedbyanalysts,
investorsandotherinterestedpartiestoevaluatecompaniesinourindustry.Inadditiontocovenant
complianceandexecutiveperformanceevaluations,weuseAdjustedEBITDAtosupplementgenerally
acceptedaccountingprinciplesintheUnitedStatesofAmerica(GAAP)measuresofperformanceto
evaluatetheeffectivenessofourbusinessstrategies,tomakebudgetingdecisionsandtocompareour
performanceagainstthatofotherpeercompaniesusingsimilarmeasures.

AdjustedEBITDAisdefinedasnetincome(loss)beforeinterestexpense,net,lossfromearly
extinguishmentofdebt,incometax(benefit)provisionanddepreciationandamortization,adjustedfor
theimpactofcertainotheritemsasdefinedinourdebtagreements,includingcertainlegalsettlementsand
consultingandotherprofessionalfees,costsassociatedwithnewstoreopenings,relocationandemployee
recruitingincentives,managementfeesandexpenses,stockbasedcompensationexpense,impairmentof
ourtradenameandnoncashrent.ForareconciliationofAdjustedEBITDAtonetincome(loss),themost
directlycomparableGAAPmeasure,seeResultsofOperations.

StorelevelAdjustedEBITDA

WeuseStorelevelAdjustedEBITDAasasupplementalmeasureofourperformance,which
representsourAdjustedEBITDAexcludingtheimpactofcertaincorporateoverheadexpensesthatwedo
notconsiderinourevaluationoftheongoingoperatingperformanceofourstoresfromperiodtoperiod.
OurcalculationofStorelevelAdjustedEBITDAisasupplementalmeasureofoperatingperformanceof
ourstoresandmaynotbecomparabletosimilarmeasuresreportedbyothercompanies.Webelievethat
StorelevelAdjustedEBITDAisanimportantmeasuretoevaluatetheperformanceandprofitabilityof
eachofourstores,individuallyandintheaggregate,especiallygiventhelevelofinvestmentswehave
madeinourhomeofficeandinfrastructureoverthepastfouryearstosupportfuturegrowth.Wealso
believethatStorelevelAdjustedEBITDAisausefulmeasureinevaluatingouroperatingperformance
becauseitremovestheimpactofgeneralandadministrativeexpenses,whicharenotincurredatthestore
level,andthecostsofopeningnewstores,whicharenonrecurringatthestorelevel,andtherebyenables
thecomparabilityofthe

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operatingperformanceofourstoresduringtheperiod.WeuseStorelevelAdjustedEBITDAinformation
tobenchmarkourperformanceversuscompetitors.StorelevelAdjustedEBITDAshouldnotbeusedasa
substituteforconsolidatedmeasuresofprofitabilityofperformancebecauseitdoesnotreflectcorporate
overheadexpensesthatarenecessarytoallowustoeffectivelyoperateourstoresandgenerateStorelevel
AdjustedEBITDA.ForareconciliationofStorelevelAdjustedEBITDAtonetincome(loss),themost
directlycomparableGAAPmeasure,seeResultsofOperations.

AdjustedNetIncome(Loss)

AdjustedNetIncome(Loss)representsournetincome(loss),adjustedforlossonextinguishment
ofdebt,initialpublicofferingrelatednoncashstockbasedcompensationexpenseandinitialpublic
offeringtransactioncosts.WepresentAdjustedNetIncome(Loss)becausewebelieveitassistsinvestors
andanalystsincomparingourperformanceacrossreportingperiodsonaconsistentbasisbyexcluding
itemsthatwedonotbelieveareindicativeofourcoreoperatingperformance.Forareconciliationof
AdjustedNetIncome(Loss)tonetincome(loss),themostdirectlycomparableGAAPmeasure,see
ResultsofOperations.

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ResultsofOperations

Thefollowingtablessummarizekeycomponentsofourresultsofoperationsforthe
periodsindicated,bothindollarsandasapercentageofournetsales:

FiscalYearEnded
January28,2017 January30,2016 January31,2015

StatementofOperationsData:
Netsales $ 765,635 $ 622,161 $ 497,733
Costofsales 518,155 421,750 335,617
Grossprofit 247,480 200,411 162,116
Operatingexpenses
Selling,generalandadministrative
expenses 170,556 135,716 110,503
Depreciationandamortization 4,247 2,476 5,310
Totaloperatingexpenses 174,803 138,192 115,813
Operatingincome 72,677 62,219 46,303
Interestexpense,net 27,174 36,759 42,382
Lossonextinguishmentofdebt 2,715 36,046
Income(loss)beforeincometaxes 42,788 (10,586) 3,921
Incometaxprovision(benefit) 15,722 (14,160) 4,357
Netincome(loss) $ 27,066 $ 3,574 $ (436)
PercentageofNetSales:
Netsales 100.0% 100.0% 100.0%
Costofsales 67.7% 67.8% 67.4%
Grossprofit 32.3% 32.2% 32.6%
OperatingExpenses
Selling,generalandadministrative
expenses 22.3% 21.8% 22.2%
Depreciationandamortization 0.6% 0.4% 1.1%
Totaloperatingexpenses 22.8% 22.2% 23.3%
Operatingincome 9.5% 10.0% 9.3%
Interestexpense,net 3.5% 5.9% 8.5%
Lossonextinguishmentofdebt 0.4% 5.8% %
Income(loss)beforeincometaxes 5.6% (1.7)% 0.8%
Incometaxprovision(benefit) 2.1% (2.3)% 0.9%
Netincome(loss) 3.5% 0.6% (0.1)%
OperationalData:
Totalstoresatendofperiod 123 100 81
Newstoresopened 24 20 16
Comparablestoresales 3.7% 3.9% 8.3%
NonGAAPMeasures(1):
StorelevelAdjustedEBITDA(2) $ 198,987 $ 168,573 $ 133,122
StorelevelAdjustedEBITDAmargin(2) 26.0% 27.1% 26.7%
AdjustedEBITDA(2) $ 138,312 $ 115,270 $ 95,552
AdjustedEBITDAmargin(2) 18.1% 18.5% 19.2%
AdjustedNetIncome(Loss)(3) $ 32,652 $ (8,722) $ (457)

(1)WepresentAdjustedEBITDA,AdjustedEBITDAmargin,StorelevelAdjustedEBITDA,StorelevelAdjusted
EBITDAmarginandAdjustedNetIncome(Loss),whicharenotrecognizedfinancialmeasuresunderGAAP,
becausewebelievetheyassistinvestorsandanalystsincomparingouroperatingperformanceacrossreportingperiods
onaconsistentbasisbyexcludingitemsthatwedonotbelieveareindicativeofourcoreoperatingperformance,such
asinterest,depreciation,amortization,lossonextinguishmentofdebtandtaxes,aswellascostsrelatedtonewstore
openings,whichareincurredonalimitedbasiswithrespecttoanyparticularstorewhenopenedandarenotindicative
ofongoingcoreoperatingperformance.Youareencouragedtoevaluatetheseadjustmentsandthereasonsweconsider
themappropriateforsupplementalanalysis.InevaluatingAdjustedEBITDA,StorelevelAdjustedEBITDAand
AdjustedNetIncome(Loss),youshouldbeawarethatinthefuturewemayincurexpensesthatarethesameasor
similartosomeoftheadjustmentsinourpresentationofAdjustedEBITDA,StorelevelAdjustedEBITDAand
AdjustedNetIncome(Loss).Inparticular,StorelevelAdjustedEBITDAdoesnotreflectcorporateoverhead
expensesthatarenecessarytoallowustoeffectivelyoperateourstoresandgenerateStorelevelAdjustedEBITDA.
OurpresentationofAdjustedEBITDA,StorelevelAdjustedEBITDAandAdjustedNetIncome(Loss)shouldnotbe
construed

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asaninferencethatourfutureresultswillbeunaffectedbyunusualornonrecurringitems.Therecanbeno
assurancethatwewillnotmodifythepresentationofAdjustedEBITDA,StorelevelAdjustedEBITDAand
AdjustedNetIncome(Loss)inthefuture,andanysuchmodificationmaybematerial.Inaddition,Adjusted
EBITDA,AdjustedEBITDAmargin,StorelevelAdjustedEBITDA,StorelevelAdjustedEBITDAmarginand
AdjustedNetIncome(Loss)maynotbecomparabletosimilarlytitledmeasuresusedbyothercompaniesinour
industryoracrossdifferentindustries.

ManagementbelievesAdjustedEBITDAishelpfulinhighlightingtrendsinourcoreoperatingperformance,while
othermeasurescandiffersignificantlydependingonlongtermstrategicdecisionsregardingcapitalstructure,thetax
jurisdictionsinwhichcompaniesoperateandcapitalinvestments.WealsouseAdjustedEBITDAinconnectionwith
performanceevaluationsforourexecutivestosupplementGAAPmeasuresofperformanceintheevaluationofthe
effectivenessofourbusinessstrategiestomakebudgetingdecisionsandtocompareourperformanceagainstthat
ofotherpeercompaniesusingsimilarmeasures.Inaddition,weutilizeAdjustedEBITDAincertaincalculations
underourABLFacility(definedthereinasConsolidatedEBITDA)andourTermLoanFacilities(definedtherein
asConsolidatedCashEBITDA).ManagementbelievesStorelevelAdjustedEBITDAishelpfulinhighlighting
trendsbecauseitfacilitatescomparisonsofstoreoperatingperformancefromperiodtoperiodbyexcludingthe
impactofcertaincorporateoverheadexpenses,suchascertaincostsassociatedwithmanagement,finance,
accounting,legalandothercentralizedcorporatefunctions.ManagementbelievesthatAdjustedNetIncome(Loss)
assistsinvestorsandanalystsincomparingourperformanceacrossreportingperiodsonaconsistentbasisby
excludingitemswedonotbelieveareindicativeofourcoreoperatingperformance.

(2)Thefollowingtablereconcilesournetincome(loss)toEBITDA(excludinglossonextinguishmentofdebt),Adjusted
EBITDAandStorelevelAdjustedEBITDAfortheperiodspresented(inthousands):

FiscalYearEnded
January28,2017 January30,2016 January31,2015

Netincome(loss) $ 27,066 $ 3,574 $ (436)
Interestexpense,net 27,174 36,759 42,382
Lossonextinguishmentofdebt 2,715 36,046
Incometaxprovision(benefit) 15,722 (14,160) 4,357
Depreciationandamortization(a) 36,925 28,694 23,317
EBITDA $ 109,602 $ 90,913 $ 69,620
Legalsettlementsandconsultingand
otherprofessionalservices(b) 2,478 3,506 4,633
Costsassociatedwithnewstore
openings (c)
12,035 9,801 6,848
Relocationandemployeerecruiting
costs(d) 262 724 2,928
Managementfeesandexpenses(e) 1,847 3,612 3,596
Stockbasedcompensationexpense(f) 4,066 4,663 4,251
Stockbasedcompensationrelatedto
specialonetimeIPObonusgrant(g) 5,318
Noncashrent(h) 2,320 2,398 1,795
Other(i) 384 (347) 1,881
AdjustedEBITDA $ 138,312 $ 115,270 $ 95,552
Corporateoverheadexpenses(j) 60,675 53,303 37,570
StorelevelAdjustedEBITDA $ 198,987 $ 168,573 $ 133,122

(a)Includestheportionofdepreciationandamortizationexpensesthatareclassifiedascostofsalesinourconsolidated
statementsofoperations.

(b)Primarilyconsistsof(i)consultingandotherprofessionalfeeswithrespecttotaxconsultingservicesaswellas
completedprojectstoenhanceouraccountingandfinancecapabilitiesandotherpubliccompanyreadinessinitiatives,
of$2.5million,$3.5millionand$2.8millionforfiscalyears2017,2016and2015,respectivelyand(ii)litigation
settlementchargesandrelatedlegalfeesforcertainclaimsandlegalcostsforothermattersrelatingtoeventsthatarose
priortoouracquisitionbyourSponsorsthathaveconcludedintheamountsof$1.8millionforfiscalyear2015.
Adjustmentsrelatedtosuchitemsfortheotherperiodspresentedwerenotmaterial.

(c)Noncapitalexpendituresassociatedwithopeningnewstores,includingmarketingandadvertising,laborandcash
occupancyexpenses.Weanticipatethatwewillcontinuetoincurcashcostsasweopennewstoresinthefuture.We
opened24,20and16newstoresinfiscalyears2017,2016and2015,respectively.

(d)Primarilyreflectsemployeerecruitingandrelocationcostsinconnectionwiththebuildoutofourmanagementteam.

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(e)ReflectsmanagementfeespaidtoourSponsorsinaccordancewithourmanagementagreement.Inconnectionwithour
initialpublicoffering,themanagementagreementwasterminatedonAugust3,2016andourSponsorsnolonger
receivemanagementfeesfromus.

(f)Noncashstockbasedcompensationrelatedtotheongoingequityincentiveprogramthatwehaveinplaceto
incentivizeandretainmanagement.

(g)Noncashstockbasedcompensationassociatedwithaspecialonetimeinitialpublicofferingbonusgranttosenior
executives,whichwedonotconsiderinourevaluationofourongoingperformance.Thegrantwasmadeinaddition
totheongoingequityincentiveprogramthatwehaveinplacetoincentivizeandretainmanagementandwasmadeto
rewardcertainseniorexecutivesforhistoricalperformanceandallowthemtobenefitfromfuturesuccessfuloutcomes
forourSponsors.

(h)Consistsofthenoncashportionofrent,whichreflects(i)theextenttowhichourGAAPstraightlinerentexpense
recognizedexceedsorislessthanourcashrentpayments,partiallyoffsetby(ii)theamortizationofdeferredgainson
saleleasebacktransactionsthatarerecognizedtorentexpenseonastraightlinebasisthroughtheapplicableleaseterm.
Theoffsettingamountsrelatingtotheamortizationofdeferredgainsonsaleleasebacktransactionswere$(4.7)
million,$(3.2)millionand$(1.8)millionforfiscalyears2017,2016and2015,respectively.TheGAAPstraightline
rentexpenseadjustmentcanvarydependingontheaverageageofourleaseportfolio,whichhasbeenimpactedbyour
significantgrowth.Fornewerleases,ourrentexpenserecognizedtypicallyexceedsourcashrentpaymentswhilefor
morematureleases,rentexpenserecognizedistypicallylessthanourcashrentpayments.

(i)Otheradjustmentsincludeamountsourmanagementbelievesarenotrepresentativeofourongoingoperations,
including:

forfiscalyear2017,alossof$0.3millionrecognizedonthesaleoflandinconnectionwiththeexpansionof
ourdistributioncenter
forfiscalyear2016,gainonthesaleofourpropertyinHouston,Texasof$(1.8)millionand$(0.3)million
relatedtovariousrefundsforpriorperiodtaxesandaudits,partiallyoffsetby$0.5millioninexpensesincurred
forastoreclosureand
forfiscalyear2015,assetretirementsrelatedtoourrebrandingof$0.6millionand$0.4millionforastore
relocation.

(j)Reflectscorporateoverheadexpenses,whicharenotdirectlyrelatedtotheprofitabilityofourstores,tofacilitate
comparisonsofstoreoperatingperformanceaswedonotconsiderthesecorporateoverheadexpenseswhenevaluating
theongoingperformanceofourstoresfromperiodtoperiod.Corporateoverheadexpenses,whichareacomponentof
selling,generalandadministrativeexpenses,arecomprisedofvarioushomeofficegeneralandadministrativeexpenses
suchaspayrollexpenses,occupancycosts,marketingandadvertising,andconsultingandprofessionalfees.Seeour
discussionofthechangesinselling,generalandadministrativeexpensespresentedinResultsofOperations.
StorelevelAdjustedEBITDAshouldnotbeusedasasubstituteforconsolidatedmeasuresofprofitabilityor
performancebecauseitdoesnotreflectcorporateoverheadexpensesthatarenecessarytoallowustoeffectively
operateourstoresandgenerateStorelevelAdjustedEBITDA.Weanticipatethatwewillcontinuetoincurcorporate
overheadexpensesinfutureperiods.

(3)Thefollowingtablereconcilesournetincome(loss)toAdjustedNetIncome(Loss)fortheperiodspresented(in
thousands):

FiscalYearEnded
January31,
January28,2017 January30,2016 2015

Netincome(loss)asreported $ 27,066 $ 3,574 $ (436)
Adjustments:
Lossonextinguishmentofdebt 2,715 36,046
Stockbasedcompensationrelated
tospecialonetimeIPObonus
grant(a) 5,318
IPOtransactioncosts(b) 797 373 193
Taximpactofadjustmentstonet
income(loss)(c) (3,244) (48,715) (214)
AdjustedNetIncome(Loss) $ 32,652 $ (8,722) $ (457)

(a)Noncashstockbasedcompensationassociatedwithaspecialonetimeinitialpublicofferingbonusgranttosenior
executives,whichwedonotconsiderinourevaluationofourongoingperformance.Thegrantwasmadeinadditionto
theongoingequity

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incentiveprogramthatwehaveinplacetoincentivizeandretainmanagementandwasmadetorewardcertainsenior
executivesforhistoricalperformanceandallowthemtobenefitfromfuturesuccessfuloutcomesforourSponsors.

(b)Chargesincurredinconnectionwithourinitialpublicoffering,whichwedonotexpecttorecuranddonotconsiderin
ourevaluationofourongoingperformance.

(c)Representsthetaximpactassociatedwiththeadjustedexpensesutilizingtheeffectivetaxrateineffectduringthe
periodspresented.Theeffectivetaxrateforfiscalyears2017,2016and2015was36.7%,133.8%and111.1%,
respectively.

FiscalYearEndedJanuary28,2017ComparedtoFiscalYearEndedJanuary30,2016
NetSales

Netsalesincreased$143.4million,or23.1%,to$765.6millionforthefiscalyearendedJanuary
28,2017from$622.2millionforthefiscalyearendedJanuary30,2016.Theincreasewasprimarily
drivenbyapproximately$122.8millionofincrementalrevenuefromthenetadditionof23newstores
openedsinceJanuary30,2016aswellasanumberofstoresthatwereopenedduringfiscalyear2016but
hadnotyetbeenopenfor15monthstobeincludedinthecomparablestorebase.Theremaining$20.6
millionincreaseinnetsalesisattributabletocomparablestoresaleswhichincreased3.7%duringthe
fiscalyearendedJanuary28,2017,drivenprimarilybyourmerchandisinginitiatives.

CostofSales

Costofsalesincreased$96.4million,or22.9%,to$518.2millionforthefiscalyearended
January28,2017from$421.8millionforthefiscalyearendedJanuary30,2016.Thisincreasewas
primarilydrivenbythe23.1%increaseinnetsalesforthefiscalyearendedJanuary28,2017comparedto
thefiscalyearendedJanuary30,2016,whichresultedina$65.9millionincreaseinmerchandisecosts.In
addition,duringthefiscalyearendedJanuary28,2017,werecognizeda$6.5millionincreasein
depreciationandamortizationanda$20.0millionincreaseinstoreoccupancycosts,ineachcaseasa
resultofnewstoreopeningssinceJanuary30,2016aswellasthroughoutfiscalyear2016.

GrossProfitandGrossMargin

Grossprofitwas$247.5million,or32.3%ofnetsales,forthefiscalyearendedJanuary28,2017,
anincreasefrom$200.4million,or32.2%ofnetsales,forthefiscalyearendedJanuary30,2016.The
increaseingrossprofitwasprimarilydrivenbyincreasedsalesvolumefromthenetadditionof23new
storesopenedsinceJanuary30,2016aswellasa3.7%increaseincomparablestoressales.Grossmargin
increased10basispointsduringthefiscalyearendedJanuary28,2017whencomparedtothefiscalyear
endedJanuary30,2016.The10basispointincreaseisprimarilyduetoareductioninproductrelated
costs,suchasshrink,damagesandfreight,drivenbyoperationalimprovements.Thisincreasewas
partiallyoffsetbyhigheroccupancycostsresultingfromthesaleleasebacktransactionsthatoccurredin
fiscalyear2017andfiscalyear2016asdiscussedinLiquidityandCapitalResources.Inaddition,
grossmarginwasalsoimpactedbyhigherdistributioncentercostsassociatedwithincremental
investmentsinlowpricedinventoryduringthefiscalyearendedJanuary28,2017comparedtothefiscal
yearendedJanuary30,2016.Grossmarginsfornewstoresdidnotdiffermateriallyfromthoseof
comparablestoresduringthefiscalyearendedJanuary28,2017comparedtothefiscalyearended
January30,2016,primarilyasaresultoftheshortsixmonthperiodtomaturityofnewstores,following
whichtheperformanceofnewstoreswasconsistentwithcomparablestoresineachsuchperiod.

Selling,GeneralandAdministrativeExpenses

Selling,generalandadministrativeexpenseswere$170.6millionforthefiscalyearended
January28,2017comparedto$135.7millionforthefiscalyearendedJanuary30,2016,anincreaseof
$34.9millionor25.7%.Asapercentageofsales,SG&Aincreased50basispointsforthefiscalyearended
January28,2017to22.3%from21.8%forthefiscalyearendedJanuary30,2016,primarilyduetostock
basedcompensationexpensesassociatedwiththespecialonetimeIPObonusgrantissuedundertheAt
HomeGroupInc.EquityIncentivePlan,whichwassubsequentlyamendedandrestatedandapprovedby
theBoardinJuly2016(the2016EquityPlan),transactioncostsrelatedtotheinitialpublicoffering
andanincreaseinadvertisingexpenses,whichwerepartiallyoffsetbyleverageofrecurringcorporate
overheadexpenses.SG&Aexpensesincludecorporateoverheadexpenses,whichrepresented$10.3
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theincrease,attributabletoadditionalhomeofficesupportcapabilitiesaswellasincreasedpayroll
expensesincurredtosupportourgrowthstrategies,stockbasedcompensationexpensesassociatedwith
thespecialonetimeIPObonusgrantissuedunderthe2016EquityPlan,transactioncostsrelatedtothe
initialpublicofferingandconsultingandotherprofessionalfeesrelatingtopubliccompanyreadiness
initiatives.Inaddition,werecognizeda$0.3millionlossonthesaleoflandinconnectionwiththe
expansionofourdistributioncenterduringthefiscalyearendedJanuary28,2017.SG&Aexpensesalso
includeexpensesrelatedtostoreoperations,whichrepresented$19.6millionoftheincreaseprimarily
drivenbya$11.2millionincreaseinpayrollexpensesduetonewstoreheadcountandlaborcost
associatedwiththeincrementalinvestmentsinlowpricedinventory.Additionally,therewasa$2.2
millionincreaseinstorepreopeningcostsduetotheincreasednumberofnewstoreopeningsandthe
timingofnewstoreopeningsduringthefiscalyearendedJanuary28,2017comparedtothefiscalyear
endedJanuary30,2016aswellasincreasesinvariousotheradministrativecoststosupportthecontinued
growthinourstorebase.Inaddition,werecognizeda$1.8milliongainonthesaleofapropertyin
Houston,TexasduringthefiscalyearendedJanuary30,2016.

Theremainingincreaseinselling,generalandadministrativeexpenseswasrelatedtoadvertising
expenses,whichareincludedinSG&A.Totaladvertisingexpenseswere$17.4millionforthefiscalyear
endedJanuary28,2017comparedto$12.4millionforthefiscalyearendedJanuary30,2016,anincrease
of$5.0millionor40.3%.Theincreasewasdrivenbyoureffortstocontinuetobuildbrandawareness.
Storepreopeningcostsincludeadditionalmarketingandadvertisingexpensesof$2.2millionand$1.0
millionforthefiscalyearsendedJanuary28,2017andJanuary30,2016,respectively.Infiscalyear
2017,weexpandedourmarketingandadvertisingspendto2.6%ofnetsales,upfrom2.2%ofnetsalesin
fiscalyear2016.

InterestExpense,Net

Interestexpense,netdecreasedto$27.2millionforthefiscalyearendedJanuary28,2017from
$36.8millionforthefiscalyearendedJanuary30,2016,adecreaseof$9.6million.Thedecreasein
interestexpenseprimarilyresultedfromtheJune2015Refinancingandtherepaymentofour$130.0
millionseniorsecuredsecondlientermloanfacilityfromnetproceedsobtainedthroughourinitialpublic
offering(theSecondLienRepayment).SeeLiquidityandCapitalResources.

LossonExtinguishmentofDebt

DuringthefiscalyearendedJanuary28,2017,werecognizedalossonextinguishmentofdebt
of$2.7millionresultingfromtheSecondLienRepayment,comparedto$36.0millionresultingfromthe
June2015RefinancingforthefiscalyearendedJanuary30,2016.Thelossonextinguishmentofdebtfor
thefiscalyearendedJanuary28,2017primarilyrelatestothewriteoffofunamortizeddeferreddebt
issuancecosts.ThelossonextinguishmentofdebtforthefiscalyearendedJanuary30,2016includesthe
writeoffof$7.0millionofunamortizeddeferreddebtissuancecosts.

IncomeTaxProvision

Incometaxexpensewas$15.7millionforthefiscalyearendedJanuary28,2017comparedtoa
benefitof$14.2millionforthefiscalyearendedJanuary30,2016.Theeffectivetaxrateforthefiscalyear
endedJanuary28,2017was36.7%comparedto133.8%forthefiscalyearendedJanuary30,2016.The
effectivetaxrateforthefiscalyearendedJanuary28,2017differsfromthefederalstatutoryrateprimarily
duetotheimpactofstateandlocalincometaxes,thereleaseofunrecognizedtaxbenefits,valuationon
statenetoperatinglosses,nondeductibletransactioncostsandnondeductibleinterestexpense.The
effectiveincometaxratedifferssignificantlyfromfederalstatutoryrateforthefiscalyearendedJanuary
30,2016primarilyduetotheimpactofstateincometaxesandchangesinthevaluationallowanceonour
deferredtaxassets.

FiscalYearEndedJanuary30,2016ComparedtoFiscalYearEndedJanuary31,2015

NetSales

Netsalesincreased$124.5million,or25.0%,to$622.2millionforthefiscalyearendedJanuary
30,2016from$497.7millionforthefiscalyearendedJanuary31,2015.Theincreasewasprimarily
drivenbyapproximately$114.8

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millionofincrementalrevenuefromthenetadditionof19newstoressinceJanuary31,2015,aswellas
anapproximately$17.5millionincreasefromcomparablestoresales,whichincreased3.9%duringthe
fiscalyearendedJanuary30,2016,drivenprimarilybyourmerchandisinginitiatives.Thefiscalyear
endedJanuary31,2015had53weeksandthisadditionalweekcontributedapproximately$7.8million
inadditionalnetsalesduringtheperiod.Excludingtheimpactofthe53rdweek,netsalesincreased
27.0%duringthefiscalyearendedJanuary30,2016comparedtothefiscalyearendedJanuary31,2015.
Inaddition,comparablestoresalesforthefiscalyearendedJanuary31,2015reflectedtheimpactofour
rebrandinginitiativeduringfiscalyear2015,whichresultedinan8.3%increaseincomparablestoresales
ascomparedtothefiscalyearendedJanuary25,2014.

CostofSales

Costofsalesincreased$86.2million,or25.7%,to$421.8millionforthefiscalyearended
January30,2016from$335.6millionforthefiscalyearendedJanuary31,2015.Thisincreasewas
primarilydrivenbythe25.0%increaseinnetsalesforthefiscalyearendedJanuary30,2016comparedto
thefiscalyearendedJanuary31,2015,whichresultedina$55.5millionincreaseinmerchandisecosts.In
addition,duringthefiscalyearendedJanuary30,2016,werecognizedan$8.2millionincreasein
depreciationandamortizationanda$14.2millionincreaseinstoreoccupancycosts,ineachcaseasa
resultofnewstoreopeningsduringtheperiod.

GrossProfitandGrossMargin

Grossprofitwas$200.4million,or32.2%ofnetsales,forthefiscalyearendedJanuary30,2016,
anincreasefrom$162.1million,or32.6%ofnetsales,forthefiscalyearendedJanuary31,2015.The
increaseingrossprofitwasprimarilydrivenbyincreasedsalesvolumefromthenetadditionof19new
storesopenedsinceJanuary31,2015aswellasa3.9%increaseincomparablestoressales.Grossmargin
declined40basispointsduringthefiscalyearendedJanuary30,2016primarilyduetoincreased
depreciationexpenseduringtheperiodasaresultofpurchasedstoresandgroundupbuildsthatwere
openedthroughoutfiscalyear2015andfiscalyear2016.Grossmarginsfornewstoresdidnotmaterially
differfromthoseofcomparablestoresduringthefiscalyearendedJanuary30,2016orthefiscalyear
endedJanuary31,2015,primarilyasaresultoftheshortsixmonthperiodtomaturityofnewstores,as
discussedunderTrendsandOtherFactorsAffectingOurBusinessNewstoreopenings,following
whichtheperformanceofnewstoreswasconsistentwithcomparablestoresineachsuchperiod.

Selling,GeneralandAdministrativeExpenses

Selling,generalandadministrativeexpenseswere$135.7millionforthefiscalyearended
January30,2016comparedto$110.5millionforthefiscalyearendedJanuary31,2015,anincreaseof
$25.2millionor22.8%.Asapercentageofsales,SG&AforthefiscalyearendedJanuary30,2016was
21.8%comparedto22.2%forthefiscalyearendedJanuary31,2015.SG&Aexpensesincludecorporate
overheadexpenses,whichrepresented$14.3millionoftheincrease,resultingfromadditionalhomeoffice
supportcapabilitiesaswellasincreasedmarketingandadvertisingexpenses,occupancyandconsulting
andprofessionalfeesincurredtosupportourgrowthstrategies.Inaddition,corporateoverheadexpenses
forthefiscalyearendedJanuary31,2015reflectedtheimpactofa$2.1millionreductionduetoproceeds
receivedonaninsurancematter.Theremaining$10.9millioninincreasedselling,generaland
administrativeexpensesthatwascontributedbystoreoperationswasprimarilydrivenbya$7.5million
increaseinpayrollexpensesresultingfromnewstoreheadcount.Additionally,therewasa$3.3million
increaseinstorepreopeningcostsfornewstoresopeningduringfiscalyears2016and2017andvarious
otheradministrativecoststosupportthecontinuedgrowthinourstorebase.Theseincreaseswere
partiallyoffsetbya$1.8milliongainrecognizedonthesaleofapropertyinHouston,Texasinthefiscal
yearendedJanuary30,2016.

InterestExpense,Net

Interestexpense,netdecreasedto$36.8millioninthefiscalyearendedJanuary30,2016from
$42.4millioninthefiscalyearendedJanuary31,2015,adecreaseof$5.6million.Thedecreasein
interestexpenseresultedfromtheJune2015Refinancing.SeeLiquidityandCapitalResources.

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LossonExtinguishmentofDebt

DuringthefiscalyearendedJanuary30,2016,werecognizedalossonextinguishmentofdebt
ofapproximately$36.0millionresultingfromtheJune2015Refinancing.Thelossonextinguishmentof
debtalsoincludesthewriteoffof$7.0millionofunamortizeddeferreddebtissuancecosts.

IncomeTaxProvision

Incometaxbenefitwas$14.2millionforthefiscalyearendedJanuary30,2016comparedto
incometaxexpenseof$4.4millionforthefiscalyearendedJanuary31,2015.Theeffectivetaxratefor
thefiscalyearendedJanuary30,2016was133.8%comparedto111.1%forthefiscalyearendedJanuary
31,2015.TheeffectivetaxrateforthefiscalyearendedJanuary30,2016differssignificantlyfromthe
federalstatutoryrateprimarilyduetotheimpactofthereversalofthevaluationallowancewehad
historicallymaintainedonourdeferredtaxassetsand,toalesserextent,thereductionofourreservefor
uncertaintaxpositions.TheeffectivetaxrateforthefiscalyearendedJanuary31,2015differsfromthe
federalstatutoryratebecauseoftheimpactofstateincometaxesaswellaschangesinreservesfor
uncertaintaxpositionsandchangesinourfederalvaluationallowanceondeferredtaxassets.

Whenevaluatingourvaluationallowance,wearerequiredtoassesstheavailablepositiveand
negativeevidencetoestimateifsufficientfutureincomewillbegeneratedtoutilizedeferredtaxassets.In
makingourassessmentasofJanuary30,2016,weconsideredthefoursourcesoftaxableincome
describedinAccountingStandardsCodification(ASC)740103018anddeterminedthatthreesources
offutureincomewereavailable:(1)futuretaxableincomeexclusiveofreversingtemporarydifferences
andcarryforwards(2)reversingtaxabletemporarydifferencesand(3)thecarrybackoflossesresulting
fromthereversalsofdeductibletemporarydifferencesinexcessofreversingtaxabletemporary
differences.Wedidnot,however,identifyanytaxplanningstrategieswhichwouldserveasasourceof
futureincome.

Webelievethecumulativepretaxincomeisasignificantpieceofpositiveevidencethatallows
ustoconsiderothersubjectiveevidencesuchasfutureforecastedpretaxincome.Forthefiscalyearended
January31,2015,wedeterminedwehadthreeyearsofcumulativepretaxincomeafterexcludingthe
$37.5milliontradenameimpairmentrecognizedduringthefiscalyear2014,whichweconsidertobe
unusualinnaturebecauseitwasaresultofourrebrandinginitiative.However,wedidnotbelievethat
ourthreeyearcumulativepretaxincomepositionwaspositiveevidencethatwecouldconsiderbecause
ourrebrandingeffortswerestillintheearlystagesandwehadnotyetdemonstratedourabilitytoforecast
ourresultsofoperations.ForthefiscalyearendedJanuary30,2016,afterexcludingthetradename
impairment,wedeterminedthatwecontinuedtohavethreeyearsofcumulativepretaxincome.In
addition,taxableincome(loss)exceededpretaxincome(loss)forthefiscalyearendedJanuary30,2016
andforeachofthetwoprecedingfiscalyears.AsofJanuary30,2016,wehavecompletedapproximately
18monthsofoperationsfollowingourrebrandinginitiativeaswellasdemonstratedourabilitytomore
accuratelyforecasttheresultsofouroperations.Weconcludedthatbecauseofthispositiveevidence,
alongwithtaxableincomeinthepriortwofiscalyearstoabsorblosscarrybacksthatwouldbegenerated
byreversingdeductibledifferencesinexcessofreversingtaxabledifferences,aswellascumulativepre
taxincome(exclusiveofthetradenameimpairment)inrecentfiscalyears,itwasmorelikelythannotthat
ourdeferredtaxassetswouldberealizedinfutureyears.Accordingly,duringfiscalyear2016wereversed
$6.0millionofthevaluationallowanceondeferredtaxassets,withanoffsettingcredittotheprovision
forincometaxes.

Weconcludedthatdeferredtaxassetsof$0.6millionrelatedtostateincometaxnetoperating
losscarryforwardswouldlikelynotberealizableinthefutureandthatavaluationallowanceforstate
deferredtaxassetswasappropriateasofJanuary30,2016.

LiquidityandCapitalResources

Ourprincipalsourcesofliquidityareourcashgeneratedbyoperatingactivities,proceedsfrom
saleleasebacktransactionsandborrowingsunderourABLFacility.Historically,wehavefinancedour
operationsprimarilyfromcashgeneratedfromoperationsandperiodicborrowingsunderourABL
Facility.Ourprimarycashneedsarefordaytodayoperations,toprovideforinfrastructureinvestmentsin
ourstores,tofinancenewstoreopenings,topayinterestand

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principalonourindebtednessandtofundworkingcapitalrequirementsforseasonalinventorybuildsand
newstoreinventorypurchases.

AsofJanuary28,2017,wehad$7.1millionofcashandcashequivalentsand$108.4millionin
borrowingavailabilityunderourABLFacility.Therewere$3.6millioninfaceamountoflettersofcredit
thathadbeenissuedundertheABLFacilityatthatdate.InJune2016,weamendedtheagreement
governingtheABLFacility(ABLCreditAgreement)toexercisethe$75.0millionaccordionfeature
whichincreasedtheaggregaterevolvingcommitmentsfrom$140.0millionto$215.0million.The
availabilityunderourABLFacilityisdeterminedinaccordancewithaborrowingbasewhichcandecline
duetovariousfactors.Therefore,amountsunderourABLFacilitymaynotbeavailablewhenweneed
them.

InJune2015,weenteredintotheTermLoanFacilities.AportionoftheproceedsfromtheTerm
LoanFacilitieswasusedtorefinanceandredeemourSeniorSecuredNotes,whichhasreducedour
interestexpense.TheinterestratesontheTermLoanFacilitiesarevariablebasedonLIBORratesin
effectatJune5,2015,weweresubjecttointerestpaymentsonthetermloansatablendedeffectiverateof
6.2%.ForadditionaldetailsonsuchdebtagreementsenteredintoinJune2015,seeTermLoan
Facilities.Historically,wewerenotsubjecttoprincipalamortizationpaymentsundertheIndenture
governingtheSeniorSecuredNotes.TheTermLoanisrepayableinequalquarterlyinstallmentsof
approximately$0.8millionand,priortoitsrepayment,theSecondLienTermLoandidnotrequire
periodicprincipalpayments.

OnAugust3,2016,ourRegistrationStatementonFormS1relatingtoourinitialpublic
offeringwasdeclaredeffectivebytheSECpursuanttowhichweregisteredanaggregateof9,967,050
sharesofourcommonstock(including1,300,050sharessubjecttotheunderwriters'overallotment
option).Weissuedandsold8,667,000ofthesharesregisteredatapriceof$15.00pershareonAugust9,
2016,resultinginnetproceedsof$120.9millionafterdeductingunderwriters'discountsandcommissions
of$9.1million.Wealsoincurredofferingexpensesof$6.0millioninconnectionwiththeinitialpublic
offering,whichareincludedinadditionalpaidincapitalintheconsolidatedbalancesheetsasofJanuary
28,2017.

OnSeptember8,2016,weissuedandsoldafurther863,041sharesofourcommonstock
pursuanttotheunderwriterspartialexerciseoftheoverallotmentoption.Thisexerciseoftheover
allotmentoptionresultedinnetproceedstousof$12.0millionafterdeductingunderwritersdiscounts
andcommissionsof$0.9million.

Weusedthenetproceedsfromtheinitialpublicofferingandpartialexerciseoftheover
allotmentoption,afterdeductingunderwritersdiscountsandcommissions,torepayinfullthe$130.0
millionofprincipalamountofindebtednessoutstandingunderourSecondLienTermLoan.

Ourcapitalexpenditurescanvarydependingonthetimingofnewstoreopeningsand
infrastructurerelatedinvestments.CapitalexpendituresforthefiscalyearendedJanuary28,2017were
approximately$62.1million,netofproceedsfromthesaleofpropertyandequipment,whichincludes
saleleasebackproceeds,ofapproximately$62.1million.Weestimatethatourcapitalexpendituresforthe
fiscalyearendingJanuary27,2018willbeintherangeof$110millionto$130million,netofproceeds
fromsaleleasebacktransactionsof$100million.Weplantoinvestintheinfrastructurenecessaryto
supportthefurtherdevelopmentofourbusinessandcontinuedgrowth.Duringfiscalyear2017,we
opened23newstores,netofonerelocatedstore.Netcapitalexpendituresincurredtodatehavebeen
substantiallyfinancedwithcashfromoperatingactivities,saleleasebacktransactionsandproceedsfrom
ourABLFacility.Weexpectfiscalyear2018netcapitalexpenditurestobefinancedinthesamemanner.

Basedonourgrowthplans,webelievethatourcashposition,netcashprovidedbyoperating
activitiesandborrowingsunderourABLFacilitywillbeadequatetofinanceourplannedcapital
expenditures,workingcapitalrequirementsanddebtserviceobligationsoverthenexttwelvemonthsand
theforeseeablefuturethereafter.IfcashflowsfromoperationsandborrowingsunderourABLFacilityare
notsufficientoravailabletomeetourcapitalrequirements,thenwewillberequiredtoobtainadditional
equityordebtfinancinginthefuture.Therecanbenoassurancethatequityordebtfinancingwillbe
availabletouswhenweneeditor,ifavailable,thatthetermswillbesatisfactorytousandnotdilutiveto
ourthencurrentshareholders.

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Ourindebtednesscouldadverselyaffectourabilitytoraiseadditionalcapital,limitourabilityto
reacttochangesintheeconomyorourindustry,exposeustointerestrateriskandpreventusfrom
meetingourobligations.Managementreactsstrategicallytochangesineconomicconditionsand
monitorscompliancewithdebtcovenantstoseektomitigateanypotentialmaterialimpactstoour
financialconditionandflexibility.

SaleLeasebackTransactions

Aspartofourflexiblerealestatestrategy,weutilizesaleleasebacktransactionstofinance
investmentspreviouslymadeforthepurchaseofsecondgenerationpropertiesandtheconstructionofnew
storelocations.Thisenhancesourabilitytoaccessarangeoflocationsandfacilitiesefficiently.Wefactor
saleleasebacktransactionsintoourcapitalallocationdecisions.Inordertosupporttheexecutionofsale
leasebacktransactions,wehaverelationshipswithpubliclytradedREITs,manyofwhichhave
demonstratedinterestinourportfolioofassets.

Incertaincases,thesaleistreatedasalikekindexchangetransactionforU.S.federalincometax
purposesinaccordancewithSection1031oftheInternalRevenueCode(theCode).Section1031of
theCodeallowscompaniestodeferthetaxablegainrealizedfromthesaleofcertainrelinquishedreal
propertyiftheproceedsarereinvested,inatimelymanner,inqualifyinglikekindreplacement
property.Inaddition,Section1031oftheCoderequiresthesaleproceedsoftherelinquishedpropertyto
beheldinarestrictedcashaccountbyathirdpartyqualifiedintermediary,pendingutilizationthereoffor
theacquisitionofaqualifyingreplacementproperty.

InSeptember2014,wesoldfourofourpropertiesinRaleigh,NorthCarolinaMesa,Arizona
Lubbock,TexasandLouisville,Kentuckyforatotalof$40.9million.Contemporaneouslywiththe
closingofthesale,weenteredintofourleases,pursuanttowhichtheyleasedbackthepropertiesfor
cumulativeinitialannualrentof$2.8million,subjecttoannualescalations.Thesaleoftheproperties
locatedinLubbock,TexasandLouisville,KentuckyarebeingtreatedaslikekindexchangesforU.S.
federalincometaxpurposesinaccordancewithSection1031oftheCode.

InJanuary2015,wesoldourpropertylocatedinOmaha,Nebraskaforapproximately$8.0
million.Contemporaneouslywiththeclosingofthesale,weenteredintoalease,pursuanttowhichwe
leasedbackthepropertyforcumulativeinitialannualrentof$0.5million,subjecttoannualescalations.

InSeptember2015,wesoldfiveofourpropertiesinGrandPrairie,TexasToledo,OhioPharr,
TexasNewBraunfels,TexasandGulfport,Mississippiforatotalof$40.2million.Contemporaneously
withtheclosingofthesale,weenteredintoaleasepursuanttowhichweleasedbackthepropertiesfor
cumulativeinitialannualrentof$2.7million,subjecttoannualescalations.Approximately$5.5million
oftheproceedsfromthesalewereusedtopayoffnotespayablerelatedtheGrandPrairieandNew
Braunfelsproperties.

InAugust2016,wesoldfourpropertiesinBroomfield,ColoradoCorpusChristi,TexasJenison,
MichiganandBuford,Georgiaforatotalof$32.6million.Contemporaneouslywiththeclosingofthe
sale,weenteredintoaleasepursuanttowhichweleasedbackthepropertiesforcumulativeinitialannual
rentof$2.2million,subjecttoannualescalations.Approximately$3.7millionoftheproceedsfromthe
salewereusedtopayoffanotepayablerelatedtheCorpusChristiproperty.

InSeptember2016,wesoldthreepropertiesinColoradoSprings,ColoradoKissimmee,Florida
andOFallon,Illinoisforatotalof$30.6million.Contemporaneouslywiththeclosingofthesale,we
enteredintoaleasepursuanttowhichweleasedbackthepropertiesforcumulativeinitialannualrentof
$2.1million,subjecttoannualescalations.

SeeRiskFactorsRisksRelatingtoOurBusinessWearesubjecttorisksassociatedwithour
saleleasebackstrategy.

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SummaryofCashFlows

Asummaryofourcashflowsfromoperating,investingandfinancingactivitiesis
presentedinthefollowingtable(inthousands):

FiscalYearEnded
January28,2017 January30,2016 January31,2015

NetCashProvidedbyOperatingActivities $ 43,498 $ 14,913 $ 15,321
NetCashUsedinInvestingActivities (63,174) (39,727) (100,098)
NetCashProvidedbyFinancingActivities 21,340 25,536 84,512
NetIncrease(Decrease)inCashandCash
Equivalents 1,664 722 (265)

NetCashProvidedby(Usedin)OperatingActivities

Netcashprovidedbyoperatingactivitieswas$43.5millionforthefiscalyearendedJanuary28,
2017comparedto$14.9millionduringthefiscalyearendedJanuary30,2016.The$28.6million
increaseincashprovidedbyoperatingactivitieswasprimarilyduetoadecreaseinpaymentsforaccounts
payableof$30.6millionaswellasadecreaseinpaymentsforaccruedliabilitiesof$24.8million,both
relatedtothetimingofpayments,adecreaseincashpaidforinterestof$19.1millionandanincreasein
operatingincomeof$10.5million.Thesesourcesofcashwerepartiallyoffsetbyanincreaseinpurchases
ofmerchandiseinventoriesof$33.3millionandanincreaseincashpaidforincometaxesof$29.7
million.Inventorylevelsattheendoffiscalyear2017were$243.8million,anincreaseof$67.4million,
or38.2%,fromtheendoffiscalyear2016.Theincreaseininventorieswasprimarilyduetonewstore
growthduringfiscalyear2016andfiscalyear2017,anaccelerationofinventorypurchasesintolatefiscal
year2017,whichincludestheimpactofanearlierChineseNewYear,andincrementalinvestmentsin
lowpricedinventory.

Netcashprovidedbyoperatingactivitieswas$14.9millionforthefiscalyearendedJanuary30,
2016comparedto$15.3millionforthefiscalyearendedJanuary31,2015.The$0.4milliondecreasein
cashprovidedbyoperatingactivitieswasprimarilyduetoa$9.2millionand$17.8milliondecreasein
inventoryintransitandaccountspayable,respectively,whichwasprimarilydrivenbythebuildof
inventoryinpreparationfornewstoreopeningsinearlyfiscalyear2017aswellasashiftinthetimingof
theChineseNewYear,resultingintheaccelerationofinventorypurchasesinlatefiscalyear2016.
Additionally,accruedinterestdecreased$6.4millionduetothetimingofinterestpaymentsdueunderour
SeniorSecuredNotescomparedtotheTermLoanFacilitiesattheendoffiscalyear2016.Thesedecreases
incashprovidedbyoperatingactivitieswereoffsetbya$15.9millionincreaseinoperatingincomeas
wellasa$12.0milliondecreaseincashpaidforincometaxes.

NetCashUsedinInvestingActivities

Netcashusedininvestingactivitieswas$63.2millionforthefiscalyearendedJanuary28,2017
comparedto$39.7millionforthefiscalyearendedJanuary30,2016.The$23.5millionincreaseincash
usedininvestingactivitieswasprimarilydrivenbyadecreaseof$17.7millioninnetrestrictedcash
proceedsattributabletosaleleasebacktransactionsforwhichthesalewastreatedasalikekindexchange
inaccordancewithSection1031oftheCodeaswellasanincreaseincapitalexpendituresof$5.2
million,netofproceedsfromthesaleofpropertyandequipment.Capitalexpendituresof$124.3million
forthefiscalyearendedJanuary28,2017consistedof$96.2millioninvestedinnewstoregrowthwith
theremaining$28.1millionprimarilyrelatedtoinvestmentsininformationtechnology,ourdistribution
centerandexistingstores.Capitalexpendituresof$102.5millionforthefiscalyearendedJanuary30,
2016consistedof$86.4millioninvestedinnewstoregrowthwiththeremaining$16.1millionbeing
primarilyrelatedtoinvestmentsinmaintenanceexpendituresandinformationtechnology.

Netcashusedininvestingactivitieswas$39.7millionforthefiscalyearendedJanuary30,2016
comparedto$100.1millionforthefiscalyearendedJanuary31,2015.The$60.4milliondecreaseincash
usedwasprimarilydrivenbyanadditional$18.2millionincapitalexpendituresduringthefiscalyear
endedJanuary31,2015asaresultofmorepurchasedstoresandgroundupbuildsduringthatperiodas
comparedtomoreleasedstoresduringthefiscalyearendedJanuary30,2016,aswellas$17.1millionin
capitalexpendituresincurredduringthefiscalyearendedJanuary31,2015

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tosupportourrebrandinginitiative.Capitalexpendituresof$102.5millionforthefiscalyearended
January30,2016consistedof$86.4millioninvestedinnewstoregrowthwiththeremaining$16.1
millionprimarilyrelatedtomaintenanceexpendituresandinvestmentsininformationtechnology.Capital
expendituresduringthefiscalyearendedJanuary30,2016wereoffsetby$17.2millioninnetrestricted
cashproceeds,whichwereprimarilyrelatedtosaleleasebacktransactionsthatwereconsummatedwhere
thesalewastreatedasalikekindexchangetransactioninaccordancewithSection1031oftheCode.In
addition,duringthefiscalyearendedJanuary30,2016,wereceived$6.3millioninproceedsfromthe
saleofapropertyinHouston,Texasaswellas$39.2millioninnetproceedsresultingfromasale
leasebacktransactionwherewesoldfiveofourpropertiesinGrandPrairie,Texas,Toledo,Ohio,Pharr,
Texas,NewBraunfels,TexasandGulfport,Mississippi.DuringthefiscalyearendedJanuary31,2015,we
received$36.8millioninnetproceedsfromsaleleasebacktransactionswherewesoldourpropertyin
Omaha,NebraskaaswellasfourpropertiesinRaleigh,NorthCarolina,Mesa,Arizona,Lubbock,Texas
andLouisville,Kentucky.

NetCashProvidedbyFinancingActivities

Netcashprovidedbyfinancingactivitieswas$21.3millionforthefiscalyearendedJanuary28,
2017comparedto$25.5millionforthefiscalyearendedJanuary30,2016,adecreaseof$4.2million
primarilydueto$27.3millionofnetproceedsfromborrowingsunderourTermLoanFacilitiesafter
paymentofrelateddebtissuancecostsandtheredemptionoftheSeniorSecuredNotesduringthefiscal
yearendedJanuary30,2016.Thisdecreasewaspartiallyoffsetbynetproceedsfromborrowingsunder
ourABLFacilityincreasing$15.8millionduringthefiscalyearendedJanuary28,2017andpaymentson
longtermdebtdecreasing$4.4millionduetothepayoffofnotespayableinfiscalyear2016andfiscal
year2017.Netproceedsfromfinancingactivitiesduringfiscalyear2017duetoourinitialpublicoffering
were$132.9millionafterdeductingunderwriters'discountsandcommissions,whichwasmostlyoffsetby
theuseof$130.0milliontoeffecttheSecondLienRepaymentof$130.0million.

Netcashprovidedbyfinancingactivitieswas$25.5millionforfiscalyearendedJanuary30,
2016comparedto$84.5millionforthefiscalyearendedJanuary31,2015,adecreaseof$59.0million
primarilyduetoa$58.2milliondecreaseinnetproceedsfromborrowingsunderourABLFacility.

FinancingObligations

Insomecases,theassetsweleaserequireconstructioninordertoreadythespaceforitsintended
useand,incertaincases,weareinvolvedintheconstructionofleasedassets.Theconstructionperiod
typicallybeginswhenweexecuteourleaseagreementwiththelandlordandcontinuesuntilthespaceis
substantiallycompleteandreadyforitsintendeduse.InaccordancewithASC8404055(Topic840,
Leases),wemustconsiderthenatureandextentofourinvolvementduringtheconstructionperiodand,
insomecases,ourinvolvementresultsinourbeingconsideredtheaccountingowneroftheconstruction
project.Bycompletingtheconstructionofkeystructuralcomponentsofaleasedbuilding,wearedeemed
tohaveparticipatedintheconstructionofthelandlord'sasset.Insuchcases,wecapitalizethelandlord's
constructioncosts,includingthevalueofcostsincurreduptothedateweexecuteourleaseandcosts
incurredduringtheremainderofconstructionperiod,assuchcostsareincurred.Additionally,ASC840
4055requiresustorecognizeafinancingobligationforconstructioncostsincurredbythelandlord.
Onceconstructioniscomplete,wearerequiredtoperformasaleleasebackanalysispursuanttoASC840
40todetermineifwecanremovethelandlord'sassetsandassociatedfinancingobligationsfromour
consolidatedbalancesheets.Incertainleases,wemaintainvariousformsofprohibitedcontinuing
involvementintheproperty,therebyprecludingusfromderecognizingtheassetandassociated
financingobligationsfollowingtheconstructioncompletion.Inthosecases,wewillcontinuetoaccount
forthelandlord'sassetasifwearethelegalowner,andthefinancingobligation,similartootherdebt,
untiltheleaseexpiresorismodifiedtoremovethecontinuinginvolvementthatprohibitsderecognition.
Oncederecognitionispermitted,wewouldberequiredtoaccountfortheleaseaseitheroperatingor
capitalinaccordancewithASC840.AsofJanuary28,2017,wehavenotderecognizedanylandlord
assetsorassociatedfinancingobligations.

TermLoanFacilities

OnJune5,2015,AtHomeHoldingIIIInc.(theBorrower)enteredintoafirstliencredit
agreement(theFirstLienAgreement),byandamongtheBorrower,AtHomeHoldingIIInc.(AtHome
II),certainindirectsubsidiariesofAtHomeII,variouslendersandBankofAmerica,N.A.,as
administrativeagentandcollateralagent.TheFirstLien

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AgreementprovidesfortheTermLoan,whichamountwasborrowedonJune5,2015.TheTermLoanwill
matureonJune3,2022,andisrepayableinequalquarterlyinstallmentsofapproximately$0.8millionfor
anannualaggregateamountequalto1%oftheoriginalprincipalamountof$300.0million.The
Borrowerhastheoptionofpayinginterestona1month,2monthorquarterlybasisontheTermLoanat
anannualrateofLIBOR(subjecttoa1%floor)plus4.00%,subjectto,afteraqualifyinginitialpublic
offering,a0.50%reductioniftheBorrowerachievesaspecifiedsecurednetleverageratiolevel,which
wasmetsubsequenttoourinitialpublicofferingforthefiscalyearendedJanuary28,2017.

TheTermLoanpermitsustoaddoneormoreincrementaltermloansupto$50.0millionplus
additionalamountssubjecttoourcompliancewithafirstliennetleverageratiotest.Thefirstliennet
leverageratiotestiscalculatedusingAdjustedEBITDA,whichisdefinedasConsolidatedEBITDA
underourcreditagreement.

TheTermLoanhasvariousnonfinancialcovenants,customaryrepresentationsandwarranties,
eventsofdefaultsandremediessubstantiallysimilartothosedescribedinrespectoftheABLFacility
below.TherearenofinancialmaintenancecovenantsintheTermLoan.AsofJanuary28,2017and
January30,2016,wewereincompliancewithallcovenantsprescribedundertheTermLoan.

Atouroption,theTermLoanwasprepayableonorpriortoJune5,2016subjectto,inthecaseof
arepricingtransaction,aprepaymentpremiumequaltotheprincipalamountofTermLoansubjecttosuch
prepaymentmultipliedby1%.AnyprepaymentofalloranyportionoftheoutstandingTermLoanafter
June5,2016isnotsubjecttoapremium.

OnJune5,2015,theBorrowerenteredintoasecondliencreditagreement(theSecondLien
Agreement),byandamongtheBorrower,AtHomeIIandDynastyFinancialII,LLC,asadministrative
agent,collateralagentandlender.TheSecondLienAgreementprovidedfortheSecondLienTermLoan,
whichamountwasborrowedonJune5,2015.TheSecondLienTermLoanhadamaturitydateofJune5,
2023anddidnotrequireperiodicprincipalpayments,withthetotalamountoutstanding,plusaccrued
interest,dueatmaturity.TheBorrowerhadtheoptionofpayinginterestona1month,2monthor
quarterlybasisontheSecondLienTermLoanatanannualrateofLIBOR(subjecttoa1%floor)plus
8.00%.WewereincompliancewithallcovenantsprescribedundertheSecondLienTermLoanasof
January30,2016.Asdiscussedbelow,theSecondLienTermLoanwasnolongeroutstandingasof
January28,2017.

WerefertotheTermLoanand,untiltheSecondLienRepayment,theSecondLienTermLoan,
collectivelyastheTermLoanFacilities.

TheBorrowerusedthenetproceedsfromtheTermLoanFacilities(i)toeffecttherefinancingof
alloutstandingindebtednessundertheSeniorSecuredNotes,(ii)topayfeesandexpensesinconnection
withtheTermLoanFacilitiesofapproximately$13.6million,(iii)torepay$29.2millioninamounts
outstandingundertheABLFacility,and(iv)forgeneralcorporatepurposes.

Weusedthenetproceedsfromtheinitialpublicofferingandpartialexerciseoftheover
allotmentoption,afterdeductingunderwritersdiscountsandcommissions,toeffecttheSecondLien
Repaymentfortotalcashconsiderationof$130.4million,including$0.4millionofaccruedinterest.The
repaymentresultedinalossonextinguishmentofdebtintheamountof$2.7million,whichwas
recognizedduringthefiscalyearendedJanuary28,2017.

10.75%SeniorSecuredNotesDue2019

InMay2012,AtHomeHoldingIIIInc.(AtHomeIII)issued$360.0millionaggregate
principalamountof10.75%seniorsecurednotesthatwerescheduledtomatureonJune1,2019(the
SeniorSecuredNotes).ThetermsoftheSeniorSecuredNotesweregovernedbytheIndenture(the
Indenture),datedMay16,2012,amongAtHomeIII,theguarantorspartytheretoandWellsFargo,
NationalAssociation(theTrustee).InterestwaspayablesemiannuallyinarrearsoneachJune1stand
December1st,commencingonDecember1,2012.

TheSeniorSecuredNoteswerefullyandunconditionallyguaranteed,jointlyandseverally,ona
seniorsecuredbasisbyourdomesticrestrictedsubsidiaries.TheSeniorSecuredNotesandtherelated
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tocertainexceptions,by(i)afirstprioritylienonsubstantiallyallofourandtheguarantors'assets(other
thaninventoryandaccountsreceivableandrelatedassets,whichassetssecureourABLFacilityonafirst
prioritybasis(theABLPriorityCollateral)),includingfirstpriorityliensonanycapitalstockheldbyus
oraguarantor,and(ii)asecondprioritylienontheABLPriorityCollateral.

TheIndenturecontainedcustomarycovenantslimitingAtHomeIII'sanditsrestricted
subsidiaries'operations.Italsoprovidedforeventsofdefaultthat,incertaincircumstances,permitted
accelerationofthepaymentofprincipal,premium,ifany,andinterestonthethenoutstandingSenior
SecuredNotes.

OnJune5,2015,AtHomeIIIcompletedtheredemptionoftheSeniorSecuredNotesataprice
equalto108.063%fortotalcashconsiderationof$389.4million,whichincludesa$29.0millionearly
redemptionpremiumand$0.4millionofaccruedinterest.Theredemptionresultedinalosson
extinguishmentofdebtintheamountof$36.0million,whichincludesthewriteoffof$7.0millionof
unamortizeddeferreddebtissuancecosts.

AssetBasedLendingCreditFacility

InOctober2011,weenteredintotheABLFacilitywhichprovidedforcashborrowingsor
issuancesoflettersofcreditbasedondefinedpercentagesofeligibleinventoryandcreditcardreceivable
balancesuptoamaximumfacilitylimitof$80.0million.InMay2012,weenteredintotheFirst
AmendmenttotheABLCreditAgreement,whichamendedtheABLFacilityto,amongotherthings,
permittheSeniorSecuredNotes.InMay2013,weenteredintotheSecondAmendmenttotheABLCredit
Agreement,whichamendedtheABLFacilitytoincreasethefacilitylimitto$90.0million,extendthe
maturityfromOctober2016toMay2018,reducetheinterestrateandfeesandamendedvariousother
covenantsandrelateddefinitions.InJuly2014,weenteredintotheThirdAmendmenttotheABLCredit
AgreementwhichfurtheramendedtheABLFacilitytomodifycertainfinancialtermsandother
covenants.Suchmodificationsincludedincreasingthefacilityfrom$90.0millionto$140.0million
extendingthescheduledmaturitydatefromMay2018toJuly2019reducingthemarginonborrowings
by0.25%providingforthereleaseofcertainrealpropertycollateralinspecifiedcircumstancesadding
WellsFargoBank,NationalAssociationasanewlenderunderthefacilityandamendingvariousother
covenants,termsandrelateddefinitionstoprovideadditionalflexibilitywiththefacility.InSeptember
2014,weenteredintotheAssumptionandRatificationAgreement,whichupdatedthenamesoftheloan
partiestoreflectourcorporaterestructuringandrebranding.OnJune5,2015,AtHomeIIIalsoentered
intotheFourthAmendmenttotheABLCreditAgreementwhichfurtheramendedtheABLFacilityto
modifycertainprovisionsoftheagreementto,amongotherthings,permittheTermLoanFacilitiestobe
issuedandamendcertaintermsintheABLFacilitytobeconsistentwiththetermssetforthintheTerm
LoanFacilities.InJune2016,weamendedourABLFacilitytoexercisethe$75.0millionaccordion
featureoftheABLFacility,whichincreasedtheaggregaterevolvingcommitmentsfrom$140.0millionto
$215.0millionandincreasedthesublimitfortheissuanceoflettersofcreditfrom$10.0millionto$25.0
million.TheothertermsoftheABLFacilitywerenotchangedbythatamendment.

TheABLFacilityissecuredbysubstantiallyallofourassetswithafirstprioritylienonABL
PriorityCollateralandasecondprioritylien(asbetweentheABLFacilityLendersandtheTermLoan
FacilityLenders)onallnonABLPriorityCollateral.

BorrowingsundertheABLFacilitybearinterestatarateperannumequalto,atouroption:(x)
thehigherof(i)theFederalFundsRateplus1/2of1.00%,(ii)thebank'sprimerateand(iii)LIBORplus
1.00%,plusineachcase,anapplicablemarginof0.25%to0.75%basedonouravailabilityor(y)the
bank'sLIBORrateplusanapplicablemarginof1.25%to1.75%basedonouravailability.Theeffective
interestratewasapproximately2.00%foreachofthefiscalyearsendedJanuary28,2017,January30,
2016andJanuary31,2015,respectively.

AsofJanuary28,2017,approximately$101.6millionwasoutstandingundertheABLFacility,
approximately$3.6millioninfaceamountoflettersofcredithadbeenissuedandwehadavailabilityof
approximately$108.4million.

TheABLFacilitycontainsanumberofcovenantsthat,amongotherthings,restrictourabilityto,
subjecttospecifiedexceptions,incuradditionaldebtincuradditionalliensandcontingentliabilities
sellordisposeofassetsmergewithoracquireothercompaniesliquidateordissolveourselvesengagein
businessesthatarenotinarelatedlineofbusinessmakeloans,advancesorguaranteespaydividends
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investments.Inaddition,theABLFacilitycontainscertaincrossdefaultprovisions.Therearenofinancial
maintenancecovenantsintheABLFacility.However,duringtheexistenceofaneventofdefaultorwhen
wefailtomaintainavailabilityofatleastthegreaterof$10.0millionor10%ofthelinecap,the
consolidatedfixedchargecoverageratioofthemostrecentlycompletedperiodoffourconsecutive
quartersmustbe1.00to1.00orhigher.AsofJanuary28,2017andJanuary30,2016,wewerein
compliancewithallcovenantsundertheABLFacility.

ContractualObligations

Weenterintolongtermobligationsandcommitmentsinthenormalcourseofbusiness,primarily
debtobligationsandnoncancelableoperatingleases.AsofJanuary28,2017,ourcontractualcash
obligationsoverthenextseveralperiodswereasfollows(inthousands):

Lessthan 1to 3to Morethan

Total 1year 3years 5years 5years

Operatingleasecommitments(1) $ 927,043 $ 70,840 $ 143,884 $ 134,829 $ 577,490
Capitalleasecommitments(2) 9,136 623 8,513
Longtermdebtobligations(3) 301,599 3,152 6,332 6,373 285,742
Revolvingcreditfacility(4) 101,575 101,575
Estimatedinterestpayments(5) 78,850 14,446 27,158 26,536 10,710
Financingobligations(6) 18,925 1,916 3,877 3,982 9,150
Contractualtaxobligations(7) 2,553 2,553
Total $ 1,439,681 $ 195,105 $ 189,764 $ 171,720 $ 883,092

(1)Ouroperatingleasecommitmentsincludeleasesforpropertyusedinouroperations.Amountsshowndonotreflect
operatingleasesthatareclassifiedasfinancingobligations.
(2) Ourcapitalleasecommitmentsincludeleasesforpropertyusedinouroperations.
(3) LongtermdebtobligationsincludeprincipalpaymentsdueunderourTermLoanandnotepayable.
(4) RevolvingcreditfacilityincludesprincipalpaymentsdueonourABLFacility.
(5)InterestexpenseonlongtermdebtincludesfutureinterestpaymentsonoutstandingobligationsunderourTermLoan
andnotespayableaswellaspaymentsdueonourABLFacility.OurABLFacilitybearsinterestatvariableratesand
thistableisbasedonratesineffectasofJanuary28,2017.
(6)Includesbaseleasetermsforpropertieswherewehavebeendeemedtobetheaccountingownerofthelandlord's
propertyinaccordancewithaccountingguidancerelatedtoleases.
(7)RepresentstheliabilityreportedinaccordancewiththeprovisionsofASC740(Topic740IncomeTaxes).For
furtherinformationrelatedtounrecognizedtaxbenefits,seeNote9IncomeTaxestotheconsolidatedfinancial
statementsincludedinthisReport.

OffBalanceSheetArrangements

Wehavenothistoricallyenteredintooffbalancesheetarrangements.Wedoenterintooperating
leasecommitments,lettersofcreditandpurchaseobligationsinthenormalcourseofouroperations.

CriticalAccountingPoliciesandUseofEstimates

ThepreparationoffinancialstatementsinaccordancewithGAAPrequiresmanagementtomake
estimatesandassumptionsthataffectthereportedamountsofassets,liabilities,revenues,andexpenses,as
wellastherelateddisclosuresofcontingentassetsandliabilitiesatthedateofthefinancialstatements.
Managementevaluatesitsaccountingpolicies,estimates,andjudgmentsonanongoingbasis.
Managementbasesitsestimatesandjudgmentsonhistoricalexperienceandvariousotherfactorsthatare
believedtobereasonableunderthecircumstances.Actualresultsmaydifferfromtheseestimatesunder
differentassumptionsandconditions.

Managementevaluatedthedevelopmentandselectionofitscriticalaccountingpoliciesand
estimatesandbelievesthatthefollowinginvolveahigherdegreeofjudgmentorcomplexityandaremost
significanttoreportingourresultsofoperationsandfinancialposition,andarethereforediscussedas
critical.Thefollowingcriticalaccountingpoliciesreflectthesignificantestimatesandjudgmentsusedin
thepreparationofourconsolidatedfinancialstatements.Withrespecttocriticalaccountingpolicies,even
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potentiallyhaveamateriallyfavorableorunfavorableimpactonsubsequentresultsofoperations.More
informationonallofoursignificantaccountingpoliciescanbefoundinNote1NatureofOperations
andSummaryofSignificantAccountingPoliciestoourauditedconsolidatedfinancialstatements
includedelsewhereinthisreport.

Inventories

Inventoriesarecomprisedoffinishedmerchandiseandarestatedatthelowerofcostornet
realizablevaluewithcostdeterminedusingtheweightedaveragemethod.Thecostofinventoriesinclude
theactuallandedcostofanitematthetimeitisreceivedinourdistributioncenter,oratthepointof
shipmentforcertaininternationalshipments,aswellastransportationcoststoourdistributioncenterand
toourretailstores,ifapplicable.Netinventorycostisrecognizedthroughcostofsaleswhenthe
inventoryissold.

Vendorallowances,whichprimarilyrepresentvolumerebatesandcooperativeadvertisingfunds,
arerecordedasareductionofthecostofthemerchandiseinventoriesandasubsequentreductionincost
ofsaleswhentheinventoryissold.Wegenerallyearnvendorallowancesasapercentageofcertain
merchandisepurchaseswithnominimumpurchaserequirements.Typically,ourvendorallowance
programsextendforaperiodoftwelvemonths.

Physicalinventorycountsareperformedforourstoresatleastonceperyearbyathirdparty
inventorycountingserviceforstoresthathavebeeninoperationforatleastoneyear.Inventoryrecords
areadjustedtoreflectactualinventorycountsandanyresultingshortage(shrinkage)isrecognized.
Reservesforshrinkageareestimatedandrecordedthroughouttheperiodasapercentageofnetsalesbased
onthemostrecentphysicalinventory,incombinationwithcurrenteventsandhistoricalexperience.We
havelosspreventionprogramsandpoliciesinplaceintendedtomitigateshrinkage.A10%increasein
ourestimatedshrinkagereserveratewouldhaveaffectednetincomebyapproximately$0.9millionfor
fiscalyear2017.Wealsoevaluateourmerchandisetoensurethattheexpectednetrealizablevalueofthe
merchandiseheldattheendofafiscalperiodexceedscost.Intheeventthattheexpectednetrealizable
valueislessthancost,wereducethevalueofthatinventoryaccordingly.

Goodwill

Goodwillistestedforimpairmentatleastannuallyattheoperatingsegmentlevelwehaveonly
oneoperatingsegmentandwedonothaveareportingunitthatexistsbelowouroperatingsegment.Ifthe
impliedfairvalueofgoodwillislowerthanitscarryingamount,goodwillimpairmentisindicatedand
goodwilliswrittendowntoitsimpliedfairvalue.Weassessthebusinessenterprisevalueusinga
combinationoftheincomeapproachandmarketapproachtodeterminethefairvalueoftheCompanyto
becomparedagainstthecarryingvalueofnetassets.Theincomeapproach,usingthediscountedcash
flowmethod,includeskeyfactorsusedinthevaluationoftheCompany(aLevel3valuation)which
include,butarenotlimitedto,management'splansforfutureoperations,recentoperatingresults,income
taxrates,anddiscountedprojectedfuturecashflows.

NoimpairmentofgoodwillwasrecognizedduringthefiscalyearsendedJanuary28,2017,
January30,2016orJanuary31,2015.However,theuseofdifferentassumptions,estimatesorjudgments
withrespecttotheestimationoftheprojectedfuturecashflowsandthedeterminationofthediscountrate
andsalesgrowthrateusedtocalculatethenetpresentvalueofprojectedfuturecashflowscould
materiallyincreaseordecreaseourestimatesoffairvalue.Additionally,futureimpairmentchargescould
berequiredifwedonotachieveourcurrentnetsalesandprofitabilityprojections,whichwouldoccurif
wearenotabletomeetournewstoregrowthtargets,ortheweightedaveragecostofcapitalincreases.

ImpairmentofLongLivedAssets

Weevaluatetherecoverabilityofthecarryingvalueoflonglivedassetswhenevereventsor
changesincircumstancesindicatetheircarryingamountmaynotberecoverable.Ourevaluation
comparesthecarryingvalueoftheassetswiththeirestimatedfutureundiscountedcashflowsexpectedto
resultfromtheuseandeventualdispositionoftheassets.Weevaluatelonglivedintangibleassetsatan
individualstorelevel,whichisthelowestlevelofidentifiablecashflows.Weevaluatecorporateassetsor
otherlonglivedassetsthatarenotstorespecificattheconsolidatedlevel.

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Toestimatestorespecificfuturecashflows,wemakeassumptionsaboutkeystorevariables,
includingsales,growthrate,grossmargin,payrollandothercontrollableexpenses.Storesthatareowned
byusanddonotmeettheinitialcriteriaarefurtherevaluatedtakingintoconsiderationthefairmarket
valueofthepropertycomparedtothecarryingvalueoftheassets.Furthermore,managementconsiders
otherfactorswhenevaluatingstoresforimpairment,includingtheindividualstore'sexecutionofits
operatingplanandotherlocalmarketconditions.Ourestimatesaresubjecttouncertaintyandmaybe
affectedbyanumberoffactorsoutsideourcontrol,includinggeneraleconomicconditionsandthe
competitiveenvironment.

Animpairmentisrecognizedonceallthefactorsnotedabovearetakenintoconsiderationandit
isdeterminedthatthecarryingamountofthestore'sassetsarenotrecoverable.Theimpairmentlosswould
berecognizedintheamountbywhichthecarryingamountofalonglivedassetexceedsitsfairvalue,
excludingassetsthatcanberedeployed.Noimpairmentoflongtermassetswasrecognizedduringthe
fiscalyearsendedJanuary28,2017,January30,2016orJanuary31,2015.

Wetestindefinitelivedtradenameintangibleassetsannuallyforimpairmentormorefrequently
ifimpairmentindicatorsarise.Ifthefairvalueoftheindefinitelivedintangibleassetislowerthanits
carryingamount,theassetiswrittendowntoitsfairvalue.Thefairvalueofourtradename(aLevel3
valuation)wascalculatedusingarelieffromroyaltyapproach,whichassumesthevalueofthetradename
isthediscountedcashflowsoftheamountthatwouldbepaidbyahypotheticalmarketparticipanthad
theynotownedthetradenameandinsteadlicensedthetradenamefromanothercompany.AsofJanuary
31,2015,theGardenRidgetradenamedefinitelivedintangibleassetwasfullyamortized.Thecarrying
valueoftheAtHometradenameasofJanuary28,2017isapproximately$1.5million.Noimpairmentof
ourindefinitelivedtradenameintangibleassetwasrecognizedduringthefiscalyearsendedJanuary28,
2017,January30,2016orJanuary31,2015.

RevenueRecognition

Revenuefromsalesofourmerchandiseisrecognizedwhenthecustomertakespossessionofthe
merchandise.Revenueispresentednetofsalestaxescollected.Weallowformerchandisetobereturned
within60daysfromthepurchasedateandprovideareserveforestimatedreturns.Weusehistorical
customerreturnbehaviortoestimateourreserverequirements,whichareaccountedforasareductionin
revenuewealsoreducecostofsalestoreflectourestimatesoftheinventorycostofproductsthatwillbe
returned.AsofJanuary28,2017andJanuary30,2016,oursalesreturnsreserveswereapproximately$1.1
millionand$0.8million,respectively.

Werecordagiftcardliabilityonthedateweissuethegiftcardtothecustomer.Werecord
revenueandreducethegiftcardliabilityasthecustomerredeemsthegiftcard.AsofJanuary28,2017
andJanuary30,2016,ourgiftcardliabilitywasapproximately$4.1millionand$2.4million,
respectively.Inaddition,werecognizegiftcardbreakageasrevenueafter60monthsofnonuse.We
recognizedrevenuerelatedtobreakageofsuchgiftcardbalancesofanimmaterialamountofrevenuefor
eachofthefiscalyearsendedJanuary28,2017andJanuary30,2016andapproximately$0.1millionfor
thefiscalyearendedJanuary31,2015.

StockBasedCompensation

WeaccountforstockbasedcompensationinaccordancewithASC718(Topic718,
CompensationStockCompensation),whichrequiresallstockbasedpaymentstoemployees,
includinggrantsofemployeestockoptions,toberecognizedintheconsolidatedfinancialstatements
overtherequisiteserviceperiod.Compensationexpensebaseduponthefairvalueofawardsisrecognized
onastraightlinebasisovertherequisiteserviceperiodforawardsthatactuallyvest.Stockbased
compensationexpenseisrecordedinselling,generalandadministrativeexpensesintheconsolidated
statementsofoperations.

WeestimatefairvalueofeachstockoptiongrantonthedateofgrantbasedupontheBlack
Scholesoptionpricingmodel,withexceptiontoaspecialonetimeinitialpublicofferingtransaction
bonusgrantwhichwasvaluedonthedateofgrantusingtheMonteCarlosimulationmethod.

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TheBlackScholesoptionpricingmodelrequiresvarioussignificantjudgmentalassumptionsin
ordertoderiveafinalfairvaluedeterminationforeachtypeofawardincludingthefollowing:

ExpectedtermTheexpectedtermoftheoptionsrepresentstheperiodoftimebetweenthe
grantdateoftheoptionsandthedatetheoptionsareeitherexercisedorcanceled.

ExpectedvolatilityTheexpectedvolatilityiscalculatedbasedonthehistoricalvolatilityof
thecommonstockforcomparablecompanies.

ExpecteddividendyieldTheexpecteddividendyieldisbasedonourexpectationofnot
payingdividendsonourcommonstockfortheforeseeablefuture.

RiskfreeinterestrateTheriskfreeinterestrateistheaverageofthe3yearand5yearU.S.
Treasuryrateineffectatthetimeofgrantandwithamaturitythatapproximatestheexpected
term.

WeusedaMonteCarlosimulationmodeltodeterminethefairvalueofthespecialonetime
initialpublicofferingtransactionbonusgrantsubjecttomarketbasedconditions.Thestockoptiongrants
subjecttomarketbasedconditionshavecliffvestingbeginninginthethirdquarteroffiscalyear2017
andcontinuingthroughthefollowingeightquarterssubjecttotheachievementofmarketconditions.We
valuedthestockoptiongrantsasasingleawardwiththerelatedcompensationcostrecognizedusinga
straightlinemethodoverthederivedserviceperiod.Theexpectedvolatilityisbasedonacombinationof
historicalandimpliedvolatilitiesofthecommonstockforcomparablecompanies.

Allgrantsofourstockoptionshaveanexercisepriceequaltoorgreaterthanthefairmarket
valueofourcommonstockonthedateofgrant,basedontheforegoingestimatesandassumptions.
BecausewewereaprivatelyheldcompanypriortoAugust4,2016andtherewasnopublicmarketfor
ourcommonstock,thefairvalueofourequitywasapprovedbyourBoardatthetimeoptiongrantswere
awarded.Inestimatingthefairvalueofourcommonstock,weconsideredfactorswebelievedtobe
materialtothevaluationprocessincluding,butnotlimitedto,ouractualandprojectedfinancialresults,
risksandprospectsandeconomicandmarketconditions.Ourvaluationsutilizedprojectionsofourfuture
performance,estimatesofourweightedaveragecostofcapitalandmetricsbasedontheperformanceofa
peergroupofsimilarcompanies,includingvaluationmultiplesandstockpricevolatility.

Webelievethecombinationofthesemethodsprovidesanappropriateestimateofourexpected
fairvalue.Wehaveconsideredthevaluationanalysestodeterminethebestestimateofthefairvalueof
ourcommonstockateachstockoptiongrantdate.

TheestimatesusedindeterminingthefairvalueofourcommonstockpriortoourIPOwere
highlycomplexandsubjecttosignificantjudgment.Thoseassumptionsweresimilartothosewemake
withrespecttogoodwillasdescribedaboveandincludetheselectionofrevenuegrowthrates,discount
ratesandcomparablepubliccompaniesusedintheguidelinepubliccompanyanalysis,andthenon
marketabilitydiscountused.Therewasalsoinherentuncertaintyinourforecastsandprojections.Ifwe
hadmadedifferentassumptionsandestimatesthanthosedescribedpreviously,theamountofourstock
basedcompensationexpense,netincome(loss)andnetincome(loss)pershareamountscouldhavebeen
materiallydifferent.Followingtheinitialpublicoffering,suchestimatesarenolongerneededto
determinefairvaluefornewawardsduetoapubliclyavailabletradingpriceforourcommonstock.

IncomeTaxes

Weaccountfortheprovisionforincometaxesundertheassetandliabilitymethodprescribedby
ASC740(Topic740,IncomeTaxes).Deferredtaxassetsandliabilitiesarerecognizedforthefuturetax
consequencesattributabletodifferencesbetweenthefinancialstatementcarryingamountsofexisting
assetsandliabilitiesandtheirrespectivetaxbases,operatinglossesandtaxcreditcarryforwards.Deferred
taxassetsandliabilitiesaremeasuredusingtheenactedtaxratesexpectedtoapplytotaxableincomein
theyearsinwhichthosetemporarydifferencesareexpectedtoberecoveredorsettled.Theeffecton
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intheperiodthetaxratechangesareenacted.Werecordavaluationallowancetoreducethecarrying
amountstotheamountthatisbelievedmorelikelythannottoberealized.

Wearerequiredtoassesstheavailablepositiveandnegativeevidencetoestimateifsufficient
futureincomewillbegeneratedtoutilizedeferredtaxassets.Asignificantpieceofpositiveornegative
evidencethatweconsideriscumulativeincomeorlosses(generallydefinedaslossesbeforeincome
taxes)incurredoverthemostrecentthreeyearperiod.Suchevidenceissupplementedbythefoursources
oftaxableincomedescribedinASC740103018.Weconsideredallavailablepositiveandnegative
evidenceasofJanuary31,2015andconcludedthatavaluationallowancewasappropriatetotheextent
ourdeferredtaxassetswouldnotberealizedthroughthefuturereversalsofexistingtaxabletemporary
differencesandthecarrybackoftheresultantlossfromtheexcessofreversingdeferredtaxassetsover
reversingdeferredliabilities.Duringourassessmentofavailablepositiveandnegativeevidenceasof
January30,2016,weconcludedthatthevaluationallowancewasnolongerappropriateexceptasit
relatedtocertainstatenetoperatinglosscarryforwards.AsofJanuary30,2016,afterexcludingitemsthat
weconsideredtobeunusualinnature,wedeterminedthatwehadthreeyearsofcumulativepretax
incomewhichwebelievedwasasignificantpieceofpositiveevidencethatallowedustoconsiderother
subjectiveevidencesuchasfutureforecastedpretaxincome.Weconcludedthatbecauseofthispositive
evidence,alongwithtaxableincomeinthepriortwofiscalyearstoabsorblosscarrybacksthatwouldbe
generatedbyreversingdeductibledifferencesinexcessofreversingtaxabledifferences,aswellas
cumulativepretaxincome(exclusiveofunusualitems)inrecentfiscalyears,itwasmorelikelythannot
thatourdeferredtaxassetswouldberealizedinfutureyears.

Ourvaluationallowancestotaled$0.3million,$0.6millionand$6.6million,asofJanuary28,
2017,January30,2016andJanuary31,2015,respectively.Becauseourdeferredtaxassetssolelyrelateto
temporarydifferences,periodicchangesintheamountofnetdeferredtaxassetsduringthefiscalyear
endedJanuary31,2015directlyimpactedourincometaxprovisioninthatfiscalyearandmadeour
effectivetaxratedifficulttopredict.Forexample,thechangeintherequiredfederalvaluationallowance
forfiscalyear2015impactedourincometaxprovisionby$1.0million.

RecentAccountingPronouncements

InMay2014,theFinancialAccountingStandardsBoard(FASB)issuedASUNo.201409,
RevenuefromContractswithCustomers(ASU201409).ASU201409supersedestherevenue
recognitionrequirementsinTopic605,RevenueRecognition,andrequiresentitiestorecognizerevenue
inawaythatdepictsthetransferofpromisedgoodsorservicestocustomersinanamountthatreflectsthe
considerationtowhichtheentityexpectstobeentitledtoinexchangeforthosegoodsorservices.ASU
201409iseffectiveforannualreportingperiodsbeginningafterDecember15,2017,includinginterim
periodswithinthatreportingperiod.Wecompletedaninitialimpactassessmentandbelieveadoptingthis
ASUwillnotmateriallyimpactthetimingofrevenuerecognition.Weexpecttoadoptthisnewguidance
usingthefullretrospectivemethodinthefirstquarteroffiscalyear2019.

InFebruary2016,theFASBissuedASUNo.201602Leases,whichsupersedesASC840
Leasesandcreatesanewtopic,ASC842Leases(ASU201602).UnderASU201602,anentity
willberequiredtorecognizerightofuseassetsandleaseliabilitiesonitsbalancesheetanddisclosekey
informationaboutleasingarrangements.ASU201602offersspecificaccountingguidanceforalessee,a
lessorandsaleandleasebacktransactions.Lesseesandlessorsarerequiredtodisclosequalitativeand
quantitativeinformationaboutleasingarrangementstoenableauserofthefinancialstatementstoassess
theamount,timinganduncertaintyofcashflowsarisingfromleases.ASU201602iseffectiveforannual
reportingperiodsbeginningafterDecember15,2018,includinginterimperiodswithinthatreporting
period,withearlyadoptionpermitted.Atadoption,thisupdatewillbeappliedusingamodified
retrospectiveapproach.WearecurrentlyevaluatingtheimpactofASU201602andweexpectthatupon
adoptionwewillrecognizerightofuseassetsandliabilitiesthatcouldbematerialtoourfinancial
statements.

InMarch2016,theFASBissuedASUNo.201604,RecognitionofBreakageforCertain
PrepaidStoredValueProducts(ASU201604).ASU201604requiresthatbreakageonprepaid
storedvalueproductliabilities(forexample,prepaidgiftcards)beaccountedforconsistentwiththe
breakageguidanceinTopic606,RevenuefromContractswithCustomers.ASU201604iseffectivefor
annualreportingperiodsbeginningafterDecember15,2017,includinginterimreportingperiodswithin
thatreportingperiod,withearlyadoptionpermitted.Thisstandardistobe

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appliedeitherusingamodifiedretrospectiveapproachorretrospectivelytoeachperiodpresented.We
expecttoadoptthisnewguidanceusingthefullretrospectivemethodinthefirstquarteroffiscalyear
2019.

InMarch2016,theFASBissuedASUNo.201609,ImprovementstoEmployeeShareBased
PaymentAccounting(ASU201609).ASU201609isintendedtosimplifyvariousaspectsofthe
accountingforemployeesharebasedpaymentawardtransactionsandiseffectiveforannualreporting
periodsbeginningafterDecember15,2016,includinginterimperiodswithinthatreportingperiod,with
earlyadoptionpermitted.WeplantoadoptASU201609prospectivelyforannualreportingperiods
beginninginthefirstquarteroffiscalyear2018.WehaveevaluatedASU201609anddonotexpectthe
impactofthisguidancetohaveanimmediatematerialimpactonourconsolidatedfinancialstatements,
giventhatwehavenohistoricalexercisesofstockoptionsasofJanuary28,2017.However,undercertain
circumstances,thisguidancewillhaveanimpactonoureffectivetaxrateinthefutureastheadoptionof
ASU201609alsorequiresallincometaxadjustmentstoberecordedintheconsolidatedstatementsof
operationsandchangesbetweentaxandbooktreatmentofequitycompensationwillberecognizedinthe
provisionforincometaxesbeginninginfiscalyear2018.UndertheadoptionofASU201609,
Managementwillelecttheaccountingpolicytocontinuetoestimatethenumberofawardsexpectedto
beforfeitedandadjustthoseestimateswhenitisnolongerprobableeachperiod.

InAugust2016,theFASBissuedASUNo.201615,ClassificationofCertainCashReceipts
andCashPayments(ASU201615).ASU201615isintendedtoreducethediversityinpractice
aroundhowcertaintransactionsareclassifiedwithinthestatementofcashflows.ASU201615is
effectiveforannualreportingperiodsbeginningafterDecember15,2017,includinginterimperiods
withinthatreportingperiod,withearlyadoptionpermitted.Wearecurrentlyevaluatingtheimpactof
ASU201615.

InNovember2016,theFASBissuedASUNo.201618,RestrictedCash(ASU201618).
ASU201618isintendedtoreducethediversityinpracticearoundhowrestrictedcashisclassified
withinthestatementofcashflows.ASU201618iseffectiveforannualreportingperiodsbeginningafter
December15,2017,includinginterimperiodswithinthatreportingperiod,withearlyadoption
permitted.WearecurrentlyevaluatingtheimpactofASU201618.

InJanuary2017,theFASBissuedASUNo.201704,SimplifyingtheTestforGoodwill
Impairment(ASU201704).ASU201704simplifiesthemeasurementofgoodwillimpairmentby
removingthesecondstepofthegoodwillimpairmenttest,whichrequiresthedeterminationofthefair
valueofindividualassetsandliabilitiesofareportingunit.UnderASU201704,goodwillimpairmentis
tobemeasuredastheamountbywhichareportingunitscarryingvalueexceedsitsfairvaluewiththe
lossrecognizednottoexceedthetotalamountofgoodwillallocatedtothereportingunit.ASU201704
iseffectiveforfiscalyearsbeginningafterDecember15,2019,withearlyadoptionpermittedforinterim
orannualgoodwillimpairmenttestsperformedafterJanuary1,2017.Thestandardistobeappliedona
prospectivebasis.WearecurrentlyevaluatingtheimpactofASU201704anddonotanticipatea
materialimpacttotheconsolidatedfinancialstatementsonceimplemented.

JumpstartOurBusinessActof2012

WeareanemerginggrowthcompanyasdefinedintheJumpstartOurBusinessStartupsActof
2012,whichwerefertoastheJOBSAct.Wewillremainanemerginggrowthcompanyuntiltheearlierof
(1)thelastdayofourfiscalyear(a)followingthefifthanniversaryofthecompletionofourinitialpublic
offering,(b)inwhichwehavetotalannualgrossrevenueofatleast$1.0billion,or(c)inwhichweare
deemedtobealargeacceleratedfiler,whichmeansthemarketvalueofourcommonstockthatisheldby
nonaffiliatesexceeds$700.0millionasofthelastbusinessdayofourmostrecentlycompletedsecond
fiscalquarter,and(2)thedateonwhichwehaveissuedmorethan$1.0billioninnonconvertibledebt
securitiesduringthepriorthreeyearperiod.Anemerginggrowthcompanymaytakeadvantageof
specifiedreducedreportingandotherburdensthatareotherwiseapplicablegenerallytopublic
companies.

Asanemerginggrowthcompany,theJOBSActallowsustotakeadvantageofanextended
transitionperiodtocomplywithneworrevisedaccountingstandardsapplicabletopubliccompanies.We
arechoosingtoirrevocablyoptoutofthisprovisionand,asaresult,wewillcomplywithnewor
revisedaccountingstandardsasrequiredwhentheyareadopted.

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ITEM7A.QUANTITATIVEANDQUALITATIVEDISCLOSURESABOUTMARKETRISKS

InterestRateRisk

WehavemarketriskexposurearisingfromchangesininterestratesonourABLFacilityand
TermLoanFacilities,whichbearinterestatratesthatarebenchmarkedagainstLondonInterbankOffered
Rates(LIBOR).Basedonouroverallinterestrateexposuretovariableratedebtoutstandingasof
January28,2017,a1%increaseordecreaseininterestrateswouldincreaseordecreaseincomebefore
incometaxesbyapproximately$4.0million.A1%increaseordecreaseininterestrateswouldimpactthe
fairvalueofourlongtermfixedratedebtbyanimmaterialamount.Achangeininterestrateswouldnot
materiallyaffectthefairvalueofourvariableratedebtasthedebtrepricesperiodically.

ImpactofInflation

Ourresultsofoperationsandfinancialconditionarepresentedbasedonhistoricalcost.Whileit
isdifficulttoaccuratelymeasuretheimpactofinflationduetotheimprecisenatureoftheestimates
required,webelievetheeffectsofinflation,ifany,onourresultsofoperationsandfinancialcondition
havebeenimmaterial.Wecannotassureyou,however,thatourresultsofoperationsandfinancial
conditionwillnotbemateriallyimpactedbyinflationinthefuture.

ForeignCurrencyRisk

DuringthefiscalyearendedJanuary28,2017,wepurchaseapproximately60%ofour
merchandisefromsuppliersinforeigncountries,however,thosepurchasesaremadeexclusivelyinU.S.
dollars.Therefore,wedonotbelievethatforeigncurrencyfluctuationhashadamaterialimpactonour
financialperformancefortheperiodspresentedinthisreport.

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ITEM8.FINANCIALSTATEMENTSANDSUPPLEMENTARYDATA

SeetheIndextoConsolidatedFinancialStatementsandSupplementaryDataonpageF1.The
ConsolidatedFinancialStatementsandSupplementaryDataareincludedonpagesF2throughF33and
areincorporatedhereinbyreference.

ITEM9.CHANGESANDDISAGREEMENTSWITHACCOUNTANTSONACCOUNTING
ANDFINANCIALDISCLOSURES

Notapplicable.

ITEM9A.CONTROLSANDPROCEDURES

EvaluationofDisclosureControlsandProcedures

Ourmanagementhasevaluated,underthesupervisionandwiththeparticipationofourChief
ExecutiveOfficerandChiefFinancialOfficer,theeffectivenessofourdisclosurecontrolsandprocedures,
asdefinedinRule13(a)15(e)oftheSecuritiesExchangeActof1934(theExchangeAct),asoftheend
oftheperiodcoveredbythisAnnualReportonForm10K.Ourmanagementusedthecriteriasetforthby
theCommitteeofSponsoringOrganizationsoftheTreadwayCommission(COSO)initsInternalControl
IntegratedFramework(2013).Basedonthatevaluation,ourChiefExecutiveOfficerandChief
FinancialOfficerhaveconcludedthatourdisclosurecontrolsandproceduresasoftheendoftheperiod
coveredbythisAnnualReportonForm10Kareeffectiveatareasonableassurancelevelinensuringthat
informationrequiredtobedisclosedinourExchangeActreportsis(1)recorded,processed,summarized
andreportedinatimelymannerand(2)accumulatedandcommunicatedtoourmanagement,including
ourChiefExecutiveOfficerandChiefFinancialOfficer,asappropriatetoallowtimelydecisions
regardingrequireddisclosure.Ourmanagement,includingourChiefExecutiveOfficerandChief
FinancialOfficer,doesnotexpectthatourdisclosurecontrolsandprocedureswillpreventordetectall
errorsandallfraud.

Whileourdisclosurecontrolsandproceduresaredesignedtoprovidereasonableassuranceof
theireffectiveness,becauseoftheinherentlimitationsinallcontrolsystems,noevaluationofcontrolscan
provideabsoluteassurancethatallcontrolissuesandinstancesoffraud,ifany,withintheCompanyhave
beendetected.

ChangesinInternalControl

Therewerenochangesinourinternalcontroloverfinancialreportingthatoccurredduringthe
quarterlyperiodendedJanuary28,2017thathavemateriallyaffected,orarereasonablylikelyto
materiallyaffect,ourinternalcontroloverfinancialreporting.

Management'sReportonInternalControloverFinancialReporting

Wehavenotengagedanindependentregisteredaccountingfirmtoperformanauditofour
internalcontroloverfinancialreportingasofanybalancesheetdateorforanyperiodreportedinour
financialstatements.Presently,wearenotanacceleratedfiler,assuchtermisdefinedbyRule12b2ofthe
ExchangeAct,andourmanagementisnotpresentlyrequiredtoperformanannualassessmentofthe
effectivenessofourinternalcontroloverfinancialreporting.Thisrequirementcouldapplyasearlyasour
AnnualReportonForm10KfortheyearendingJanuary27,2018ifcertaintriggersrequiringaccelerated
filingdeadlinesaremetpriortothat.Ourindependentpublicregisteredaccountingfirmwillfirstbe
requiredtoattesttotheeffectivenessofourinternalcontroloverfinancialreportingforourAnnualReport
onForm10Kforthefirstyearwearenolongeranemerginggrowthcompany.

ITEM9B.OTHERINFORMATION

None.

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PARTIII

ITEM10.DIRECTORS,EXECUTIVEOFFICERSANDCORPORATEGOVERNANCE

Theinformationrequiredbythisitemisincorporatedbyreferencetotheinformationsetforthin
thesectionstitledNomineesforElectionasDirectors,InformationAboutOurExecutiveOfficers,
DirectorsContinuinginOffice,Section16(a)BeneficialOwnershipReportingCompliance,Codeof
BusinessConductandEthicsandInformationabouttheBoardofDirectorsandCorporateGovernance
AuditCommitteeinourProxyStatement.

ITEM11.EXECUTIVECOMPENSATION

Theinformationrequiredbythisitemisincorporatedbyreferencetotheinformationsetforthin
thesectionstitledExecutiveCompensation,DirectorCompensationandInformationaboutthe
BoardofDirectorsandCorporateGovernanceCompensationCommitteeInterlocksandInsider
ParticipationinourProxyStatement.

ITEM12.SECURITYOWNERSHIPOFCERTAINBENEFICIALOWNERSAND
MANAGEMENTANDRELATEDSTOCKHOLDERMATTERS

Theinformationrequiredbythisitemisincorporatedbyreferencetotheinformationsetforthin
thesectionstitledSecuritiesAuthorizedforIssuanceunderEquityCompensationPlansandSecurity
OwnershipofCertainBeneficialOwnersandManagementinourProxyStatement.

ITEM13.CERTAINRELATIONSHIPSANDRELATEDTRANSACTIONS,ANDDIRECTOR
INDEPENDENCE

Theinformationrequiredbythisitemisincorporatedbyreferencetotheinformationsetforthin
thesectionstitledBoardofDirectorsIndependenceandTransactionswithRelatedPersonsinour
ProxyStatement.

ITEM14.PRINCIPALACCOUNTINGFEESANDSERVICES

Theinformationrequiredbythisitemisincorporatedbyreferencetotheinformationsetforthin
thesectiontitledIndependentRegisteredPublicAccountingFirmFeesandServicesinourProxy
Statement.

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PARTIV

ITEM15.EXHIBITSANDFINANCIALSTATEMENTSCHEDULES

Thefollowingdocumentsarefiledasapartofthisreport:

(1) ConsolidatedFinancialStatements:

SeeIndextoConsolidatedFinancialStatementsonpageF1.

(2) FinancialStatementSchedules:

Allfinancialstatementschedulesareomittedbecausetheyarenotrequiredorarenotapplicable,
ortherequiredinformationisprovidedintheconsolidatedfinancialstatementsornotesdescribedin
15(1)above.

(3) Exhibits:

TheexhibitslistedintheaccompanyingIndextoExhibitsattachedheretoarefiledor
incorporatedbyreferenceintothisAnnualReportonForm10K.

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INDEXTOCONSOLIDATEDFINANCIALSTATEMENTS

Page

ReportofIndependentRegisteredPublicAccountingFirm F2

ConsolidatedBalanceSheetsasofJanuary28,2017andJanuary30,2016 F3

ConsolidatedStatementsofOperationsforthefiscalyearsendedJanuary28,2017,January30,2016 F4
andJanuary31,2015

ConsolidatedStatementsofShareholdersEquityforthefiscalyearsendedJanuary28,2017, F5
January30,2016andJanuary31,2015

ConsolidatedStatementsofCashFlowsforthefiscalyearsendedJanuary28,2017,January30, F6
2016andJanuary31,2015

NotestoConsolidatedFinancialStatements F7

ScheduleICondensedFinancialInformationofRegistrant F30

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ReportofIndependentRegisteredPublicAccountingFirm

TheBoardofDirectorsandShareholdersof
AtHomeGroupInc.

WehaveauditedtheaccompanyingconsolidatedbalancesheetsofAtHomeGroupInc.asof
January28,2017andJanuary30,2016,andtherelatedconsolidatedstatementsofoperations,
shareholdersequityandcashflowsforeachofthethreeyearsintheperiodendedJanuary28,2017.Our
auditsalsoincludedtheaccompanyingfinancialstatementschedule.Thesefinancialstatementsand
schedulearetheresponsibilityoftheCompanysmanagement.Ourresponsibilityistoexpressanopinion
onthesefinancialstatementsandschedulebasedonouraudits.

WeconductedourauditsinaccordancewiththestandardsofthePublicCompanyAccounting
OversightBoard(UnitedStates).Thosestandardsrequirethatweplanandperformtheaudittoobtain
reasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Wewere
notengagedtoperformanauditoftheCompanysinternalcontroloverfinancialreporting.Ouraudits
includedconsiderationofinternalcontroloverfinancialreportingasabasisfordesigningaudit
proceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionon
theeffectivenessoftheCompanysinternalcontroloverfinancialreporting.Accordingly,weexpressno
suchopinion.Anauditalsoincludesexamining,onatestbasis,evidencesupportingtheamountsand
disclosuresinthefinancialstatements,assessingtheaccountingprinciplesusedandsignificantestimates
madebymanagement,andevaluatingtheoverallfinancialstatementpresentation.Webelievethatour
auditsprovideareasonablebasisforouropinion.

Inouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,
theconsolidatedfinancialpositionofAtHomeGroupInc.atJanuary28,2017andJanuary30,2016,and
theconsolidatedresultsofitsoperationsanditscashflowsforeachofthethreeyearsintheperiodended
January28,2017,inconformitywithU.S.generallyacceptedaccountingprinciples.Also,inouropinion,
therelatedfinancialstatementschedule,whenconsideredinrelationtothebasicfinancialstatements
takenasawhole,presentsfairlyinallmaterialrespectstheinformationsetforththerein.

/s/Ernst&YoungLLP

Dallas,Texas
April5,2017

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ATHOMEGROUPINC.
ConsolidatedBalanceSheets
(inthousands,exceptshareandpersharedata)

January28,2017 January30,2016
Assets
Currentassets:
Cashandcashequivalents $ 7,092 $ 5,428
Inventories,net 243,795 176,388
Prepaidexpenses 6,130 6,351
Othercurrentassets 1,860 3,229
Totalcurrentassets 258,877 191,396
Propertyandequipment,net 340,358 272,776
Goodwill 569,732 569,732
Tradename 1,458 872
Debtissuancecosts,net 1,202 1,323
Restrictedcash 482 26
Noncurrentdeferredtaxasset 40,735 14,726
Otherassets 549 3,959
Totalassets $ 1,213,393 $ 1,054,810
LiabilitiesandShareholders'Equity
Currentliabilities:
Accountspayable $ 58,425 $ 31,139
Accruedliabilities 74,439 54,472
Revolvinglineofcredit 101,575 76,600
Currentportionofdeferredrent 7,082 4,518
Currentportionoflongtermdebtandfinancing
obligations 3,691 3,789
Incometaxespayable 7,265
Totalcurrentliabilities 252,477 170,518
Longtermdebt 299,606 422,610
Financingobligations 19,937 19,017
Deferredrent 103,692 70,156
Otherlongtermliabilities 2,811 3,356
Totalliabilities 678,523 685,657
Shareholders'Equity
Commonstock$0.01parvalue500,000,000
sharesauthorized60,366,768and50,836,727
sharesissuedandoutstanding,respectively 604 508
Additionalpaidincapital 548,301 409,746
Accumulateddeficit (14,035) (41,101)
Totalshareholders'equity 534,870 369,153
Totalliabilitiesandshareholders'equity $ 1,213,393 $ 1,054,810

SeeNotestoConsolidatedFinancialStatements.

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ATHOMEGROUPINC.
ConsolidatedStatementsofOperations
(inthousands,exceptshareandpersharedata)

FiscalYearEnded
January28,2017 January30,2016 January31,2015

Netsales $ 765,635 $ 622,161 $ 497,733
Costofsales 518,155 421,750 335,617
Grossprofit 247,480 200,411 162,116

Operatingexpenses
Selling,generaland
administrativeexpenses 170,556 135,716 110,503
Depreciationandamortization 4,247 2,476 5,310
Totaloperatingexpenses 174,803 138,192 115,813

Operatingincome 72,677 62,219 46,303
Interestexpense,net 27,174 36,759 42,382
Lossonextinguishmentofdebt 2,715 36,046
Income(loss)beforeincometaxes 42,788 (10,586) 3,921
Incometaxprovision(benefit) 15,722 (14,160) 4,357
Netincome(loss) $ 27,066 $ 3,574 $ (436)

Earningspershare:
Netincome(loss)percommonshare:
Basic $ 0.49 $ 0.07 $ (0.01)
Diluted $ 0.48 $ 0.07 $ (0.01)
Weightedaverageshares
outstanding:
Basic 55,414,037 50,836,727 50,836,727
Diluted 56,892,183 51,732,752 50,836,727

SeeNotestoConsolidatedFinancialStatements.

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ATHOMEGROUPINC.
ConsolidatedStatementsofShareholdersEquity
(inthousands,exceptsharedata)

Additional
CommonStock Paidin Accumulated
Shares ParValue Capital Deficit
Total

Balance,January25,2014 50,836,727 $ 508 $ 400,832 $ (44,239) $ 357,101
Stockbasedcompensation 4,251 4,251
Netloss (436) (436)
Balance,January31,2015 50,836,727 508 405,083 (44,675) 360,916
Stockbasedcompensation 4,663 4,663
Netincome 3,574 3,574
Balance,January30,2016 50,836,727 508 409,746 (41,101) 369,153
Stockbasedcompensation 9,384 9,384
Issuanceofstockfrominitialpublic
offering,netofcosts 9,530,041 96 126,815 126,911
Excesstaxbenefitfrominitialpublic
offeringexpenses 2,356 2,356
Netincome 27,066 27,066
Balance,January28,2017 60,366,768 $ 604 $ 548,301 $ (14,035) $ 534,870

SeeNotestoConsolidatedFinancialStatements.

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ATHOMEGROUPINC.
ConsolidatedStatementsofCashFlows
(inthousands)

FiscalYearEnded
January31,
January28,2017January30,2016 2015
OperatingActivities
Netincome(loss) $ 27,066 $ 3,574 $ (436)
Adjustmentstoreconcilenetincome(loss)tonetcash
providedbyoperatingactivities:
Depreciationandamortization 36,925 28,694 23,317
Loss(gain)ondisposaloffixedassets 216 (1,852) 746
Noncashinterestexpense 2,664 2,757 1,780
Amortizationofdeferredgainonsaleleaseback (4,721) (3,152) (1,759)
Deferredincometaxes (26,008) (12,308) (1,992)
Stockbasedcompensation 9,384 4,663 4,251
Lossonextinguishmentofdebt 2,715 36,046
Changesinoperatingassetsandliabilities
Inventories (67,407) (34,132) (33,131)
Prepaidexpensesandothercurrentassets 1,600 (781) (4,581)
Otherassets (2,624) (3,380) 287
Accountspayable 24,344 (6,285) 11,554
Accruedliabilities 19,415 (5,418) 15,950
Incometaxespayable 9,621 (515) (5,513)
Deferredrent 10,308 7,002 4,848
Netcashprovidedbyoperatingactivities 43,498 14,913 15,321
InvestingActivities
Purchaseofpropertyandequipment (124,273) (102,541) (137,044)
Purchaseofintangibleassets (586) (19) (464)
Changeinrestrictedcash (456) 17,234 597
Netproceedsfromsaleofpropertyandequipment 62,141 45,599 36,813
Netcashusedininvestingactivities (63,174) (39,727) (100,098)
FinancingActivities
Paymentsunderlinesofcredit (406,164) (230,900) (212,400)
Proceedsfromlinesofcredit 431,139 240,100 279,800
Paymentofdebtissuancecosts (323) (13,742) (956)
Proceedsfromissuanceoflongtermdebt 430,000 6,532
PaymentofSecondLienTermLoan (130,000)
PaymentofSeniorSecuredNotes (389,027)
Paymentsonfinancingobligations (128) (360)
Proceedsfromfinancingobligations 12,158
Paymentsonlongtermdebt (6,128) (10,535) (622)
Proceedsfromissuanceofcommonstock 132,944
Netcashprovidedbyfinancingactivities 21,340 25,536 84,512
Increase(decrease)incashandcashequivalents 1,664 722 (265)
Cashandcashequivalents,beginningofperiod 5,428 4,706 4,971
Cashandcashequivalents,endofperiod $ 7,092 $ 5,428 $ 4,706

SupplementalCashFlowInformation
Cashpaidforinterest $ 21,058 $ 40,184 $ 40,616
Cashpaidforincometaxes $ 30,760 $ 1,026 $ 13,037
SupplementalInformationforNoncashInvesting
andFinancingActivities
Propertyandequipmentincludedinaccountspayable $ 2,941 $ 5,787 $ 940
Propertyandequipmentreductionduetosale
leaseback $ (30,910) $ (22,535) $ (16,214)
Propertyandequipmentacquiredundercapitallease $ 8,613 $ $
Propertyandequipmentadditionsduetobuildtosuit
leasetransactions
$ $ $ 7,369

SeeNotestoConsolidatedFinancialStatements.

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ATHOMEGROUPINC.
NotestoConsolidatedFinancialStatements

1.NatureofOperationsandSummaryofSignificantAccountingPolicies

DescriptionofBusiness

AtHomeisahomedcorsuperstorefocusedexclusivelyonprovidingabroadassortmentof
productsforanyroom,inanystyle,foranybudget.AsofJanuary28,2017,weoperated123homedcor
superstoresin30states,primarilyintheSouthCentral,Southeastern,MidAtlanticandMidwestern
regionsoftheUnitedStates.AtHomeisownedandoperatedbyAtHomeGroupInc.anditswholly
ownedsubsidiaries.Allreferencestowe,us,ourandtheCompanyandsimilarexpressionsare
referencestoAtHomeGroupInc.andourconsolidated,whollyownedsubsidiaries,unlessotherwise
expresslystatedorthecontextotherwiserequires.

StockSplit

OnJuly22,2016,theCompanysboardofdirectorsapproveda128.157393foronestocksplit
ofitsexistingClassAcommonstock,ClassBcommonstockandClassCcommonstockandthe
conversionofsuchClassAcommonstock,ClassBcommonstockandClassCcommonstockintoa
singleclassofcommonstock.Allhistoricalshareandpershareinformationhasbeenretroactively
adjustedtoreflectthestocksplitandconversion.EffectiveJuly22,2016,theCompany'stotalauthorized
sharecapitaliscomprisedof500,000,000sharesofcommonstockand50,000,000sharesofpreferred
stock.

InitialPublicOffering

OnAugust3,2016,ourRegistrationStatementonFormS1relatingtoourinitialpublicoffering
wasdeclaredeffectivebytheSECpursuanttowhichweregisteredanaggregateof9,967,050sharesof
ourcommonstock(including1,300,050sharessubjecttotheunderwriters'overallotmentoption).We
issuedandsold8,667,000ofthesharesregisteredatapriceof$15.00pershareonAugust9,2016,
resultinginnetproceedsof$120.9millionafterdeductingunderwriters'discountsandcommissionsof
$9.1million.Wealsoincurredofferingexpensesof$6.0millioninconnectionwiththeinitialpublic
offering,whichareincludedinadditionalpaidincapitalintheconsolidatedbalancesheetasofJanuary
28,2017.

OnSeptember8,2016,weissuedandsoldafurther863,041sharesofourcommonstock
pursuanttotheunderwriterspartialexerciseoftheoverallotmentoption.Thisexerciseoftheover
allotmentoptionresultedinnetproceedstousof$12.0millionafterdeductingunderwritersdiscounts
andcommissionsof$0.9million.

Weusedthenetproceedsfromtheinitialpublicofferingandpartialexerciseoftheover
allotmentoption,afterdeductingunderwritersdiscountsandcommissions,torepayinfullthe$130.0
millionofprincipalamountofindebtednessoutstandingunderour$130.0millionsecondlientermloan
(theSecondLienTermLoan).

RebrandingInitiative

DuringthefiscalyearendedJanuary31,2015,welaunchedasignificantrebrandinginitiative
throughwhichwechangedourbrandandcorporatename,redesignedstoresandchangedmerchandise.
Aspartofthisinitiative,wechangedournamefromGardenRidgetoAtHome.Wecompletedthe
rebrandinginitiativeduringthefirstninemonthsoffiscalyear2015.Allofourstoresoperateunderthe
AtHomebrand.

CorporateRestructuring

AtHomeGroupInc.wasformedasaDelawarecorporationonJune30,2011,underthename
GRDHoldingICorporation(GRDI).Uponincorporation,GRDIbecametheparentofGRDHolding
IICorporation(GRDII),whichowned100%ofGRDHoldingIIICorporation(GRDIII).GRDIII
wasorganizedforthepurposeofacquiringalloftheoutstandingcommonstockofGardenHoldingsInc.,
aDelawarecorporation.GardenHoldingsInc.owned,

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ATHOMEGROUPINC.
NotestoConsolidatedFinancialStatements(Continued)

directlyorindirectly,100%ofGardenRidgeCorporationandotherentities.OnSeptember29,2014,
GRDI,GRDII,GRDIIIanditsaffiliatescompletedanentityrestructuringandamendedvarious
corporatenamestoreflecttheAtHomebrand.Inparticular,(i)GRDHoldingICorporationwas
renamedtoAtHomeGroupInc.(AtHomeGroup),(ii)GRDHoldingIICorporationwasrenamedtoAt
HomeHoldingIIInc.(AtHomeII),(iii)GRDHoldingIIICorporationwasrenamedtoAtHome
HoldingIIIInc.(AtHomeIII),(iv)GardenHoldingsInc.wasconvertedfromaDelawarecorporationto
aDelawarelimitedliabilitycompanynamedAtHomeCompaniesLLC(AtHomeLLC),(v)both
GardenRidgeCorporationandGardenRidge,L.P.weremergedwithandintoGardenRidge
Management,LLCand(vi)GardenRidgeManagement,LLCwasrenamedAtHomeStoresLLC(At
HomeStores).

FiscalYear

Wereportonthebasisofa52or53weekfiscalyear,whichendsonthelastSaturdayinJanuary.
Referencestoafiscalyearmeantheyearinwhichthatfiscalyearends.Referenceshereintofiscalyear
2017relatetothe52weeksendedJanuary28,2017,referencestofiscalyear2016relatetothe52
weeksendedJanuary30,2016andreferencestofiscalyear2015relatetothe53weeksendedJanuary
31,2015.

Consolidation

TheaccompanyingconsolidatedfinancialstatementsincludetheaccountsofAtHomeGroup
Inc.anditsconsolidatedwhollyownedsubsidiaries.Allintercompanybalancesandtransactionshave
beeneliminatedinconsolidation.

TheCompanydoesnothaveanycomponentsofothercomprehensiveincomerecordedwithinits
consolidatedfinancialstatements,and,therefore,doesnotseparatelypresentastatementof
comprehensiveincomeinitsconsolidatedfinancialstatements.

UseofEstimates

PreparingfinancialstatementsinconformitywithU.S.generallyacceptedaccountingprinciples
requiresustomakeestimatesandassumptionsthataffectthereportedamountsofcertainassets,liabilities,
revenuesandexpenses,andrelateddisclosureofcontingentassetsandliabilitiesatthedateofthe
financialstatements.Webaseourestimatesonhistoricalexperienceandonvariousotherassumptionsthat
webelievetobereasonableunderthecircumstances,theresultsofwhichformthebasisformaking
judgmentsaboutthecarryingvaluesofassetsandliabilitiesthatarenotreadilyapparentfromother
sources.Becauseoftheuseofestimatesinherentinthefinancialreportingprocess,actualresultsmay
differfromtheseestimates.

SegmentInformation

Managementhasdeterminedthatwehaveoneoperatingsegment,andtherefore,onereportable
segment.Ourchiefoperatingdecisionmaker(CODM)isourChiefExecutiveOfficerourCODM
reviewsfinancialperformanceandallocatesresourcesataconsolidatedlevelonarecurringbasis.Allof
ourassetsarelocatedintheUnitedStates.AllofourrevenueisderivedintheUnitedStates.Itis
impracticableforustodiscloserevenuebyeachgroupofsimilarproducts.

CashandCashEquivalents

Cashandcashequivalentsconsistsofhighlyliquidinvestmentswithoriginalmaturitiesofthree
monthsorlessaswellascreditcardreceivables.AtJanuary28,2017andJanuary30,2016,ourcashand
cashequivalentswerecomprisedprimarilyofcreditcardreceivables.

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RestrictedCash

Fromtimetotime,weconsummatesaleleasebacktransactionswherethesaleistreatedasalike
kindexchangetransactionforU.S.federalincometaxpurposesinaccordancewithSection1031ofthe
InternalRevenueCode(the"Code").Section1031oftheCodeallowsdeferraloftherecognitionof
taxablegainrealizedfromthesaleofpropertywherethetaxpayertimelyreinveststheproceedsin
qualifyinglikekindproperty.Inaddition,Section1031oftheCoderequiressaleproceedsofthe
relinquishedpropertytobeheldbyathirdpartyintermediary,pendingutilizationthereofforthe
acquisitionofaqualifyinglikekindproperty.The$17.3millionrestrictedcashbalanceasofJanuary31,
2015relatedtosaleproceedsthatwereusedforqualifyingpropertyacquisitionsthatwerecompletedby
thesecondquarteroffiscalyear2016.

Inventories

Inventoriesarecomprisedoffinishedmerchandiseandarestatedatthelowerofcostornet
realizablevaluewithcostdeterminedusingtheweightedaveragemethod.Thecostofinventoriesinclude
theactuallandedcostofanitematthetimeitisreceivedinourdistributioncenter,oratthepointof
shipmentforcertaininternationalshipments,aswellastransportationcoststoourdistributioncenterand
toourretailstores,ifapplicable.Netinventorycostisrecognizedthroughcostofsaleswhenthe
inventoryissold.

Physicalinventorycountsareperformedforallofourstoresatleastonceperyearbyathirdparty
inventorycountingservice.Inventoryrecordsareadjustedtoreflectactualinventorycountsandany
resultingshortage(shrinkage)isrecognized.Reservesforshrinkageareestimatedandrecorded
throughouttheperiodasapercentageofsalesbasedonthemostrecentphysicalinventory,in
combinationwithcurrenteventsandhistoricalexperience.Wealsoevaluateourmerchandisetoensure
thattheexpectednetrealizablevalueofthemerchandiseheldattheendofafiscalperiodexceedscost.In
theeventthattheexpectednetrealizablevalueislessthancost,wereducethevalueofthatinventory
accordingly

ConsiderationReceivedfromVendors

Wereceivevendorsupportintheformofcashpaymentsorallowancesforavarietyofvendor
sponsoredprograms,suchasvolumerebates,markdownallowancesandadvertising.Wealsoreceive
considerationforcertaincomplianceprograms.Wehaveagreementsinplacewitheachvendorsetting
forththespecificconditionsforeachallowance.

Vendorsupportreducesourinventorycostsbasedontheunderlyingprovisionsoftheagreement.
Vendorcompliancechargesarerecordedasareductionofthecostofmerchandiseinventoriesanda
subsequentreductionincostofsaleswhentheinventoryissold.

PropertyandEquipment

Propertyandequipmentisrecordedatcostlessaccumulateddepreciationandamortization.
Depreciationofpropertyandequipmentotherthanleaseholdimprovementsisrecordedonastraightline
basisovertheestimatedusefullivesoftheassetsrangingfrom3to20years.Leaseholdimprovementsare
amortizedonastraightlinebasisovertheshorteroftheremainingleaseterm,includingrenewals
determinedtobereasonablyassured,ortheestimatedusefullifeoftherelatedimprovement.

Weexpenseallinternalusesoftwarecostsincurredinthepreliminaryprojectstage.Certain
directcostsincurredatlaterstagesandassociatedwiththedevelopmentandpurchaseofinternaluse
software,includingexternalcostsforservicesandinternalpayrollcostsrelatedtothesoftwareproject,are
capitalizedwithinpropertyandequipmentintheaccompanyingconsolidatedbalancesheets.Capitalized
costsareamortizedonastraightlinebasisovertheestimatedusefullivesofthesoftware,generally
betweenthreeandfiveyears.ForthefiscalyearsendedJanuary28,

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2017,January30,2016andJanuary31,2015,wecapitalizedsoftwarecostsof$7.7million,$5.5million
and$1.2million,respectively.Amortizationexpenserelatedtocapitalizedsoftwarecoststotaled$2.7
million,$1.0millionand$0.2millionduringthefiscalyearsendedJanuary28,2017,January30,2016
andJanuary31,2015,respectively.

Wecapitalizemajorreplacementsandimprovementsandexpenseroutinemaintenanceand
repairsasincurred.Weremovethecostofassetssoldorretiredandtherelatedaccumulateddepreciation
oramortizationfromtheconsolidatedbalancesheetsandincludeanyresultinggainorlossinthe
accompanyingconsolidatedstatementsofoperations.

CapitalizedInterest

Wecapitalizeinterestonborrowingsduringtheactiveconstructionperiodofmajorcapital
projects.Capitalizedinterestisaddedtothecostoftheunderlyingassetsandisamortizedovertheuseful
livesoftheassets.Ourcapitalizedinterestcostwasapproximately$0.4million,$0.3millionand$0.3
millionforthefiscalyearsendedJanuary28,2017,January30,2016andJanuary31,2015,respectively.

FairValueMeasurements

WefollowtheprovisionsofAccountingStandardsCodification(ASC)820(Topic820,Fair
ValueMeasurementsandDisclosures).ASC820establishesathreetieredfairvaluehierarchythat
prioritizesinputstovaluationtechniquesusedinfairvaluecalculations.

Level1Unadjustedquotedmarketpricesforidenticalassetsorliabilitiesinactivemarkets
thatwehavetheabilitytoaccess.

Level2Quotedpricesforsimilarassetsorliabilitiesinactivemarketsquotedpricesfor
identicalorsimilarassetsorliabilitiesininactivemarketsorvaluationsbasedonmodels
wherethesignificantinputsareobservable(e.g.,interestrates,yieldcurves,prepaymentspeeds,
defaultrates,lossseverities,etc.)orcanbecorroboratedbyobservablemarketdata.

Level3Valuationsbasedonmodelswheresignificantinputsarenotobservable.The
unobservableinputsreflectourownassumptionsabouttheassumptionsthatmarket
participantswoulduse.

ASC820requiresustomaximizetheuseofobservableinputsandminimizetheuseof
unobservableinputs.Ifafinancialinstrumentusesinputsthatfallindifferentlevelsofthehierarchy,the
instrumentiscategorizedbaseduponthelowestlevelofinputthatissignificanttothefairvalue
calculation.

Thefairvalueofallcurrentfinancialinstrumentsapproximatescarryingvaluebecauseofthe
shorttermnatureoftheseinstruments.Wehavevariableandfixedratesonourlongtermdebt.Thefair
valueoflongtermdebtwithvariableratesapproximatescarryingvalueastheinterestratesofthese
amountsapproximatemarketrates.Wedeterminefairvalueonourfixedratedebtbyusingquotedmarket
pricesandcurrentinterestrates.

AtJanuary28,2017,thefairvalueofourfixedratemortgagedueFebruary1,2037was$6.6
million,whichwasapproximately$0.5millionabovethecarryingvalueof$6.1million.Fairvaluefor
thefixedratemortgagewasdeterminedusingLevel2inputs.

Goodwill

Goodwillistestedforimpairmentatleastannuallyattheoperatingsegmentlevelwehaveonly
oneoperatingsegmentandwedonothaveareportingunitthatexistsbelowouroperatingsegment.Ifthe
impliedfairvalueofgoodwillislowerthanitscarryingamount,goodwillimpairmentisindicatedand
goodwilliswrittendowntoitsimplied

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fairvalue.Weassessthebusinessenterprisevalueusingacombinationoftheincomeapproachand
marketapproachtodeterminethefairvalueoftheCompanytobecomparedagainstthecarryingvalueof
netassets.Theincomeapproach,usingthediscountedcashflowmethod,includeskeyfactorsusedinthe
valuationoftheCompany(aLevel3valuation)whichinclude,butarenotlimitedto,management'splans
forfutureoperations,recentoperatingresults,incometaxrates,anddiscountedprojectedfuturecash
flows.

NoimpairmentofgoodwillwasrecognizedduringthefiscalyearsendedJanuary28,2017,
January30,2016orJanuary31,2015.However,theuseofdifferentassumptions,estimatesorjudgments
withrespecttotheestimationoftheprojectedfuturecashflowsandthedeterminationofthediscountrate
andsalesgrowthrateusedtocalculatethenetpresentvalueofprojectedfuturecashflowscould
materiallyincreaseordecreaseourestimatesoffairvalue.Additionally,futureimpairmentchargescould
berequiredifwedonotachieveourcurrentnetsalesandprofitabilityprojections,whichwouldoccurif
wearenotabletomeetournewstoregrowthtargets,ortheweightedaveragecostofcapitalincreases.

ImpairmentofLongLivedandIndefiniteLivedAssets

Weevaluatetherecoverabilityofthecarryingvalueoflonglivedassetswhenevereventsor
changesincircumstancesindicatetheircarryingamountmaynotberecoverable.Ourevaluation
comparesthecarryingvalueoftheassetswiththeirestimatedfutureundiscountedcashflowsexpectedto
resultfromtheuseandeventualdispositionoftheassets.Weevaluatelonglivedintangibleassetsatan
individualstorelevel,whichisthelowestlevelofidentifiablecashflows.Weevaluatecorporateassetsor
otherlonglivedassetsthatarenotstorespecificattheconsolidatedlevel.

Toestimatestorespecificfuturecashflows,wemakeassumptionsaboutkeystorevariables,
includingsales,growthrate,grossmargin,payrollandothercontrollableexpenses.Storesthatareowned
byusanddonotmeettheinitialcriteriaarefurtherevaluatedtakingintoconsiderationthefairmarket
valueofthepropertycomparedtothecarryingvalueoftheassets.Furthermore,managementconsiders
otherfactorswhenevaluatingstoresforimpairment,includingtheindividualstore'sexecutionofits
operatingplanandotherlocalmarketconditions.Ourestimatesaresubjecttouncertaintyandmaybe
affectedbyanumberoffactorsoutsideourcontrol,includinggeneraleconomicconditionsandthe
competitiveenvironment.

Animpairmentisrecognizedonceallthefactorsnotedabovearetakenintoconsiderationandit
isdeterminedthatthecarryingamountofthestore'sassetsarenotrecoverable.Theimpairmentlosswould
berecognizedintheamountbywhichthecarryingamountofalonglivedassetexceedsitsfairvalue,
excludingassetsthatcanberedeployed.Noimpairmentoflongtermassetswasrecognizedduringthe
fiscalyearsendedJanuary28,2017,January30,2016orJanuary31,2015.

Wetestindefinitelivedtradenameintangibleassetsannuallyforimpairmentormorefrequently
ifimpairmentindicatorsarise.Ifthefairvalueoftheindefinitelivedintangibleassetislowerthanits
carryingamount,theassetiswrittendowntoitsfairvalue.Duringfiscalyear2014,wecommittedtoa
rebrandinginitiativethatresultedintheconversionofthethenexistingGardenRidgetradenametothe
newtradenameAtHome.Weperformedanimpairmentanalysisoftheindefinitelivedtradename
immediatelybeforetheconversionand,asaresult,recognizeda$37.5milliontradenameimpairment
duringthefiscalyearendedJanuary25,2014.Thefairvalueofourtradename(aLevel3valuation)was
calculatedusingarelieffromroyaltyapproach,whichassumesthevalueofthetradenameisthe
discountedcashflowsoftheamountthatwouldbepaidbyahypotheticalmarketparticipanthadtheynot
ownedthetradenameandinsteadlicensedthetradenamefromanothercompany.AsofJanuary31,2015,
theGardenRidgetradenamedefinitelivedintangibleassetwasfullyamortized.Thecarryingvalueof
theAtHometradenameasofJanuary28,2017isapproximately$1.5million.Noimpairmentofour
indefinitelivedtradenameintangibleassetwasrecognizedduringthefiscalyearsendedJanuary28,
2017,January30,2016orJanuary31,2015.

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DebtIssuanceCosts

Debtissuancecostsarecostsincurredinconnectionwithobtainingormodifyingfinancing
arrangements.Thesecostsarecapitalizedasadirectdeductionfromthecarryingvalueofthedebt,other
thancostsincurredinconjunctionwithourlineofcredit,whicharecapitalizedasanasset,andamortized
overthetermoftherespectivedebtagreements.

Totalamortizationexpenserelatedtodebtissuancecostswasapproximately$1.8million,$1.9
millionand$1.6millionforthefiscalyearsendedJanuary28,2017,January30,2016andJanuary31,
2015,respectively.

DeferredRent

Werecordrentexpenseonastraightlinebasisoverthetermoftheleasebeginningwiththedate
wetakepossessionoforcontrolthephysicalaccesstothepremises.Werecordtenantimprovement
allowancesasaliabilityandadjusttheliabilityonastraightlinebasisasareductiontorentexpenseover
theleasetermbeginningwiththedatewetakepossessionoforcontrolthephysicalaccesstothe
premises.

Werecognizefreerentperiods,tenantimprovementallowancesandstandardrentincreases
containedinourleasesonastraightlinebasisovertheexpectedleaseterm,beginningwhenwefirsttake
possessionofthepropertyandincludingrenewaloptionperiodsinthoseinstanceswhereexercisingsuch
optionsisreasonablyassured.Forleaseswhereweareconsideredtobetheowneroftheconstruction
projectandreceivetenantimprovementallowances,werecordtheamountsreceivedasacomponentof
thefinancingobligationliability.SeeNote7FinancingObligations.

InsuranceLiabilities

FortheperiodfromDecember1,2013throughJanuary28,2017,wewerefullyinsuredfor
workers'compensationandcommercialgeneralliabilityclaims.Priortothatperiod,weuseda
combinationofcommercialinsuranceandselfinsuranceforworkers'compensationandcommercial
generalliabilityclaimsandpurchasedinsurancecoveragethatlimitedouraggregateexposurefor
individualclaimsto$250,000perworkers'compensationandcommercialgeneralliabilityclaim.

Weutilizeacombinationofcommercialinsuranceandselfinsuranceforemployeerelatedhealth
careplans.Thecostofourhealthcareplanisborneinpartbyouremployees.Wepurchaseinsurance
coveragethatlimitsouraggregateexposureforindividualclaimsto$175,000peremployeerelated
healthcareclaim.

Healthcarereservesarebasedonactualclaimsexperienceandanestimateofclaimsincurredbut
notreported.Reservesforcommercialgeneralliabilityandworkers'compensationaredeterminedthrough
theuseofactuarialstudies.Duetothejudgmentsandestimatesutilizedindeterminingthesereserves,
theyaresubjecttoahighdegreeofvariability.Intheeventourinsurancecarriersareunabletopayclaims
submittedtothem,wewouldrecordaliabilityforsuchestimatedpaymentsweexpecttoincur.

RevenueRecognition

Revenuefromsalesofourmerchandiseisrecognizedwhenthecustomertakespossessionofthe
merchandise.Revenueispresentednetofsalestaxescollected.Weallowformerchandisetobereturned
within60daysfromthepurchasedateandprovideareserveforestimatedreturns.Weusehistorical
customerreturnbehaviortoestimateourreserverequirements,whichareaccountedforasareductionin
revenuewealsoreducecostofsalestoreflectourestimatesoftheinventorycostofproductsthatwillbe
returned.AsofJanuary28,2017andJanuary30,2016,oursalesreturnsreserveswereapproximately$1.1
millionand$0.8million,respectively.

Werecordagiftcardliabilityonthedateweissuethegiftcardtothecustomer.Werecord
revenueandreducethegiftcardliabilityasthecustomerredeemsthegiftcard.AsofJanuary28,2017
andJanuary30,2016,ourgiftcard

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liabilitywasapproximately$4.1millionand$2.4million,respectively.Inaddition,werecognizegift
cardbreakageasrevenueafter60monthsofnonuse.Werecognizedrevenuerelatedtobreakageofsuch
giftcardbalancesofanimmaterialamountofrevenueforeachofthefiscalyearsendedJanuary28,2017
andJanuary30,2016andapproximately$0.1millionforthefiscalyearendedJanuary31,2015.

CostofSales

Costofsalesareincludedinmerchandiseinventoriesandexpensedasthemerchandiseissold.
Weincludethefollowingexpensesincostofsales:

costofmerchandise,netofinventoryshrinkage,damagesandvendorallowances

inboundfreightandinternaltransportationcostssuchasdistributioncentertostorefreight
costs

costsofoperatingourdistributioncenter,includinglabor,occupancycosts,suppliesand
depreciationand

storeoccupancycostsincludingrent,insurance,taxes,commonareamaintenance,utilities,
repairs,maintenanceanddepreciation.

Selling,GeneralandAdministrativeExpenses

Selling,generalandadministrativeexpensesincludepayroll,benefitsandotherpersonnel
expensesforcorporateandstoreemployees,includingstockbasedcompensationexpense,consulting,
legalandotherprofessionalservicesexpenses,advertisingexpenses,occupancycostsforourcorporate
headquartersandvariousotherexpenses.

StorePreOpeningCosts

Weexpensepreopeningcostsfornewstoresastheyareincurred.Duringthefiscalyearsended
January28,2017,January30,2016andJanuary31,2015,storepreopeningcostswereapproximately
$13.9million,$12.3millionand$8.2million,respectively.Storepreopeningcosts,suchasoccupancy
expenses,advertisingandlaborareincludedinselling,generalandadministrativeexpenses.

Advertising

Advertisingcosts,exclusiveofstorepreopeningadvertisingexpensesdiscussedabove,include
billboard,newspaper,radio,digitalandotheradvertisingmediums.Advertisingcostsareexpensedas
incurredandincludedinselling,generalandadministrativeexpenses.Totaladvertisingexpenseswere
approximately$17.4million,$12.4millionand$8.1millionforthefiscalyearsendedJanuary28,2017,
January30,2016andJanuary31,2015,respectively.

StockBasedCompensation

WeaccountforstockbasedcompensationinaccordancewithASC718(Topic718,
CompensationStockCompensation),whichrequiresallstockbasedpaymentstoemployees,
includinggrantsofemployeestockoptions,toberecognizedintheconsolidatedfinancialstatements
overtherequisiteserviceperiod.Compensationexpensebaseduponthefairvalueofawardsisrecognized
onastraightlinebasisovertherequisiteserviceperiodforawardsthatactuallyvest.Stockbased
compensationexpenseisrecordedinselling,generalandadministrativeexpensesintheconsolidated
statementsofoperations.

WeestimatefairvalueofeachstockoptiongrantonthedateofgrantbasedupontheBlack
Scholesoptionpricingmodel,withexceptiontoaspecialonetimeinitialpublicofferingtransaction
bonusgrantwhichwasvaluedonthedateofgrantusingtheMonteCarlosimulationmethod.

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TheBlackScholesoptionpricingmodelrequiresvarioussignificantjudgmentalassumptionsin
ordertoderiveafinalfairvaluedeterminationforeachtypeofawardincludingthefollowing:

ExpectedtermTheexpectedtermoftheoptionsrepresentstheperiodoftimebetweenthe
grantdateoftheoptionsandthedatetheoptionsareeitherexercisedorcanceled.

ExpectedvolatilityTheexpectedvolatilityiscalculatedbasedonthehistoricalvolatilityof
thecommonstockforcomparablecompanies.

ExpecteddividendyieldTheexpecteddividendyieldisbasedonourexpectationofnot
payingdividendsonitscommonstockfortheforeseeablefuture.

RiskfreeinterestrateTheriskfreeinterestrateistheaverageofthe3yearand5yearU.S.
Treasuryrateineffectatthetimeofgrantandwithamaturitythatapproximatestheexpected
term.

WeusedaMonteCarlosimulationmodeltodeterminethefairvalueofthespecialonetime
initialpublicofferingtransactionbonusgrantsubjecttomarketbasedconditions.Thestockoptiongrants
subjecttomarketbasedconditionshavecliffvestingbeginninginthethirdquarteroffiscalyear2017
andcontinuingthroughthefollowingeightquarterssubjecttotheachievementofmarketconditions.We
valuedthestockoptiongrantsasasingleawardwiththerelatedcompensationcostrecognizedusinga
straightlinemethodoverthederivedserviceperiod.Theexpectedvolatilityisbasedonacombinationof
historicalandimpliedvolatilitiesofthecommonstockforcomparablecompanies.

Allgrantsofourstockoptionshaveanexercisepriceequaltoorgreaterthanthefairmarket
valueofourcommonstockonthedateofgrant,basedontheforegoingestimatesandassumptions.
BecausewewereaprivatelyheldcompanypriortoAugust4,2016andtherewasnopublicmarketfor
ourcommonstock,thefairvalueofourequitywasapprovedbyourBoardatthetimeoptiongrantswere
awarded.Inestimatingthefairvalueofourcommonstock,weconsideredfactorswebelievedtobe
materialtothevaluationprocessincluding,butnotlimitedto,ouractualandprojectedfinancialresults,
risksandprospectsandeconomicandmarketconditions.Ourvaluationsutilizedprojectionsofourfuture
performance,estimatesofourweightedaveragecostofcapitalandmetricsbasedontheperformanceofa
peergroupofsimilarcompanies,includingvaluationmultiplesandstockpricevolatility.

Webelievethecombinationofthesemethodsprovidedanappropriateestimateofourexpected
fairvaluepriortoourinitialpublicoffering.Weconsideredthevaluationanalysestodeterminethebest
estimateofthefairvalueofourcommonstockateachstockoptiongrantdate.Followingtheinitial
publicoffering,suchestimatesarenolongerneededtodeterminefairvaluefornewawardsduetoa
publiclyavailabletradingpriceforourcommonstock.

IncomeTaxes

Theprovisionforincometaxesisaccountedforundertheassetandliabilitymethodprescribed
byASC740(Topic740,IncomeTaxes).Deferredtaxassetsandliabilitiesarerecognizedforthefuture
taxconsequencesattributabletodifferencesbetweenthefinancialstatementcarryingamountsofexisting
assetsandliabilitiesandtheirrespectivetaxbases,operatinglossesandtaxcreditcarryforwards.Deferred
taxassetsandliabilitiesaremeasuredusingtheenactedtaxratesexpectedtoapplytotaxableincomein
theyearsinwhichthosetemporarydifferencesareexpectedtoberecoveredorsettled.Theeffecton
deferredtaxassetsandliabilitiesofachangeintaxratesisrecognizedinincomeintheperiodthetaxrate
changesareenacted.Werecordavaluationallowancetoreducethecarryingamountstotheamountthat
isbelievedmorelikelythannottoberealized.

Werecognizethetaxbenefitfromanuncertaintaxpositiononlyifitismorelikelythannotthe
taxpositionwillbesustainedonexaminationbythetaxingauthorities,basedonthetechnicalmeritsof
theposition.Thetaxbenefits

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recognizedinthefinancialstatementsfromsuchpositionsarethenmeasuredbasedonthelargestbenefit
thathasagreaterthan50%likelihoodofbeingrealizeduponsettlement.

RecentAccountingPronouncements

InMay2014,theFASBissuedASUNo.201409,RevenuefromContractswithCustomers
(ASU201409).ASU201409supersedestherevenuerecognitionrequirementsinTopic605,Revenue
Recognition,andrequiresentitiestorecognizerevenueinawaythatdepictsthetransferofpromised
goodsorservicestocustomersinanamountthatreflectstheconsiderationtowhichtheentityexpectsto
beentitledtoinexchangeforthosegoodsorservices.ASU201409iseffectiveforannualreporting
periodsbeginningafterDecember15,2017,includinginterimperiodswithinthatreportingperiod.We
completedaninitialimpactassessmentandbelieveadoptingthisASUwillnotmateriallyimpactthe
timingofrevenuerecognition.Weexpecttoadoptthisnewguidanceusingthefullretrospectivemethod
inthefirstquarteroffiscalyear2019.

InFebruary2016,theFASBissuedASUNo.201602Leases,whichsupersedesASC840
Leasesandcreatesanewtopic,ASC842Leases(ASU201602).UnderASU201602,anentity
willberequiredtorecognizerightofuseassetsandleaseliabilitiesonitsbalancesheetanddisclosekey
informationaboutleasingarrangements.ASU201602offersspecificaccountingguidanceforalessee,a
lessorandsaleandleasebacktransactions.Lesseesandlessorsarerequiredtodisclosequalitativeand
quantitativeinformationaboutleasingarrangementstoenableauserofthefinancialstatementstoassess
theamount,timinganduncertaintyofcashflowsarisingfromleases.ASU201602iseffectiveforannual
reportingperiodsbeginningafterDecember15,2018,includinginterimperiodswithinthatreporting
period,withearlyadoptionpermitted.Atadoption,thisupdatewillbeappliedusingamodified
retrospectiveapproach.WearecurrentlyevaluatingtheimpactofASU201602andweexpectthatupon
adoptionwewillrecognizerightofuseassetsandliabilitiesthatcouldbematerialtoourfinancial
statements.

InMarch2016,theFASBissuedASUNo.201604,RecognitionofBreakageforCertain
PrepaidStoredValueProducts(ASU201604).ASU201604requiresthatbreakageonprepaid
storedvalueproductliabilities(forexample,prepaidgiftcards)beaccountedforconsistentwiththe
breakageguidanceinTopic606,RevenuefromContractswithCustomers.ASU201604iseffectivefor
annualreportingperiodsbeginningafterDecember15,2017,includinginterimreportingperiodswithin
thatreportingperiod,withearlyadoptionpermitted.Thisstandardistobeappliedeitherusingamodified
retrospectiveapproachorretrospectivelytoeachperiodpresented.Wearecurrentlyevaluatingtheimpact
ofAS201604andweexpecttoadoptthisnewguidanceusingthefullretrospectivemethodinthefirst
quarteroffiscalyear2019.

InMarch2016,theFASBissuedASUNo.201609,ImprovementstoEmployeeShareBased
PaymentAccounting(ASU201609).ASU201609isintendedtosimplifyvariousaspectsofthe
accountingforemployeesharebasedpaymentawardtransactionsandiseffectiveforannualreporting
periodsbeginningafterDecember15,2016,includinginterimperiodswithinthatreportingperiod,with
earlyadoptionpermitted.WeplantoadoptASU201609prospectivelyforannualreportingperiods
beginninginthefirstquarteroffiscalyear2018.WehaveevaluatedASU201609anddonotexpectthe
impactofthisguidancetohaveanimmediatematerialimpactonourconsolidatedfinancialstatements,
giventhatwehavenohistoricalexercisesofstockoptionsasofJanuary28,2017.However,undercertain
circumstances,thisguidancewillhaveanimpactonoureffectivetaxrateinthefutureastheadoptionof
ASU201609alsorequiresallincometaxadjustmentstoberecordedintheconsolidatedstatementsof
operationsandchangesbetweentaxandbooktreatmentofequitycompensationwillberecognizedinthe
provisionforincometaxesbeginninginfiscalyear2018.UndertheadoptionofASU201609,
Managementwillelecttheaccountingpolicytocontinuetoestimatethenumberofawardsexpectedto
beforfeitedandadjustthoseestimateswhenitisnolongerprobableeachperiod.

InAugust2016,theFASBissuedASUNo.201615,ClassificationofCertainCashReceipts
andCashPayments(ASU201615).ASU201615isintendedtoreducethediversityinpractice
aroundhowcertaintransactionsareclassifiedwithinthestatementofcashflows.ASU201615is
effectiveforannualreportingperiods

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beginningafterDecember15,2017,includinginterimperiodswithinthatreportingperiod,withearly
adoptionpermitted.WearecurrentlyevaluatingtheimpactofASU201615.

InNovember2016,theFASBissuedASUNo.201618,RestrictedCash(ASU201618).
ASU201618isintendedtoreducethediversityinpracticearoundhowrestrictedcashisclassified
withinthestatementofcashflows.ASU201618iseffectiveforannualreportingperiodsbeginningafter
December15,2017,includinginterimperiodswithinthatreportingperiod,withearlyadoption
permitted.WearecurrentlyevaluatingtheimpactofASU201618.

InJanuary2017,theFASBissuedASUNo.201704,SimplifyingtheTestforGoodwill
Impairment(ASU201704).ASU201704simplifiesthemeasurementofgoodwillimpairmentby
removingthesecondstepofthegoodwillimpairmenttest,whichrequiresthedeterminationofthefair
valueofindividualassetsandliabilitiesofareportingunit.UnderASU201704,goodwillimpairmentis
tobemeasuredastheamountbywhichareportingunitscarryingvalueexceedsitsfairvaluewiththe
lossrecognizednottoexceedthetotalamountofgoodwillallocatedtothereportingunit.ASU201704
iseffectiveforfiscalyearsbeginningafterDecember15,2019,withearlyadoptionpermittedforinterim
orannualgoodwillimpairmenttestsperformedafterJanuary1,2017.Thestandardistobeappliedona
prospectivebasis.WearecurrentlyevaluatingtheimpactofASU201704anddonotanticipatea
materialimpacttotheconsolidatedfinancialstatementsonceimplemented.

2.PropertyandEquipment

Propertyandequipmentconsistsofthefollowing(inthousands):

January28, January30,
2017 2016

Land $ 33,531 $ 35,520
Buildings 85,116 70,646
Computerhardwareandsoftware 32,212 18,241
Equipment,furnitureandfixtures 93,427 68,274
Leaseholdimprovements 165,058 104,317
Constructioninprogress 32,738 36,017
442,082 333,015
Less:accumulateddepreciationandamortization (101,724) (60,239)
Propertyandequipment,net $ 340,358 $ 272,776

DepreciationandamortizationexpenseforthefiscalyearsendedJanuary28,2017,January30,
2016andJanuary31,2015totaledapproximately$36.9million,$28.7millionand$23.3million,
respectively.Approximately$32.7million,$26.2millionand$18.0millionofdepreciationand
amortizationexpenseisincludedincostofsalesforthefiscalyearsendedJanuary28,2017,January30,
2016andJanuary31,2015,respectively.Inaddition,depreciationandamortizationexpenseforthefiscal
yearendedJanuary31,2015includes$4.0millioninamortizationexpenserelatedtoourformerGarden
Ridgetradenamedefinitelivedintangibleasset.

3.SaleLeasebackTransactions

InSeptember2016,wesoldthreeofourpropertiesinColoradoSprings,ColoradoKissimmee,
FloridaandOFallon,Illinoisforatotalof$30.6millionresultinginanetgainof$16.9million.
Contemporaneouslywiththeclosingofthesale,weenteredintoaleasepursuanttowhichweleasedback
thepropertiesforcumulativeinitialannualrentof$2.1million,subjecttoannualescalations.Theleaseis
beingaccountedforasanoperatinglease.Thenetgainonthesaleofthepropertieshasbeendeferredand
isincludedindeferredrentliabilitiesintheaccompanyingconsolidated

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NotestoConsolidatedFinancialStatements(Continued)

balancesheets.Thegainwillbeamortizedtorentexpenseonastraightlinebasisthroughtheleaseterm,
orSeptember2031.

InAugust2016,wesoldfourofourpropertiesinBroomfield,ColoradoCorpusChristi,Texas
Jenison,MichiganandBuford,Georgiaforatotalof$32.6millionresultinginanetgainof$14.2
million.Contemporaneouslywiththeclosingofthesale,weenteredintoaleasepursuanttowhichwe
leasedbackthepropertiesforcumulativeinitialannualrentof$2.2million,subjecttoannualescalations.
Theleaseisbeingaccountedforasanoperatinglease.Thenetgainonthesaleofthepropertieshasbeen
deferredandisincludedindeferredrentliabilitiesintheaccompanyingconsolidatedbalancesheets.The
gainwillbeamortizedtorentexpenseonastraightlinebasisthroughtheleaseterm,orJuly2031.
Approximately$3.7millionoftheproceedsfromthesalewereusedtopayoffanotepayablerelatedto
theCorpusChristiproperty.

InSeptember2015,wesoldfiveofourpropertiesinGrandPrairie,TexasToledo,OhioPharr,
TexasNewBraunfels,TexasandGulfport,Mississippiforatotalof$40.2millionresultinginanetgain
of$15.8million.Contemporaneouslywiththeclosingofthesale,weenteredintoaleasepursuantto
whichweleasedbackthepropertiesforcumulativeinitialannualrentof$2.7million,subjecttoannual
escalations.Theleaseisbeingaccountedforasanoperatinglease.Thenetgainonthesaleofthe
propertieshasbeendeferredandisincludedindeferredrentliabilitiesintheaccompanyingconsolidated
balancesheets.Thegainwillbeamortizedtorentexpenseonastraightlinebasisthroughtheleaseterm,
orSeptember2030.Approximately$5.5millionoftheproceedsfromthesalewereusedtopayoffnotes
payablerelatedtheGrandPrairieandNewBraunfelsproperties.

InJanuary2015,wesoldourpropertylocatedinOmaha,Nebraskaforapproximately$8.0
million,resultinginanetgainof$2.7million.Contemporaneouslywiththeclosingofthesale,we
enteredintoalease,pursuanttowhichweleasedbackthepropertyforcumulativeinitialannualrentof
$0.5million,subjecttoannualescalations.Theleaseisbeingaccountedforasanoperatinglease.Thenet
gainonthesaleofthepropertyhasbeendeferredandisincludedindeferredrentliabilitiesinthe
accompanyingconsolidatedbalancesheets.Thegainwillbeamortizedtorentexpenseonastraightline
basisthroughtheleaseterm,orJanuary2030.

InSeptember2014,wesoldfourofourpropertiesinRaleigh,NorthCarolinaMesa,Arizona
Lubbock,TexasandLouisville,Kentuckyforatotalof$40.9million,resultinginanetgainof$17.1
million.Contemporaneouslywiththeclosingofthesale,weenteredintofourleases,pursuanttowhich
weleasedbackthepropertiesforcumulativeinitialannualrentof$2.8million,subjecttoannual
escalations.TheleasesontheRaleigh,LubbockandLouisvillepropertiesarebeingaccountedforas
operatingleases.TheleaseontheMesapropertyisbeingaccountedforasafinancingtransactionin
accordancewithASC8404055(Topic840,Leases)duetoaprohibitedformofcontinuing
involvementrelatedtoanexistingsubleaseonthatproperty(SeeNote7FinancingObligations).The
$17.1millionnetgainassociatedwiththesaleofthesepropertieshasbeendeferredandisincludedin
deferredrentliabilitiesintheaccompanyingconsolidatedbalancesheets.Thegainwillbeamortizedto
rentexpenseonastraightlinebasisthroughtheleaseterms,orSeptember2029.Thesalesofthe
propertieslocatedinLubbockandLouisvillearebeingtreatedaslikekindexchangesforU.S.federal
incometaxpurposesinaccordancewiththeCode.

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4.AccruedLiabilities

Accruedliabilitiesconsistofthefollowing(inthousands):

January28, January30,
2017 2016

Inventoryintransit $ 10,833 $ 14,817
Accruedpayrollandotheremployeerelated
liabilities 12,498 10,089
Accruedtaxes,otherthanincome 10,029 8,345
Accruedinterest 3,807 337
Insuranceliabilities 3,247 3,505
Constructioncosts 6,295 4,210
Accruedinboundfreight 10,554 757
Other 17,176 12,412
Totalaccruedliabilities $ 74,439 $ 54,472

5.RevolvingLineofCredit

InOctober2011,AtHomeIIIandAtHomeStores(collectively,theABLBorrower),entered
intoanAssetBasedLendingCreditFacility(ABLFacility)whichprovidedforcashborrowingsor
issuancesoflettersofcreditbasedondefinedpercentagesofeligibleinventoryandcreditcardreceivable
balancesuptoamaximumfacilitylimitof$80.0million.InMay2012,theABLBorrowerenteredinto
theFirstAmendmenttotheCreditAgreement,whichamendedtheABLFacilityto,amongotherthings,
permittheSeniorSecuredNotestobeissued.InMay2013,theABLBorrowerenteredintotheSecond
AmendmenttotheCreditAgreement,whichamendedtheABLFacilitytoincreasethefacilitylimitto
$90.0million,extendthematurityfromOctober2016toMay2018,reducetheinterestrateandfeesand
amendvariousothercovenantsandrelateddefinitions.InJuly2014,theABLBorrowerenteredintothe
ThirdAmendmenttotheCreditAgreementwhichfurtheramendedtheABLFacilitytomodifycertain
financialtermsandothercovenants.Suchmodificationsincludedincreasingthefacilityfrom$90.0
millionto$140.0millionextendingthescheduledmaturitydatefromMay2018toJuly2019reducing
themarginonborrowingsby0.25%providingforthereleaseofcertainrealpropertycollateralin
specifiedcircumstancesaddingWellsFargoBank,NationalAssociationasanewlenderundertheABL
Facilityandamendingvariousothercovenants,termsandrelateddefinitionstoprovideadditional
flexibilitywiththeABLFacility.TheABLFacilityissecuredbysubstantiallyalloftheABLBorrower's
assetswithafirstlienoncertainassets,includingprimarilyinventoryandaccountsreceivableandrelated
assets(theABLPriorityCollateral),andasecondlienonallnonABLPriorityCollateral.

InJune2015,theABLBorrowerenteredintotheFourthAmendmenttotheCreditAgreement
whichfurtheramendedtheABLFacilitytomodifycertainprovisionsoftheagreementto,amongother
things,permittheTermLoanFacilitiestobeissuedandamendcertaintermsintheABLFacilitytobe
consistentwiththetermssetforthintheTermLoanFacilities.

InJune2016,weamendedtheagreementgoverningtheABLFacilitytoexercisethe$75.0
millionaccordionfeaturewhichincreasedtheaggregaterevolvingcommitmentsfrom$140.0millionto
$215.0millionandincreasedthesublimitfortheissuanceoflettersofcreditfrom$10.0millionto$25.0
million.TheothertermsoftheABLFacilitywerenotchangedbytheamendment.

InterestonborrowingsunderourABLFacilityiscomputedbasedonouraveragedaily
availability,atouroption,of:(x)thehigherof(i)theFederalFundsRateplus1/2of1.00%,(ii)thebank's
primerateand(iii)LIBORplus1.00%,plusineachcase,anapplicablemarginof0.25%to0.75%or(y)
thebank'sLIBORrateplusanapplicablemarginof1.25%to1.75%.Theeffectiveinterestratewas
approximately2.00%foreachofthefiscalyearsendedJanuary28,2017,January30,2016andJanuary
31,2015,respectively.

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NotestoConsolidatedFinancialStatements(Continued)


AsofJanuary28,2017,approximately$101.6millionwasoutstandingundertheABLFacility,
approximately$3.6millioninfaceamountoflettersofcredithadbeenissuedandwehadavailabilityof
approximately$108.4million.AsofJanuary28,2017,wewereincompliancewithallcovenants
prescribedintheABLFacility.

TheABLFacilityincludesrestrictionscustomarilyfoundinsuchagreementsontheabilityofthe
ABLBorrowerandthesubsidiaryguarantorstoincuradditionalliensandindebtedness,make
investmentsanddispositions,paydividendstoAtHomeIIorenterintoothertransactions,amongother
restrictions,ineachcasesubjecttocertainexceptions.UndertheABLFacility,theABLBorrowerandthe
subsidiaryguarantorsarepermittedtopaydividendstoAtHomeII,(a)solongasaftergivingeffectto
suchpayment,(i)availabilityisequaltoorgreaterthan15%oftheloancap(i.e.,thelesserof(x)the
aggregatelendercommitmentsundertheABLFacilityand(y)theborrowingbase)and(ii)ifavailability
islessthan20%oftheloancap,theconsolidatedfixedchargecoverageratioisequaltoorgreaterthan
1.0to1.0,and(b)pursuanttocertainotherlimitedexceptions.

6.LongTermDebt

Longtermdebtconsistsofthefollowing(inthousands):

January28, January30,
2017 2016

TermLoanFacilities $ 295,500 $ 428,559
Notepayable,bank(a) 6,099 6,241
Notepayable,bank 3,736
Obligationsundercapitalleases 8,630
Totaldebt 310,229 438,536
Less:currentmaturities 3,552 3,248
Less:unamortizeddeferreddebtissuancecosts 7,071 12,678
Longtermdebt $ 299,606 $ 422,610

(a)MaturesFebruary1,2037$42,697payablemonthly,includinginterestat5.90%securedbythelocationslandand
building.

Aggregateannualmaturitiesoflongtermdebt,excludingcapitalleaseobligations,areas
follows(inthousands):

January28,
2017

2018 $ 3,152
2019 3,161
2020 3,171
2021 3,930
2022 2,443
Thereafter 285,742
$ 301,599

TermLoanFacilities

OnJune5,2015,ourindirectwhollyownedsubsidiary,AtHomeHoldingIIIInc.(Borrower),
enteredintoafirstliencreditagreement(theFirstLienAgreement),byandamongtheBorrower,At
HomeHoldingIIInc.(AtHomeII),adirectwhollyownedsubsidiaryofours,asguarantor,various
lendersandBankofAmerica,N.A.,as

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NotestoConsolidatedFinancialStatements(Continued)

administrativeagentandcollateralagent.TheFirstLienAgreementprovidesfora$300.0millionterm
loan(TermLoan),whichamountwasborrowedonJune5,2015.TheTermLoanwillmatureonJune3,
2022,andisrepayableinequalquarterlyinstallmentsofapproximately$0.8millionforanannual
aggregateamountequalto1%oftheoriginalprincipalamountof$300.0million.TheBorrowerhasthe
optionofpayinginterestona1month,2monthorquarterlybasisontheTermLoanatanannualrateof
LIBOR(subjecttoa1%floor)plus4.00%,subjectto,afteraqualifyinginitialpublicoffering,a0.50%
reductioniftheBorrowerachievesaspecifiedsecurednetleverageratiolevel,whichwasmetsubsequent
toourinitialpublicofferingforthefiscalyearendedJanuary28,2017.

OnJune5,2015,theBorroweralsoenteredintoasecondliencreditagreement(theSecond
LienAgreement),byandamongtheBorrower,AtHomeIIandDynastyFinancialII,LLC,as
administrativeagent,collateralagentandlender.TheSecondLienAgreementprovidedfortheSecond
LienTermLoan(togetherwiththeTermLoan,theTermLoanFacilities),whichamountwasborrowed
onJune5,2015.TheSecondLienTermLoanhadamaturitydateofJune5,2023anddidnotrequire
periodicprincipalpayments,withthetotalamountoutstanding,plusaccruedinterest,dueatmaturity.The
Borrowerhadtheoptionofpayinginterestona1month,2monthorquarterlybasisontheSecondLien
TermLoanatanannualrateofLIBOR(subjecttoa1%floor)plus8.00%.

TheTermLoanFacilitieshavevariousnonfinancialcovenants,representationsandwarranties,
eventsofdefaultsandremedies,substantiallysimilartothosedescribedinrespectoftheABLFacility.
TherearenofinancialmaintenancecovenantsintheTermLoanFacilities.

Atouroption,theTermLoanwasprepayableonorpriortoJune5,2016subjectto,inthecaseof
arepricingtransaction,aprepaymentpremiumequaltotheprincipalamountofTermLoansubjecttosuch
prepaymentmultipliedby1%.AnyprepaymentofalloranyportionoftheoutstandingTermLoanafter
June5,2016isnotsubjecttoapremium.

TheBorrowerusedthenetproceedsfromtheTermLoanFacilities(i)toeffecttherefinancingof
alloutstandingindebtednessunderthe$360.0millionaggregateprincipalamountof10.75%senior
securednotesmaturingonJune1,2019(theSeniorSecuredNotes),(ii)topayfeesandexpensesin
connectionwithTermLoanFacilitiesandtheredemptionoftheSeniorSecuredNotes,(iii)torepay
certainamountsoutstandingundertheABLFacility,and(iv)forgeneralcorporatepurposes.

DuringthefiscalyearendedJanuary28,2017,weusedthenetproceedsfromourinitialpublic
offeringandthepartialexerciseoftheoverallotmentoption,afterdeductingunderwritersdiscountsand
commissions,torepayinfullthe$130.0millionofprincipalamountofindebtednessoutstandingunder
ourSecondLienTermLoan.Therepaymentresultedinalossonextinguishmentofdebtintheamountof
$2.7million.

10.75%SeniorNotesDue2019

InMay2012,AtHomeIIIissued$360.0millionaggregateprincipalamountofSeniorSecured
Notes.ThetermsoftheSeniorSecuredNotesweregovernedbytheIndenture,datedMay16,2012,
amongAtHomeIII,theguarantorspartytheretoandWellsFargoBank,NationalAssociation,asTrustee.
InterestwaspayablesemiannuallyinarrearsoneachJune1andDecember1,commencingonDecember
1,2012.

TheSeniorSecuredNoteswerefullyandunconditionallyguaranteed,jointlyandseverally,ona
seniorsecuredbasisbyourrestrictedsubsidiaries.TheSeniorSecuredNotesandtherelatedguarantees
weresecured,subjecttocertainexceptions,by(i)afirstprioritylienonsubstantiallyallofourandthe
guarantors'assets(otherthaninventoryandaccountsreceivableandrelatedassets,whichassetssecureour
ABLFacilityonafirstprioritybasis(theABLPriorityCollateral)),includingfirstpriorityliensonany
capitalstockheldbyusoraguarantor,and(ii)asecondprioritylienontheABLPriorityCollateral.

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NotestoConsolidatedFinancialStatements(Continued)

TheIndenturecontainedcustomarycovenantslimitingAtHomeIII'sanditsrestricted
subsidiaries'operations.Italsoprovidedforeventsofdefaultthat,incertaincircumstances,permitted
accelerationofthepaymentofprincipal,premium,ifany,andinterestonthethenoutstandingSenior
SecuredNotes.

OnJune5,2015,AtHomeIIIcompletedtheredemptionoftheSeniorSecuredNotesataprice
equalto108.063%fortotalcashconsiderationof$389.4million,whichincludeda$29.0millionearly
redemptionpremiumand$0.4millionofaccruedinterest.Theredemptionresultedinalosson
extinguishmentofdebtintheamountofapproximately$36.0million.

TherestrictednetassetsofAtHomeGroup'sconsolidatedsubsidiarieswas$542.1millionasof
January28,2017.

7.FinancingObligations

Insomecases,theassetsweleaserequireconstructioninordertoreadythespaceforitsintended
useand,incertaincases,weareinvolvedintheconstructionofleasedassets.Theconstructionperiod
typicallybeginswhenweexecuteourleaseagreementwiththelandlordandcontinuesuntilthespaceis
substantiallycompleteandreadyforitsintendeduse.InaccordancewithASC8404055,wemust
considerthenatureandextentofourinvolvementduringtheconstructionperiodand,insomecases,our
involvementresultsinourbeingconsideredtheaccountingowneroftheconstructionproject.By
completingtheconstructionofkeystructuralcomponentsofaleasedbuilding,wearedeemedtohave
participatedintheconstructionofthelandlordasset.Insuchcases,wecapitalizethelandlord's
constructioncosts,includingthevalueofcostsincurreduptothedateweexecuteourleaseandcosts
incurredduringtheremainderofconstructionperiod,assuchcostsareincurred.Additionally,ASC840
4055requiresustorecognizeafinancingobligationforconstructioncostsincurredbythelandlord.
Onceconstructioniscomplete,wearerequiredtoperformasaleleasebackanalysispursuanttoASC840
40todetermineifwecanremovethelandlord'sassetsandassociatedfinancingobligationsfromour
consolidatedbalancesheet.Incertainleases,wemaintainvariousformsofprohibitedcontinuing
involvementintheproperty,therebyprecludingusfromderecognizingtheassetandassociated
financingobligationsfollowingtheconstructioncompletion.Inthosecases,wewillcontinuetoaccount
forthelandlord'sassetasifwearethelegalowner,andthefinancingobligation,similartootherdebt,
untiltheleaseexpiresorismodifiedtoremovethecontinuinginvolvementthatprohibitsderecognition.
Oncederecognitionispermitted,wewouldberequiredtoaccountfortheleaseaseitheroperatingor
capitalinaccordancewithASC840.AsofJanuary28,2017wehavenotderecognizedanylandlord
assetsorassociatedfinancingobligations.

8.RelatedPartyTransactions

Inconnectionwiththeinitialpublicoffering,themanagementagreementwithourcontrolling
shareholder,AEAInvestorsLP(AEA),anaffiliateofourcontrollingshareholder,andaffiliatedco
investorsincludingStarrInvestmentHoldings,LLC(StarrInvestmentsand,togetherwithAEA,the
Sponsors),wasterminatedasofAugust3,2016andtheSponsorsnolongerreceivemanagementfees
fromus.Followingourinitialpublicoffering,theSponsorsownapproximately85%ofouroutstanding
commonstock.

Wewerepreviouslyobligatedtopaymanagementfeesofapproximately$2.6millionannually
toAEA.Werecognizedmanagementfeesandreimbursedexpensesofapproximately$1.4millionduring
thefiscalyearendedJanuary28,2017andapproximately$2.7millionduringeachofthefiscalyears
endedJanuary30,2016andJanuary31,2015.

Wewerealsoobligatedtopaymanagementfeesofapproximately$0.9millionannuallytoStarr
Investments.Werecognizedmanagementfeesofapproximately$0.5millionduringthefiscalyearended
January28,2017andapproximately$0.9millionduringeachofthefiscalyearsendedJanuary30,2016
andJanuary31,2015.

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NotestoConsolidatedFinancialStatements(Continued)

Inaddition,StarrIndemnity&LiabilityCompany,anaffiliateofStarrInvestments,wasan
underwriterforourgeneralliabilityandworkers'compensationinsurancepoliciesthatwereeffective
untilDecember1,2013.Thetotalcostofthepolicieswasapproximately$2.3million,ofwhich
approximately$1.9millionwaspaidduringthefiscalyearendedJanuary31,2015.Thesepolicies
expiredonDecember1,2014andwerereplacedwithpoliciesunderwrittenbyanunrelatedparty.

UntilNovember1,2016,affiliatesofAEAownedasignificantequitypositioninDematic
Corporation,anexternalvendorthatdesigns,developsanddeliverssolutionsthatoptimizecompanies'
supplychain,improveperformanceandincreaseproductivitythroughintelligentwarehouselogisticsand
materialshandlingsolutions.InFebruary2014,weexecutedanagreementwithDematicCorporationfor
theinstallationofasystemtoassistintheautomationofourdistributioncenter.Duringthefiscalyears
endedJanuary28,2017andJanuary31,2015,wepaidDematicCorporationapproximately$0.4million
and$7.2million,respectively,undertheagreementwhichisprimarilyrecordedinpropertyand
equipment,net.AffiliatesofAEAdisposedoftheirinterestinDematicCorporationasofNovember1,
2016,andDematicCorporationisnolongerarelatedparty.

MerryMabbettInc.(MMI)isownedbyMerryMabbettDean,whoisthemotherofLewisL.
BirdIII,ourChiefExecutiveOfficer.DuringthefiscalyearsendedJanuary28,2017,January30,2016
andJanuary31,2015,Ms.Dean,throughMMI,providedcertaindesignservicestous,includingdesign
forourhomeoffice,aswellasdesigninourstores.Inaddition,throughMMI,wepurchasedcertain
fixtures,furnitureandequipmentthatisnowownedandusedbyusinourhomeoffice,newstoreoffices
orintheproductvignettesinthestores.DuringthefiscalyearendedJanuary28,2017,wepaidMMI
approximately$0.2millionforfixtures,furnitureandequipmentanddesignrelatedservices.Duringeach
ofthefiscalyearsendedJanuary30,2016andJanuary31,2015,wepaidMMIapproximately$0.4
millionforfixtures,furnitureandequipmentanddesignrelatedservices.

9.IncomeTaxes

Ourincometaxprovision(benefit)isasfollows(inthousands):

FiscalYearEnded
January28, January30, January31,
2017 2016 2015
Currentincometaxexpense(benefit)
Federal $ 36,956 $ (1,673) $ 4,552
State 4,756 (178) 1,797

Deferredincometaxexpense(benefit)
Federal (22,261) (11,227) (1,471)
State (3,729) (1,082) (521)
Incometaxprovision(benefit) $ 15,722 $ (14,160) $ 4,357

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NotestoConsolidatedFinancialStatements(Continued)

Deferredtaxassetsandliabilitiesaredeterminedbasedontheestimatedfuturetaxeffectsofthe
differencebetweenthefinancialstatementandtaxbasisofassetandliabilitybalancesusingstatutorytax
rates.Taxeffectsoftemporarydifferencesthatgiverisetosignificantcomponentsofthedeferredtax
assetsandliabilitiesareasfollows(inthousands):

January28, January30,
2017 2016
Deferredtaxassets
Inventory $ 5,968 $ 5,086
Accruals 5,756 4,617
Deferredrent 8,101 5,272
Netoperatinglosses 314 630
Deferredgains 36,778 21,913
Deferredcompensation 8,641 5,062
Prepaidrent 2,742
Other,net 4,597 1,706
Totaldeferredtaxassets 72,897 44,286
Less:Valuationallowance (314) (571)
Deferredtaxassets,netofvaluation 72,583 43,715

Deferredtaxliabilities
Propertyandequipment (29,550) (25,658)
Debtcancellationincome (2,237) (3,313)
Tradename (61) (18)
Totaldeferredtaxliabilities (31,848) (28,989)
Netdeferredtaxasset $ 40,735 $ 14,726

Wearerequiredtoassesstheavailablepositiveandnegativeevidencetoestimateifsufficient
futureincomewillbegeneratedtoutilizedeferredtaxassets.Webelievethecumulativepretaxincomeis
asignificantpieceofpositiveevidencethatallowsustoconsiderothersubjectiveevidencesuchasfuture
forecastedpretaxincome.ForthefiscalyearendedJanuary31,2015,wedeterminedwehadthreeyears
ofcumulativepretaxincomeafterexcludingthe$37.5milliontradenameimpairmentrecognizedduring
thefiscalyear2014,whichweconsidertobeunusualinnaturebecauseitwasaresultofourrebranding
initiative.However,wedidnotbelievethatourthreeyearcumulativepretaxincomepositionwas
positiveevidencethatwecouldconsiderbecauseourrebrandingeffortswerestillintheearlystagesand
wehadnotyetdemonstratedourabilitytoforecastourresultsofoperations.

ForthefiscalyearendedJanuary30,2016,afterexcludingthetradenameimpairment,we
determinedthatwecontinuedtohavethreeyearsofcumulativepretaxincome.Inaddition,taxable
income(loss)exceededpretaxincome(loss)forthefiscalyearendedJanuary30,2016andforeachofthe
twoprecedingfiscalyears.AsofJanuary30,2016,wehadcompletedapproximately18monthsof
operationsfollowingourrebrandinginitiativeaswellasdemonstratedourabilitytomoreaccurately
forecasttheresultsofouroperations.Weconcludedthatbecauseofthispositiveevidence,alongwith
taxableincomeinthepriortwofiscalyearstoabsorblosscarrybacksthatwouldbegeneratedby
reversingdeductibledifferencesinexcessofreversingtaxabledifferences,aswellascumulativepretax
income(exclusiveofthetradenameimpairment)inrecentfiscalyears,itwasmorelikelythannotthatour
deferredtaxassetswouldberealizedinfutureyears.Accordingly,duringfiscalyear2016wereversed
$6.0millionofthevaluationallowanceondeferredtaxassets,withanoffsettingcredittotheprovision
forincometaxes.

ForthefiscalyearendedJanuary28,2017wecontinuedtohavethreeyearsofcumulativepre
taxincome.Inaddition,taxableincome(loss)exceededpretaxincome(loss)forthefiscalyearended
January28,2017andforeachofthetwoprecedingfiscalyears.Weconcludedthatbecauseofthis
positiveevidence,alongwithtaxableincomeinthecarrybackperiodtoabsorblossesthatwouldbe
generatedbyreversingdeductibledifferencesinexcessofreversingtaxabledifferences,aswellas
cumulativepretaxincomeinrecentfiscalyears,itwasmorelikelythannotthatour

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NotestoConsolidatedFinancialStatements(Continued)

deferredtaxassetswouldberealizedinfutureyears.Accordingly,duringfiscalyear2017,wedetermined
novaluationallowance,withtheexceptionofstatenetoperatinglosses,wasrequired.

Ourvaluationallowancestotaled$0.3millionand$0.6millionasofJanuary28,2017and
January30,2016,respectively.Thechangewasmainlyduetoutilizationoflossesincertainjurisdictions.

Wehadapproximately$8.2millionand$15.8millionofstatenetoperatinglosscarryforwardsat
January28,2017andJanuary30,2016,respectively.Thestatenetoperatinglossesbegintoexpirein
fiscalyear2023.Wedeterminedthatthevaluationallowanceforstatenetoperatinglosseswas
appropriateforthefiscalyearsendedJanuary28,2017andJanuary30,2016.

Thereconciliationbetweentheactualincometaxprovision(benefit)andtheincometax
provision(benefit)calculatedatthefederalstatutorytaxrateisasfollows(dollarsinthousands):

FiscalYearEnded
January28, January30, January31,
2017 2016 2015

Incometaxprovision(benefit)atthefederalstatutory
rate $ 14,976 $ (3,705) $ 1,372
Permanentdifferences 625 122 55
Stateincometaxes,netoffederalincometaxeffect 924 (636) 1,276
Changeinunrecognizedtaxbenefits (378) (2,078) 678
Changeinvaluationallowance (257) (6,009) 1,027
Taxcredits (141) (59) (55)
Deferredadjustment (23) (1,632)
Other (4) (163) 4
Incometaxprovision(benefit) $ 15,722 $ (14,160) $ 4,357
Effectivetaxrate 36.7 % 133.8 % 111.1 %

UncertainTaxPositions

Weoperateinanumberoftaxjurisdictionsandaresubjecttoexaminationofitsincometax
returnsbytaxauthoritiesinthosejurisdictionswhomaychallengeanyitemonthesereturns.Becausethe
taxmatterschallengedbytaxauthoritiesaretypicallycomplex,theultimateoutcomeofthesechallenges
isuncertain.InaccordancewithASC740(Topic740,IncomeTaxes),werecognizethebenefitsof
uncertaintaxpositionsinourconsolidatedfinancialstatementsonlyafterdeterminingthatitismore
likelythannotthattheuncertaintaxpositionswillbesustained.

ThetotalamountofunrecognizedtaxbenefitsasofJanuary28,2017was$2.6million,$0.7
millionofwhichwouldfavorablyimpacttheeffectivetaxrateifresolvedinourfavor.

Areconciliationofthebeginningandendingamountofunrecognizedtaxbenefitsisasfollows
(inthousands):

January28, January30,
2017 2016

Balance,beginningofperiod $ 3,076 $ 5,720
Additionsbasedontaxpositionsrelatedtothecurrentyear 233 453
Subtractionsbasedontaxpositionsrelatedtotheprioryear (563) (2,425)
Settlements (69)
Expirationofstatuteoflimitations (193) (603)
Balance,endofperiod $ 2,553 $ 3,076

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ATHOMEGROUPINC.
NotestoConsolidatedFinancialStatements(Continued)

Werecognizeaccruedinterestandpenaltiesrelatedtounrecognizedtaxbenefitsinourprovision
forincometaxes.AsofJanuary28,2017andJanuary30,2016,therewasapproximately$0.1millionin
accruedpenalties.AsofJanuary28,2017andJanuary30,2016,therewasapproximately$0.2millionin
accruedinterest.Inaddition,werecognizedanimmaterialamountofinterestexpenseandpenalties
duringthefiscalyearendedJanuary28,2017andwereleasedapproximately$0.1millionininterest
expenseduringthefiscalyearendedJanuary30,2016.

Inthenormalcourseofbusiness,wearesubjecttoexaminationbytaxingauthoritiesinU.S.
FederalandU.S.statejurisdictions.Theperiodsubjecttoexaminationforourfederalreturnisfiscalyear
2014andlatersinceallprioryearshavebeenauditedwithnochangesandfiscalyear2013andlaterfor
allmajorstatetaxreturns.Webelievethatanadequateprovisionhasbeenmadeforanyadjustmentsthat
mayresultfromtaxexaminations.However,theoutcomeoftaxauditscannotbepredictedwithcertainty.
Ifanyissuesaddressedinourtaxauditsareresolvedinamannernotconsistentwithmanagement's
expectations,wecouldberequiredtoadjusttheprovisionforincometaxintheperiodsuchresolution
occurs.

10.CommitmentsandContingencies

Leases

Weleasespaceforcertainofourretailproperties,ourdistributioncenterandcorporateoffice
pursuanttoleasesthatexpireatvariousdatesthrough2036.Anumberoftheleaseshaverenewaloptions
forvariousperiodsoftimeatourdiscretion.Wearetypicallyresponsiblefortaxes,utilities,insurance,
repairsandmaintenancefortheseretailproperties.Certainleasesrequirethepaymentofcontingentrent
basedonaspecifiedpercentageofstores'grosssales,asdefinedintheleaseagreement,andaresubjectto
certainlimitations.Animmaterialamountofcontingentrentwaspaidduringthefiscalyearsended
January28,2017andJanuary30,2016andnocontingentrentwasrequiredtobepaidforthefiscalyear
endedJanuary31,2015.RentexpenseforthefiscalyearsendedJanuary28,2017,January30,2016and
January31,2015totaledapproximately$68.1million,$52.3millionand$42.9million,respectively.

Futureminimumannualrentalcommitmentsforallleasesareasfollows(inthousands):

Capital Operating Financing

Leases Leases Obligations Total

2018 $ 623 $ 70,840 $ 1,916 $ 73,379
2019 1,068 72,685 1,931 75,684
2020 7,445 71,199 1,946 80,590
2021 68,232 1,974 70,206
2022 66,597 2,008 68,605
Thereafter 577,490 9,150 586,640
Totalminimumleasepayments $ 9,136 $ 927,043 $ 18,925 $ 955,104
Lessamountrepresentinginterest (506)
Presentvalueofminimumleasepayments $ 8,630

MinimumfutureannualrentreceivableunderoperatingsubleasesasofJanuary28,2017is
approximately$0.2million.Leaserentalincomewasapproximately$0.2millionforeachofthefiscal
yearsendedJanuary28,2017,January30,2016,andJanuary31,2015.

Litigation

Wearesubjecttoclaimsandlawsuitsthatariseprimarilyintheordinarycourseofbusiness.Itis
theopinionofmanagementthatthedispositionorultimateresolutionofsuchclaimsandlawsuitswillnot
haveamaterialadverseeffectonourconsolidatedfinancialposition,resultsofoperationsorliquidity.

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ATHOMEGROUPINC.
NotestoConsolidatedFinancialStatements(Continued)

11.EmployeeBenefitPlan

EffectiveOctober1,2014,wesponsora401(k)SavingsPlanforeligibleemployees.
Participationinthe401(k)SavingsPlanisvoluntaryandavailabletoanyemployeewhoisatleast18
yearsofageandhascompletedsixmonthsofservice.Participantsmayelecttocontributeupto100%of
theircompensationonapretaxbasissubjecttoInternalRevenueService(IRS)limitations.In
accordancewiththeprovisionsofthe401(k)SavingsPlan,wemakeasafeharbormatchingcash
contributiontotheaccountofeachparticipantinanamountequalto100%oftheparticipant'spretax
contributionsthatdonotexceed3%oftheparticipant'sconsideredannualcompensationplus50%ofthe
participant'spretaxcontributionsbetween3%and5%oftheparticipant'sconsideredannual
compensation,whicharealsosubjecttoregulatorylimits.Matchingcontributions,andanyactual
earningsthereon,vesttotheparticipantsimmediately.Ourmatchingcontributionexpenseswere$0.8
million,$0.5millionand$0.2millionforthefiscalyearsendedJanuary28,2017,January30,2016and
January31,2015,respectively.

12.CapitalStock

OnJuly22,2016,ourboardofdirectorsapproveda128.157393foronestocksplitofits
existingClassAcommonstock,ClassBcommonstockandClassCcommonstockandtheconversionof
suchClassAcommonstock,ClassBcommonstockandClassCcommonstockintoasingleclassof
commonstock.Allhistoricalshareandpershareinformationhasbeenretroactivelyadjustedtoreflectthe
stocksplitandconversion.EffectiveJuly22,2016,ourtotalauthorizedsharecapitaliscomprisedof
500,000,000sharesofcommonstockand50,000,000sharesofpreferredstock.

OnAugust3,2016,ourRegistrationStatementonFormS1relatingtoourinitialpublicoffering
wasdeclaredeffectivebytheSECpursuanttowhichweissuedandsold8,667,000ofthesharesregistered
atapriceof$15.00pershareonAugust9,2016.

OnSeptember8,2016,weissuedandsoldafurther863,041sharesofourcommonstockata
priceof$15.00persharepursuanttotheunderwriterspartialexerciseoftheoverallotmentoption.

AsofJanuary28,2017,wehad500,000,000sharesofcommonstockauthorizedwithaparvalue
of$0.01,ofwhich60,366,768wereissuedandoutstanding.Additionally,asofJanuary28,2017,wehad
50,000,000sharesofpreferredstockauthorizedwithaparvalueof$0.01,ofwhichnoshareswereissued
andoutstanding.

13.EarningsPerShare

InaccordancewithASC260,(Topic260,EarningsPerShare),basicearningspershareis
computedbydividingnetincome(loss)availabletocommonstockholdersbytheweightedaverage
numberofcommonsharesoutstandingfortheperiod.Dilutedearningspershareiscomputedbydividing
netincome(loss)availabletocommonstockholdersbytheweightedaveragesharesoutstandingforthe
periodandincludethedilutiveimpactofpotentialsharesfromtheexerciseofstockoptions.Potentially
dilutivesecuritiesareexcludedfromthecomputationofdilutednetincome(loss)pershareiftheireffect
isantidilutive.

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ATHOMEGROUPINC.
NotestoConsolidatedFinancialStatements(Continued)

Thefollowingtablesetsforththecalculationofbasicanddilutedearningspershareasfollows
(dollarsinthousands,exceptshareandpersharedata):

FiscalYearEnded
January28,2017January30,2016January31,2015
Numerator:
Netincome(loss) $ 27,066 $ 3,574 $ (436)

Denominator:
Weightedaveragecommonshares
outstandingbasic 55,414,037 50,836,727 50,836,727
Effectofdilutivesecurities:
Stockoptions 1,478,146 896,025
Weightedaveragecommonshares
outstandingdiluted 56,892,183 51,732,752 50,836,727

Percommonshare:
Basicnetincome(loss)per
commonshare $ 0.49 $ 0.07 $ (0.01)
Dilutednetincome(loss)per
commonshare $ 0.48 $ 0.07 $ (0.01)

ForthefiscalyearsendedJanuary28,2017,January30,2016andJanuary31,2015,
approximately1,514,168,2,900,239and4,514,194,respectively,ofstockoptionswereexcludedfromthe
calculationofdilutednetincome(loss)percommonsharesincetheireffectwasantidilutive.

14.StockBasedCompensation

WeaccountforstockbasedcompensationinaccordancewithASC718(Topic718,
CompensationStockCompensation),whichrequiresallstockbasedpaymentstoemployees,
includinggrantsofemployeestockoptions,toberecognizedintheconsolidatedfinancialstatements
overtherequisiteserviceperiod.Compensationexpensebaseduponthefairvalueofawardsisrecognized
onastraightlinebasis,overtherequisiteserviceperiodforawardsthatactuallyvest.Stockbased
compensationexpenseisrecordedinselling,generalandadministrativeexpensesintheconsolidated
statementsofoperations.

Wehavetwoequitycompensationplans(theEquityPlans)underwhichwegrantequity
awards:theGRDHoldingICorporationStockOptionPlan,asmaybeamendedfromtimetotime(the
2012OptionPlan),andtheAtHomeGroupInc.EquityIncentivePlan,whichwassubsequently
amendedandrestatedandapprovedbytheBoardinJuly2016(the2016EquityPlan).Pursuanttothe
2012OptionPlan,wehave5,648,525sharesofcommonstockreservedfortheissuanceofoptionsto
purchaseshares.Anysharesissuedunderthe2012OptionPlanthatexpire,arecancelled,orotherwise
terminatewithoutissuanceofthesharesshallagainbeavailableforissuance.AtJanuary28,2017,there
werenosharesavailableforfuturegrantunderthe2012OptionPlan.

InSeptember2015,weadoptedthe2016EquityPlan,whichwassubsequentlyamendedand
restatedandapprovedbytheBoardinJuly2016.Underthe2016EquityPlan,equityawardsmaybe
madeforupto6,196,755sharesofourcommonstock.Subjecttoanyadjustmentasprovidedinthe2016
Plan,(i)upto2,478,702shares(theIPOBonusPool)wereissuablepursuanttoawardsgrantedunder
the2016EquityPlantoseniorexecutivesoftheCompanyinconnectionwiththeconsummationofour
initialpublicofferingand(ii)upto3,718,053sharesmaybeissuedpursuanttoawardsgrantedunderthe
2016EquityPlan(otherthantheIPOBonusPool)(the"PostIPOSharePool").AtJanuary28,2017,there
were3,764,139sharesavailableforfuturegrantunderthe2016Plan.

OnAugust3,2016,wemadeaspecialonetimeinitialpublicofferingtransactionbonusgrantof
2,478,702optionstocertainmembersofourseniormanagementteamunderthe2016EquityPlan(the
IPOGrant).OnAugust3,

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ATHOMEGROUPINC.
NotestoConsolidatedFinancialStatements(Continued)

2016wealsograntedtooneemployeeanoptiontopurchase28,326sharesofcommonstockunderthe
2012OptionPlanattheinitialpublicofferingprice.

Optionawardsaregrantedwithanexercisepriceequaltothefairmarketvalueofourcommon
stockatthedateofgrant.Optionawardsunderthe2012OptionPlansgenerallyvestbasedonfouryears
ofcontinuousserviceandhave10yearcontractualterms.TheIPOGrantissubjecttomarketconditions
inwhichvestingoccursiftheclosingpriceoftheCompanyscommonstockachievesthepreestablished
targetsatanytimeduringthespecifiedperformanceperiodofsevenyearsfromthedateofthegrantand
exceedsthetargetsfortwentyconsecutivetradingdays,disregardingthesixmonthperiodimmediately
followingAugust3,2016.Certainoptionandshareawardsprovideforacceleratedvestingifthereisa
changeincontrol(asdefinedintheEquityPlans).

WedeterminedthefairvalueoftheIPOGrantsubjecttomarketconditionsusingaMonteCarlo
simulationmethod.TheIPOGranthadagrantdatefairvalueofapproximately$20.0million,whichwill
beincrementaltoourongoingstockbasedcompensationexpense.Thestockbasedcompensation
expensefortheIPOGrantwillbeexpensedoverthederivedserviceperiod,whichbeganinthethird
fiscalquarter2017andwillcontinuethroughthefollowingeightquarters.

WeestimatethefairvalueofeachserviceconditionstockoptiongrantundertheEquityPlanson
thedateofgrantbasedupontheBlackScholesoptionpricingmodelwhichincludesthefollowing
variables:1)exercisepriceoftheinstrument,2)fairmarketvalueoftheunderlyingstockondateofgrant,
3)expectedterm,4)expectedvolatilityand5)theriskfreeinterestrate.Weutilizedthefollowing
assumptionsinestimatingthefairvalueoftheoptiongrants:

January28, January30, January31,
2017 2016 2015

Weightedaverageexpectedvolatility 57.7 % 40.5 % 39.0 %
Expecteddividendyield % % %
Weightedaverageexpectedterm(inyears) 4.0 4.0 4.0
Weightedaverageriskfreeinterestrate 2.3 % 1.1 % 1.3 %

AsummaryofoptionactivityundertheEquityPlansasofJanuary28,2017,andchangesduring
thefiscalyearthenended,ispresentedbelow:

Weighted
Weighted Average
Average Remaining
Exercise Contractual
Options Price Term

Outstanding,beginningofyear 5,620,199 $ 10.18
Granted 2,672,996 15.04
Exercised
Forfeitedorexpired (212,054) 16.36
Outstanding,endofyear 8,081,141 $ 11.63 6.40years
Exercisable,endofyear 4,618,130 $ 9.86 6.14years

Werecognizedstockbasedcompensationexpenserelatedtostockoptionsofapproximately
$9.4million,$4.7millionand$4.3millionduringthefiscalyearsendedJanuary28,2017,January30,
2016andJanuary31,2015,respectively.

AsofJanuary28,2017,therewasapproximately$16.7millionoftotalunrecognized
compensationexpenserelatedtononvestedsharebasedcompensationarrangementsgrantedunderthe
Plansthatisexpectedtoberecognizedoveraweightedaverageperiodof1.29years,whichincludes
$13.7millionofremainingunrecognizedcompensation

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ATHOMEGROUPINC.
NotestoConsolidatedFinancialStatements(Continued)

expenseassociatedwiththeIPOgranttocertainmembersofourseniormanagementinconnectionwith
ourinitialpublicoffering.

15.QuarterlyResultsofOperations(Unaudited)

UnauditedquarterlyresultsofoperationsforthefiscalyearsendedJanuary28,2017andJanuary
30,2016wereasfollows(inthousands,exceptpersharedata):

FiscalYear2017
FirstQuarter SecondQuarter ThirdQuarter FourthQuarter

Netsales $ 172,079 $ 188,364 $ 170,678 $ 234,514
Grossprofit(1) 58,306 62,050 51,395 75,730
Operatingincome 19,970 18,908 4,533 29,266
Lossonextinguishmentofdebt 2,715
Netincome(loss) 7,326 6,338 (1,856) 15,258
Basicnetincome(loss)percommon
share(1) 0.14 0.12 (0.03) 0.25
Dilutednetincome(loss)percommon
share $ 0.14 $ 0.12 $ (0.03) $ 0.25

FiscalYear2016
FirstQuarter SecondQuarter ThirdQuarter FourthQuarter

Netsales $ 141,217 $ 156,007 $ 139,431 $ 185,506
Grossprofit 47,305 52,772 41,438 58,896
Operatingincome 16,898 20,951 4,638 19,732
Lossonextinguishmentofdebt 36,046
Netincome(loss) 1,768 (46,110) (10,857) 58,773
Basicnetincome(loss)percommon
share 0.03 (0.91) (0.21) 1.16
Dilutednetincome(loss)percommon
share(1) $ 0.03 $ (0.91) $ (0.21) $ 1.12

(1) Thesumofthequartersdoesnotequalthetotalfiscalyearduetorounding.

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ScheduleICondensedFinancialInformationofRegistrant
ATHOMEGROUPINC.(parentcompanyonly)
CondensedBalanceSheets
(inthousands,exceptshareandpersharedata)

January28,2017 January30,2016
Assets
Currentassets:
Receivablefromsubsidiaries $ 7,265 $
Othercurrentassets 2,218
Totalcurrentassets 7,265 2,218
Investmentinsubsidiaries 534,870 369,153
Totalassets $ 542,135 $ 371,371
LiabilitiesandShareholders'Equity
Currentliabilities:
Incometaxespayable $ 7,265 $
Payabletosubsidiaries 2,218
Totalcurrentliabilities 7,265 2,218
Noncurrentliabilities
Totalliabilities 7,265 2,218
Shareholders'Equity
Commonstock$0.01parvalue500,000,000
sharesauthorized60,366,768and50,836,727
sharesissuedandoutstanding,respectively 604 508
Additionalpaidincapital 548,301 409,746
Accumulateddeficit (14,035) (41,101)
Totalshareholders'equity 534,870 369,153
Totalliabilitiesandshareholders'equity $ 542,135 $ 371,371

SeeNotestoCondensedFinancialStatements.

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ScheduleICondensedFinancialInformationofRegistrant
ATHOMEGROUPINC.(parentcompanyonly)
CondensedStatementofOperations
(inthousands)

FiscalYearEnded
January28,2017 January30,2016 January31,2015

Netsales $ $ $
Costofsales
Grossprofit

Operatingexpenses
Selling,generalandadministrative
expenses
Depreciationandamortization
Totaloperatingexpenses

Operatingincome
Interestexpense,net
Incomebeforeincometaxes
Incometaxprovision
Incomebeforeequityinnetincomeof
subsidiaries
Netincome(loss)fromsubsidiaries 27,066 3,574 (436)
Netincome(loss) $ 27,066 $ 3,574 $ (436)

SeeNotestoCondensedFinancialStatements.

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ScheduleICondensedFinancialInformationofRegistrant
ATHOMEGROUPINC.(parentcompanyonly)
NotestoCondensedFinancialStatements
1.BasisofPresentation

Intheparentcompanyonlyfinancialstatements,AtHomeGroupInc.'s(Parent)investmentin
subsidiariesisstatedatcostplusequityinundistributedearningsofsubsidiariessincethedateof
acquisition.Theparentcompanyonlyfinancialstatementsshouldbereadinconjunctionwiththe
Company'sconsolidatedfinancialstatements.Acondensedstatementofcashflowswasnotpresented
becauseAtHomeGroupInc.'snetoperatingactivitieshavenocashimpactandtherewerenoinvestingor
financingcashflowactivitiesduringthefiscalyearsendedJanuary28,2017,January30,2016and
January31,2015.

2.GuaranteesandRestrictions

AtHomeHoldingIIIInc.(AtHomeIII),asubsidiaryoftheParent,issued$360.0millionin
aggregateprincipalamountofSeniorSecuredNotesonMay16,2012pursuanttotheIndenture.Under
thetermsoftheIndenture,theSeniorSecuredNoteswerefullyandunconditionallyguaranteed,jointly
andseverally,onaseniorsecuredbasisbyeachofAtHomeIII'sexistingandfuturedomesticrestricted
subsidiaries(otherthancertainimmaterialsubsidiaries)thatarewhollyownedorguaranteeanyofAt
HomeIII'soritsguarantors'indebtedness.IntheeventofadefaultundertheIndenture,AtHomeGroupIII
anditsguaranteeingsubsidiariesweredirectlyliabletotheholdersoftheSeniorSecuredNotes.The
SeniorSecuredNoteswerescheduledtomatureonJune1,2019.TheIndenturecontainedcovenants
limiting,amongotherthings,AtHomeIII'sabilityandtheabilityofitsrestrictedsubsidiariestoincur
additionaldebt,paydividendsordistributionsonitscapitalstocktoanydirectorindirectparent
company(includingParent)orrepurchaseitscapitalstock,issuestockofsubsidiaries,makecertain
investments,createliensonitsassetstosecuredebt,enterintotransactionswithaffiliates,mergeor
consolidatewithanothercompanyorsellorotherwisetransferassets,ineachcasesubjecttocertain
exceptions.UndertheIndenture,AtHomeIIIwaspermittedtopaydividendstoanydirectorindirect
parentcompany(includingParent)(a)uptoanamountequalto(i)abasketthatbuildsbasedon50%of
AtHomeIII'sConsolidatedNetIncome(asdefinedintheIndenture)andcertainotheramounts,subjectto
variousconditionsincludingcompliancewithafixedchargecoverageratioof2.0to1.0,plus(ii)$10
millionand(b)incertainadditionallimitedamounts,subjecttocertainlimitedexceptions.OnJune5,
2015,AtHomeIIIcompletedtheredemptionoftheSeniorSecuredNotesatapriceequalto108.063%for
totalcashconsiderationof$389.4million,whichincludesa$29.0millionearlyredemptionpremiumand
$0.4millionofaccruedinterest.

AtHomeIIIanditsindirectwhollyownedsubsidiary,AtHomeStoresLLC,arecoborrowers(in
suchcapacities,theABLBorrowers)undertheABLFacility.TheABLBorrowershave$108.4million
ofavailablecreditundertheABLFacilitywhichprovidescommitmentsofupto$215.0millionfor
revolvingloansandlettersofcredit,asofJanuary28,2017.AtHomeHoldingIIInc.(Holdings),the
directparentofAtHomeIII,anditsdirectandindirectdomesticsubsidiaries(otherthantheABL
Borrowersandcertainimmaterialsubsidiaries)(theABLSubsidiaryGuarantorsand,togetherwith
Holdings,theABLGuarantors)haveguaranteedallobligationsoftheABLBorrowersundertheABL
Facility.IntheeventofadefaultundertheABLFacility,theABLBorrowersandtheGuarantorswillbe
directlyliabletothelendersundertheABLFacility.TheABLFacility,whichmaturesonJuly28,2019,
includesrestrictionsontheabilityofABLBorrowersandABLSubsidiaryGuarantorstoincuradditional
liensandindebtedness,makeinvestmentsanddispositions,paydividendstoHoldingsorenterintoother
transactions,amongotherrestrictions,ineachcasesubjecttocertainexceptions.UndertheABLFacility,
theABLBorrowersandtheABLSubsidiaryGuarantorsarepermittedtopaydividendstoHoldings,(a)so
longasaftergivingeffecttosuchpayment,(i)availabilityisequaltoorgreaterthan15%oftheloancap
(i.e.,thelesserof(x)theaggregatelendercommitmentsundertheABLFacilityand(y)theborrowing
base)and(ii)ifavailabilityislessthan20%oftheloancap,theconsolidatedfixedchargecoverageratio
isequaltoorgreaterthan1.0to1.0,and(b)pursuanttocertainotherlimitedexceptions.

OnJune5,2015,ourindirectwhollyownedsubsidiary,AtHomeHoldingIIIInc.(Borrower),
enteredintoafirstliencreditagreement(theFirstLienAgreement),byandamongtheBorrower,At
HomeHoldingIIInc.(AtHomeII),adirectwhollyownedsubsidiaryofours,asguarantor,various
lendersandBankofAmerica,N.A.,asadministrativeagentandcollateralagent.TheFirstLien
Agreementprovidesfora$300.0milliontermloan(Term

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ScheduleICondensedFinancialInformationofRegistrant
ATHOMEGROUPINC.(parentcompanyonly)
NotestoCondensedFinancialStatements(Continued)

Loan),whichamountwasborrowedonJune5,2015.TheTermLoanwillmatureonJune3,2022,andis
repayableinequalquarterlyinstallmentsofapproximately$0.8millionforanannualaggregateamount
equalto1%oftheoriginalprincipalamountof$300.0million.TheBorrowerhastheoptionofpaying
interestona1month,2monthorquarterlybasisontheTermLoanatanannualrateofLIBOR(subjectto
a1%floor)plus4.00%,subjectto,afteraqualifyinginitialpublicoffering,a0.50%reductionifa
specifiedsecurednetleverageratiolevelismet,whichwasmetsubsequenttoourinitialpublicoffering
forthefiscalyearendedJanuary28,2017.

OnJune5,2015,theBorroweralsoenteredintoasecondliencreditagreement(theSecond
LienAgreement),byandamongtheBorrower,AtHomeIIandDynastyFinancialII,LLC,as
administrativeagent,collateralagentandlender.TheSecondLienAgreementprovidedfortheSecond
LienTermLoan(togetherwiththeTermLoan,theTermLoanFacilities),whichamountwasborrowed
onJune5,2015.TheSecondLienTermLoanhadamaturitydateofJune5,2023anddidnotrequire
periodicprincipalpayments,withthetotalamountoutstanding,plusaccruedinterest,dueatmaturity.The
Borrowerhadtheoptionofpayinginterestona1month,2monthorquarterlybasisontheSecondLien
TermLoanatanannualrateofLIBOR(subjecttoa1%floor)plus8.00%.

TheTermLoanFacilitiesincluderestrictionsontheabilityoftheBorroweranditsrestricted
subsidiariestoincuradditionalliensandindebtedness,makeinvestmentsanddispositions,paydividends
toHoldingsorenterintoothertransactions,amongotherrestrictions,ineachcasesubjecttocertain
exceptions.UndertheTermLoanFacilities,theBorrowerispermittedtopaydividendstoHoldings(a)up
toanamountequalto,solongasimmediatelyaftergivingeffectthereto,nodefaultoreventofdefaulthas
occurredandiscontinuing,(i)(x)$10millionundertheFirstLienTermFacilityor(y)$11.5million
undertheSecondLienTermFacility,plus(ii)abasketthatbuildsbasedon(x)$30millionundertheFirst
LienTermFacilityor(y)$34.5millionundertheSecondLienTermFacility,plus50%oftheBorrower's
anditsrestrictedsubsidiaries'ConsolidatedNetIncome(asdefinedintheTermLoanFacilities)and
certainotheramounts,subjecttovariousconditionsincludingcompliancewithaminimumcashinterest
coverageratioof2.0to1.0,plus(iii)anunlimitedamount,subjecttoproformacompliancewitha3.0to
1.0totalleverageratioand(b)incertainadditionallimitedamounts,subjecttocertainlimitedexceptions.

TheBorrowerusedthenetproceedsfromtheTermLoanFacilities(i)toeffecttherefinancingof
alloutstandingindebtednessunderthe$360.0millionaggregateprincipalamountof10.75%senior
securednotesmaturingonJune1,2019(theSeniorSecuredNotes),(ii)topayfeesandexpensesin
connectionwithTermLoanFacilitiesandtheredemptionoftheSeniorSecuredNotes,(iii)torepay
certainamountsoutstandingundertheABLFacility,and(iv)forgeneralcorporatepurposes.

OnAugust3,2016,ourRegistrationStatementonFormS1relatingtoourinitialpublicoffering
wasdeclaredeffectivebytheSECpursuanttowhichweregisteredanaggregateof9,967,050sharesof
ourcommonstock(including1,300,050sharessubjecttotheunderwriters'overallotmentoption).We
issuedandsold8,667,000ofthesharesregisteredatapriceof$15.00pershareonAugust9,2016,
resultinginnetproceedsof$120.9millionafterdeductingunderwriters'discountsandcommissionsof
$9.1million.Wealsoincurredofferingexpensesof$6.0millioninconnectionwiththeinitialpublic
offering,whichareincludedinadditionalpaidincapitalintheconsolidatedbalancesheetasofJanuary
28,2017.

OnSeptember8,2016,weissuedandsoldafurther863,041sharesofourcommonstock
pursuanttotheunderwriterspartialexerciseoftheoverallotmentoption.Thisexerciseoftheover
allotmentoptionresultedinnetproceedstousof$12.0millionafterdeductingunderwritersdiscounts
andcommissionsof$0.9million.

DuringthefiscalyearendedJanuary28,2017,weusedthenetproceedsfromourinitialpublic
offeringandtheexerciseoftheoverallotmentoption,afterdeductingunderwritersdiscountsand
commissions,torepayinfullthe$130.0millionofprincipalamountofindebtednessoutstandingunder
theSecondLienTermLoan.Therepaymentresultedinalossonextinguishmentofdebtintheamountof
$2.7million.

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INDEXTOEXHIBITS

(a)Exhibits

Thefollowingexhibitsarefiledorfurnishedasapartofthisreport:

ExhibitNo. ExhibitDescription
3.1 SecondAmendedandRestatedCertificateofIncorporationoftheCompany(incorporated
byreferencetoExhibit3.1toAmendmentNo.6totheRegistrant'sRegistrationStatement
onFormS1filedonJuly25,2016(FileNo.333206772)).

3.2 AmendedandRestatedBylawsoftheCompany(incorporatedbyreferencetoExhibit3.2to
AmendmentNo.6totheRegistrant'sRegistrationStatementonFormS1filedonJuly25,
2016(FileNo.333206772)).

4.1 SpecimenCommonStockCertificateoftheCompany(incorporatedbyreferencetoExhibit
4.1toAmendmentNo.6totheRegistrant'sRegistrationStatementonFormS1filedon
July25,2016(FileNo.333206772)).

4.2 SecondAmendedandRestatedStockholdersAgreement,datedasofJuly22,2016,among
AtHomeGroupInc.,StarrInvestmentFundII,LLC,SPHGRDHoldings,LLC,GRD
HoldingLP,GRDHoldingAEALLCandGRDHoldingALP(incorporatedbyreference
toExhibit4.2toAmendmentNo.6totheRegistrant'sRegistrationStatementonFormS1
filedonJuly25,2016(FileNo.333206772)).

4.3 RegistrationRightsAgreement,datedasofJuly22,2016,amongAtHomeGroupInc.,
StarrInvestmentFundII,LLC,SPHGRDHoldings,LLC,GRDHoldingLP,GRDHolding
AEALLCandGRDHoldingALP(incorporatedbyreferencetoExhibit4.3to
AmendmentNo.6totheRegistrant'sRegistrationStatementonFormS1filedonJuly25,
2016(FileNo.333206772)).

10.1 SeniorSecuredAssetBasedRevolvingCreditFacility,datedOctober5,2011,byand
amongAtHomeHoldingIIIInc.andAtHomeStoresLLC,withAtHomeHoldingIIInc.
asparentguarantor,certainofAtHomeHoldingIIInc.sindirectwhollyowneddomestic
subsidiariesassubsidiaryguarantors,thelenderspartytheretoandBankofAmerica,N.A.,
asadministrativeagentandcollateralagent(incorporatedbyreferencetoExhibit10.1to
AmendmentNo.1totheRegistrant'sRegistrationStatementonFormS1filedon
September25,2015(FileNo.333206772)).

10.1.1 FirstAmendmenttoCreditAgreement,datedMay9,2012,byandamongAtHome
HoldingIIIInc.andAtHomeStoresLLC,withAtHomeHoldingIIInc.asparent
guarantor,certainofAtHomeHoldingIIInc.sindirectwhollyowneddomestic
subsidiariesassubsidiaryguarantors,thelenderspartytheretoandBankofAmerica,N.A.,
asadministrativeagentandcollateralagent(incorporatedbyreferencetoExhibit10.1.1to
AmendmentNo.1totheRegistrant'sRegistrationStatementonFormS1filedon
September25,2015(FileNo.333206772)).

10.1.2 SecondAmendmenttoCreditAgreement,datedMay23,2013,byandamongAtHome
HoldingIIIInc.andAtHomeStoresLLC,withAtHomeHoldingIIInc.asparent
guarantor,certainofAtHomeHoldingIIInc.sindirectwhollyowneddomestic
subsidiariesassubsidiaryguarantors,thelenderspartytheretoandBankofAmerica,N.A.,
asadministrativeagentandcollateralagent(incorporatedbyreferencetoExhibit10.1.2to
AmendmentNo.1totheRegistrant'sRegistrationStatementonFormS1filedon
September25,2015(FileNo.333206772)).

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ExhibitNo. ExhibitDescription
10.1.3 ThirdAmendmenttoCreditAgreement,datedJuly28,2014,byandamongAtHome
HoldingIIIInc.andAtHomeStoresLLC,withAtHomeHoldingIIInc.asparent
guarantor,certainofAtHomeHoldingIIInc.sindirectwhollyowneddomestic
subsidiariesassubsidiaryguarantors,thelenderspartytheretoandBankofAmerica,N.A.,
asadministrativeagentandcollateralagent(incorporatedbyreferencetoExhibit10.1.3to
AmendmentNo.1totheRegistrant'sRegistrationStatementonFormS1filedon
September25,2015(FileNo.333206772)).

10.1.4 AssumptionandRatificationAgreement,datedSeptember29,2014,byandamongAt
HomeHoldingIIIInc.andAtHomeStoresLLC,withAtHomeHoldingIIInc.asparent
guarantor,certainofAtHomeHoldingIIInc.sindirectwhollyowneddomestic
subsidiariesassubsidiaryguarantors,thelenderspartytheretoandBankofAmerica,N.A.,
asadministrativeagentandcollateralagent(incorporatedbyreferencetoExhibit10.1.4to
AmendmentNo.1totheRegistrant'sRegistrationStatementonFormS1filedon
September25,2015(FileNo.333206772)).

10.1.5 FourthAmendmenttoCreditAgreement,datedJune5,2015,byandamongAtHome
HoldingIIIInc.andAtHomeStoresLLC,withAtHomeHoldingIIInc.asparent
guarantor,certainofAtHomeHoldingIIInc.sindirectwhollyowneddomestic
subsidiariesassubsidiaryguarantors,thelenderspartytheretoandBankofAmerica,N.A.,
asadministrativeagentandcollateralagent(incorporatedbyreferencetoExhibit10.1.5to
AmendmentNo.1totheRegistrant'sRegistrationStatementonFormS1filedon
September25,2015(FileNo.333206772)).

10.1.6 FifthAmendmenttoCreditAgreement,datedJune15,2016,byandamongAtHome
HoldingIIIInc.andAtHomeStoresLLC,withAtHomeHoldingIIInc.asparent
guarantor,certainofAtHomeHoldingIIInc.sindirectwhollyowneddomestic
subsidiariesassubsidiaryguarantors,thelenderspartytheretoandBankofAmericaN.A.,
asadministrativeagentandcollateralagent(incorporatedbyreferencetoExhibit10.1.6to
AmendmentNo.6totheRegistrant'sRegistrationStatementonFormS1filedonJuly25,
2016(FileNo.333206772)).

10.2 SeniorSecuredTermloanFacility,datedJune5,2015,byandbetweenAtHomeHolding
IIIInc.,withAtHomeHoldingIIInc.asparentguarantor,certainofAtHomeHolding
IIInc.sindirectwhollyowneddomesticsubsidiariesassubsidiaryguarantors,thelenders
partytheretoandBankofAmerica,N.A.,asadministrativeagentandcollateralagent
(incorporatedbyreferencetoExhibit10.2toAmendmentNo.1totheRegistrant's
RegistrationStatementonFormS1filedonSeptember25,2015(FileNo.333206772)).

10.4 EmploymentAgreementbyandbetweenGardenRidgeCorporation,AtHomeGroupInc.
(f/k/aGRDHoldingICorporation)andLewisL.BirdIII,datedasofNovember15,2012
(incorporatedbyreferencetoExhibit10.4toAmendmentNo.1totheRegistrant's
RegistrationStatementonFormS1filedonSeptember25,2015(FileNo.333206772)).

10.4.1 AmendmenttoEmploymentAgreementbyandbetweenGardenRidgeCorporation,At
HomeGroupInc.(f/k/aGRDHoldingICorporation)andLewisL.BirdIII,datedasof
November1,2013(incorporatedbyreferencetoExhibit10.4.1toAmendmentNo.1tothe
Registrant'sRegistrationStatementonFormS1filedonSeptember25,2015(FileNo.333
206772)).

10.5 EmploymentAgreementbyandbetweenGardenRidgeCorporation,AtHomeGroupInc.
(f/k/aGRDHoldingICorporation)andJuddT.Nystrom,datedasofJanuary25,2013
(incorporatedbyreferencetoExhibit10.5toAmendmentNo.1totheRegistrant's
RegistrationStatementonFormS1filedonSeptember25,2015(FileNo.333206772)).

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ExhibitNo. ExhibitDescription
10.5.1 AmendmenttoEmploymentAgreementbyandbetweenGardenRidgeCorporation,At
HomeGroupInc.(f/k/aGRDHoldingICorporation)andJuddT.Nystrom,datedasof
November1,2013(incorporatedbyreferencetoExhibit10.5.1toAmendmentNo.1tothe
Registrant'sRegistrationStatementonFormS1filedonSeptember25,2015(FileNo.333
206772)).

10.6 EmploymentAgreementbyandbetweenGardenRidgeCorporation,AtHomeGroupInc.
(f/k/aGRDHoldingICorporation)andPeterS.G.Corsa,datedasofFebruary2,2013
(incorporatedbyreferencetoExhibit10.6toAmendmentNo.1totheRegistrant's
RegistrationStatementonFormS1filedonSeptember25,2015(FileNo.333206772)).

10.6.1 AmendmenttoEmploymentAgreementbyandbetweenGardenRidgeCorporation,At
HomeGroupInc.(f/k/aGRDHoldingICorporation)andPeterS.G.Corsa,datedasof
November1,2013(incorporatedbyreferencetoExhibit10.6.1toAmendmentNo.1tothe
Registrant'sRegistrationStatementonFormS1filedonSeptember25,2015(FileNo.333
206772)).

10.7 AtHomeGroupInc.(f/k/aGRDHoldingICorporation)StockOptionPlan,effectiveasof
November12,2012(incorporatedbyreferencetoExhibit10.7toAmendmentNo.1tothe
Registrant'sRegistrationStatementonFormS1filedonSeptember25,2015(FileNo.333
206772)).

10.8 NonqualifiedStockOptionAgreementbyandbetweenAtHomeGroupInc.(f/k/aGRD
HoldingICorporation)andLewisL.BirdIII,datedasofNovember26,2012(incorporated
byreferencetoExhibit10.8toAmendmentNo.1totheRegistrant'sRegistrationStatement
onFormS1filedonSeptember25,2015(FileNo.333206772)).

10.8.1 LetterAgreementbyandbetweenAtHomeGroupInc.(f/k/aGRDHoldingICorporation)
andLewisL.BirdIII,datedasofNovember26,2012(incorporatedbyreferencetoExhibit
10.8.1toAmendmentNo.1totheRegistrant'sRegistrationStatementonFormS1filedon
September25,2015(FileNo.333206772)).

10.8.2 AmendmenttoNonqualifiedStockOptionAgreementbyandbetweenAtHomeGroup
Inc.(f/k/aGRDHoldingICorporation)andLewisL.BirdIII,datedasofDecember4,2012
(incorporatedbyreferencetoExhibit10.8.2toAmendmentNo.1totheRegistrant's
RegistrationStatementonFormS1filedonSeptember25,2015(FileNo.333206772)).

10.9 NonqualifiedStockOptionAgreementbyandbetweenAtHomeGroupInc.(f/k/aGRD
HoldingICorporation)andJuddT.Nystrom,datedasofJanuary31,2013(incorporatedby
referencetoExhibit10.9toAmendmentNo.1totheRegistrant'sRegistrationStatementon
FormS1filedonSeptember25,2015(FileNo.333206772)).

10.9.1 AmendmenttoNonqualifiedStockOptionAgreementbetweenAtHomeGroupInc.(f/k/a
GRDHoldingICorporation)andJuddT.Nystrom,datedasofFebruary18,2013
(incorporatedbyreferencetoExhibit10.9.1toAmendmentNo.1totheRegistrant's
RegistrationStatementonFormS1filedonSeptember25,2015(FileNo.333206772)).

10.10 NonqualifiedStockOptionAgreementbyandbetweenAtHomeGroupInc.(f/k/aGRD
HoldingICorporation)andJuddT.Nystrom,datedasofJune3,2014(incorporatedby
referencetoExhibit10.10toAmendmentNo.1totheRegistrant'sRegistrationStatement
onFormS1filedonSeptember25,2015(FileNo.333206772)).

10.11 NonqualifiedStockOptionAgreementbyandbetweenAtHomeGroupInc.(f/k/aGRD
HoldingICorporation)andPeterS.G.Corsa,datedasofJanuary10,2013(incorporatedby
referencetoExhibit10.11toAmendmentNo.1totheRegistrant'sRegistrationStatement
onFormS1filedonSeptember25,2015(FileNo.333206772)).

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ExhibitNo. ExhibitDescription

10.11.1 AmendmenttoNonqualifiedStockOptionAgreementbetweenAtHomeGroupInc.(f/k/a
GRDHoldingICorporation)andPeterS.G.Corsa,datedasofMarch25,2013
(incorporatedbyreferencetoExhibit10.11.1toAmendmentNo.1totheRegistrant's
RegistrationStatementonFormS1filedonSeptember25,2015(FileNo.333206772)).

10.12 NonqualifiedStockOptionAgreementbyandbetweenAtHomeGroupInc.(f/k/aGRD
HoldingICorporation)andPeterS.G.Corsa,datedasofJune3,2014(incorporatedby
referencetoExhibit10.12toAmendmentNo.1totheRegistrant'sRegistrationStatement
onFormS1filedonSeptember25,2015(FileNo.333206772)).

10.13 AtHomeGroupInc.AnnualBonusPlan(incorporatedbyreferencetoExhibit10.13to
AmendmentNo.6totheRegistrant'sRegistrationStatementonFormS1filedonJuly25,
2016(FileNo.333206772)).

10.14 AtHomeGroupInc.EquityIncentivePlan(incorporatedbyreferencetoExhibit10.14to
AmendmentNo.6totheRegistrant'sRegistrationStatementonFormS1filedonJuly25,
2016(FileNo.333206772)).

10.15 AtHomeGroupInc.FormofOptionAwardAgreement(incorporatedbyreferenceto
Exhibit10.15toAmendmentNo.6totheRegistrant'sRegistrationStatementonFormS1
filedonJuly25,2016(FileNo.333206772)).

10.16 FormofIndemnificationAgreement(incorporatedbyreferencetoExhibit10.16to
AmendmentNo.6totheRegistrant'sRegistrationStatementonFormS1filedonJuly25,
2016(FileNo.333206772)).

10.17 OfferLetterbyandbetweenAtHomeGroupInc.andJenniferWarren,datedasof
December9,2014(incorporatedbyreferencetoExhibit10.17toAmendmentNo.4tothe
Registrant'sRegistrationStatementonFormS1filedonApril22,2016(FileNo.333
206772)).

10.18 NonqualifiedStockOptionAgreementbyandbetweenAtHomeGroupInc.(f/k/aGRD
HoldingICorporation)andJenniferWarren,datedasofApril7,2015(incorporatedby
referencetoExhibit10.18toAmendmentNo.4totheRegistrant'sRegistrationStatement
onFormS1filedonApril22,2016(FileNo.333206772)).

10.19 BonusAgreementbyandbetweenAtHomeGroupInc.(f/k/aGRDHoldingICorporation)
andJenniferWarren,datedasofApril8,2015(incorporatedbyreferencetoExhibit10.19
toAmendmentNo.4totheRegistrant'sRegistrationStatementonFormS1filedonApril
22,2016(FileNo.333206772)).

10.20
AtHomeGroupInc.FormofNonqualifiedStockOptionAwardAgreement(Director)
(incorporatedbyreferencetoExhibit10.1totheRegistrant'sCurrentReportonForm8K
filedonDecember5,2016(FileNo.00137849)).

10.21* FormofEmploymentAgreemententeredintobyandbetweenAtHomeStoresLLC(f/k/a
GardenRidgeCorporation)andcertainexecutiveofficersoftheCompany.

21.1* ListofsubsidiariesofAtHomeGroupInc.

31.1* CertificationofChiefExecutiveOfficerpursuanttoRule13a14(a)or15d14(a)ofthe
SecuritiesExchangeActof1934,asamended,asadoptedpursuanttoSection302ofthe
SarbanesOxleyActof2002.

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ExhibitNo. ExhibitDescription
31.2* CertificationofChiefFinancialOfficerpursuanttoRule13a14(a)or15d14(a)ofthe
SecuritiesExchangeActof1934,asamended,asadoptedpursuanttoSection302ofthe
SarbanesOxleyActof2002.

32.1* CertificationofChiefExecutiveOfficerandChiefFinancialOfficerpursuantto18U.S.C.
Section1350,asadoptedpursuanttoSection906oftheSarbanesOxleyActof2002.

101.INS* XBRLInstanceDocument.

101.SCH* XBRLTaxonomyExtensionSchemaDocument.

101.CAL* XBRLTaxonomyExtensionCalculationLinkbaseDocument.

101.DEF* XBRLTaxonomyExtensionDefinitionLinkbaseDocument.

101.LAB* XBRLTaxonomyExtensionLabelLinkbaseDocument.

101.PRE* XBRLTaxonomyExtensionPresentationLinkbaseDocument.

* Filedherewith.
Indicatesmanagementcontractsorcompensatoryplansorarrangementsinwhichourexecutive
officersordirectorsparticipate.

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SIGNATURES

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,theRegistranthasdulycausedthis
reporttobesignedonitsbehalfbytheundersignedthereuntodulyauthorized.

ATHOMEGROUPINC.


Date:April5,2017 /s/LEWISL.BIRDIII
By:LewisL.BirdIII
ChiefExecutiveOfficer(PrincipalExecutive
Officer)

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbythe
followingpersonsinthecapacitiesandonthedatesindicated.

Signature Title Date

/s/LewisL.BirdIII ChiefExecutiveOfficerand April5,2017
Director
LewisL.BirdIII (PrincipalExecutiveOfficer)

/s/JuddT.Nystrom ChiefFinancialOfficer April5,2017
JuddT.Nystrom (PrincipalFinancialOfficer)

/s/BeckyHaislip ChiefAccountingOfficer April5,2017
BeckyHaislip (PrincipalAccountingOfficer)

/s/MartinC.Eltrich,III Director April5,2017
MartinC.Eltrich,III

/s/BrianR.Hoesterey Director April5,2017
BrianR.Hoesterey

/s/GeoffreyG.Clark Director April5,2017
GeoffreyG.Clark

/s/AllenI.Questrom Director April5,2017
AllenI.Questrom

/s/WendyA.Beck Director April5,2017
WendyA.Beck

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/s/LarryD.Stone Director April5,2017

LarryD.Stone

/s/PhilipL.Francis Director April5,2017
PhilipL.Francis

/s/ElisabethB.Charles Director April5,2017
ElisabethB.Charles