Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 29, 2013 | Oct. 30, 2013 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'BLUE NILE INC | ' |
Entity Central Index Key | '0001091171 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 29-Sep-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--12-29 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 12,803,661 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash and cash equivalents | $47,930 | $87,017 | $30,237 |
Trade accounts receivable | 2,513 | 2,578 | 2,237 |
Other accounts receivable | 2,434 | 907 | 797 |
Inventories | 30,934 | 33,270 | 28,916 |
Deferred income taxes | 684 | 926 | 419 |
Prepaid income taxes | 1,607 | 0 | 0 |
Prepaids and other current assets | 1,239 | 1,229 | 1,291 |
Total current assets | 87,341 | 125,927 | 63,897 |
Property and equipment, net | 9,573 | 7,876 | 8,080 |
Intangible assets, net | 152 | 195 | 210 |
Deferred income taxes | 7,161 | 7,786 | 7,458 |
Note receivable | 2,000 | 2,000 | 2,000 |
Other investments | 2,280 | 2,000 | 2,000 |
Other assets | 192 | 117 | 153 |
Total assets | 108,699 | 145,901 | 83,798 |
Current liabilities: | ' | ' | ' |
Accounts payable | 73,839 | 116,209 | 66,862 |
Accrued liabilities | 7,228 | 12,439 | 5,936 |
Current portion of long-term financing obligation | 61 | 60 | 60 |
Current portion of deferred rent | 277 | 246 | 246 |
Total current liabilities | 81,405 | 128,954 | 73,104 |
Long-term financing obligation, less current portion | 580 | 625 | 640 |
Deferred rent, less current portion | 2,287 | 2,188 | 2,236 |
Other long-term liabilities | 67 | 25 | 0 |
Stockholders' equity: | ' | ' | ' |
Preferred stock, $0.001 par value; 5,000 shares authorized, none issued and outstanding | 0 | 0 | 0 |
Common stock, $0.001 par value; 300,000 shares authorized; 21,107, 20,752 and 20,746 shares issued, respectively 12,589, 12,503 and 12,497 shares outstanding, respectively | 21 | 21 | 21 |
Additional paid-in capital | 210,865 | 197,282 | 195,947 |
Accumulated other comprehensive loss | -56 | -100 | -137 |
Retained earnings | 88,827 | 82,883 | 77,964 |
Treasury stock, at cost; 8,518, 8,249 and 8,249 shares outstanding, respectively | -275,297 | -265,977 | -265,977 |
Total stockholders' equity | 24,360 | 14,109 | 7,818 |
Total liabilities and stockholders' equity | $108,699 | $145,901 | $83,798 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 30, 2012 |
In Thousands, except Per Share data, unless otherwise specified | |||
Stockholders' equity: | ' | ' | ' |
Preferred stock, par value | $0.00 | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000 | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, par value | $0.00 | $0.00 | $0.00 |
Common stock, shares authorized | 300,000 | 300,000 | 300,000 |
Common stock, shares issued | 21,107 | 20,752 | 20,746 |
Common stock, shares outstanding | 12,589 | 12,503 | 12,497 |
Treasury stock, shares outstanding | 8,518 | 8,249 | 8,249 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $98,925 | $89,830 | $304,050 | $263,914 |
Cost of sales | 80,238 | 72,900 | 247,620 | 214,515 |
Gross profit | 18,687 | 16,930 | 56,430 | 49,399 |
Selling, general and administrative expenses | 16,165 | 14,264 | 49,338 | 44,190 |
Operating income | 2,522 | 2,666 | 7,092 | 5,209 |
Other income, net: | ' | ' | ' | ' |
Interest income, net | 20 | 20 | 84 | 105 |
Other income, net | 3 | 16 | 143 | 96 |
Total other income, net | 23 | 36 | 227 | 201 |
Income before income taxes | 2,545 | 2,702 | 7,319 | 5,410 |
Income tax expense | -361 | 961 | 1,375 | 1,937 |
Net income | $2,906 | $1,741 | $5,944 | $3,473 |
Basic net income per share | $0.23 | $0.14 | $0.48 | $0.26 |
Diluted net income per share | $0.23 | $0.14 | $0.47 | $0.25 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Other Comprehensive Income (Loss), Tax [Abstract] | ' | ' | ' | ' |
Net Income | $2,906 | $1,741 | $5,944 | $3,473 |
Other comprehensive income: | ' | ' | ' | ' |
Foreign currency translation adjustments | 55 | 33 | 44 | -14 |
Total comprehensive income | $2,961 | $1,774 | $5,988 | $3,459 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement Of Changes In Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
In Thousands | ||||||
Balance at Dec. 30, 2012 | $14,109 | $21 | $197,282 | $82,883 | ($100) | ($265,977) |
Balance, shares at Dec. 30, 2012 | 20,752 | ' | ' | ' | ' | -8,249 |
Net income | 5,944 | ' | ' | 5,944 | ' | ' |
Other comprehensive loss | 44 | ' | ' | ' | ' | ' |
Tax deficiency from exercise of stock options | -147 | ' | -147 | ' | ' | ' |
Exercise of common stock options | 9,847 | 0 | 9,847 | ' | ' | ' |
Exercise of common stock options, shares | ' | 346 | ' | ' | ' | ' |
Issuance of common stock to directors | 60 | 0 | 60 | ' | ' | ' |
Issuance of common stock to directors, shares | ' | 2 | ' | ' | ' | ' |
Vesting of restricted stock units, shares | ' | 7 | ' | ' | ' | ' |
Vesting of restricted stock units, value | 0 | 0 | ' | ' | ' | ' |
Stock-based compensation | 3,823 | ' | 3,823 | ' | ' | ' |
Repurchase of common stock, shares | ' | ' | ' | ' | ' | -269 |
Repurchase of common stock, value | -9,320 | ' | ' | ' | ' | -9,320 |
Balance at Sep. 29, 2013 | $24,360 | $21 | $210,865 | $88,827 | ($56) | ($275,297) |
Balance, shares at Sep. 29, 2013 | ' | 21,107 | ' | ' | ' | -8,518 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 |
Operating activities: | ' | ' |
Net income | $5,944 | $3,473 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 2,363 | 2,615 |
Loss on disposal of property and equipment | 3 | 31 |
Stock-based compensation | 3,765 | 3,831 |
Deferred income taxes | 867 | 1,865 |
Tax deficiency from exercise of stock options | -147 | -2,556 |
Excess tax benefit from exercise of stock options | -250 | -25 |
Changes in assets and liabilities: | ' | ' |
Receivables | 115 | 2,147 |
Inventories | 2,336 | 351 |
Prepaid federal income taxes | -1,607 | 0 |
Prepaid expenses and other assets | -85 | -278 |
Accounts payable | 42,146 | 28,881 |
Accrued liabilities | 5,211 | 3,451 |
Other long term liabilities | 43 | 0 |
Deferred rent and other | 130 | -103 |
Net cash used in operating activities | -33,880 | -20,981 |
Investing activities: | ' | ' |
Purchases of property and equipment | -4,109 | -2,095 |
Purchases of other investments | -280 | -2,000 |
Payments for note receivable | 0 | -2,000 |
Net cash used in investing activities | -4,389 | -6,095 |
Financing activities: | ' | ' |
Repurchase of common stock | -9,320 | -38,850 |
Proceeds from stock option exercises | 8,269 | 6,803 |
Excess tax benefit from exercise of stock options | 250 | 25 |
Principal payments under long-term financing obligation | -45 | -44 |
Net cash used in financing activities | -846 | -32,066 |
Effect of exchange rate changes on cash and cash equivalents | 28 | -12 |
Net decrease in cash and cash equivalents | -39,087 | -59,154 |
Cash and cash equivalents, beginning of period | 87,017 | 89,391 |
Cash and cash equivalents, end of period | 47,930 | 30,237 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for income taxes | 4,965 | 2,891 |
Noncash Investing and Financing Activities | ' | ' |
Receivable from stock option exercises | $1,578 | $0 |
Description_Of_Our_Business_An
Description Of Our Business And Summary Of Significant Accounting Policies | 9 Months Ended |
Sep. 29, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description Of Our Business And Summary Of Significant Accounting Policies | ' |
Description of Our Business and Summary of Significant Accounting Policies | |
The Company | |
Blue Nile, Inc. ("Blue Nile" or the “Company”) is the leading online retailer of high-quality diamonds and fine jewelry. In addition to sales of diamonds and fine jewelry, the Company provides education, guidance and support to enable customers to more effectively learn about and purchase diamonds and fine jewelry. The Company, a Delaware corporation based in Seattle, Washington, was formed in March 1999. The Company serves consumers in over 40 countries and territories all over the world and maintains its website at www.bluenile.com. Information found on the Company’s website is not incorporated by reference into this Quarterly Report on Form 10-Q or any of its other filings with the U.S. Securities and Exchange Commission (the “SEC”). | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Notes to Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the year ended December 30, 2012, filed with the SEC on February 25, 2013 (the "Annual Report"). The same accounting policies are followed for preparing quarterly and annual financial statements. In the opinion of management, all adjustments necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods have been included and are of a normal, recurring nature. | |
The financial information as of December 30, 2012 is derived from the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended December 30, 2012, included in Item 8 of the Annual Report. | |
Due to a number of factors, including the seasonal nature of the retail industry and other factors described in this report, quarterly results are not necessarily indicative of the results for the full fiscal year or any other subsequent interim period. | |
Principles of Consolidation | |
The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All transactions and balances between the Company and its wholly-owned subsidiaries are eliminated in consolidation. | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates include the allowance for sales returns, accounting for income taxes, and assumptions used to determine stock-based compensation expense. Actual results could differ materially from those estimates. | |
During the quarter-ended September 29, 2013, there was a change in accounting estimate relating to our income tax expense. We recognized an income tax benefit resulting primarily from the domestic production activities deduction related to the current and prior tax years recorded in the quarter-ended September 29, 2013. The out-of-period impact of this deduction decreased our income tax expense and increased our net income by $1.1 million and $0.08 per diluted share for the quarter and year-to-date ended September 29, 2013. | |
In addition, as a result primarily of this deduction, our effective tax rate decreased to (14.2)% in the third quarter of 2013 from 35.6% in the third quarter of 2012 and our effective tax rate decreased to 18.8% in the year-to-date ended September 29, 2013 from 35.8% in the year-to-date ended September 30, 2012. | |
Foreign Currency | |
The assets and liabilities of our subsidiaries have been translated to U.S. dollars using the exchange rates effective on the balance sheet dates, while income and expense accounts are translated at the average rates in effect during the periods presented. The resulting translation adjustments are recorded in accumulated other comprehensive income (loss). | |
The Company offers customers the ability to transact in 25 currencies. Some of the Company’s subsidiaries engage in transactions denominated in currencies other than the Company’s functional currency. Gains or losses arising from these transactions are recorded in other income, net in the condensed consolidated statements of operations. | |
Note Receivable and Other Investments | |
The Company holds a minority ownership of a privately-held company in the form of convertible preferred shares, purchased for an aggregate amount of $2.0 million, which we accounted for under the cost method of accounting. | |
The Company holds a $2.0 million note receivable (the "Note") from the same privately-held company. The interest rate changes over the term of the Note to LIBOR plus a predetermined rate per annum. The Note is recorded at its face amount on the Company's condensed consolidated balance sheet. | |
During the quarter ended September 29, 2013, the Company purchased, for $280,000, a minority ownership in another privately-held company in the form of common stock and warrants, which we accounted for under the cost method of accounting. | |
The Company reviews its investments for impairment when events and circumstances indicate that the decline in fair value of the assets below the carrying value is other-than-temporary. No other-than-temporary impairment charges were recorded for the year-to-date ended September 29, 2013. | |
Credit Agreement | |
On February 11, 2013, the Company entered into a Credit Agreement (the "Credit Agreement") with U.S. Bank National Association (the "Lender"). The Credit Agreement provides for a $35.0 million (the "Credit Limit") unsecured, revolving credit facility. The Credit Agreement terminates on February 11, 2014 (the "Line Termination Date"). Under the terms and conditions of the Credit Agreement, the Company may borrow from the Lender until the Line Termination Date, with the aggregate principal amounts outstanding at any one time not to exceed the Credit Limit. | |
As of the filing date of this Quarterly Report on Form 10-Q, the Company does not have any amounts outstanding under the Credit Agreement and is in compliance with the covenants of the Credit Agreement. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||
Sep. 29, 2013 | |||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||
Stock-Based Compensation | ' | ||||||||||
Stock-based Compensation | |||||||||||
On May 21, 2013, the date of the Company's 2013 Annual Meeting of Stockholders (the "Annual Meeting"), the Company's stockholders approved the 2013 Equity Incentive Plan (the “2013 Plan”), effective as of such date. The 2013 Plan is intended to be the successor to the Company's 2004 Equity Incentive Plan (the “2004 Plan”) and the Blue Nile, Inc. Third Amended and Restated 2004 Non-Employee Directors Stock Option Plan (the “Directors' Plan”). | |||||||||||
As of September 29, 2013, with the addition of the 2013 Plan, the Company has a total of five equity plans. Once the 2013 Plan became effective, the 2004 Plan was suspended and any equity compensation that would have been granted under the 2004 Plan is now granted under the 2013 Plan. The Directors' Plan was suspended in April 2012 and no equity compensation has been granted under the Directors' Plan since that date. Any equity compensation that would have been granted under the Directors' Plan is now granted under the 2013 Plan. | |||||||||||
Additional information regarding the former plans is disclosed in the Annual Report. | |||||||||||
Stock-based compensation expense, net of estimated forfeitures, is recognized on a straight-line basis over the vesting period for each stock option or restricted stock unit ("RSU") grant expected to vest with forfeitures estimated at the date of grant based on the Company's historical experience and future expectations. | |||||||||||
The fair value of each stock option on the date of grant is estimated using the Black-Scholes-Merton option valuation model. The fair value of each RSU is based on the fair market value of the Company's common stock on the date of the grant. | |||||||||||
During the quarter ended September 29, 2013, there were no stock options granted. The following weighted-average assumptions were used for the valuation of stock options granted during the fiscal year-to-date periods presented: | |||||||||||
Year to date ended | |||||||||||
September 29, | September 30, | ||||||||||
2013 | 2012 | ||||||||||
Expected term | 4.5 years | 4.3 years | |||||||||
Expected volatility | 56.9 | % | 59.1 | % | |||||||
Expected dividend yield | 0 | % | 0 | % | |||||||
Risk-free interest rate | 0.9 | % | 0.7 | % | |||||||
Estimated weighted-average fair value per stock option granted | $ | 14.68 | $ | 15.43 | |||||||
The assumptions used to calculate the fair value of stock options granted are evaluated and revised, if necessary, to reflect market conditions and the Company’s experience. | |||||||||||
A summary of stock option activity for the year-to-date ended September 29, 2013 is as follows: | |||||||||||
Options | Weighted | Weighted | Aggregate | ||||||||
(in thousands) | Average | Average | Intrinsic Value | ||||||||
Exercise Price | Remaining | (in thousands) | |||||||||
Contractual | |||||||||||
Term (in years) | |||||||||||
Balance, December 31, 2012 | 2,199 | $ | 38.55 | ||||||||
Granted | 117 | 31.67 | |||||||||
Exercised | (347 | ) | 28.4 | ||||||||
Canceled | (101 | ) | 41.9 | ||||||||
Balance, September 29, 2013 | 1,868 | $ | 39.82 | 5.67 | $ | 12,027 | |||||
Vested and expected to vest at September 29, 2013 | 1,805 | $ | 39.98 | 5.57 | $ | 11,568 | |||||
Exercisable, September 29, 2013 | 1,366 | $ | 41.21 | 4.66 | $ | 8,622 | |||||
A summary of RSU activity for the year-to-date ended September 29, 2013 is as follows: | |||||||||||
RSUs | Weighted | Weighted | Aggregate | ||||||||
(in thousands) | Average Grant | Average | Intrinsic Value | ||||||||
Date Fair Value | Remaining | (in thousands) | |||||||||
Contractual | |||||||||||
Term (in years) | |||||||||||
Balance, December 31, 2012 | 3 | $ | 29.67 | ||||||||
Granted | 96 | 31.95 | |||||||||
Vested | (7 | ) | 35.41 | ||||||||
Canceled | (1 | ) | 31.37 | ||||||||
Balance, September 29, 2013 | 91 | $ | 31.62 | 1.63 | $ | 3,765 | |||||
Vested and expected to vest at September 29, 2013 | 78 | $ | 31.62 | 1.43 | $ | 3,207 | |||||
The aggregate intrinsic value in the tables above are before applicable income taxes and represent the amount recipients would have received if all stock options had been exercised or RSUs had been released on the last business day of the period indicated, based on the closing stock price of the Company's common stock on such date. | |||||||||||
The total intrinsic value of stock options exercised during the year-to-date ended September 29, 2013 was $3.7 million. During the year-to-date ended September 29, 2013, the total fair value of stock options vested was $3.9 million. As of September 29, 2013, the Company had total unrecognized compensation costs related to unvested stock options and RSUs of $8.9 million, before income taxes. The Company expects to recognize this cost over a weighted average period of 2.6 years for the options and 3.2 years for the RSUs. |
Inventories
Inventories | 9 Months Ended | |||||||||||
Sep. 29, 2013 | ||||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||||
Inventories | ' | |||||||||||
Inventories | ||||||||||||
Inventories are stated at cost and consist of the following (in thousands): | ||||||||||||
September 29, 2013 | December 30, 2012 | September 30, 2012 | ||||||||||
Loose diamonds | $ | 3,049 | $ | 1,583 | $ | 1,802 | ||||||
Fine jewelry and other | 27,885 | 31,687 | 27,114 | |||||||||
Total | $ | 30,934 | $ | 33,270 | $ | 28,916 | ||||||
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | |||||||||||||||
Sep. 29, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Income Per Share | ' | |||||||||||||||
Net Income Per Share | ||||||||||||||||
Basic net income per share is based on the weighted average number of common shares outstanding. Diluted net income per share is based on the weighted average number of common shares and common share equivalents outstanding. Common share equivalents included in the computation represent shares issuable upon assumed exercise of outstanding stock options and conversion of unvested RSUs, except when the effect of their inclusion would be antidilutive. | ||||||||||||||||
The following tables set forth the computation of basic and diluted net income per share (in thousands, except per share data): | ||||||||||||||||
Quarter ended | Year to date ended | |||||||||||||||
September 29, | September 30, | September 29, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income | $ | 2,906 | $ | 1,741 | $ | 5,944 | $ | 3,473 | ||||||||
Weighted average common shares outstanding | 12,431 | 12,677 | 12,441 | 13,439 | ||||||||||||
Basic net income per share | $ | 0.23 | $ | 0.14 | $ | 0.48 | $ | 0.26 | ||||||||
Dilutive effect of stock options and RSUs | 256 | 193 | 229 | 204 | ||||||||||||
Common stock and common stock equivalents | 12,687 | 12,870 | 12,670 | 13,643 | ||||||||||||
Diluted net income per share | $ | 0.23 | $ | 0.14 | $ | 0.47 | $ | 0.25 | ||||||||
For the quarter and year-to-date ended September 29, 2013, the Company excluded 1,183,186 and 1,259,122 stock option shares, respectively, from the computation of diluted net income per share due to their antidilutive effect. For the quarter and year-to-date ended September 30, 2012, the Company excluded 1,369,231 and 1,391,654 stock option shares, respectively, from the computation of diluted net income per share due to their antidilutive effect. |
Subsequent_Events_Subsequent_E
Subsequent Events Subsequent Events | 9 Months Ended |
Sep. 29, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
Subsequent Events | |
On October 28, 2013, Blue Nile’s Board of Directors authorized the renewal of the Company's repurchase program. The Company is authorized to repurchase up to $100.0 million of the Company’s common stock over the next 24 months. |
Description_Of_Our_Business_An1
Description Of Our Business And Summary Of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 29, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis Of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Notes to Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the year ended December 30, 2012, filed with the SEC on February 25, 2013 (the "Annual Report"). The same accounting policies are followed for preparing quarterly and annual financial statements. In the opinion of management, all adjustments necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods have been included and are of a normal, recurring nature. | |
The financial information as of December 30, 2012 is derived from the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended December 30, 2012, included in Item 8 of the Annual Report. | |
Due to a number of factors, including the seasonal nature of the retail industry and other factors described in this report, quarterly results are not necessarily indicative of the results for the full fiscal year or any other subsequent interim period. | |
Principles Of Consolidation | ' |
Principles of Consolidation | |
The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All transactions and balances between the Company and its wholly-owned subsidiaries are eliminated in consolidation. | |
Use Of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates include the allowance for sales returns, accounting for income taxes, and assumptions used to determine stock-based compensation expense. Actual results could differ materially from those estimates. | |
During the quarter-ended September 29, 2013, there was a change in accounting estimate relating to our income tax expense. We recognized an income tax benefit resulting primarily from the domestic production activities deduction related to the current and prior tax years recorded in the quarter-ended September 29, 2013. The out-of-period impact of this deduction decreased our income tax expense and increased our net income by $1.1 million and $0.08 per diluted share for the quarter and year-to-date ended September 29, 2013. | |
In addition, as a result primarily of this deduction, our effective tax rate decreased to (14.2)% in the third quarter of 2013 from 35.6% in the third quarter of 2012 and our effective tax rate decreased to 18.8% in the year-to-date ended September 29, 2013 from 35.8% in the year-to-date ended September 30, 2012. | |
Foreign Currency | ' |
Foreign Currency | |
The assets and liabilities of our subsidiaries have been translated to U.S. dollars using the exchange rates effective on the balance sheet dates, while income and expense accounts are translated at the average rates in effect during the periods presented. The resulting translation adjustments are recorded in accumulated other comprehensive income (loss). | |
The Company offers customers the ability to transact in 25 currencies. Some of the Company’s subsidiaries engage in transactions denominated in currencies other than the Company’s functional currency. Gains or losses arising from these transactions are recorded in other income, net in the condensed consolidated statements of operations. | |
Note Receivable and Other Investments | ' |
Note Receivable and Other Investments | |
The Company holds a minority ownership of a privately-held company in the form of convertible preferred shares, purchased for an aggregate amount of $2.0 million, which we accounted for under the cost method of accounting. | |
The Company holds a $2.0 million note receivable (the "Note") from the same privately-held company. The interest rate changes over the term of the Note to LIBOR plus a predetermined rate per annum. The Note is recorded at its face amount on the Company's condensed consolidated balance sheet. | |
During the quarter ended September 29, 2013, the Company purchased, for $280,000, a minority ownership in another privately-held company in the form of common stock and warrants, which we accounted for under the cost method of accounting. | |
The Company reviews its investments for impairment when events and circumstances indicate that the decline in fair value of the assets below the carrying value is other-than-temporary. No other-than-temporary impairment charges were recorded for the year-to-date ended September 29, 2013. |
StockBased_Compensation_StockB
Stock-Based Compensation Stock-Based Compensation (Policies) | 9 Months Ended |
Sep. 29, 2013 | |
Share-based Compensation [Abstract] | ' |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' |
Stock-based compensation expense, net of estimated forfeitures, is recognized on a straight-line basis over the vesting period for each stock option or restricted stock unit ("RSU") grant expected to vest with forfeitures estimated at the date of grant based on the Company's historical experience and future expectations. | |
The fair value of each stock option on the date of grant is estimated using the Black-Scholes-Merton option valuation model. The fair value of each RSU is based on the fair market value of the Company's common stock on the date of the grant. |
Net_Income_Per_Share_Net_Incom
Net Income Per Share Net Income Per Share (Policies) | 9 Months Ended |
Sep. 29, 2013 | |
Earnings Per Share [Abstract] | ' |
Earnings Per Share, Policy [Policy Text Block] | ' |
Basic net income per share is based on the weighted average number of common shares outstanding. Diluted net income per share is based on the weighted average number of common shares and common share equivalents outstanding. Common share equivalents included in the computation represent shares issuable upon assumed exercise of outstanding stock options and conversion of unvested RSUs, except when the effect of their inclusion would be antidilutive. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||
Sep. 29, 2013 | |||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||
Weighted-Average Assumptions For Valuation Of Stock Options Granted | ' | ||||||||||
Year to date ended | |||||||||||
September 29, | September 30, | ||||||||||
2013 | 2012 | ||||||||||
Expected term | 4.5 years | 4.3 years | |||||||||
Expected volatility | 56.9 | % | 59.1 | % | |||||||
Expected dividend yield | 0 | % | 0 | % | |||||||
Risk-free interest rate | 0.9 | % | 0.7 | % | |||||||
Estimated weighted-average fair value per stock option granted | $ | 14.68 | $ | 15.43 | |||||||
Summary Of Stock Option Activity | ' | ||||||||||
Options | Weighted | Weighted | Aggregate | ||||||||
(in thousands) | Average | Average | Intrinsic Value | ||||||||
Exercise Price | Remaining | (in thousands) | |||||||||
Contractual | |||||||||||
Term (in years) | |||||||||||
Balance, December 31, 2012 | 2,199 | $ | 38.55 | ||||||||
Granted | 117 | 31.67 | |||||||||
Exercised | (347 | ) | 28.4 | ||||||||
Canceled | (101 | ) | 41.9 | ||||||||
Balance, September 29, 2013 | 1,868 | $ | 39.82 | 5.67 | $ | 12,027 | |||||
Vested and expected to vest at September 29, 2013 | 1,805 | $ | 39.98 | 5.57 | $ | 11,568 | |||||
Exercisable, September 29, 2013 | 1,366 | $ | 41.21 | 4.66 | $ | 8,622 | |||||
Summary Of Restricted Stock Unit Activity | ' | ||||||||||
RSUs | Weighted | Weighted | Aggregate | ||||||||
(in thousands) | Average Grant | Average | Intrinsic Value | ||||||||
Date Fair Value | Remaining | (in thousands) | |||||||||
Contractual | |||||||||||
Term (in years) | |||||||||||
Balance, December 31, 2012 | 3 | $ | 29.67 | ||||||||
Granted | 96 | 31.95 | |||||||||
Vested | (7 | ) | 35.41 | ||||||||
Canceled | (1 | ) | 31.37 | ||||||||
Balance, September 29, 2013 | 91 | $ | 31.62 | 1.63 | $ | 3,765 | |||||
Vested and expected to vest at September 29, 2013 | 78 | $ | 31.62 | 1.43 | $ | 3,207 | |||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||||||
Sep. 29, 2013 | ||||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||||
Inventories Stated At Cost | ' | |||||||||||
September 29, 2013 | December 30, 2012 | September 30, 2012 | ||||||||||
Loose diamonds | $ | 3,049 | $ | 1,583 | $ | 1,802 | ||||||
Fine jewelry and other | 27,885 | 31,687 | 27,114 | |||||||||
Total | $ | 30,934 | $ | 33,270 | $ | 28,916 | ||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 29, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Computation Of Basic And Diluted Net Income Per Share | ' | |||||||||||||||
Quarter ended | Year to date ended | |||||||||||||||
September 29, | September 30, | September 29, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income | $ | 2,906 | $ | 1,741 | $ | 5,944 | $ | 3,473 | ||||||||
Weighted average common shares outstanding | 12,431 | 12,677 | 12,441 | 13,439 | ||||||||||||
Basic net income per share | $ | 0.23 | $ | 0.14 | $ | 0.48 | $ | 0.26 | ||||||||
Dilutive effect of stock options and RSUs | 256 | 193 | 229 | 204 | ||||||||||||
Common stock and common stock equivalents | 12,687 | 12,870 | 12,670 | 13,643 | ||||||||||||
Diluted net income per share | $ | 0.23 | $ | 0.14 | $ | 0.47 | $ | 0.25 | ||||||||
Description_Of_Our_Business_An2
Description Of Our Business And Summary Of Significant Accounting Policies Use of Estimates (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Use of Estimates [Abstract] | ' | ' | ' | ' |
Domestic Production Activities Deduction, Amount | $1.10 | ' | $1.10 | ' |
Deduction per diluted share amount | $0.08 | ' | $0.08 | ' |
Effective Income Tax Rate, Percent | -14.20% | 35.60% | 18.80% | 35.80% |
Note_Receivable_and_Other_Inve
Note Receivable and Other Investment (Details) (USD $) | 9 Months Ended | ||
Sep. 29, 2013 | Dec. 30, 2012 | Sep. 30, 2012 | |
Other Investments [Abstract] | ' | ' | ' |
Other than Temporary Impairment Charges | $0 | ' | ' |
Investment [Line Items] | ' | ' | ' |
Cost Method Investments | 2,280,000 | 2,000,000 | 2,000,000 |
Receivables [Abstract] | ' | ' | ' |
Note receivable | 2,000,000 | 2,000,000 | 2,000,000 |
Convertible Preferred Shares [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Cost Method Investments | 2,000,000 | ' | ' |
Common Stock and Warrants [Member] | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Cost Method Investments | $280,000 | ' | ' |
Credit_Agreement_Narrative_Det
Credit Agreement (Narrative) (Details) | 9 Months Ended |
Sep. 29, 2013 | |
Credit Agreement [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
Credit Agreement | |
On February 11, 2013, the Company entered into a Credit Agreement (the "Credit Agreement") with U.S. Bank National Association (the "Lender"). The Credit Agreement provides for a $35.0 million (the "Credit Limit") unsecured, revolving credit facility. The Credit Agreement terminates on February 11, 2014 (the "Line Termination Date"). Under the terms and conditions of the Credit Agreement, the Company may borrow from the Lender until the Line Termination Date, with the aggregate principal amounts outstanding at any one time not to exceed the Credit Limit. | |
As of the filing date of this Quarterly Report on Form 10-Q, the Company does not have any amounts outstanding under the Credit Agreement and is in compliance with the covenants of the Credit Agreement. |
Credit_Agreement_Details
Credit Agreement (Details) (USD $) | Nov. 05, 2013 | Sep. 29, 2013 |
Credit Agreement [Abstract] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | $35,000,000 |
Line of Credit Facility, Amount Outstanding | $0 | ' |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 29, 2013 |
Share-based Compensation [Abstract] | ' |
Total intrinsic value of options exercised | $3.70 |
Total fair value of options vested | 3.9 |
Total unrecognized compensation costs related to unvested stock options, before income taxes | $8.90 |
Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total unrecognized compensation costs related to unvested stock options and RSUs, Weighted average period of recognition | '2 years 7 months 6 days |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total unrecognized compensation costs related to unvested stock options and RSUs, Weighted average period of recognition | '3 years 2 months 12 days |
StockBased_Compensation_Weight
Stock-Based Compensation (Weighted-Average Assumptions For Valuation Of Stock Options Granted) (Details) (USD $) | 9 Months Ended | |
Sep. 29, 2013 | Sep. 30, 2012 | |
Share-based Compensation [Abstract] | ' | ' |
Expected term, years | '4 years 6 months | '4 years 3 months 22 days |
Expected volatility | 56.90% | 59.10% |
Expected dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 0.90% | 0.70% |
Estimated weighted-average fair value per stock option granted | $14.68 | $15.43 |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary Of Stock Option Activity) (Details) (Stock Options [Member], USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 29, 2013 |
Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options, Balance, December 31, 2012 | 2,199 |
Options, Granted | 117 |
Options, Exercised | -347 |
Options, Cancelled | -101 |
Options, Balance, September 29, 2013 | 1,868 |
Options, Vested and expected to vest at September 29, 2013 | 1,805 |
Options, Exercisable, September 29, 2013 | 1,366 |
Options, Weighted Average Exercise Price, Balance, December 31, 2012 | $38.55 |
Options, Weighted Average Exercise Price, Granted | $31.67 |
Options, Weighted Average Exercise Price, Exercised | $28.40 |
Options, Weighted Average Exercise Price, Cancelled | $41.90 |
Options, Weighted Average Exercise Price, Balance, September 29, 2013 | $39.82 |
Options, Weighted Average Exercise Price, Vested and expected to vest at September 29, 2013 | $39.98 |
Options, Weighted Average Exercise Price, Exercisable, September 29, 2013 | $41.21 |
Options, Weighted Average Remaining Contractual Term (in years), Balance, September 29, 2013 | '5 years 8 months 1 day |
Options, Weighted Average Remaining Contractual Term (in years), Vested and expected to vest, September 29, 2013 | '5 years 6 months 26 days |
Options, Weighted Average Remaining Contractual Term (in years), Exercisable, September 29, 2013 | '4 years 7 months 28 days |
Options, Aggregate Intrinsic Value, Balance, September 29, 2013 | $12,027 |
Options, Aggregate Intrinsic Value, Vested and expected to vest at September 29, 2013 | 11,568 |
Options, Aggregate Intrinsic Value, Exercisable, September 29, 2013 | $8,622 |
StockBased_Compensation_Summar1
Stock-Based Compensation (Summary Of RSU Activity) (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 29, 2013 |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
RSUs, Balance, December 31, 2012 | 3 |
RSUs, Granted | 96 |
RSUs, Vested | -7 |
RSUs, Canceled | -1 |
RSUs, Balance, September 29, 2013 | 91 |
RSUs, Vested and expected to vest at September 29, 2013 | $78 |
RSUs, Weighted Average Grant Date Fair Value, Balance, December 31, 2012 | $29.67 |
RSUs, Weighted Average Grant Date Fair Value, Granted | $31.95 |
RSUs, Weighted Average Grant Date Fair Value, Vested | $35.41 |
RSUs, Weighted Average Grant Date Fair Value, Canceled | $31.37 |
RSUs, Weighted Average Grant Date Fair Value, Balance, September 29, 2013 | $31.62 |
RSUs. Weighted Average Grant Date Fair Value, Vested And Expected To Vest | $31.62 |
RSUs, Weighted Average Remaining Contractual Term (in years), Balance, September 29, 2013 | '1 year 7 months 17 days |
RSUs, Weighted Average Remaining Contractual Term, Vested and expected to vest at September 29, 2013 | '1 year 5 months 5 days |
RSUs, Aggregate Intrinsic Value, Balance, September 29, 2013 | 3,765 |
RSUs, Aggregate Intrinsic Value, Vested and expected to vest at September 29, 2013 | $3,207 |
Inventories_Inventories_Stated
Inventories (Inventories Stated At Cost) (Details) (USD $) | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Inventory Disclosure [Abstract] | ' | ' | ' |
Loose diamonds | $3,049 | $1,583 | $1,802 |
Fine Jewelry and Other | 27,885 | 31,687 | 27,114 |
Total Inventories | $30,934 | $33,270 | $28,916 |
Net_Income_Per_Share_Narrative
Net Income Per Share (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Stock option shares excluded from computation of diluted net income per share | 1,183,186 | 1,369,231 | 1,259,122 | 1,391,654 |
Net_Income_Per_Share_Computati
Net Income Per Share (Computation Basic And Diluted Net Income Per Share) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income | $2,906 | $1,741 | $5,944 | $3,473 |
Weighted average common shares outstanding | 12,431 | 12,677 | 12,441 | 13,439 |
Basic net income per share | $0.23 | $0.14 | $0.48 | $0.26 |
Dilutive effect of stock options and RSUs | 256 | 193 | 229 | 204 |
Common stock and common stock equivalents | 12,687 | 12,870 | 12,670 | 13,643 |
Diluted net income per share | $0.23 | $0.14 | $0.47 | $0.25 |
Subsequent_Events_Subsequent_E1
Subsequent Events Subsequent Events (Details) (USD $) | 24 Months Ended |
In Millions, unless otherwise specified | Oct. 28, 2015 |
Subsequent Events [Abstract] | ' |
Stock Repurchase Program, Authorized Amount | $100 |