0001223389-22-000052 | 10-Q | XBRL Viewer

Cover - shares	9 Months Ended
Cover - shares	Oct. 31, 2022	Dec. 01, 2022
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 31, 2022
Document Transition Report	false
Entity File Number	001-34956
Entity Registrant Name	CONN’S, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	06-1672840
Entity Address, Address Line One	2445 Technology Forest Blvd.,
Entity Address, Address Line Two	Suite 800,
Entity Address, City or Town	The Woodlands,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77381
City Area Code	936
Local Phone Number	230-5899
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	CONN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		23,945,095
Entity Central Index Key	0001223389
Current Fiscal Year End Date	--01-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 31, 2022	Jan. 31, 2022
Current assets:
Cash and cash equivalents	$ 8,433	$ 7,707
Restricted cash (includes VIE balances of $43,394 and $29,872, respectively)	45,503	31,930
Customer accounts receivable, net of allowances (includes VIE balances of $284,861 and $212,259, respectively)	423,827	455,787
Other accounts receivable	59,142	63,055
Inventories	259,285	246,826
Income taxes receivable	13,599	6,745
Prepaid expenses and other current assets	11,381	8,756
Total current assets	821,170	820,806
Long-term portion of customer accounts receivable, net of allowances (includes VIE balances of $253,005 and $167,905, respectively)	391,933	432,431
Property and equipment, net	218,640	192,763
Operating lease assets	255,202	256,267
Other assets	50,187	52,199
Total assets	1,737,132	1,754,466
Current liabilities:
Current finance lease obligations	919	889
Accounts payable	79,865	74,705
Accrued compensation and related expenses	19,393	36,677
Accrued expenses	76,937	73,035
Operating lease liability - current	56,295	54,534
Income taxes payable	2,516	3,007
Deferred revenues and other credits	10,992	15,569
Total current liabilities	246,917	258,416
Operating lease liability - non current	323,410	330,439
Long-term Debt and Lease Obligation	591,673	522,149
Deferred Income Tax Liabilities, Net	0	7,351
Other long-term liabilities	32,026	21,292
Total liabilities	1,194,026	1,139,647
Commitments and contingencies (Note 6)
Stockholders’ equity:
Preferred stock, shares outstanding (in shares)	0	0
Preferred Stock, Value, Issued	$ 0	$ 0
Common Stock, Value, Issued	333	330
Treasury Stock, Value	(193,370)	(125,145)
Additional paid-in capital	153,417	140,419
Retained earnings	582,726	599,215
Total stockholders’ equity	543,106	614,819
Total liabilities and stockholders’ equity	1,737,132	$ 1,754,466
Long-term Debt	$ 477,531

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Oct. 31, 2022	Jan. 31, 2022
Restricted cash	$ 45,503	$ 31,930
Customer accounts receivable, net of allowances (includes VIE balances of $284,861 and $212,259, respectively)	423,827	455,787
Long-term portion of customer accounts receivable, net of allowances (includes VIE balances of $253,005 and $167,905, respectively)	391,933	$ 432,431
Long-term Debt	$ 477,531
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	33,341,190	33,015,053
Treasury Stock, Shares	9,404,920	6,088,920
Variable Interest Entity
Restricted cash	$ 43,394	$ 29,872
Customer accounts receivable, net of allowances (includes VIE balances of $284,861 and $212,259, respectively)	284,861	212,259
Long-term portion of customer accounts receivable, net of allowances (includes VIE balances of $253,005 and $167,905, respectively)	253,005	167,905
Long-term Debt	$ 473,156	$ 367,925

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2022	Oct. 31, 2021	Oct. 31, 2022	Oct. 31, 2021
Revenues:
Total net sales	$ 254,358	$ 334,583	$ 806,133	$ 972,664
Finance charges and other revenues	66,842	70,875	201,519	214,879
Total revenues	321,200	405,458	1,007,652	1,187,543
Costs and expenses:
Cost of goods sold	169,842	211,298	530,942	612,219
Selling, general and administrative expense	126,243	138,081	389,169	402,000
Provision for bad debts	35,104	26,532	77,059	19,658
Charges and credits	8,006	0	6,522	0
Total costs and expenses	339,195	375,911	1,003,692	1,033,877
Operating income (loss)	(17,995)	29,547	3,960	153,666
Interest expense	11,478	5,206	23,807	20,498
Loss on extinguishment of debt		0	0	1,218
Income (loss) before income taxes	(29,473)	24,341	(19,847)	131,950
Provision (benefit) for income taxes	(4,634)	6,102	(3,358)	31,309
Net income (loss)	$ (24,839)	$ 18,239	$ (16,489)	$ 100,641
Income (loss) per share:
Basic (in dollars per share)	$ (1.04)	$ 0.62	$ (0.68)	$ 3.42
Diluted (in dollars per share)	$ (1.04)	$ 0.60	$ (0.68)	$ 3.34
Weighted average common shares outstanding:
Basic (in shares)	23,911,273	29,488,321	24,172,679	29,418,047
Diluted (in shares)	23,911,273	30,261,421	24,172,679	30,127,419
Product
Revenues:
Total net sales	$ 233,176	$ 308,301	$ 738,598	$ 897,757
RSA Commission
Revenues:
Total net sales	18,804	23,769	60,256	66,600
Service
Revenues:
Total net sales	$ 2,378	$ 2,513	$ 7,279	$ 8,307

CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY Statement - USD ($) $ in Thousands	Total	(PSUs)	Maximum (PSUs)	Minimum (PSUs)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]
Treasury Stock, Shares	3,485,441
Balance (in shares) at Jan. 31, 2021					32,711,623
Balance at Jan. 31, 2021	$ 557,155				$ 327	$ 132,108	$ 491,010	$ (66,290)
Exercise of options and vesting of restricted stock, net of tax (in shares)					115,159
Exercise of options and vesting of restricted stock, net of withholding tax	(998)				$ 1	(999)
Issuance of common stock under Employee Stock Purchase Plan (in shares)					18,240
Issuance of common stock under Employee Stock Purchase Plan	180				$ 0	180
Stock-based compensation	2,039					2,039
Net income (loss)	45,398						45,398
Balance (in shares) at Apr. 30, 2021					32,845,022
Balance at Apr. 30, 2021	603,774				$ 328	133,328	536,408	(66,290)
Balance (in shares) at Jan. 31, 2021					32,711,623
Balance at Jan. 31, 2021	557,155				$ 327	132,108	491,010	(66,290)
Net income (loss)	100,641
Balance (in shares) at Oct. 31, 2021					32,982,249
Balance at Oct. 31, 2021	$ 663,515				$ 330	137,824	591,651	$ (66,290)
Expected volatility rate		83.00%	87.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum				0.67%
Dividend yield	0.00%
Treasury Stock, Shares								(3,485,441)
Balance (in shares) at Apr. 30, 2021					32,845,022
Balance at Apr. 30, 2021	$ 603,774				$ 328	133,328	536,408	$ (66,290)
Exercise of options and vesting of restricted stock, net of tax (in shares)					112,223
Exercise of options and vesting of restricted stock, net of withholding tax	(228)				$ 1	(229)
Issuance of common stock under Employee Stock Purchase Plan (in shares)					10,563
Issuance of common stock under Employee Stock Purchase Plan	187					187
Stock-based compensation	1,713					1,713
Net income (loss)	37,004						37,004
Balance (in shares) at Jul. 31, 2021					32,967,808
Balance at Jul. 31, 2021	642,450				$ 329	134,999	573,412	$ (66,290)
Treasury Stock, Shares								(3,485,441)
Exercise of options and vesting of restricted stock, net of tax (in shares)					3,394
Exercise of options and vesting of restricted stock, net of withholding tax	(25)					(25)
Issuance of common stock under Employee Stock Purchase Plan (in shares)					11,047
Issuance of common stock under Employee Stock Purchase Plan	221				$ 1	220
Stock-based compensation	2,630					2,630
Net income (loss)	18,239						18,239
Balance (in shares) at Oct. 31, 2021					32,982,249
Balance at Oct. 31, 2021	$ 663,515				$ 330	137,824	591,651	$ (66,290)
Treasury Stock, Shares								(3,485,441)
Treasury Stock, Shares	6,088,920
Balance (in shares) at Jan. 31, 2022					33,015,053
Balance at Jan. 31, 2022	$ 614,819				$ 330	140,419	599,215	$ (125,145)
Exercise of options and vesting of restricted stock, net of tax (in shares)					163,032
Exercise of options and vesting of restricted stock, net of withholding tax	(2,027)				$ 2	(2,029)
Issuance of common stock under Employee Stock Purchase Plan (in shares)					14,192
Issuance of common stock under Employee Stock Purchase Plan	194					194
Stock-based compensation	3,409					3,409
Stock Repurchased During Period, Value	(68,225)							$ (68,225)
Stock Repurchased During Period, Shares								(3,316,000)
Net income (loss)	6,221						6,221
Balance (in shares) at Apr. 30, 2022					33,192,277
Balance at Apr. 30, 2022	554,391				$ 332	141,993	605,436	$ (193,370)
Balance (in shares) at Jan. 31, 2022					33,015,053
Balance at Jan. 31, 2022	$ 614,819				$ 330	140,419	599,215	(125,145)
Stock Repurchased During Period, Shares	(3,316,000)
Net income (loss)	$ (16,489)
Balance (in shares) at Oct. 31, 2022					33,341,190
Balance at Oct. 31, 2022	$ 543,106				$ 333	153,417	582,726	$ (193,370)
Expected volatility rate			80.00%	78.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum				2.58%
Dividend yield	0.00%
Treasury Stock, Shares								(9,404,920)
Balance (in shares) at Apr. 30, 2022					33,192,277
Balance at Apr. 30, 2022	$ 554,391				$ 332	141,993	605,436	$ (193,370)
Exercise of options and vesting of restricted stock, net of tax (in shares)					49,931
Exercise of options and vesting of restricted stock, net of withholding tax	(83)					(83)
Issuance of common stock under Employee Stock Purchase Plan (in shares)					31,248
Issuance of common stock under Employee Stock Purchase Plan	216					216
Stock-based compensation	3,224					3,224
Net income (loss)	2,129						2,129
Balance (in shares) at Jul. 31, 2022					33,273,456
Balance at Jul. 31, 2022	559,877				$ 332	145,350	607,565	$ (193,370)
Treasury Stock, Shares								(9,404,920)
Exercise of options and vesting of restricted stock, net of tax (in shares)					35,516
Exercise of options and vesting of restricted stock, net of withholding tax	(241)				$ 1	(242)
Issuance of common stock under Employee Stock Purchase Plan (in shares)					32,218
Issuance of common stock under Employee Stock Purchase Plan	201					201
Stock-based compensation	8,108					8,108
Net income (loss)	(24,839)						(24,839)
Balance (in shares) at Oct. 31, 2022					33,341,190
Balance at Oct. 31, 2022	$ 543,106				$ 333	$ 153,417	$ 582,726	$ (193,370)
Treasury Stock, Shares	9,404,920							(9,404,920)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2022	Oct. 31, 2021
Cash flows from operating activities:
Net Income (Loss) Attributable to Parent	$ (16,489)	$ 100,641
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract]
Depreciation	34,352	34,233
Change in right-of-use asset	29,471	25,910
Amortization of debt issuance costs	5,308	4,098
Provision for bad debts and uncollectible interest	115,697	45,120
Stock-based compensation expense	9,004	6,382
Charges and credits	6,522	0
Deferred income taxes	2,299	18,141
Loss on extinguishment of debt	0	1,218
Gain (Loss) on Disposition of Property Plant Equipment	562	514
Tenant improvement allowances received from landlords	8,959	11,537
Change in operating assets and liabilities:
Customer accounts receivable	(42,390)	(22,468)
Other accounts receivables	3,065	(13,291)
Inventories	(12,459)	(66,672)
Other assets	(1,796)	(132)
Accounts payable	5,160	21,717
Accrued expenses	(22,745)	47,323
Operating leases	(41,149)	(39,704)
Income taxes	(6,588)	(6,574)
Increase (Decrease) in Contract with Customer, Liability	(4,252)	(317)
Net cash provided by operating activities	72,531	167,676
Cash flows from investing activities:
Purchases of property and equipment	(50,206)	(33,150)
Net cash used in investing activities	(50,206)	(33,150)
Cash flows from financing activities:
Proceeds from issuance of asset-backed notes	407,690	62,900
Payments on asset-backed notes	(300,953)	(329,464)
Borrowings under revolving credit facility	903,223	1,092,106
Payments on revolving credit facility	(938,223)	(837,106)
Payments of debt issuance costs and amendment fees	(5,651)	(4,350)
Proceeds from stock issued under employee benefit plans	611	587
Tax payments associated with equity-based compensation transactions	(2,353)	(1,252)
Payment from extinguishment of debt	0	(141,279)
Payments for Repurchase of Common Stock	(71,696)
Other	(674)	(803)
Net cash used in financing activities	(8,026)	(158,661)
Net change in cash, cash equivalents and restricted cash	14,299	(24,135)
Cash, cash equivalents and restricted cash, beginning of period	39,637	60,260
Cash, cash equivalents and restricted cash, end of period	53,936	36,125
Non-cash investing and financing activities:
Right-of-use assets obtained in exchange for new finance lease liabilities	1	1,160
Right-of-use assets obtained in exchange for new operating lease liabilities	40,416	34,896
Property and equipment purchases not yet paid	19,643	5,545
Supplemental cash flow data:
Cash interest paid	16,513	14,756
Cash income taxes paid, net	$ 931	$ 19,733

Summary of Significant Accounting Policies

9 Months Ended

Oct. 31, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Business. Conn’s, Inc., a Delaware corporation, is a holding company with no independent assets or operations other than its investments in its subsidiaries. References to “we,” “our,” “us,” “the Company,” “Conn’s” or “CONN” refer to Conn’s, Inc. and, as apparent from the context, its subsidiaries. Conn’s is a leading specialty retailer that offers a broad selection of quality, branded durable consumer goods and related services in addition to proprietary credit solutions for its core credit-constrained consumers. We operate an integrated and scalable business through our retail stores and website. Our complementary product offerings include furniture and mattresses, home appliances, consumer electronics and home office products from leading global brands across a wide range of price points. Our credit offering provides financing solutions to a large, under-served population of credit-constrained consumers who typically have limited credit alternatives.

We operate two reportable segments: retail and credit. Our retail stores bear the “Conn’s HomePlus” name with all of our stores providing the same products and services to a common customer group. Our stores follow the same procedures and methods in managing their operations. Our retail business and credit business are operated independently from each other. The credit segment is dedicated to providing short- and medium-term financing to our retail customers. The retail segment is not involved in credit approval decisions or collection efforts. Our management evaluates performance and allocates resources based on the operating results of the retail and credit segments.

Basis of Presentation. The accompanying unaudited Condensed Consolidated Financial Statements of Conn’s, Inc. and its wholly-owned subsidiaries, including its Variable Interest Entities (“VIEs”), have been prepared by management in accordance with U.S. generally accepted accounting principles (“GAAP”) and prevailing industry practice for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, we do not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. All such adjustments are of a normal recurring nature. The condensed consolidated financial position, results of operations and cash flows for these interim periods are not necessarily indicative of the results that may be expected in future periods. The balance sheet at January 31, 2022 has been derived from the audited financial statements at that date. The financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2022 (the “2022 Form 10-K”) filed with the United States Securities and Exchange Commission (the “SEC”) on March 29, 2022.

Fiscal Year. Our fiscal year ends on January 31. References to a fiscal year refer to the calendar year in which the fiscal year ends.

Principles of Consolidation. The Condensed Consolidated Financial Statements include the accounts of Conn’s, Inc. and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation.

Variable Interest Entities. VIEs are consolidated if the Company is the primary beneficiary. The primary beneficiary of a VIE is the party that has (i) the power to direct the activities that most significantly impact the performance of the VIE and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.

We securitize customer accounts receivables by transferring the receivables to various bankruptcy-remote VIEs. We retain the servicing of the securitized portfolio and have a variable interest in each corresponding VIE by holding the residual equity. We have determined that we are the primary beneficiary of each respective VIE because (i) our servicing responsibilities for the securitized portfolio give us the power to direct the activities that most significantly impact the performance of the VIE and (ii) our variable interest in the VIE gives us the obligation to absorb losses and the right to receive residual returns that potentially could be significant. As a result, we consolidate the respective VIEs within our Condensed Consolidated Financial Statements.

Refer to Note 5, Debt and Financing Lease Obligations, and Note 7, Variable Interest Entities, for additional information.

Use of Estimates. The preparation of financial statements in accordance with GAAP requires management to make informed judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Changes in facts and circumstances or additional information may result in revised estimates, and actual results may differ, even significantly, from these estimates. Management evaluates its estimates and related assumptions regularly, including those related to the allowance for doubtful accounts and allowances for no-interest option credit programs, which are particularly sensitive given the size of our customer portfolio balance.

Restricted Cash. The restricted cash balance as of October 31, 2022 and January 31, 2022 includes $38.2 million and $25.7 million, respectively, of cash we collected as servicer on the securitized receivables that was subsequently remitted to the VIEs and $5.2 million and $4.2 million, respectively, of cash held by the VIEs as additional collateral for the asset-backed notes.

In an effort to mitigate losses on our accounts receivable, we may make loan modifications to a borrower experiencing financial difficulty. The loan modifications are intended to maximize net cash flow after expenses and avoid the need to exercise legal remedies available to us. We may extend or “re-age” a portion of our customer accounts, which involves modifying the payment terms to defer a portion of the cash payments due. Our re-aging of customer accounts does not change the interest rate or the total principal amount due from the customer and typically does not reduce the monthly contractual payments. To a much lesser extent, we may provide the customer the ability to refinance their account, which typically does not change the interest rate or the total principal amount due from the customer but does reduce the monthly contractual payments and extend the term. We consider accounts that have been re-aged in excess of three months or refinanced as Troubled Debt Restructurings (“TDR” or “Restructured Accounts”).

Interest Income on Customer Accounts Receivable. Interest income, which includes interest income and amortization of deferred fees and origination costs, is recorded using the interest method and is reflected in finance charges and other revenues. Typically, interest income is recorded until the customer account is paid off or charged-off and we provide an allowance for estimated uncollectible interest. We reserve for interest that is more than 60 days past due. Any contractual interest income received from customers in excess of the interest income calculated using the interest method is recorded as deferred revenue on our balance sheets. At October 31, 2022 and January 31, 2022, there was $8.2 million and $8.6 million, respectively, of deferred interest included in deferred revenues and other credits and other long-term liabilities. The deferred interest will ultimately be brought into income as the accounts pay off or charge-off.

We offer a 12-month no-interest option program. If the customer is delinquent in making a scheduled monthly payment or does not repay the principal in full by the end of the no-interest option program period (grace periods are provided), the account does not qualify for the no-interest provision and none of the interest earned is waived. Interest income is recognized based on estimated accrued interest earned to date on all no-interest option finance programs with an offsetting reserve for those customers expected to satisfy the requirements of the program based on our historical experience.

We recognize interest income on TDR accounts using the interest income method, which requires reporting interest income equal to the increase in the net carrying amount of the loan attributable to the passage of time. Cash proceeds and other adjustments are applied to the net carrying amount such that it equals the present value of expected future cash flows.

We place accounts in non-accrual status when legally required. Payments received on non-accrual loans are applied to principal and reduce the balance of the loan. At October 31, 2022 and January 31, 2022, the carrying value of customer accounts receivable in non-accrual status was $7.6 million and $5.9 million, respectively. At October 31, 2022 and January 31, 2022, the carrying value of customer accounts receivable that were past due 90 days or more and still accruing interest totaled $92.4 million and $84.1 million, respectively. At October 31, 2022 and January 31, 2022, the carrying value of customer accounts receivable in a bankruptcy status that were less than 60 days past due of $7.1 million and $5.5 million, respectively, were included within the customer receivables balance carried in non-accrual status.

Allowance for Doubtful Accounts. The determination of the amount of the allowance for credit losses is, by nature, highly complex and subjective. Future events that are inherently uncertain could result in material changes to the level of the allowance for credit losses. General economic conditions, changes to state or federal regulations and a variety of other factors that affect the ability of borrowers to service their debts or our ability to collect will impact the future performance of the portfolio.

We establish an allowance for credit losses, including estimated uncollectible interest, to cover expected credit losses on our customer accounts receivable resulting from the failure of customers to make contractual payments. Our customer accounts receivable portfolio balance consists of a large number of relatively small, homogeneous accounts. None of our accounts are large enough to warrant individual evaluation for impairment. The allowance for credit losses is measured on a collective (pool) basis where similar risk characteristics exist. The allowance for credit losses is determined for each pool and added to the pool’s carrying amount to establish a new amortized cost basis.

We use a risk-based, pool-level segmentation framework to calculate the expected loss rate. This framework is based on our historical gross charge-off history. In addition to adjusted historical gross charge-off rates, estimates of post-charge-off recoveries, including cash payments from customers, sales tax recoveries from taxing jurisdictions, and payments received under credit insurance and repair service agreement (“RSA”) policies are also considered. We also consider forward-looking economic forecasts based on a statistical analysis of economic factors (specifically, forecast of unemployment rates over the reasonable and supportable forecasting period). To the extent that situations and trends arise which are not captured in our model, management will layer on additional qualitative adjustments.

Pursuant to ASC 326 requirements, the Company uses a 24-month reasonable and supportable forecast period for the customer accounts receivable portfolio. We estimate losses beyond the 24-month forecast period based on historic loss rates experienced over the life of our historic loan portfolio by loan pool type. We revisit our measurement methodology and assumption annually, or more frequently if circumstances warrant.

As of October 31, 2022 and January 31, 2022, the balance of allowance for doubtful accounts and uncollectible interest for non-TDR customer receivables was $152.6 million and $165.0 million, respectively. As of October 31, 2022 and January 31, 2022, the amount included in the allowance for doubtful accounts associated with principal and interest on TDR accounts was $35.1 million and $44.0 million, respectively.

Loss on Extinguishment. During the nine months ended October 31, 2021, we incurred a loss of $1.0 million related to the retirement of the remaining $141.2 million aggregate principal amount of our 7.25% Senior Notes due 2022 and a loss of $0.2 million related to the amendment of our Fifth Amended and Restated Loan and Security Agreement.

Income Taxes. For the nine months ended October 31, 2022 and 2021, we utilized the estimated annual effective tax rate based on our estimated fiscal year 2023 and 2022 pre-tax income, respectively, in determining income tax expense.

Provision for income taxes for interim periods is based on an estimated annual income tax rate, adjusted for discrete tax items. As a result, our interim effective tax rates may vary significantly from the statutory tax rate and the annual effective tax rate.

For the nine months ended October 31, 2022 and 2021, the effective tax rate was 16.9% and 23.7%, respectively. The primary factor affecting the decrease in our effective tax rate for the nine months ended October 31, 2022 was the impact of state taxes and compensation expense.

Stock-based Compensation. During the nine months ended October 31, 2022, the Company granted performance stock awards (“PSUs”) and restricted stock awards (“RSUs”). The awards had a combined aggregate grant date fair value of $16.9 million. The PSUs will vest in fiscal year 2025, if at all, upon certification by the Compensation Committee of the Board of Directors of satisfaction of certain total stockholder return performance conditions over the three fiscal years commencing with fiscal year 2023. The RSUs will vest ratably, over periods of three years from the date of grant.

Stock-based compensation expense is recorded, net of actual forfeitures, for share-based compensation awards over the requisite service period using the straight-line method. For equity-classified share-based compensation awards, expense is recognized based on the grant-date fair value. For stock option grants, we use the Black-Scholes model to determine fair value. For grants of restricted stock units, the fair value of the grant is the market value of our stock at the date of issuance. For grants of performance-based restricted stock units, the fair value is the market value of our stock at the date of issuance adjusted for the market condition using a Monte Carlo model.

The following table sets forth the RSUs and PSUs granted during the three and nine months ended October 31, 2022 and 2021:


	Three Months Ended October 31,				Nine Months Ended October 31,
	2022		2021		2022		2021
RSUs (1)	154,614		204,376		631,200		586,107
PSUs (2)	—		115,688		176,509		268,037
Total stock awards granted	154,614		320,064		807,709		854,144
Aggregate grant date fair value (in thousands)	$	1,162	$	8,599	$	16,924	$	17,849

(1)The RSUs issued during the three and nine months ended October 31, 2022 and 2021 are scheduled to vest ratably over periods of three years to four years from the date of grant with the exception of RSU grants issued to the Board of Directors.

(2)The weighted-average assumptions used in the Monte Carlo model for the PSUs granted during the nine months ended October 31, 2022 included expected volatility of 78.0%-80.0%, an expected term of 3 years and risk-free interest rate of 1.39%-2.58%. No dividend yield was included in the weighted-average assumptions for the PSUs granted during the nine months ended October 31, 2022. The weighted-average assumptions used in the Monte Carlo model for the PSUs granted during the nine months ended October 31, 2021 included expected volatility of 83.0%-87.0%, an expected term of 3 years and risk-free interest rate of 0.17%-.0.67%. No dividend yield was included in the weighted average assumptions for the PSUs granted during the nine months ended October 31, 2021.

For the three months ended October 31, 2022 and 2021, stock-based compensation expense was $2.4 million and $2.6 million, respectively. For the nine months ended October 31, 2022 and 2021, stock-based compensation expense was $9.0 million and $6.4 million, respectively.

Earnings per Share. Basic earnings per share for a particular period is calculated by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share includes the dilutive effects of any stock options, RSUs and PSUs, which are calculated using the treasury-stock method. The following table sets forth the shares outstanding for the earnings per share calculations:


	Three Months Ended October 31,		Nine Months Ended October 31,
	2022	2021	2022	2021
Weighted-average common shares outstanding - Basic	23,911,273	29,488,321	24,172,679	29,418,047
Dilutive effect of stock options, PSUs and RSUs	—	773,100	—	709,372
Weighted-average common shares outstanding - Diluted	23,911,273	30,261,421	24,172,679	30,127,419

For the three months ended October 31, 2022 and 2021, the weighted average number of stock options, RSUs and PSUs not included in the calculation due to their anti-dilutive effect, was 1,545,180 and 715,051, respectively. For the nine months ended October 31, 2022 and 2021, the weighted average number of stock options, RSUs and PSUs not included in the calculation due to their anti-dilutive effect, was 1,429,381 and 734,407, respectively.

Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value are categorized using defined hierarchical levels related to subjectivity associated with the inputs to fair value measurements as follows:

•Level 1 – Inputs represent unadjusted quoted prices in active markets for identical assets or liabilities.

•Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (for example, quoted market prices for similar assets or liabilities in active markets or quoted market prices for identical assets or liabilities in markets not considered to be active, inputs other than quoted prices that are observable for the asset or liability, or market-corroborated inputs).

•Level 3 – Inputs that are not observable from objective sources such as our internally developed assumptions used in pricing an asset or liability (for example, an estimate of future cash flows used in our internally developed present value of future cash flows model that underlies the fair-value measurement).

In determining fair value, we use observable market data when available, or models that incorporate observable market data. When we are required to measure fair value and there is not a market-observable price for the asset or liability or for a similar asset or liability, we use the cost or income approach depending on the quality of information available to support

management’s assumptions. The cost approach is based on management’s best estimate of the current asset replacement cost. The income approach is based on management’s best assumptions regarding expectations of future net cash flows and discounts the expected cash flows using a commensurate risk-adjusted discount rate. Such evaluations involve significant judgment, and the results are based on expected future events or conditions such as sales prices, economic and regulatory climates, and other factors, most of which are often outside of management’s control. However, we believe assumptions used reflect a market participant’s view of long-term prices, costs, and other factors and are consistent with assumptions used in our business plans and investment decisions.

In arriving at fair-value estimates, we use relevant observable inputs available for the valuation technique employed. If a fair-value measurement reflects inputs at multiple levels within the hierarchy, the fair-value measurement is characterized based on the lowest level of input that is significant to the fair-value measurement.

The fair value of cash and cash equivalents, restricted cash and accounts payable approximate their carrying amounts because of the short maturity of these instruments. The fair value of customer accounts receivable, determined using a Level 3 discounted cash flow analysis, approximates their carrying value, net of the allowance for doubtful accounts. The fair value of our Revolving Credit Facility approximates carrying value based on the current borrowing rate for similar types of borrowing arrangements. At October 31, 2022, the fair value of the asset backed notes was $469.7 million as compared to the carrying value of $477.5 million and was determined using Level 2 inputs based on inactive trading activity.

Deferred Revenue. Deferred revenue related to contracts with customers consists of deferred customer deposits and deferred RSA administration fees. During the nine months ended October 31, 2022, we recognized $3.9 million of revenue for customer deposits deferred as of January 31, 2022. During the nine months ended October 31, 2022, we recognized $2.6 million of revenue for RSA administrative fees deferred as of January 31, 2022.

Recent Accounting Pronouncements Adopted.

Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, an update intended to simplify various aspects related to accounting for income taxes. This guidance removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This accounting standards update became effective for us in the first quarter of fiscal year 2022. The adoption did not have a material impact on our consolidated financial statements.

Recent Accounting Pronouncements Yet to Be Adopted.

Reference Rate Reform on Financial Reporting. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, an update that provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), Scope, to clarify the scope of the guidance and reduce potential diversity in practice. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. We expect to adopt ASC 2020-04 and ASC 2021-01 upon transition from LIBOR, prior to December 31, 2022. We do not expect the adoption to have a material impact on our consolidated financial statements.

Financial Instruments - Troubled Debt Restructurings and Vintage Disclosures. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, an update that eliminates the accounting guidance for troubled debt restructurings (TDRs) by creditors in ASC 310-40 while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance in ASC 310-20 to determine whether a modification results in a new loan or a continuation of an existing loan. The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and should be applied prospectively, with an option to apply a modified retrospective transition approach for the recognition and measurement of TDRs. We expect to adopt ASU 2022-02 during the first quarter of fiscal year 2024. We are currently assessing the impact this ASU will have on our consolidated financial statements.

Customer Accounts Receivable

9 Months Ended

Oct. 31, 2022

Receivables [Abstract]

Customer Accounts Receivable

Customer accounts receivable consisted of the following:


(in thousands)	October 31, 2022		January 31, 2022
Customer accounts receivable (1)	$	1,032,800	$	1,130,395
Deferred fees and origination costs, net	(11,753)		(13,503)
Allowance for no-interest option credit programs	(17,609)		(19,654)
Allowance for uncollectible interest and fees	(23,049)		(15,124)
Carrying value of customer accounts receivable	980,389		1,082,114
Allowance for credit losses (2)	(164,629)		(193,896)
Carrying value of customer accounts receivable, net of allowance for credit losses	815,760		888,218
Short-term portion of customer accounts receivable, net	(423,827)		(455,787)
Long-term customer accounts receivable, net	$	391,933	$	432,431


	Carrying Value
(in thousands)	October 31, 2022		January 31, 2022
Customer accounts receivable 60+ days past due (3)	$	119,223	$	112,858
Re-aged customer accounts receivable (4)	161,429		181,996
Restructured customer accounts receivable (5)	76,163		99,557

(1)As of October 31, 2022 and January 31, 2022, the customer accounts receivable balance included $33.0 million and $22.3 million, respectively, in interest receivable. Net of the allowance for uncollectible interest, interest receivable outstanding as of October 31, 2022 and January 31, 2022 was $9.9 million and $7.2 million, respectively.

(2)Our current methodology to estimate expected credit losses utilized macroeconomic forecasts as of October 31, 2022 and January 31, 2022, which incorporated the continued estimated impact of the global COVID-19 outbreak and other factors on the U.S. economy. Our forecast utilized economic projections from a major rating service reflecting an increase in unemployment rates.

(3)As of October 31, 2022 and January 31, 2022, the carrying value of customer accounts receivable past due one day or greater was $297.1 million and $299.0 million, respectively. These amounts include the 60+ days past due balances shown above.

(4)The re-aged carrying value as of October 31, 2022 and January 31, 2022 includes $46.1 million and $48.6 million, respectively, in carrying value that are both 60+ days past due and re-aged.

(5)The restructured carrying value as of October 31, 2022 and January 31, 2022 includes $21.2 million and $29.0 million, respectively, in carrying value that are both 60+ days past due and restructured.

The allowance for credit losses included in the current and long-term portion of customer accounts receivable, net as shown in the Condensed Consolidated Balance Sheet were as follows:


(in thousands)	October 31, 2022		January 31, 2022
Customer accounts receivable - current	$	521,440	$	564,825
Allowance for credit losses for customer accounts receivable - current	(97,613)		(109,038)
Customer accounts receivable, net of allowances	423,827		455,787
Customer accounts receivable - non current	481,998		532,413
Allowance for credit losses for customer accounts receivable - non current	(90,065)		(99,982)
Long-term portion of customer accounts receivable, net of allowances	391,933		432,431
Total customer accounts receivable, net	$	815,760	$	888,218

The following presents the activity in our allowance for credit losses and uncollectible interest for customer receivables:


	Nine Months Ended October 31, 2022						Nine Months Ended October 31, 2021
(in thousands)	Customer Accounts Receivable		Restructured Accounts		Total		Customer Accounts Receivable		Restructured Accounts		Total
Allowance at beginning of period	$	165,044	$	43,976	$	209,020	$	219,740	$	78,297	$	298,037
Provision for credit loss expense (1)	89,078		25,771		114,849		21,845		23,079		44,924
Principal charge-offs (2)	(100,214)		(34,222)		(134,436)		(81,710)		(50,691)		(132,401)
Interest charge-offs	(24,016)		(8,201)		(32,217)		(22,432)		(13,917)		(36,349)
Recoveries (2)	22,708		7,754		30,462		20,947		12,996		33,943
Allowance at end of period	$	152,600	$	35,078	$	187,678	$	158,390	$	49,764	$	208,154
Average total customer portfolio balance	$	972,943	$	89,042	$	1,061,985	$	985,634	$	149,745	$	1,135,379

(1)Includes provision for uncollectible interest, which is included in finance charges and other revenues, and changes in expected future recoveries.

(2)Charge-offs include the principal amount of losses (excluding accrued and unpaid interest). Recoveries include the principal amount collected during the period for previously charged-off balances. Net charge-offs are calculated as the net of principal charge-offs and recoveries.

We manage our customer accounts receivable portfolio using delinquency as a key credit quality indicator. The following table presents the delinquency distribution of the carrying value of customer accounts receivable by year of origination. The information is presented as of October 31, 2022:


(in thousands)
Delinquency Bucket	2022		2021		2020		2019		Prior		Total		% of Total
Current	$	384,401	$	227,174	$	61,119	$	9,016	$	1,572	$	683,282	69.7	%
1-30	50,477		56,730		18,562		5,799		1,386		132,954		13.6	%
31-60	15,554		19,555		6,539		2,656		625		44,929		4.6	%
61-90	8,613		12,072		3,781		1,664		332		26,462		2.7	%
91+	22,434		46,784		15,170		6,948		1,426		92,762		9.4	%
Total	$	481,479	$	362,315	$	105,171	$	26,083	$	5,341	$	980,389	100.0	%

Charges and Credits

3 Months Ended

Oct. 31, 2022

Charges and Credits [Abstract]

Charges and Credits

3. Charges and Credits

Charges and credits consisted of the following:


	Three Months Ended October 31,				Nine Months Ended October 31,
(in thousands)	2022		2021		2022		2021
Employee severance	$	8,006	$	—	$	8,006	$	—
Lease termination	—		—		(1,484)		—
Total charges and credits	$	8,006	$	—	$	6,522	$	—

During the three months ended October 31, 2022, we recognized $8.0 million in severance costs related to a change in the executive management team. During the nine months ended October 31, 2022, we recognized a $1.5 million gain related to the termination of a lease for a single store location. In addition, we recognized $8.0 million in severance costs related to a change in the executive management team.

Finance Charges and Other Revenue

9 Months Ended

Oct. 31, 2022

Supplemental Disclosure of Finance Charges and Other Revenue [Abstract]

Finance Charges and Other Revenues

Finance charges and other revenues consisted of the following:


	Three Months Ended October 31,				Nine Months Ended October 31,
(in thousands)	2022		2021		2022		2021
Interest income and fees	$	61,395	$	63,621	$	185,869	$	196,303
Insurance income	5,176		6,992		14,835		17,881
Other revenues	271		262		815		695
Total finance charges and other revenues	$	66,842	$	70,875	$	201,519	$	214,879

Interest income and fees and insurance income are derived from the credit segment operations, whereas other revenues are derived from the retail segment operations. Insurance income is comprised of sales commissions from third-party insurance companies that are recognized when coverage is sold and retrospective income paid by the insurance carrier if insurance claims are less than earned premiums.

During the three months ended October 31, 2022 and 2021, interest income and fees reflected provisions for uncollectible interest of $19.1 million and $10.5 million, respectively. The amounts included in interest income and fees related to TDR accounts for the three months ended October 31, 2022 and 2021 were $3.6 million and $5.8 million, respectively. During the nine months ended October 31, 2022 and 2021, interest income and fees reflected provisions for uncollectible interest and fees of $38.6 million and $25.5 million, respectively. The amounts included in interest income and fees related to TDR accounts for the nine months ended October 31, 2022 and 2021 were $11.5 million and $20.0 million, respectively.

Debt and Financing Lease Obligations

9 Months Ended

Oct. 31, 2022

Debt Disclosure [Abstract]

Debt and Financing Lease Obligations

Debt and financing lease obligations consisted of the following:


(in thousands)	October 31, 2022		January 31, 2022
Revolving Credit Facility	$	114,000	$	149,000
2020-A VIE Asset-backed Class A Notes	—		9,184
2020-A VIE Asset-backed Class B Notes	—		18,342
2020-A VIE Asset-backed Class C Notes	—		17,695
2021-A VIE Asset-backed Class A Notes	24,287		195,595
2021-A VIE Asset-backed Class B Notes	66,090		66,090
2021-A VIE Asset-backed Class C Notes	63,890		63,890
2022-A VIE Asset-backed Class A Notes	191,174		—
2022-A VIE Asset-backed Class B Notes	132,090		—
Financing lease obligations	5,436		6,115
Total debt and financing lease obligations	596,967		525,911
Less:
Deferred debt issuance costs	(4,375)		(2,873)
Current maturities of long-term debt and financing lease obligations	(919)		(889)
Long-term debt and financing lease obligations	$	591,673	$	522,149

Asset-backed Notes. From time to time, we securitize customer accounts receivables by transferring the receivables to various bankruptcy-remote VIEs. In turn, the VIEs issue asset-backed notes secured by the transferred customer accounts receivables and restricted cash held by the VIEs.

Under the terms of the securitization transactions, all cash collections and other cash proceeds of the customer receivables go first to the servicer and the holders of issued notes, and then to us as the holder of non-issued notes, if any, and residual equity. We retain the servicing of the securitized portfolios and receive a monthly fee of 4.75% (annualized) based on the outstanding balance of the securitized receivables. In addition, we, rather than the VIEs, retain all credit insurance income together with certain recoveries related to credit insurance and RSAs on charge-offs of the securitized receivables, which are reflected as a reduction to net charge-offs on a consolidated basis.

The asset-backed notes were offered and sold to qualified institutional buyers pursuant to the exemptions from registration provided by Rule 144A under the Securities Act of 1933. If an event of default were to occur under the indenture that governs the respective asset-backed notes, the payment of the outstanding amounts may be accelerated, in which event the cash proceeds of the receivables that otherwise might be released to the residual equity holder would instead be directed entirely toward repayment of the asset-backed notes, or if the receivables are liquidated, all liquidation proceeds could be directed solely to repayment of the asset-backed notes as governed by the respective terms of the asset-backed notes. The holders of the asset-backed notes have no recourse to assets outside of the VIEs. Events of default include, but are not limited to, failure to make required payments on the asset-backed notes or specified bankruptcy-related events.

The asset-backed notes outstanding as of October 31, 2022 consisted of the following:


(dollars in thousands)
Asset-Backed Notes	Original Principal Amount		Original Net Proceeds (1)		Current Principal Amount		Issuance Date	Maturity Date	Contractual Interest Rate	Effective Interest Rate (2)
2021-A Class A Notes	$	247,830	$	246,152	$	24,287	11/23/2021	5/15/2026	1.05%	3.13%
2021-A Class B Notes	66,090		65,635		66,090		11/23/2021	5/15/2026	2.87%	3.54%
2021-A Class C Notes	63,890		63,450		63,890		11/23/2021	5/15/2026	4.59%	5.08%
2022-A Class A Notes	275,600		273,731		191,174		7/21/2022	12/15/2026	5.87%	8.38%
2022-A Class B Notes	132,090		129,050		132,090		7/21/2022	12/15/2026	9.52%	10.27%
Total	$	785,500	$	778,018	$	477,531

(1)After giving effect to debt issuance costs.

(2)For the nine months ended October 31, 2022, and inclusive of the impact of changes in timing of actual and expected cash flows.

On July 21, 2022, the Company completed the issuance and sale of approximately $407.7 million in aggregate principal amount of asset-backed notes secured by the transferred customer accounts receivables and restricted cash held by a consolidated VIE, which resulted in net proceeds to us of approximately $402.8 million, net of debt issuance costs. Net proceeds from the offering were used to repay indebtedness under the Company’s Revolving Credit Facility, as defined below, and for other general corporate purposes. The asset-backed notes mature on December 15, 2026 and consist of $275.6 million of 5.87% Asset Backed Fixed Rate Notes, Class A, Series 2022-A (the "Class A Notes"), approximately $132.1 million of 9.52% Asset Backed Fixed Rate Notes, Class B, Series 2022-A (the "Class B Notes"). Additionally, the Company issued approximately $63.1 million in aggregate principal amount of zero coupon Asset Backed Fixed Rate Notes, Class C, Series 2022-A (the "Class C Notes") which mature on December 15, 2026. The Class C Notes were retained by the Company upon issuance. On November 30, 2022, the Company sold the Class C Notes. See Note 10, Subsequent Events, for details.

Revolving Credit Facility. On March 29, 2021, Conn’s, Inc. and certain of its subsidiaries (the “Borrowers”) entered into the Fifth Amended and Restated Loan and Security Agreement (the “Fifth Amended and Restated Loan Agreement”), with certain lenders, which provides for a $650.0 million asset-based revolving credit facility (as amended, the “Revolving Credit Facility”) under which credit availability is subject to a borrowing base and a maturity date of March 29, 2025.

The Fifth Amended and Restated Loan Agreement, among other things, permits borrowings under the Letter of Credit Subline (as defined in the Fifth Amended and Restated Loan Agreement) that exceed the cap of $40 million to $100 million, solely at the discretion of the lenders for such amounts in excess of $40 million. The obligations under the Revolving Credit Facility are secured by substantially all assets of the Company, excluding the assets of the VIEs. As of October 31, 2022, under our Revolving Credit Facility, we had immediately available borrowing capacity of $155.4 million, net of standby letters of credit issued of $22.3 million, and an additional $358.3 million that may become available if the balance of eligible customer receivables and total eligible inventory balances increases.

Loans under the Revolving Credit Facility bear interest, at our option, at a rate of LIBOR plus a margin ranging from 2.50% to 3.25% per annum (depending on a pricing grid determined by our total leverage ratio) or the alternate base rate plus a margin ranging from 1.50% to 2.25% per annum (depending on a pricing grid determined by our total leverage ratio). The alternate base rate is a rate per annum equal to the greatest of the prime rate, the federal funds effective rate plus 0.5%, or LIBOR for a 30-day interest period plus 1.0%. We also pay an unused fee on the portion of the commitments that is available for future borrowings or letters of credit at a rate ranging from 0.25% to 0.50% per annum, depending on the average outstanding balance and letters of credit of the Revolving Credit Facility in the immediately preceding quarter. The weighted-average interest rate on borrowings outstanding and including unused line fees under the Revolving Credit Facility was 4.3% for the nine months ended October 31, 2022.

The Revolving Credit Facility places restrictions on our ability to incur additional indebtedness, grant liens on assets, make distributions on equity interests, dispose of assets, make loans, pay other indebtedness, engage in mergers, and other matters. The Revolving Credit Facility restricts our ability to make dividends and distributions unless no event of default exists and a liquidity test is satisfied. Subsidiaries of the Company may pay dividends and make distributions to the Company and other obligors under the Revolving Credit Facility without restriction. We are restricted from making distributions as a result of the Revolving Credit Facility distribution and payment restrictions. The Revolving Credit Facility contains customary default provisions, which, if triggered, could result in acceleration of all amounts outstanding under the Revolving Credit Facility.

Debt Covenants. On November 21, 2022, we entered into Amendment No. 1 (the "Amendment") to the Fifth Amended and Restated Loan and Security Agreement, dated as of March 29, 2021, which waived testing of the interest coverage covenants beginning with the third quarter of fiscal year 2023 and continuing until the date on which the Company delivers financial statements and compliance certificate for the fiscal quarter ending April 30, 2024 (unless earlier terminated pursuant to the terms of the Amendment). See Note 10, Subsequent Events, for further details. After giving effect to the foregoing amendment, as of October 31, 2022, we were in compliance with the covenants in our Revolving Credit Facility.

A summary of the significant financial covenants that govern our Revolving Credit Facility compared to our actual compliance status at October 31, 2022 is presented below:


	Actual	Required Minimum/ Maximum
Interest Coverage Ratio for the quarter must equal or exceed minimum	Not Tested	1.00:1.00
Interest Coverage Ratio for the trailing two quarters must equal or exceed minimum	Not Tested	1.50:1.00
Leverage Ratio must not exceed maximum	1.64:1.00	4.50:1.00
ABS Excluded Leverage Ratio must not exceed maximum	0.84:1.00	2.50:1.00
Capital Expenditures, net, must not exceed maximum	$50.4 million	$100.0 million

All capitalized terms in the above table are defined in the Revolving Credit Facility and may or may not match directly to the financial statement captions in this document. The covenants are calculated quarterly, except for capital expenditures, which is calculated for a period of four consecutive fiscal quarters, as of the end of each fiscal quarter.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-SubTopic 20
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-Paragraph 1C
-Subparagraph (c)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

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-Section 50
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-Publisher FASB
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-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Contingencies	9 Months Ended
Contingencies	Oct. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies Derivative Litigation. On December 1, 2014, an alleged shareholder, purportedly on behalf of the Company, filed a shareholder derivative lawsuit in federal court against us and certain of our current and former directors and former executive officers captioned Robert Hack, derivatively on behalf of Conn’s, Inc., v. Theodore M. Wright (former executive officer and former director), Bob L. Martin, Jon E.M. Jacoby (former director), Kelly M. Malson (former director), Douglas H. Martin, David Schofman, Scott L. Thompson (former director), Brian Taylor (former executive officer) and Michael J. Poppe (former executive officer) and Conn’s, Inc., Case No. 4:14-cv-03442 (S.D. Tex.) (the “Hack Litigation”). The complaint asserts claims for breach of fiduciary duty, unjust enrichment, gross mismanagement, and insider trading based on substantially similar factual allegations as those asserted in the securities action (In re Conn's Inc. Sec. Litig., Cause No. 14-CV-00548 (S.D. Tex.)), which was settled in October 2018. The plaintiff seeks unspecified damages against these persons and does not request any damages from Conn’s. On February 25, 2015, an additional federal derivative action, captioned 95250 Canada LTEE, derivatively on Behalf of Conn’s, Inc. v. Wright et al., Cause No. 4:15-cv-00521 (S.D. Tex.), was filed, asserting substantially similar claims against the same defendants. It was consolidated with the Hack Litigation (collectively, the “Federal Derivative Actions”). The parties have reached a settlement in principle to fully resolve the Federal Derivative Actions. Judge Ellison approved the settlement and entered a Final Order and Judgement dismissing the derivative action with prejudice on March 15, 2022 (the “Final Order”). Neither the Company nor any individual defendant admits any wrongdoing through the settlement agreement. In addition to the Federal Derivative Actions, a derivative action was filed in Texas state court by alleged shareholder Richard A. Dohn (“Dohn”) on January 27, 2015, captioned Dohn v. Wright, et al., Cause No. 2015-04405, in the 281st Judicial District Court, Harris County, Texas (the “Dohn State Court Action”). This action makes substantially similar allegations to the Federal Derivative Actions against the same defendants. The parties agreed to stay this case during the Securities Litigation and Federal Derivative Actions. Counsel for Dohn attended the February 17, 2022 and March 15, 2022 settlement hearings in the Federal Derivative Actions and objected to the proposed settlement. Dohn has filed an appeal of the Final Order with the Fifth Circuit Court of Appeals, and on May 17, 2022, the court entered an agreed order staying the case pending the outcome of that appeal. On April 7, 2022, State Court Plaintiff and Objector Dohn, filed an appeal of the Final Order with the Fifth Circuit Court of Appeals (Hack v. Wright, No. 22-20177 (5th Cir.)). Dohn’s opening brief was filed on July 5, 2022. Plaintiffs’ and Defendants’ filed their respective response briefs on August 24, 2022. Dohn filed his reply brief on September 14, 2022. Plaintiffs in the Federal Derivative Actions filed a motion for appeal bond in May 2022, which was heard by Judge Ellison on November 3, 2022. At the hearing, Judge Ellison ordered Dohn to supply the court with a record of continuous stock ownership to establish his standing to bring suit prior to the continuation of the appeal bond hearing set for November 10, 2022. Prior to the November 10, 2022 hearing, Dohn’s counsel advised Judge Ellison that Dohn's appeal was being withdrawn/dismissed from the Fifth Circuit and Judge Ellison canceled the November 10, 2022 appeal bond hearing. On November 14, 2022, Dohn filed a motion for voluntary dismissal of the appeal with the Fifth Circuit. On November 16, 2022, the Company and the individual Defendants-Appellants filed a response to Dohn's voluntary dismissal motion regarding the dismissal being “without prejudice.” On November 18, 2022, Dohn filed an unopposed motion to dismiss the Dohn State Court Action with prejudice. Prior to the filing of the Dohn State Court Action, another alleged shareholder, Robert J. Casey II (“Casey”), submitted a demand under Delaware law, which our Board of Directors refused. On May 19, 2016, Casey, purportedly on behalf of the Company, filed a second state court lawsuit against us and certain of our current and former directors and former executive officers in the 55th Judicial District Court, Harris County, Texas, captioned Casey, derivatively on behalf of Conn’s, Inc., v. Theodore M. Wright (former executive officer and former director), Michael J. Poppe (former executive officer), Brian Taylor (former executive officer), Bob L. Martin, Jon E.M. Jacoby (former director), Kelly M. Malson (former director), Douglas H. Martin, David Schofman, Scott L. Thompson (former director) and William E. Saunders Jr., and Conn’s, Inc., Case No. 2016-33135. The complaint asserts claims for breach of fiduciary duties and unjust enrichment based on substantially similar factual allegations as those asserted in the Federal Derivative Actions. The complaint does not specify the amount of damages sought. Since April 2018, this case has been abated pending the resolution of related cases. In July 2021, the parties requested that the court extend the abatement pending further developments in the Federal Derivative Actions. On November 16, 2022, Casey filed an unopposed motion to dismiss this action with prejudice. Other than Casey, none of the plaintiffs in the other derivative actions made a demand on our Board of Directors prior to filing their respective lawsuits. The defendants in the two state court derivative actions intend to vigorously defend against these claims. It is not possible at this time to predict the timing or outcome of any unsettled litigation, and we cannot reasonably estimate the possible loss or range of possible loss from such claims. We are involved in other routine litigation and claims, incidental to our business from time to time which, individually or in the aggregate, are not expected to have a material adverse effect on us. As required, we accrue estimates of the probable costs for the resolution of these matters. These estimates have been developed in consultation with counsel and are based upon an analysis of potential results, assuming a combination of litigation and settlement strategies. However, the results of these proceedings cannot be predicted with certainty, and changes in facts and circumstances could impact our estimate of reserves for litigation. The Company believes that any probable and reasonably estimable loss associated with the foregoing has been adequately reflected in the accompanying financial statements.

Variable Interest Entity

9 Months Ended

Oct. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

From time to time, we securitize customer accounts receivables by transferring the receivables to various bankruptcy-remote VIEs. Under the terms of the respective securitization transactions, all cash collections and other cash proceeds of the customer receivables go first to the servicer and the holders of the asset-backed notes, and then to the residual equity holder. We retain the servicing of the securitized portfolio and receive a monthly fee of 4.75% (annualized) based on the outstanding balance of the securitized receivables, and we currently hold all of the residual equity. In addition, we, rather than the VIEs, will retain certain credit insurance income together with certain recoveries related to credit insurance and RSAs on charge-offs of the securitized receivables, which will continue to be reflected as a reduction of net charge-offs on a consolidated basis for as long as we consolidate the VIEs.

We consolidate VIEs when we determine that we are the primary beneficiary of these VIEs, we have the power to direct the activities that most significantly impact the performance of the VIEs and our obligation to absorb losses and the right to receive residual returns are significant.

The following table presents the assets and liabilities held by the VIEs (for legal purposes, the assets and liabilities of the VIEs will remain distinct from Conn’s, Inc.):


(in thousands)	October 31, 2022		January 31, 2022
Assets:
Restricted cash	$	43,394	$	29,872
Due from Conn’s, Inc., net	964		—
Customer accounts receivable:
Customer accounts receivable	652,778		463,411
Restructured accounts	37,270		29,621
Allowance for uncollectible accounts	(131,724)		(97,560)
Allowance for no-interest option credit programs	(13,670)		(10,275)
Deferred fees and origination costs	(6,788)		(5,033)
Total customer accounts receivable, net	537,866		380,164
Total assets	$	582,224	$	410,036
Liabilities:
Accrued expenses	$	4,194	$	2,638
Other liabilities	5,754		3,930
Due to Conn’s, Inc., net	—		12,755

Long-term debt:
2020-A Class A Notes	—		9,184
2020-A Class B Notes	—		18,342
2020-A Class C Notes	—		17,695
2021-A Class A Notes	24,287		195,595
2021-A Class B Notes	66,090		66,090
2021-A Class C Notes	63,890		63,890
2022-A Class A Notes	191,174		—
2022-A Class B Notes	132,090		—
	477,531		370,796
Less: deferred debt issuance costs	(4,375)		(2,871)
Total debt	473,156		367,925
Total liabilities	$	483,104	$	387,248

The assets of the VIEs serve as collateral for the obligations of the VIEs. The holders of asset-backed notes have no recourse to assets outside of the respective VIEs.

Segment Information

9 Months Ended

Oct. 31, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information Operating segments are defined as components of an enterprise that engage in business activities and for which discrete financial information is available that is evaluated on a regular basis by the chief operating decision maker to make decisions about how to allocate resources and assess performance. We are a leading specialty retailer and offer a broad selection of quality, branded durable consumer goods and related services in addition to a proprietary credit solution for our core credit-constrained consumers. We have two operating segments: (i) retail and (ii) credit. Our operating segments complement one another. The retail segment operates primarily through our stores and website. Our retail segment product offerings include furniture and mattresses, home appliances, consumer electronics and home office products from leading global brands across a wide range of price points. Our credit segment offers affordable financing solutions to a large, under-served population of credit-constrained consumers who typically have limited credit alternatives. Our operating segments provide customers the opportunity to comparison shop across brands with confidence in our competitive prices as well as affordable monthly payment options, next day delivery and installation in the majority of our markets, and product repair service. The operating segments follow the same accounting policies used in our Condensed Consolidated Financial Statements.

We evaluate a segment’s performance based upon operating income before taxes. Selling, general and administrative expenses (“SG&A”) includes the direct expenses of the retail and credit operations, allocated overhead expenses, and a charge to the credit segment to reimburse the retail segment for expenses it incurs related to occupancy, personnel, advertising and other direct costs of the retail segment, which benefit the credit operations by sourcing credit customers and collecting payments. The reimbursement received by the retail segment from the credit segment is calculated using an annual rate of 2.5% times the average outstanding portfolio balance for each applicable period.

As of October 31, 2022, we operated retail stores in 15 states with no operations outside of the United States. No single customer accounts for more than 10% of our total revenues.

Financial information by segment is presented in the following tables:


	Three Months Ended October 31, 2022						Three Months Ended October 31, 2021
(in thousands)	Retail		Credit		Total		Retail		Credit		Total
Revenues:
Furniture and mattress	$	79,927	$	—	$	79,927	$	106,756	$	—	$	106,756
Home appliance	102,884		—		102,884		128,385		—		128,385
Consumer electronics	31,911		—		31,911		46,751		—		46,751
Home office	8,630		—		8,630		17,373		—		17,373
Other	9,824		—		9,824		9,036		—		9,036
Product sales	233,176		—		233,176		308,301		—		308,301
Repair service agreement commissions	18,804		—		18,804		23,769		—		23,769
Service revenues	2,378		—		2,378		2,513		—		2,513
Total net sales	254,358		—		254,358		334,583		—		334,583
Finance charges and other revenues	270		66,572		66,842		262		70,613		70,875
Total revenues	254,628		66,572		321,200		334,845		70,613		405,458
Costs and expenses:
Cost of goods sold	169,842		—		169,842		211,298		—		211,298
Selling, general and administrative expense (1)	94,240		32,003		126,243		100,969		37,112		138,081
Provision for bad debts	261		34,843		35,104		36		26,496		26,532
Charges and credits	8,006		—		8,006		—		—		—
Total costs and expenses	272,349		66,846		339,195		312,303		63,608		375,911
Operating income (loss)	(17,721)		(274)		(17,995)		22,542		7,005		29,547
Interest expense	—		11,478		11,478		—		5,206		5,206
Income (loss) before income taxes	$	(17,721)	$	(11,752)	$	(29,473)	$	22,542	$	1,799	$	24,341


	Nine Months Ended October 31, 2022						Nine Months Ended October 31, 2021
(in thousands)	Retail		Credit		Total		Retail		Credit		Total
Revenues:
Furniture and mattress	$	254,341	$	—	$	254,341	$	310,505	$	—	$	310,505
Home appliance	333,359		—		333,359		377,090		—		377,090
Consumer electronics	97,375		—		97,375		133,202		—		133,202
Home office	27,676		—		27,676		49,881		—		49,881
Other	25,847		—		25,847		27,079		—		27,079
Product sales	738,598		—		738,598		897,757		—		897,757
Repair service agreement commissions	60,256		—		60,256		66,600		—		66,600
Service revenues	7,279		—		7,279		8,307		—		8,307
Total net sales	806,133		—		806,133		972,664		—		972,664
Finance charges and other revenues	815		200,704		201,519		695		214,184		214,879
Total revenues	806,948		200,704		1,007,652		973,359		214,184		1,187,543
Costs and expenses:
Cost of goods sold	530,942		—		530,942		612,219		—		612,219
Selling, general and administrative expense (1)	288,306		100,863		389,169		294,019		107,981		402,000
Provision (benefit) for bad debts	848		76,211		77,059		196		19,462		19,658
Charges and credits	6,522		—		6,522		—		—		—
Total costs and expenses	826,618		177,074		1,003,692		906,434		127,443		1,033,877
Operating income (loss)	(19,670)		23,630		3,960		66,925		86,741		153,666
Interest expense	—		23,807		23,807		—		20,498		20,498
Loss on extinguishment of debt	—		—		—		—		1,218		1,218
Income (loss) before income taxes	$	(19,670)	$	(177)	$	(19,847)	$	66,925	$	65,025	$	131,950
	October 31, 2022						October 31, 2021
(in thousands)	Retail		Credit		Total		Retail		Credit		Total
Total assets	$	594,302	$	1,142,830	$	1,737,132	$	707,402	$	1,079,177	$	1,786,579

(1)For the three months ended October 31, 2022 and 2021, the amount of corporate overhead allocated to each segment reflected in SG&A expense was $7.4 million and $11.1 million, respectively. For the three months ended October 31, 2022 and 2021, the amount of reimbursement made to the retail segment by the credit segment was $6.5 million and $7.0 million, respectively. For the nine months ended October 31, 2022 and 2021, the amount of corporate overhead allocated to each segment reflected in SG&A was $23.6 million and $30.0 million, respectively. For the nine months ended October 31, 2022 and 2021, the amount of reimbursement made to the retail segment by the credit segment was $19.9 million and $21.2 million, respectively.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Stockholders’ Equity	9 Months Ended
Stockholders’ Equity	Oct. 31, 2022
Stockholders' Equity Note [Abstract]
Stockholders’ Equity	Stock RepurchasesOn December 15, 2021, our Board of Directors approved a stock repurchase program pursuant to which we had the authorization to repurchase up to $150.0 million of our outstanding common stock. The stock repurchase program expires on December 14, 2022. During the three months ended October 31, 2022, we did not repurchase any shares of our common stock. During the nine months ended October 31, 2022, we repurchased 3,316,000 shares of our common stock at an average weighted cost per share of $20.57 for an aggregate amount of $68.2 million.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Oct. 31, 2022

Accounting Policies [Abstract]

Business and Basis of Presentation

Fiscal Year

Fiscal Year. Our fiscal year ends on January 31. References to a fiscal year refer to the calendar year in which the fiscal year ends.

Principles of Consolidation

Variable Interest Entity

Refer to Note 5, Debt and Financing Lease Obligations, and Note 7, Variable Interest Entities, for additional information.

Use of Estimates

Cash and Cash Equivalents and Restricted Cash

Cash and Cash Equivalents. As of October 31, 2022 and January 31, 2022, cash and cash equivalents included cash and credit card deposits in transit. Credit card deposits in transit included in cash and cash equivalents were $4.6 million and $5.2 million as of October 31, 2022 and January 31, 2022, respectively. Restricted Cash. The restricted cash balance as of October 31, 2022 and January 31, 2022 includes $38.2 million and $25.7 million, respectively, of cash we collected as servicer on the securitized receivables that was subsequently remitted to the VIEs and $5.2 million and $4.2 million, respectively, of cash held by the VIEs as additional collateral for the asset-backed notes.

Customer Accounts Receivable

Customer Accounts Receivable. Customer accounts receivable reported in the Condensed Consolidated Balance Sheet includes total receivables managed, including both those transferred to the VIEs and those not transferred to the VIEs. Customer accounts receivable are recognized at the time the customer takes possession of the product. Expected lifetime losses on customer accounts receivable are recognized upon origination through an allowance for credit losses account that is deducted from the customer account receivable balance and presented net. Customer accounts receivable include the net of unamortized deferred fees charged to customers and origination costs. Customer receivables are considered delinquent if a payment has not been received on the scheduled due date. Accounts that are delinquent more than 209 days as of the end of a month are charged-off against the allowance for doubtful accounts along with interest accrued subsequent to the last payment.In an effort to mitigate losses on our accounts receivable, we may make loan modifications to a borrower experiencing financial difficulty. The loan modifications are intended to maximize net cash flow after expenses and avoid the need to exercise legal remedies available to us. We may extend or “re-age” a portion of our customer accounts, which involves modifying the payment terms to defer a portion of the cash payments due. Our re-aging of customer accounts does not change the interest rate or the total principal amount due from the customer and typically does not reduce the monthly contractual payments. To a much lesser extent, we may provide the customer the ability to refinance their account, which typically does not change the interest rate or the total principal amount due from the customer but does reduce the monthly contractual payments and extend the term. We consider accounts that have been re-aged in excess of three months or refinanced as Troubled Debt Restructurings (“TDR” or “Restructured Accounts”).

Interest Income on Customer Accounts Receivable

Financing Receivable, Allowance for Credit Losses, Policy for Uncollectible Amounts

Debt Issuance Costs and Loss on Extinguishment of Debt

Debt Issuance Costs. Costs that are direct and incremental to debt issuance are deferred and amortized to interest expense using the effective interest method over the expected life of the debt. All other costs related to debt issuance are expensed as incurred. We present debt issuance costs associated with long-term debt as a reduction of the carrying amount of the debt. Unamortized costs related to the Revolving Credit Facility, as defined in Note 5, Debt and Financing Lease Obligations, are included in other assets on our Condensed Consolidated Balance Sheet and were $4.0 million and $5.1 million as of October 31, 2022 and January 31, 2022, respectively.Loss on Extinguishment. During the nine months ended October 31, 2021, we incurred a loss of $1.0 million related to the retirement of the remaining $141.2 million aggregate principal amount of our 7.25% Senior Notes due 2022 and a loss of $0.2 million related to the amendment of our Fifth Amended and Restated Loan and Security Agreement.

Income Taxes

Earnings per Share


	Three Months Ended October 31,		Nine Months Ended October 31,
	2022	2021	2022	2021
Weighted-average common shares outstanding - Basic	23,911,273	29,488,321	24,172,679	29,418,047
Dilutive effect of stock options, PSUs and RSUs	—	773,100	—	709,372
Weighted-average common shares outstanding - Diluted	23,911,273	30,261,421	24,172,679	30,127,419

Fair Value of Financial Instruments

•Level 1 – Inputs represent unadjusted quoted prices in active markets for identical assets or liabilities.

Deferred Revenue

Recent Accounting Pronouncements Adopted and Recent Accounting Pronouncements Yet To Be Adopted

Recent Accounting Pronouncements Adopted.

Recent Accounting Pronouncements Yet to Be Adopted.

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Oct. 31, 2022

Accounting Policies [Abstract]

RSUs, PSUs and stock options granted during the period

The following table sets forth the RSUs and PSUs granted during the three and nine months ended October 31, 2022 and 2021:


	Three Months Ended October 31,				Nine Months Ended October 31,
	2022		2021		2022		2021
RSUs (1)	154,614		204,376		631,200		586,107
PSUs (2)	—		115,688		176,509		268,037
Total stock awards granted	154,614		320,064		807,709		854,144
Aggregate grant date fair value (in thousands)	$	1,162	$	8,599	$	16,924	$	17,849

Shares outstanding for the earnings per share calculations

The following table sets forth the shares outstanding for the earnings per share calculations:


	Three Months Ended October 31,		Nine Months Ended October 31,
	2022	2021	2022	2021
Weighted-average common shares outstanding - Basic	23,911,273	29,488,321	24,172,679	29,418,047
Dilutive effect of stock options, PSUs and RSUs	—	773,100	—	709,372
Weighted-average common shares outstanding - Diluted	23,911,273	30,261,421	24,172,679	30,127,419

Customer Accounts Receivable (Tables)

9 Months Ended

Oct. 31, 2022

Receivables [Abstract]

Allowance for doubtful accounts and uncollectible interest for customer receivables

Customer accounts receivable consisted of the following:


(in thousands)	October 31, 2022		January 31, 2022
Customer accounts receivable (1)	$	1,032,800	$	1,130,395
Deferred fees and origination costs, net	(11,753)		(13,503)
Allowance for no-interest option credit programs	(17,609)		(19,654)
Allowance for uncollectible interest and fees	(23,049)		(15,124)
Carrying value of customer accounts receivable	980,389		1,082,114
Allowance for credit losses (2)	(164,629)		(193,896)
Carrying value of customer accounts receivable, net of allowance for credit losses	815,760		888,218
Short-term portion of customer accounts receivable, net	(423,827)		(455,787)
Long-term customer accounts receivable, net	$	391,933	$	432,431


	Carrying Value
(in thousands)	October 31, 2022		January 31, 2022
Customer accounts receivable 60+ days past due (3)	$	119,223	$	112,858
Re-aged customer accounts receivable (4)	161,429		181,996
Restructured customer accounts receivable (5)	76,163		99,557

(4)The re-aged carrying value as of October 31, 2022 and January 31, 2022 includes $46.1 million and $48.6 million, respectively, in carrying value that are both 60+ days past due and re-aged.

Schedule of allowance for credit losses

The allowance for credit losses included in the current and long-term portion of customer accounts receivable, net as shown in the Condensed Consolidated Balance Sheet were as follows:


(in thousands)	October 31, 2022		January 31, 2022
Customer accounts receivable - current	$	521,440	$	564,825
Allowance for credit losses for customer accounts receivable - current	(97,613)		(109,038)
Customer accounts receivable, net of allowances	423,827		455,787
Customer accounts receivable - non current	481,998		532,413
Allowance for credit losses for customer accounts receivable - non current	(90,065)		(99,982)
Long-term portion of customer accounts receivable, net of allowances	391,933		432,431
Total customer accounts receivable, net	$	815,760	$	888,218

Activity in the allowance for doubtful accounts and uncollectible interest for customer receivables

The following presents the activity in our allowance for credit losses and uncollectible interest for customer receivables:


	Nine Months Ended October 31, 2022						Nine Months Ended October 31, 2021
(in thousands)	Customer Accounts Receivable		Restructured Accounts		Total		Customer Accounts Receivable		Restructured Accounts		Total
Allowance at beginning of period	$	165,044	$	43,976	$	209,020	$	219,740	$	78,297	$	298,037
Provision for credit loss expense (1)	89,078		25,771		114,849		21,845		23,079		44,924
Principal charge-offs (2)	(100,214)		(34,222)		(134,436)		(81,710)		(50,691)		(132,401)
Interest charge-offs	(24,016)		(8,201)		(32,217)		(22,432)		(13,917)		(36,349)
Recoveries (2)	22,708		7,754		30,462		20,947		12,996		33,943
Allowance at end of period	$	152,600	$	35,078	$	187,678	$	158,390	$	49,764	$	208,154
Average total customer portfolio balance	$	972,943	$	89,042	$	1,061,985	$	985,634	$	149,745	$	1,135,379

(1)Includes provision for uncollectible interest, which is included in finance charges and other revenues, and changes in expected future recoveries.

Financing Receivable, Past Due [Table Text Block]


(in thousands)
Delinquency Bucket	2022		2021		2020		2019		Prior		Total		% of Total
Current	$	384,401	$	227,174	$	61,119	$	9,016	$	1,572	$	683,282	69.7	%
1-30	50,477		56,730		18,562		5,799		1,386		132,954		13.6	%
31-60	15,554		19,555		6,539		2,656		625		44,929		4.6	%
61-90	8,613		12,072		3,781		1,664		332		26,462		2.7	%
91+	22,434		46,784		15,170		6,948		1,426		92,762		9.4	%
Total	$	481,479	$	362,315	$	105,171	$	26,083	$	5,341	$	980,389	100.0	%

Charges and Credits (Tables)

9 Months Ended

Oct. 31, 2022

Charges and Credits [Abstract]

Schedule of Charges and Credits

Charges and credits consisted of the following:


	Three Months Ended October 31,				Nine Months Ended October 31,
(in thousands)	2022		2021		2022		2021
Employee severance	$	8,006	$	—	$	8,006	$	—
Lease termination	—		—		(1,484)		—
Total charges and credits	$	8,006	$	—	$	6,522	$	—

Finance Charges and Other Revenue (Tables)

9 Months Ended

Oct. 31, 2022

Supplemental Disclosure of Finance Charges and Other Revenue [Abstract]

Finance Charges And Other Revenue [Table Text Block]

Finance charges and other revenues consisted of the following:


	Three Months Ended October 31,				Nine Months Ended October 31,
(in thousands)	2022		2021		2022		2021
Interest income and fees	$	61,395	$	63,621	$	185,869	$	196,303
Insurance income	5,176		6,992		14,835		17,881
Other revenues	271		262		815		695
Total finance charges and other revenues	$	66,842	$	70,875	$	201,519	$	214,879

Debt and Financing Lease Obligations (Tables)

9 Months Ended

Oct. 31, 2022

Debt Disclosure [Abstract]

Long-term Debt

Debt and financing lease obligations consisted of the following:


(in thousands)	October 31, 2022		January 31, 2022
Revolving Credit Facility	$	114,000	$	149,000
2020-A VIE Asset-backed Class A Notes	—		9,184
2020-A VIE Asset-backed Class B Notes	—		18,342
2020-A VIE Asset-backed Class C Notes	—		17,695
2021-A VIE Asset-backed Class A Notes	24,287		195,595
2021-A VIE Asset-backed Class B Notes	66,090		66,090
2021-A VIE Asset-backed Class C Notes	63,890		63,890
2022-A VIE Asset-backed Class A Notes	191,174		—
2022-A VIE Asset-backed Class B Notes	132,090		—
Financing lease obligations	5,436		6,115
Total debt and financing lease obligations	596,967		525,911
Less:
Deferred debt issuance costs	(4,375)		(2,873)
Current maturities of long-term debt and financing lease obligations	(919)		(889)
Long-term debt and financing lease obligations	$	591,673	$	522,149

Schedule of Asset-backed Notes

The asset-backed notes outstanding as of October 31, 2022 consisted of the following:


(dollars in thousands)
Asset-Backed Notes	Original Principal Amount		Original Net Proceeds (1)		Current Principal Amount		Issuance Date	Maturity Date	Contractual Interest Rate	Effective Interest Rate (2)
2021-A Class A Notes	$	247,830	$	246,152	$	24,287	11/23/2021	5/15/2026	1.05%	3.13%
2021-A Class B Notes	66,090		65,635		66,090		11/23/2021	5/15/2026	2.87%	3.54%
2021-A Class C Notes	63,890		63,450		63,890		11/23/2021	5/15/2026	4.59%	5.08%
2022-A Class A Notes	275,600		273,731		191,174		7/21/2022	12/15/2026	5.87%	8.38%
2022-A Class B Notes	132,090		129,050		132,090		7/21/2022	12/15/2026	9.52%	10.27%
Total	$	785,500	$	778,018	$	477,531

(1)After giving effect to debt issuance costs.

(2)For the nine months ended October 31, 2022, and inclusive of the impact of changes in timing of actual and expected cash flows.

Covenant Compliance

A summary of the significant financial covenants that govern our Revolving Credit Facility compared to our actual compliance status at October 31, 2022 is presented below:


	Actual	Required Minimum/ Maximum
Interest Coverage Ratio for the quarter must equal or exceed minimum	Not Tested	1.00:1.00
Interest Coverage Ratio for the trailing two quarters must equal or exceed minimum	Not Tested	1.50:1.00
Leverage Ratio must not exceed maximum	1.64:1.00	4.50:1.00
ABS Excluded Leverage Ratio must not exceed maximum	0.84:1.00	2.50:1.00
Capital Expenditures, net, must not exceed maximum	$50.4 million	$100.0 million

Variable Interest Entities (Tables)

9 Months Ended

Oct. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of assets and liabilities held by the VIE

The following table presents the assets and liabilities held by the VIEs (for legal purposes, the assets and liabilities of the VIEs will remain distinct from Conn’s, Inc.):


(in thousands)	October 31, 2022		January 31, 2022
Assets:
Restricted cash	$	43,394	$	29,872
Due from Conn’s, Inc., net	964		—
Customer accounts receivable:
Customer accounts receivable	652,778		463,411
Restructured accounts	37,270		29,621
Allowance for uncollectible accounts	(131,724)		(97,560)
Allowance for no-interest option credit programs	(13,670)		(10,275)
Deferred fees and origination costs	(6,788)		(5,033)
Total customer accounts receivable, net	537,866		380,164
Total assets	$	582,224	$	410,036
Liabilities:
Accrued expenses	$	4,194	$	2,638
Other liabilities	5,754		3,930
Due to Conn’s, Inc., net	—		12,755

Long-term debt:
2020-A Class A Notes	—		9,184
2020-A Class B Notes	—		18,342
2020-A Class C Notes	—		17,695
2021-A Class A Notes	24,287		195,595
2021-A Class B Notes	66,090		66,090
2021-A Class C Notes	63,890		63,890
2022-A Class A Notes	191,174		—
2022-A Class B Notes	132,090		—
	477,531		370,796
Less: deferred debt issuance costs	(4,375)		(2,871)
Total debt	473,156		367,925
Total liabilities	$	483,104	$	387,248

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Segment Information (Tables)

9 Months Ended

Oct. 31, 2022

Segment Reporting [Abstract]

Financial information by segment

Financial information by segment is presented in the following tables:


	Three Months Ended October 31, 2022						Three Months Ended October 31, 2021
(in thousands)	Retail		Credit		Total		Retail		Credit		Total
Revenues:
Furniture and mattress	$	79,927	$	—	$	79,927	$	106,756	$	—	$	106,756
Home appliance	102,884		—		102,884		128,385		—		128,385
Consumer electronics	31,911		—		31,911		46,751		—		46,751
Home office	8,630		—		8,630		17,373		—		17,373
Other	9,824		—		9,824		9,036		—		9,036
Product sales	233,176		—		233,176		308,301		—		308,301
Repair service agreement commissions	18,804		—		18,804		23,769		—		23,769
Service revenues	2,378		—		2,378		2,513		—		2,513
Total net sales	254,358		—		254,358		334,583		—		334,583
Finance charges and other revenues	270		66,572		66,842		262		70,613		70,875
Total revenues	254,628		66,572		321,200		334,845		70,613		405,458
Costs and expenses:
Cost of goods sold	169,842		—		169,842		211,298		—		211,298
Selling, general and administrative expense (1)	94,240		32,003		126,243		100,969		37,112		138,081
Provision for bad debts	261		34,843		35,104		36		26,496		26,532
Charges and credits	8,006		—		8,006		—		—		—
Total costs and expenses	272,349		66,846		339,195		312,303		63,608		375,911
Operating income (loss)	(17,721)		(274)		(17,995)		22,542		7,005		29,547
Interest expense	—		11,478		11,478		—		5,206		5,206
Income (loss) before income taxes	$	(17,721)	$	(11,752)	$	(29,473)	$	22,542	$	1,799	$	24,341


	Nine Months Ended October 31, 2022						Nine Months Ended October 31, 2021
(in thousands)	Retail		Credit		Total		Retail		Credit		Total
Revenues:
Furniture and mattress	$	254,341	$	—	$	254,341	$	310,505	$	—	$	310,505
Home appliance	333,359		—		333,359		377,090		—		377,090
Consumer electronics	97,375		—		97,375		133,202		—		133,202
Home office	27,676		—		27,676		49,881		—		49,881
Other	25,847		—		25,847		27,079		—		27,079
Product sales	738,598		—		738,598		897,757		—		897,757
Repair service agreement commissions	60,256		—		60,256		66,600		—		66,600
Service revenues	7,279		—		7,279		8,307		—		8,307
Total net sales	806,133		—		806,133		972,664		—		972,664
Finance charges and other revenues	815		200,704		201,519		695		214,184		214,879
Total revenues	806,948		200,704		1,007,652		973,359		214,184		1,187,543
Costs and expenses:
Cost of goods sold	530,942		—		530,942		612,219		—		612,219
Selling, general and administrative expense (1)	288,306		100,863		389,169		294,019		107,981		402,000
Provision (benefit) for bad debts	848		76,211		77,059		196		19,462		19,658
Charges and credits	6,522		—		6,522		—		—		—
Total costs and expenses	826,618		177,074		1,003,692		906,434		127,443		1,033,877
Operating income (loss)	(19,670)		23,630		3,960		66,925		86,741		153,666
Interest expense	—		23,807		23,807		—		20,498		20,498
Loss on extinguishment of debt	—		—		—		—		1,218		1,218
Income (loss) before income taxes	$	(19,670)	$	(177)	$	(19,847)	$	66,925	$	65,025	$	131,950
	October 31, 2022						October 31, 2021
(in thousands)	Retail		Credit		Total		Retail		Credit		Total
Total assets	$	594,302	$	1,142,830	$	1,737,132	$	707,402	$	1,079,177	$	1,786,579

Summary of Significant Accounting Policies - Narrative (Details)	3 Months Ended		9 Months Ended
	Oct. 31, 2022 USD ($)	Oct. 31, 2021 USD ($)	Oct. 31, 2022 USD ($) segment	Oct. 31, 2021 USD ($)	Jan. 31, 2022 USD ($)	Apr. 15, 2021 USD ($)	Jan. 31, 2021 USD ($)	Jul. 01, 2014
Debt Instrument [Line Items]
Number of operating segments \| segment			2
Cash and Cash Equivalents and Restricted Cash
Cash and cash equivalents include credit card deposits in-transit	$ 4,600,000		$ 4,600,000		$ 5,200,000
Restricted cash	45,503,000		45,503,000		31,930,000
Receivables [Abstract]
Long-term customer accounts receivable, net	391,933,000		391,933,000		432,431,000
Accounts Receivable, Allowance for Credit Loss	187,678,000	$ 208,154,000	187,678,000	$ 208,154,000	209,020,000		$ 298,037,000
Interest Income on Customer Accounts Receivable
Deferred revenue	8,200,000		8,200,000		8,600,000
Nonaccrual status	7,600,000		7,600,000		5,900,000
90 days past due and still accruing	92,400,000		92,400,000		84,100,000
Financing Receivable, No-Interest Option Program Period			12
Bankruptcy status, less than 60 days delinquent	7,100,000		7,100,000		5,500,000
Debt Issuance Costs
Deferred debt issuance costs	4,375,000		4,375,000		2,873,000
Gain (Loss) on Extinguishment of Debt [Abstract]
Gain (Loss) on Extinguishment of Debt		0	$ 0	$ (1,218,000)
Income Taxes
Effective tax rate			16.90%	23.70%
Stock-based Compensation
Stock-based compensation expense	2,400,000	2,600,000	$ 9,004,000	$ 6,382,000
Fair Value of Financial Instruments
Long-term Debt	477,531,000		477,531,000
Restructured Accounts
Receivables [Abstract]
Accounts Receivable, Allowance for Credit Loss	35,078,000	$ 49,764,000	35,078,000	49,764,000	43,976,000		$ 78,297,000
Customer Deposits
Deferred Revenue
Deferred revenue, revenue recognized	3,900,000
RSA Administration Fees
Deferred Revenue
Deferred revenue, revenue recognized	2,600,000
Secured Debt
Fair Value of Financial Instruments
Debt fair value	469,700,000		469,700,000
Revolving Credit Facility
Gain (Loss) on Extinguishment of Debt [Abstract]
Gain (Loss) on Extinguishment of Debt				200,000
Revolving Credit Facility
Debt Issuance Costs
Deferred debt issuance costs	4,000,000		4,000,000		5,100,000
Securitized Receivables Servicer
Cash and Cash Equivalents and Restricted Cash
Restricted cash	5,200,000		5,200,000		4,200,000
Collateral Held by VIE
Cash and Cash Equivalents and Restricted Cash
Restricted cash	38,200,000		38,200,000		$ 25,700,000
Senior Notes
Gain (Loss) on Extinguishment of Debt [Abstract]
Gain (Loss) on Extinguishment of Debt				$ 1,000,000
Debt Instrument, Repurchase Amount						$ 141,200,000
Senior Notes \| Senior Notes
Gain (Loss) on Extinguishment of Debt [Abstract]
Interest rate on notes								7.25%
Secured Debt
Fair Value of Financial Instruments
Long-term Debt	$ 477,500,000		$ 477,500,000

Summary of Significant Accounting Policies - Stock-based Compensation (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Oct. 31, 2022

Oct. 31, 2021

Oct. 31, 2022

Oct. 31, 2021

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total stock awards granted (in shares)

154,614

320,064

807,709

854,144

Aggregate grant date fair value

$ 1,162

$ 8,599

$ 16,924

$ 17,849

Dividend yield

0.00%

Stock-based compensation expense

$ 2,400

$ 2,600

$ 9,004

$ 6,382

Share-Based Payment Arrangement

The following table sets forth the RSUs and PSUs granted during the three and nine months ended October 31, 2022 and 2021:


	Three Months Ended October 31,				Nine Months Ended October 31,
	2022		2021		2022		2021
RSUs (1)	154,614		204,376		631,200		586,107
PSUs (2)	—		115,688		176,509		268,037
Total stock awards granted	154,614		320,064		807,709		854,144
Aggregate grant date fair value (in thousands)	$	1,162	$	8,599	$	16,924	$	17,849

Minimum

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Vesting period

3 years

Maximum

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Vesting period

4 years

(RSUs)

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

RSUs and PSUs (in shares)

154,614

204,376

631,200

586,107

(RSUs) | Minimum

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Vesting period

3 years

(PSUs)

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

RSUs and PSUs (in shares)

115,688

176,509

268,037

Expected volatility rate

83.00%

Expected term

3 years

Risk free interest rate

0.17%

(PSUs) | Minimum

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Expected volatility rate

78.00%

Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum

2.58%

0.67%

Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum

1.39%

(PSUs) | Maximum

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Expected volatility rate

80.00%

87.00%

Summary of Significant Accounting Policies - Earnings per Share (Details) - shares	3 Months Ended		9 Months Ended
	Oct. 31, 2022	Oct. 31, 2021	Oct. 31, 2022	Oct. 31, 2021
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted average common shares outstanding - Basic (in shares)	23,911,273	29,488,321	24,172,679	29,418,047
Dilutive effect of stock options, RSUs and PSUs (in shares)	0	773,100	0	709,372
Weighted average common shares outstanding - Diluted (in shares)	23,911,273	30,261,421	24,172,679	30,127,419
Restricted Stock Units And PSUs
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted average number of stock options and restricted stock units not included in the calculation of the dilutive effect of stock options and restricted stock units (in shares)	1,545,180	715,051	1,429,381	734,407

Customer Accounts Receivable (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2022	Oct. 31, 2021	Jan. 31, 2022
Quantitative information about the receivables portfolio managed [Abstract]
Customer accounts receivable (1)	$ 1,032,800		$ 1,130,395
Deferred fees and origination costs, net	(11,753)		(13,503)
Allowance for no-interest option credit programs	17,609		19,654
Allowance for uncollectible interest and fees	23,049		15,124
Carrying value of customer accounts receivable	980,389		1,082,114
Allowance for credit losses	(164,629)		(193,896)
Total customer accounts receivable, net	815,760		888,218
Short-term portion of customer accounts receivable, net	(423,827)		(455,787)
Long-term customer accounts receivable, net	391,933		432,431
Customer accounts receivable 60 days past due	119,223		112,858
Re-aged customer accounts receivable	161,429		181,996
Restructured customer accounts receivable	76,163		99,557
Amounts included within past due and reaged accounts	46,100		48,600
Accounts Receivable, Restructured Accounts, Past Due	21,200		29,000
Financing Receivable, Past Due	297,100		299,000
Interest receivable	33,000		22,300
Interest receivable outstanding net of allowance for uncollectible interest	9,900		$ 7,200
Allowance for doubtful accounts and uncollectible interest for customer receivables [Abstract]
Allowance at beginning of period	209,020	$ 298,037
Provision	114,849	44,924
Principal charge-offs	(134,436)	(132,401)
Interest charge-offs	(32,217)	(36,349)
Recoveries	30,462	33,943
Allowance at end of period	187,678	208,154
Average total customer portfolio balance	1,061,985	1,135,379
Restructured Accounts
Allowance for doubtful accounts and uncollectible interest for customer receivables [Abstract]
Allowance at beginning of period	43,976	78,297
Provision	25,771	23,079
Principal charge-offs	(34,222)	(50,691)
Interest charge-offs	(8,201)	(13,917)
Recoveries	7,754	12,996
Allowance at end of period	35,078	49,764
Average total customer portfolio balance	89,042	149,745
Customer Accounts Receivable [Member]
Allowance for doubtful accounts and uncollectible interest for customer receivables [Abstract]
Allowance at beginning of period	165,044	219,740
Provision	89,078	21,845
Principal charge-offs	(100,214)	(81,710)
Interest charge-offs	(24,016)	(22,432)
Recoveries	22,708	20,947
Allowance at end of period	152,600	158,390
Average total customer portfolio balance	$ 972,943	$ 985,634

Customer Accounts Receivable - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands	Oct. 31, 2022	Jan. 31, 2022
Receivables [Abstract]
Customer accounts receivable - current	$ 521,440	$ 564,825
Allowance for credit losses for customer accounts receivable - current	(97,613)	(109,038)
Customer accounts receivable, net of allowances	423,827	455,787
Customer accounts receivable - non current	481,998	532,413
Allowance for credit losses for customer accounts receivable - non current	(90,065)	(99,982)
Long-term portion of customer accounts receivable, net of allowances	391,933	432,431
Total customer accounts receivable, net	$ 815,760	$ 888,218

Customer Accounts Receivable Delinquency Bucket (Details) - USD ($) $ in Thousands	Oct. 31, 2022	Jan. 31, 2022
Financing Receivable, Past Due [Line Items]
2022	$ 481,479
2021	362,315
2020	105,171
2019	26,083
Prior	5,341
Carrying value of customer accounts receivable	$ 980,389	$ 1,082,114
% of Total	100.00%
Current
Financing Receivable, Past Due [Line Items]
2022	$ 384,401
2021	227,174
2020	61,119
2019	9,016
Prior	1,572
Carrying value of customer accounts receivable	$ 683,282
% of Total	69.70%
1-30
Financing Receivable, Past Due [Line Items]
2022	$ 50,477
2021	56,730
2020	18,562
2019	5,799
Prior	1,386
Carrying value of customer accounts receivable	$ 132,954
% of Total	13.60%
31-60
Financing Receivable, Past Due [Line Items]
2022	$ 15,554
2021	19,555
2020	6,539
2019	2,656
Prior	625
Carrying value of customer accounts receivable	$ 44,929
% of Total	4.60%
61-90
Financing Receivable, Past Due [Line Items]
2022	$ 8,613
2021	12,072
2020	3,781
2019	1,664
Prior	332
Carrying value of customer accounts receivable	$ 26,462
% of Total	2.70%
91+
Financing Receivable, Past Due [Line Items]
2022	$ 22,434
2021	46,784
2020	15,170
2019	6,948
Prior	1,426
Carrying value of customer accounts receivable	$ 92,762
% of Total	9.40%

Charges and Credits (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Oct. 31, 2022

Oct. 31, 2021

Oct. 31, 2022

Oct. 31, 2021

Restructuring Cost and Reserve [Line Items]

Lease modification

$ 0

$ (1,484)

$ 0

Employee severance

8,006

Charges and credits

$ 8,006

$ 0

6,522

$ 0

Charges and Credits

3. Charges and Credits

Charges and credits consisted of the following:


	Three Months Ended October 31,				Nine Months Ended October 31,
(in thousands)	2022		2021		2022		2021
Employee severance	$	8,006	$	—	$	8,006	$	—
Lease termination	—		—		(1,484)		—
Total charges and credits	$	8,006	$	—	$	6,522	$	—

Lease modification

Restructuring Cost and Reserve [Line Items]

Lease modification

$ (1,500)

Finance Charges and Other Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2022	Oct. 31, 2021	Oct. 31, 2022	Oct. 31, 2021
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Interest income and fees	$ 61,395	$ 63,621	$ 185,869	$ 196,303
Insurance income	5,176	6,992	14,835	17,881
Other revenues	271	262	815	695
Provisions for uncollectible interest	19,100	10,500	38,600	25,500
Other Income	66,842	70,875	201,519	214,879
Financing Receivable [Member]
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Interest income and fees	$ 3,600	$ 5,800	$ 11,500	$ 20,000

Debt and Financing Lease Obligations - Schedule of Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands	Oct. 31, 2022	Jan. 31, 2022	Apr. 15, 2021
Long-term debt [Abstract]
Long-term Debt	$ 477,531
Financing lease obligations	5,436	$ 6,115
Total debt and financing lease obligations	596,967	525,911
Less:
Deferred debt issuance costs	(4,375)	(2,873)
Current maturities of long-term debt and financing lease obligations	(919)	(889)
Long-term debt and financing lease obligations	591,673	522,149
2021-A VIE Class A Notes
Long-term debt [Abstract]
Long-term Debt	24,287
2021-A VIE Class B Notes
Long-term debt [Abstract]
Long-term Debt	66,090
2021-A VIE Class C Notes
Long-term debt [Abstract]
Long-term Debt	63,890
2022-A VIE Class A Notes
Long-term debt [Abstract]
Long-term Debt	191,174
2022-A VIE Class B Notes
Long-term debt [Abstract]
Long-term Debt	132,090
Senior Notes
Less:
Debt Instrument, Repurchase Amount			$ 141,200
Secured Debt
Long-term debt [Abstract]
Long-term Debt	477,500
Secured Debt \| 2020-A VIE Class A Notes
Long-term debt [Abstract]
Long-term Debt	0	9,184
Secured Debt \| 2020-A VIE Class B Notes
Long-term debt [Abstract]
Long-term Debt	0	18,342
Secured Debt \| 2020-A VIE Class C Notes
Long-term debt [Abstract]
Long-term Debt	0	17,695
Secured Debt \| 2021-A VIE Class A Notes
Long-term debt [Abstract]
Long-term Debt	24,287	195,595
Secured Debt \| 2021-A VIE Class B Notes
Long-term debt [Abstract]
Long-term Debt	66,090	66,090
Secured Debt \| 2021-A VIE Class C Notes
Long-term debt [Abstract]
Long-term Debt	63,890	63,890
Secured Debt \| 2022-A VIE Class A Notes
Long-term debt [Abstract]
Long-term Debt	191,174	0
Secured Debt \| 2022-A VIE Class B Notes
Long-term debt [Abstract]
Long-term Debt	132,090	0
Revolving Credit Facility
Less:
Deferred debt issuance costs	(4,000)	(5,100)
Revolving Credit Facility \| Line of Credit
Long-term debt [Abstract]
Long-term Debt	$ 114,000	$ 149,000

Debt and Financing Lease Obligations - Senior Notes (Details) - USD ($) $ in Thousands	Oct. 31, 2022	Apr. 15, 2021
Debt Instrument [Line Items]
Original principal amount	$ 785,500
Senior Notes
Debt Instrument [Line Items]
Debt Instrument, Repurchase Amount		$ 141,200

Debt and Financing Lease Obligations - Asset Backed Notes (Details) - USD ($) $ in Thousands			9 Months Ended
	Jul. 21, 2022	Nov. 23, 2021	Oct. 31, 2022
Debt Instrument [Line Items]
Original Principal Amount			$ 785,500
Original Net Proceeds	$ 402,800		778,018
Current Principal Amount			477,531
2021-A VIE Class A Notes
Debt Instrument [Line Items]
Original Principal Amount			247,830
Original Net Proceeds		$ 246,152
Current Principal Amount			$ 24,287
Contractual Interest Rate			1.05%
Effective Interest Rate			3.13%
2021-A VIE Class B Notes
Debt Instrument [Line Items]
Original Principal Amount			$ 66,090
Original Net Proceeds		65,635
Current Principal Amount			$ 66,090
Contractual Interest Rate			2.87%
Effective Interest Rate			3.54%
2021-A VIE Class C Notes
Debt Instrument [Line Items]
Original Principal Amount			$ 63,890
Original Net Proceeds		$ 63,450
Current Principal Amount			$ 63,890
Contractual Interest Rate			4.59%
Effective Interest Rate			5.08%
2022-A VIE Class A, B, C Notes
Debt Instrument [Line Items]
Original Principal Amount	407,700
2022-A VIE Class A Notes
Debt Instrument [Line Items]
Original Principal Amount	275,600		$ 275,600
Original Net Proceeds	$ 273,731
Current Principal Amount			$ 191,174
Contractual Interest Rate	5.87%		5.87%
Effective Interest Rate			8.38%
2022-A VIE Class B Notes
Debt Instrument [Line Items]
Original Principal Amount	$ 132,100		$ 132,090
Original Net Proceeds	$ 129,050
Current Principal Amount			$ 132,090
Contractual Interest Rate	9.52%		9.52%
Effective Interest Rate			10.27%
2022-A VIE Class C Notes [Member]
Debt Instrument [Line Items]
Original Principal Amount	$ 63,100
Contractual Interest Rate	0.00%
Asset-backed Securities
Debt Instrument [Line Items]
Monthly fee percentage on outstanding balance			4.75%

Debt and Financing Lease Obligations - Revolving Credit Facility (Details) - USD ($)	Mar. 29, 2021	Oct. 31, 2022
Line of Credit Facility [Line Items]
Original principal amount		$ 785,500,000
Revolving Credit Facility \| Minimum
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity	$ 40,000,000
Line of Credit Facility, Current Borrowing Capacity	40,000,000
Revolving Credit Facility \| Maximum
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity	100,000,000
Line of Credit Facility, Current Borrowing Capacity	100,000,000
Line of Credit \| Revolving Credit Facility
Line of Credit Facility [Line Items]
Maximum capacity extended under credit facility	$ 650,000,000
Weighted-average interest rate		4.30%
Line of Credit \| Revolving Credit Facility \| Minimum
Line of Credit Facility [Line Items]
Unused capacity fee percentage	0.25%
Line of Credit \| Revolving Credit Facility \| Maximum
Line of Credit Facility [Line Items]
Unused capacity fee percentage	0.50%
Line of Credit \| Revolving Credit Facility \| LIBOR
Line of Credit Facility [Line Items]
Variable basis spread	1.00%
Debt Instrument, Interest- Free Period	30 days
Line of Credit \| Revolving Credit Facility \| Alternate Base Rate \| Minimum
Line of Credit Facility [Line Items]
Variable basis spread	1.50%
Line of Credit \| Revolving Credit Facility \| Alternate Base Rate \| Maximum
Line of Credit Facility [Line Items]
Variable basis spread	2.25%
Line of Credit \| Revolving Credit Facility \| Federal Funds Rate
Line of Credit Facility [Line Items]
Variable basis spread	0.50%
Revolving Credit Facility
Line of Credit Facility [Line Items]
Available borrowing capacity		$ 155,400,000
Sub-facility for letters of credit		22,300,000
Additional borrowing capacity		$ 358,300,000
Revolving Credit Facility \| LIBOR \| Minimum
Line of Credit Facility [Line Items]
Variable basis spread	2.50%
Revolving Credit Facility \| LIBOR \| Maximum
Line of Credit Facility [Line Items]
Variable basis spread	3.25%

Debt and Financing Lease Obligations - Debt Covenants (Details) $ in Millions	9 Months Ended
	Oct. 31, 2022 USD ($)
Debt Disclosure [Abstract]
Debt Instrument, Minimum Interest Coverage Ratio	1.00
Debt Instrument, Minimum Interest Coverage Ratio, Trailing Two Quarters	1.50
Actual
Leverage Ratio must not exceed (maximum)	1.64
ABS Excluded Leverage Ratio must not exceed (maximum)	0.84
Capital Expenditures, net, must not exceed (maximum)	$ 50.4
Required Minimum/ Maximum
Leverage Ratio must not exceed (maximum)	4.50
ABS Excluded Leverage Ratio must not exceed (maximum)	2.50
Capital Expenditures, net, must not exceed (maximum)	$ 100.0

Contingencies (Details) - Derivative Action Lawsuits	9 Months Ended
Contingencies (Details) - Derivative Action Lawsuits	Oct. 31, 2022 plaintiff state_court
Loss Contingencies [Line Items]
Loss Contingency, Number of Plaintiffs \| plaintiff	0
Loss Contingency, Number Of State Court Derivative Action Where Defendants Vigorously Defend Against The Claims \| state_court	2

Variable Interest Entities - Additional Information (Details)	9 Months Ended
	Oct. 31, 2022
Asset-backed Securities
Variable Interest Entity [Line Items]
Monthly fee percentage on outstanding balance	4.75%

Variable Interest Entities (Details) - USD ($) $ in Thousands	Oct. 31, 2022	Jan. 31, 2022	Oct. 31, 2021	Jan. 31, 2021
Assets:
Restricted cash	$ 45,503	$ 31,930
Customer accounts receivable:
Restructured accounts	76,163	99,557
Allowance for uncollectible accounts	(187,678)	(209,020)	$ (208,154)	$ (298,037)
Allowance for no-interest option credit programs	17,609	19,654
Deferred fees and origination costs, net	(11,753)	(13,503)
Total customer accounts receivable, net	815,760	888,218
Total assets	1,737,132	1,754,466	$ 1,786,579
Liabilities:
Total debt	477,531
Long-term debt	591,673	522,149
Less: deferred debt issuance costs	(4,375)	(2,873)
Total liabilities	1,194,026	1,139,647
2021-A VIE Class A Notes
Liabilities:
Total debt	24,287
2021-A VIE Class B Notes
Liabilities:
Total debt	66,090
2021-A VIE Class C Notes
Liabilities:
Total debt	63,890
2022-A VIE Class A Notes
Liabilities:
Total debt	191,174
2022-A VIE Class B Notes
Liabilities:
Total debt	132,090
Secured Debt
Liabilities:
Total debt	477,500
Secured Debt \| 2020-A VIE Class A Notes
Liabilities:
Total debt	0	9,184
Secured Debt \| 2020-A VIE Class B Notes
Liabilities:
Total debt	0	18,342
Secured Debt \| 2020-A VIE Class C Notes
Liabilities:
Total debt	0	17,695
Secured Debt \| 2021-A VIE Class A Notes
Liabilities:
Total debt	24,287	195,595
Secured Debt \| 2021-A VIE Class B Notes
Liabilities:
Total debt	66,090	66,090
Secured Debt \| 2021-A VIE Class C Notes
Liabilities:
Total debt	63,890	63,890
Secured Debt \| 2022-A VIE Class A Notes
Liabilities:
Total debt	191,174	0
Secured Debt \| 2022-A VIE Class B Notes
Liabilities:
Total debt	132,090	0
Variable Interest Entity
Assets:
Restricted cash	43,394	29,872
Due from Conn’s, Inc., net	964	0
Customer accounts receivable:
Customer accounts receivable	652,778	463,411
Restructured accounts	37,270	29,621
Allowance for uncollectible accounts	(131,724)	(97,560)
Allowance for no-interest option credit programs	13,670	10,275
Deferred fees and origination costs, net	(6,788)	(5,033)
Total customer accounts receivable, net	537,866	380,164
Total assets	582,224	410,036
Liabilities:
Accrued expenses	4,194	2,638
Other liabilities	5,754	3,930
Due to Conn’s, Inc., net	0	12,755
Total debt	473,156	367,925
Long-term debt	477,531	370,796
Less: deferred debt issuance costs	(4,375)	(2,871)
Total liabilities	$ 483,104	$ 387,248

Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
Segment Information (Details) $ in Thousands	Oct. 31, 2022 USD ($) state store	Oct. 31, 2021 USD ($)	Oct. 31, 2022 USD ($) segment state store	Oct. 31, 2021 USD ($)	Jan. 31, 2022 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| segment			2
Estimated annual rate of reimbursement (as a percent)			2.50%
Number of states with retail stores \| state	15		15
Revenues:
Total net sales	$ 254,358	$ 334,583	$ 806,133	$ 972,664
Finance charges and other revenues	66,842	70,875	201,519	214,879
Total revenues	321,200	405,458	1,007,652	1,187,543
Costs and expenses:
Cost of goods sold	169,842	211,298	530,942	612,219
Selling, general and administrative expense	126,243	138,081	389,169	402,000
Provision for bad debts	35,104	26,532	77,059	19,658
Total costs and expenses	339,195	375,911	1,003,692	1,033,877
Operating income (loss)	(17,995)	29,547	3,960	153,666
Interest expense	11,478	5,206	23,807	20,498
Loss on extinguishment of debt		0	0	1,218
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	(29,473)	24,341	(19,847)	131,950
Allocation of overhead by operating segments	7,400	11,100	23,600	30,000
Assets	1,737,132	1,786,579	1,737,132	1,786,579	$ 1,754,466
Charges and credits	8,006	0	6,522	0
Intersegment Eliminations
Revenues:
Total revenues	6,500	7,000	19,900	21,200
Retail
Revenues:
Total net sales	254,358	334,583	806,133	972,664
Finance charges and other revenues	270	262	815	695
Total revenues	254,628	334,845	806,948	973,359
Costs and expenses:
Cost of goods sold	169,842	211,298	530,942	612,219
Selling, general and administrative expense	94,240	100,969	288,306	294,019
Provision for bad debts	261	36	848	196
Total costs and expenses	272,349	312,303	826,618	906,434
Operating income (loss)	(17,721)	22,542	(19,670)	66,925
Interest expense	0	0		0
Loss on extinguishment of debt			0	0
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	(17,721)	22,542	(19,670)	66,925
Assets	594,302	707,402	594,302	707,402
Charges and credits	8,006	0	6,522	0
Credit
Revenues:
Total net sales	0	0	0	0
Finance charges and other revenues	66,572	70,613	200,704	214,184
Total revenues	66,572	70,613	200,704	214,184
Costs and expenses:
Cost of goods sold	0	0	0	0
Selling, general and administrative expense	32,003	37,112	100,863	107,981
Provision for bad debts	34,843	26,496	76,211	19,462
Total costs and expenses	66,846	63,608	177,074	127,443
Operating income (loss)	(274)	7,005	23,630	86,741
Interest expense	11,478	5,206	23,807	20,498
Loss on extinguishment of debt			0	1,218
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	(11,752)	1,799	(177)	65,025
Assets	1,142,830	1,079,177	1,142,830	1,079,177
Charges and credits	0	0	0	0
Furniture and Mattress
Revenues:
Total net sales	79,927	106,756	254,341	310,505
Furniture and Mattress \| Retail
Revenues:
Total net sales	79,927	106,756	254,341	310,505
Furniture and Mattress \| Credit
Revenues:
Total net sales	0	0	0	0
Home Appliance
Revenues:
Total net sales	102,884	128,385	333,359	377,090
Home Appliance \| Retail
Revenues:
Total net sales	102,884	128,385	333,359	377,090
Home Appliance \| Credit
Revenues:
Total net sales	0	0	0	0
Consumer Electronic
Revenues:
Total net sales	31,911	46,751	97,375	133,202
Consumer Electronic \| Retail
Revenues:
Total net sales	31,911	46,751	97,375	133,202
Consumer Electronic \| Credit
Revenues:
Total net sales	0	0	0	0
Home Office
Revenues:
Total net sales	8,630	17,373	27,676	49,881
Home Office \| Retail
Revenues:
Total net sales	8,630	17,373	27,676	49,881
Home Office \| Credit
Revenues:
Total net sales	0	0	0	0
Other
Revenues:
Total net sales	9,824	9,036	25,847	27,079
Other \| Retail
Revenues:
Total net sales	9,824	9,036	25,847	27,079
Other \| Credit
Revenues:
Total net sales	0	0	0	0
Product
Revenues:
Total net sales	233,176	308,301	738,598	897,757
Product \| Retail
Revenues:
Total net sales	233,176	308,301	738,598	897,757
Product \| Credit
Revenues:
Total net sales	0	0	0	0
RSA Commission
Revenues:
Total net sales	18,804	23,769	60,256	66,600
RSA Commission \| Retail
Revenues:
Total net sales	18,804	23,769	60,256	66,600
RSA Commission \| Credit
Revenues:
Total net sales	0	0	0	0
Service
Revenues:
Total net sales	2,378	2,513	7,279	8,307
Service \| Retail
Revenues:
Total net sales	2,378	2,513	$ 7,279	8,307
Service \| Credit
Revenues:
Total net sales	$ 0	$ 0		$ 0
Outside of US
Segment Reporting Information [Line Items]
Number of stores \| store	0		0

Stockholders’ Equity (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Oct. 31, 2022	Dec. 15, 2021
Stockholders' Equity Note [Abstract]
Authorized amount (in millions)		$ 150.0
Stock repurchased (in shares)	3,316,000
Stock repurchased (in dollars per shares)	$ 20.57
Stock repurchased	$ 68.2

Subsequent Events (Details) - USD ($) $ in Thousands				9 Months Ended
Subsequent Events (Details) - USD ($) $ in Thousands	Nov. 30, 2022	Nov. 21, 2022	Jul. 21, 2022	Oct. 31, 2022
Subsequent Event [Line Items]
Original Net Proceeds			$ 402,800	$ 778,018
Original principal amount				$ 785,500
Subsequent Event [Member]
Subsequent Event [Line Items]
Debt Instrument, Covenant, Minimum Liquidity Amount		$ 125,000
Debt Instrument, Covenant, Minimum Availability Requirement, Percentage		25.00%
Debt Instrument, Covenant, Minimum Availability Requirement, Amount		$ 75,000
Debt Instrument, Covenant, Anti-Cash Covenant Threshold		100,000
Debt Instrument, Covenant, Minimum Liquidity Amount after November 1, 2023		112,500
Debt Instrument, Covenant, Maximum Amount Outstanding		$ 325,000
Subsequent Events		10. Subsequent Events Revolving Credit Facility Amendment. On November 21, 2022, Conn’s, Inc. (the “Company”) entered into an Amendment No. 1 (the “Amendment”) to the Fifth Amended and Restated Loan and Security Agreement, dated as of March 29, 2021, by and among the Company, as parent and guarantor, Conn Appliances, Inc., Conn Credit I, LP and Conn Credit Corporation, Inc., as borrowers, certain banks and financial institutions named therein, as lenders, and JPMorgan Chase Bank, N.A., as Administrative Agent for the Lenders (the “Agreement”). The Amendment, among other things, (a) replaces the interest rate benchmark under the Agreement from LIBOR to Term SOFR; (b) provides for a covenant relief period, which removes testing of the interest coverage covenant for the fiscal quarter ended October 31, 2022 and each fiscal quarter ended thereafter during the Covenant Relief Period (but before April 30, 2024), commencing on November 21, 2022 through the earlier of (i) the date on which the Company delivers financial statements and a compliance certificate for the fiscal quarter ending April 30, 2024 (demonstrating compliance with the then applicable interest coverage and leverage covenants) and (ii) the date that is 10 business days after the Administrative Agent receives (1) written notice electing to terminate the covenant relief period (such notice not to be delivered prior to November 1, 2023) and (2) projections demonstrating future compliance with the interest coverage and leverage covenants for the fiscal quarters ending on or prior to January 31, 2025 (the “Covenant Relief Period”), (which projections will be prepared by Borrower Agent in good faith, it being recognized that projections are subject to uncertainties); (c) adds a minimum liquidity covenant, which requires at all times during the Covenant Relief Period that the Company and certain of its subsidiaries maintain minimum liquidity of (i) $125.0 million through October 31, 2023 (ii) on and after November 1, 2023, $112.5 million provided that from and after such date until the end of the Covenant Relief Period, the revolving credit facility amount outstanding is limited to $325.0 million; (d) adds an anti-cash hoarding covenant, which requires at all times during the Covenant Relief Period mandatory prepayments of the revolver loans with the amount of any cash on the Company’s balance sheet in excess of $100.0 million to the extent any revolving loans are then outstanding; (e) adds a minimum availability covenant, which requires at all times during the Covenant Relief Period availability under the revolver of no less than the greater of (i) 25% of the borrowing base and (ii) $75.0 million; (f) provides for increased reporting requirements during the Covenant Relief Period and (g) restricts the ability to make permitted acquisitions and certain non-ordinary course investments, restricted payments and restricted debt payments during the Covenant Relief Period. The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by the full text of the Amendment, which is filed as Exhibit 10.2 to this quarterly report on Form 10-Q. Sale of Asset Backed Notes. On November 30, 2022, the Company completed the sale of $63.1 million in aggregate principal amount of zero coupon Asset Backed Fixed Rate Notes, Class C, Series 2022-A (the "Class C Notes") which were previously issued and held by the Company. The asset-backed notes are secured by the transferred customer accounts receivables and restricted cash held by a consolidated VIE, which resulted in net proceeds to us of $43.7 million, net of debt issuance costs. Net proceeds from the sale were used for general corporate purposes.
2022-A VIE Class C Notes [Member]
Subsequent Event [Line Items]
Original principal amount			$ 63,100
Contractual Interest Rate			0.00%
2022-A VIE Class C Notes [Member] \| Subsequent Event [Member]
Subsequent Event [Line Items]
Original Net Proceeds	$ 43,700
Original principal amount	$ 63,100
Contractual Interest Rate	0.00%

Label	Element	Value
Accrual of unsettled payments for repurchase of common stock	conn_AccrualOfUnsettledPaymentsForRepurchaseOfCommonStock	$ 3,471,000
Accrual of unsettled payments for repurchase of common stock	conn_AccrualOfUnsettledPaymentsForRepurchaseOfCommonStock	0
Payments for Repurchase of Common Stock	us-gaap_PaymentsForRepurchaseOfCommonStock	$ 0