Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 30, 2014 | Apr. 30, 2014 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'BLUE NILE INC | ' |
Entity Central Index Key | '0001091171 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Mar-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Current Fiscal Year End Date | '--01-04 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 12,112,758 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 30, 2014 | Dec. 29, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash and cash equivalents | $56,713 | $115,942 | $40,518 |
Trade accounts receivable | 2,856 | 3,005 | 1,853 |
Other accounts receivable | 255 | 521 | 745 |
Inventories | 35,181 | 34,530 | 34,013 |
Deferred income taxes | 711 | 1,038 | 749 |
Prepaid income taxes | 627 | 247 | 0 |
Prepaids and other current assets | 1,488 | 1,318 | 930 |
Total current assets | 97,831 | 156,601 | 78,808 |
Property and equipment, net | 9,945 | 10,188 | 7,800 |
Intangible assets, net | 130 | 140 | 181 |
Deferred income taxes | 5,526 | 5,470 | 8,044 |
Note receivable | 2,000 | 2,000 | 2,000 |
Other investments | 2,280 | 2,280 | 2,000 |
Other assets | 241 | 246 | 119 |
Total assets | 117,953 | 176,925 | 98,952 |
Current liabilities: | ' | ' | ' |
Accounts payable | 81,876 | 122,322 | 74,547 |
Accrued liabilities | 5,614 | 10,751 | 6,396 |
Current portion of long-term financing obligation | 36 | 51 | 60 |
Current portion of deferred rent | 281 | 279 | 246 |
Total current liabilities | 87,807 | 133,403 | 81,249 |
Long-term financing obligation, less current portion | 574 | 574 | 610 |
Deferred rent, less current portion | 2,170 | 2,229 | 2,141 |
Other long-term liabilities | 114 | 114 | 25 |
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; 21,546, 21,480 and 20,765 shares issued, respectively 12,522, 12,932 and 12,472 shares outstanding, respectively | 22 | 22 | 21 |
Additional paid-in capital | 225,399 | 223,261 | 198,691 |
Accumulated other comprehensive loss | -32 | -26 | -144 |
Retained earnings | 94,837 | 93,758 | 83,715 |
Treasury stock, at cost; 9,024, 8,548 and 8,293 shares outstanding, respectively | -292,938 | -276,410 | -267,356 |
Total stockholders' equity | 27,288 | 40,605 | 14,927 |
Total liabilities and stockholders' equity | $117,953 | $176,925 | $98,952 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 | Mar. 31, 2013 |
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 | 21,546 | 21,480 | 20,765 |
Common stock, shares outstanding | 12,522 | 12,932 | 12,472 |
Treasury stock, shares outstanding | 9,024 | 8,548 | 8,293 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Income Statement [Abstract] | ' | ' |
Net sales | $103,726 | $97,111 |
Cost of sales | 84,601 | 79,465 |
Gross profit | 19,125 | 17,646 |
Selling, general and administrative expenses | 17,517 | 16,488 |
Operating income | 1,608 | 1,158 |
Other income, net: | ' | ' |
Interest income, net | 48 | 42 |
Other income, net | -2 | 102 |
Total other income, net | 46 | 144 |
Income before income taxes | 1,654 | 1,302 |
Income tax expense | 575 | 470 |
Net income | $1,079 | $832 |
Basic net income per share | $0.08 | $0.07 |
Diluted net income per share | $0.08 | $0.07 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Other Comprehensive Income (Loss), Tax [Abstract] | ' | ' |
Net Income | $1,079 | $832 |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation adjustments | -6 | -44 |
Total comprehensive income | $1,073 | $788 |
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. 29, 2013 | $40,605 | $22 | $223,261 | $93,758 | ($26) | ($276,410) |
Balance, shares at Dec. 29, 2013 | ' | -21,480 | ' | ' | ' | -8,548 |
Net income | 1,079 | ' | ' | 1,079 | ' | ' |
Other comprehensive loss | -6 | ' | ' | ' | -6 | ' |
Tax benefit from exercise of stock options | 103 | ' | 103 | ' | ' | ' |
Exercise of common stock options | 1,084 | 0 | 1,084 | ' | ' | ' |
Exercise of common stock options, shares | ' | 51 | ' | ' | ' | ' |
Issuance of common stock to directors | 20 | 0 | 20 | ' | ' | ' |
Issuance of common stock to directors, shares | ' | 1 | ' | ' | ' | ' |
Vesting of restricted stock units, shares | ' | 19 | ' | ' | ' | ' |
Vesting of restricted stock units, value | 0 | 0 | ' | ' | ' | ' |
Shares withheld related to net share settlement of RSUs, shares | ' | -5 | ' | ' | ' | ' |
Shares withheld related to net share settlement of RSUs, value | -177 | ' | -177 | ' | ' | ' |
Stock-based compensation | 1,108 | ' | 1,108 | ' | ' | ' |
Repurchase of common stock, shares | ' | ' | ' | ' | ' | -476 |
Repurchase of common stock, value | -16,528 | ' | ' | ' | ' | -16,528 |
Balance at Mar. 30, 2014 | $27,288 | $22 | $225,399 | $94,837 | ($32) | ($292,938) |
Balance, shares at Mar. 30, 2014 | ' | -21,546 | ' | ' | ' | -9,024 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Operating activities: | ' | ' |
Net income | $1,079 | $832 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 922 | 777 |
Stock-based compensation | 1,101 | 1,184 |
Deferred income taxes | 271 | -81 |
Tax benefit (deficiency) from exercise of stock options | 103 | -33 |
Excess tax benefit from exercise of stock options | 155 | 14 |
Changes in assets and liabilities: | ' | ' |
Receivables | 415 | 887 |
Inventories | -651 | -743 |
Prepaid federal income taxes | -380 | 0 |
Prepaid expenses and other assets | -165 | 297 |
Accounts payable | -41,155 | -41,422 |
Accrued liabilities | -5,137 | -6,043 |
Deferred rent and other | -57 | -47 |
Net cash used in operating activities | -43,809 | -44,406 |
Investing activities: | ' | ' |
Purchases of property and equipment | -628 | -911 |
Net cash used in investing activities | -628 | -911 |
Financing activities: | ' | ' |
Repurchase of common stock | -15,836 | -1,379 |
Proceeds from stock option exercises | 1,084 | 219 |
Taxes paid for net share settlement of equity awards | -176 | 0 |
Excess tax benefit from exercise of stock options | 155 | 14 |
Principal payments under long-term financing obligation | -15 | -15 |
Net cash used in financing activities | -14,788 | -1,161 |
Effect of exchange rate changes on cash and cash equivalents | -4 | -21 |
Net decrease in cash and cash equivalents | -59,229 | -46,499 |
Cash and cash equivalents, beginning of period | 115,942 | 87,017 |
Cash and cash equivalents, end of period | 56,713 | 40,518 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for income taxes | 582 | 2,895 |
Noncash investing and financing activities | ' | ' |
Unsettled repurchases of common stock | $692 | $0 |
Description_Of_Our_Business_An
Description Of Our Business And Summary Of Significant Accounting Policies | 3 Months Ended |
Mar. 30, 2014 | |
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”, "we" or "our") 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 through 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 29, 2013, filed with the SEC on February 25, 2014 (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 29, 2013 is derived from the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended December 29, 2013, 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 quarterly 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. | |
Foreign Currency | |
The functional currency of most of the Company's subsidiaries is the applicable local 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 as a component of other comprehensive income (loss) within stockholders' equity. | |
The Company offers customers the ability to transact in 24 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 account 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. | |
The Company holds a minority ownership in another privately-held company in the form of common stock and warrants, purchased for $280,000, which we account 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 quarter ended March 30, 2014. | |
Credit Agreement | |
On February 21, 2014, the Company renewed its Credit Agreement with U.S. Bank National Association (the "Lender"). The Credit Agreement provides for a $40.0 million (the "Credit Limit") unsecured, revolving credit facility (the "Revolving Loan") with an option to increase the Credit Limit to $50.0 million. Under the terms and conditions of the Credit Agreement, the Company may borrow from the Lender for one year with annual renewals at the Lender's discretion. The Company also has the ability to term out the outstanding line balance to a term of up to five years. The aggregate principal amounts outstanding at any one time shall not exceed the Credit Limit. | |
As of March 30, 2014, 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 | 3 Months Ended | ||||||||||
Mar. 30, 2014 | |||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||
Stock-Based Compensation | ' | ||||||||||
Stock-based Compensation | |||||||||||
As of March 30, 2014, the Company had five equity plans. Additional information regarding these 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 that is expected to vest at some point in the future. Forfeitures are 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. | |||||||||||
The following weighted average assumptions were used for the valuation of stock options granted during the periods presented: | |||||||||||
Quarter ended | |||||||||||
March 30, | March 31, | ||||||||||
2014 | 2013 | ||||||||||
Expected term | 4.5 years | 4.5 years | |||||||||
Expected volatility | 46.9 | % | 57.1 | % | |||||||
Expected dividend yield | 0 | % | 0 | % | |||||||
Risk-free interest rate | 1.5 | % | 0.9 | % | |||||||
Estimated weighted average fair value per stock option granted | $ | 13.38 | $ | 14.61 | |||||||
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 quarter ended March 30, 2014 is as follows: | |||||||||||
Options | Weighted | Weighted | Aggregate | ||||||||
(in thousands) | Average | Average | Intrinsic Value | ||||||||
Exercise Price | Remaining | (in thousands) | |||||||||
Contractual | |||||||||||
Term | |||||||||||
(in years) | |||||||||||
Balance, December 30, 2013 | 1,493 | $ | 41.93 | ||||||||
Granted | 70 | 33.25 | |||||||||
Exercised | (51 | ) | 21.37 | ||||||||
Canceled | (61 | ) | 41.08 | ||||||||
Balance, March 30, 2014 | 1,451 | $ | 42.26 | 6.03 | $ | 2,221 | |||||
Vested and expected to vest at March 30, 2014 | 1,405 | $ | 42.55 | 5.36 | $ | 2,148 | |||||
Exercisable, March 30, 2014 | 1,067 | $ | 45.05 | 5.05 | $ | 1,650 | |||||
A summary of RSU activity for the quarter ended March 30, 2014 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 30, 2013 | 88 | $ | 31.01 | ||||||||
Granted | 69 | 33.65 | |||||||||
Vested | (19 | ) | 33.46 | ||||||||
Canceled | (12 | ) | 32.87 | ||||||||
Balance, March 30, 2014 | 126 | $ | 31.91 | 1.81 | $ | 4,299 | |||||
Vested and expected to vest at March 30, 2014 | 104 | $ | 39.44 | 1.7 | $ | 3,572 | |||||
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 quarter ended March 30, 2014 was $0.8 million. During the quarter ended March 30, 2014, the total fair value of stock options vested was $1.2 million. As of March 30, 2014, the Company had total unrecognized compensation costs related to unvested stock options and RSUs of $8.4 million, before income taxes. The Company expects to recognize this cost over a weighted average period of 2.4 years for the options and 3.4 years for the RSUs. |
Inventories
Inventories | 3 Months Ended | |||||||||||
Mar. 30, 2014 | ||||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||||
Inventories | ' | |||||||||||
Inventories | ||||||||||||
Inventories are stated at cost and consist of the following (in thousands): | ||||||||||||
March 30, 2014 | December 29, 2013 | March 31, 2013 | ||||||||||
Loose diamonds | $ | 3,992 | $ | 3,321 | $ | 1,875 | ||||||
Fine jewelry and other | 31,189 | 31,209 | 32,138 | |||||||||
Total | $ | 35,181 | $ | 34,530 | $ | 34,013 | ||||||
Net_Income_Per_Share
Net Income Per Share | 3 Months Ended | |||||||
Mar. 30, 2014 | ||||||||
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 | ||||||||
March 30, | March 31, | |||||||
2014 | 2013 | |||||||
Net income | $ | 1,079 | $ | 832 | ||||
Weighted average common shares outstanding | 12,800 | 12,482 | ||||||
Basic net income per share | $ | 0.08 | $ | 0.07 | ||||
Dilutive effect of stock options and RSUs | 113 | 211 | ||||||
Common stock and common stock equivalents | 12,913 | 12,693 | ||||||
Diluted net income per share | $ | 0.08 | $ | 0.07 | ||||
The Company excluded 886,586 and 1,309,700 stock option shares from the computation of diluted net income per share for the quarters ended March 30, 2014 and March 31, 2013, respectively, due to their antidilutive effect. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
In the ordinary course of business, the Company may be subject from time to time to various proceedings, lawsuits, disputes or claims. In addition, the Company is regularly audited by various tax authorities. Although the Company cannot predict with assurance the outcome of any litigation or audit, it does not believe there are currently any such actions that, if resolved unfavorably, would have a material impact on the Company’s financial condition, results of operations or cash flows. |
Subsequent_Events
Subsequent Events | 3 Months Ended | |
Mar. 30, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events [Text Block] | ' | |
Subsequent Events | ||
Commercial Lease | ||
On May 05, 2014 (the "Effective Date"), Blue Nile, Inc. (the “Company”), entered into the Third Amendment (the “Amendment”) to the Commercial Lease Agreement dated July 21, 2006 (the “Lease”) for its fulfillment center with 5901 Fourth LLC, successor in interest to Gull Industries, Inc. Pursuant to the terms of the Amendment, the Lease termination date is October 31, 2019 (the "Expiration Date"). The Company has the right to extend the term of the Lease beyond the Expiration Date for two periods of three years each in which periods the monthly rent will be based on "Fair Market Rent", as defined in the Amendment. | ||
From the Effective Date through October 31, 2014, base monthly rent of approximately $17,039 will continue to be payable. From November 1, 2014 through the Expiration Date, base monthly rent payments will be as follows: | ||
• | November 1, 2014 through October 31, 2016 will be approximately $17,588; | |
• | November 1, 2016 through October 31, 2017 will be approximately $17,863; and | |
• | November 1, 2017 through October 31, 2019 will be approximately $18,138. |
Description_Of_Our_Business_An1
Description Of Our Business And Summary Of Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 30, 2014 | |
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 29, 2013, filed with the SEC on February 25, 2014 (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 29, 2013 is derived from the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended December 29, 2013, 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 quarterly 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. | |
Foreign Currency | ' |
Foreign Currency | |
The functional currency of most of the Company's subsidiaries is the applicable local 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 as a component of other comprehensive income (loss) within stockholders' equity. | |
The Company offers customers the ability to transact in 24 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 account 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. | |
The Company holds a minority ownership in another privately-held company in the form of common stock and warrants, purchased for $280,000, which we account 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 quarter ended March 30, 2014. | |
Credit Agreement | ' |
Credit Agreement | |
On February 21, 2014, the Company renewed its Credit Agreement with U.S. Bank National Association (the "Lender"). The Credit Agreement provides for a $40.0 million (the "Credit Limit") unsecured, revolving credit facility (the "Revolving Loan") with an option to increase the Credit Limit to $50.0 million. Under the terms and conditions of the Credit Agreement, the Company may borrow from the Lender for one year with annual renewals at the Lender's discretion. The Company also has the ability to term out the outstanding line balance to a term of up to five years. The aggregate principal amounts outstanding at any one time shall not exceed the Credit Limit. | |
As of March 30, 2014, 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_StockB
Stock-Based Compensation Stock-Based Compensation (Policies) | 3 Months Ended |
Mar. 30, 2014 | |
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 that is expected to vest at some point in the future. Forfeitures are 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) | 3 Months Ended |
Mar. 30, 2014 | |
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) | 3 Months Ended | ||||||||||
Mar. 30, 2014 | |||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||
Weighted-Average Assumptions For Valuation Of Stock Options Granted | ' | ||||||||||
Quarter ended | |||||||||||
March 30, | March 31, | ||||||||||
2014 | 2013 | ||||||||||
Expected term | 4.5 years | 4.5 years | |||||||||
Expected volatility | 46.9 | % | 57.1 | % | |||||||
Expected dividend yield | 0 | % | 0 | % | |||||||
Risk-free interest rate | 1.5 | % | 0.9 | % | |||||||
Estimated weighted average fair value per stock option granted | $ | 13.38 | $ | 14.61 | |||||||
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 30, 2013 | 1,493 | $ | 41.93 | ||||||||
Granted | 70 | 33.25 | |||||||||
Exercised | (51 | ) | 21.37 | ||||||||
Canceled | (61 | ) | 41.08 | ||||||||
Balance, March 30, 2014 | 1,451 | $ | 42.26 | 6.03 | $ | 2,221 | |||||
Vested and expected to vest at March 30, 2014 | 1,405 | $ | 42.55 | 5.36 | $ | 2,148 | |||||
Exercisable, March 30, 2014 | 1,067 | $ | 45.05 | 5.05 | $ | 1,650 | |||||
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 30, 2013 | 88 | $ | 31.01 | ||||||||
Granted | 69 | 33.65 | |||||||||
Vested | (19 | ) | 33.46 | ||||||||
Canceled | (12 | ) | 32.87 | ||||||||
Balance, March 30, 2014 | 126 | $ | 31.91 | 1.81 | $ | 4,299 | |||||
Vested and expected to vest at March 30, 2014 | 104 | $ | 39.44 | 1.7 | $ | 3,572 | |||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||||||
Mar. 30, 2014 | ||||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||||
Inventories Stated At Cost | ' | |||||||||||
March 30, 2014 | December 29, 2013 | March 31, 2013 | ||||||||||
Loose diamonds | $ | 3,992 | $ | 3,321 | $ | 1,875 | ||||||
Fine jewelry and other | 31,189 | 31,209 | 32,138 | |||||||||
Total | $ | 35,181 | $ | 34,530 | $ | 34,013 | ||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 3 Months Ended | |||||||
Mar. 30, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Computation Of Basic And Diluted Net Income Per Share | ' | |||||||
Quarter ended | ||||||||
March 30, | March 31, | |||||||
2014 | 2013 | |||||||
Net income | $ | 1,079 | $ | 832 | ||||
Weighted average common shares outstanding | 12,800 | 12,482 | ||||||
Basic net income per share | $ | 0.08 | $ | 0.07 | ||||
Dilutive effect of stock options and RSUs | 113 | 211 | ||||||
Common stock and common stock equivalents | 12,913 | 12,693 | ||||||
Diluted net income per share | $ | 0.08 | $ | 0.07 | ||||
Note_Receivable_and_Other_Inve
Note Receivable and Other Investments (Details) (USD $) | 3 Months Ended | ||
Mar. 30, 2014 | Dec. 29, 2013 | Mar. 31, 2013 | |
Other Investments [Abstract] | ' | ' | ' |
other-than-temporary impairment charges | $0 | ' | ' |
Investment [Line Items] | ' | ' | ' |
Cost Method Investments | 2,280,000 | 2,280,000 | 2,000,000 |
Receivables [Abstract] | ' | ' | ' |
Note receivable | 2,000,000 | 2,000,000 | 2,000,000 |
Note Receivable, Interest Rate Description | 'LIBOR plus a predetermined rate per annum | ' | ' |
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_Details
Credit Agreement (Details) (USD $) | Mar. 30, 2014 |
In Millions, unless otherwise specified | |
Credit Agreement [Abstract] | ' |
Line of Credit Facility, Current Borrowing Capacity | $40 |
Line of Credit Facility, Amount Outstanding | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | $50 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 30, 2014 |
Share-based Compensation [Abstract] | ' |
Total intrinsic value of options exercised | $0.80 |
Total fair value of options vested | 1.2 |
Total unrecognized compensation costs related to unvested stock options and RSUs, before income taxes | $8.40 |
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 4 months 24 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 4 months 24 days |
StockBased_Compensation_Weight
Stock-Based Compensation (Weighted-Average Assumptions For Valuation Of Stock Options Granted) (Details) (USD $) | 3 Months Ended | |
Mar. 30, 2014 | Mar. 31, 2013 | |
Share-based Compensation [Abstract] | ' | ' |
Expected term, years | '4 years 6 months | '4 years 6 months |
Expected volatility | 46.90% | 57.10% |
Expected dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 1.50% | 0.90% |
Estimated weighted-average fair value per stock option granted | $13.38 | $14.61 |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary Of Stock Option Activity) (Details) (Stock Options [Member], USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 30, 2014 |
Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options, Balance, December 30, 2013 | 1,493 |
Options, Granted | 70 |
Options, Exercised | -51 |
Options, Cancelled | -61 |
Options, Balance, March 30, 2014 | 1,451 |
Options, Vested and expected to vest at March 30, 2014 | 1,405 |
Options, Exercisable, March 30, 2014 | 1,067 |
Options, Weighted Average Exercise Price, Balance, December 30, 2013 | $41.93 |
Options, Weighted Average Exercise Price, Granted | $33.25 |
Options, Weighted Average Exercise Price, Exercised | $21.37 |
Options, Weighted Average Exercise Price, Cancelled | $41.08 |
Options, Weighted Average Exercise Price, Balance, March 30, 2014 | $42.26 |
Options, Weighted Average Exercise Price, Vested and expected to vest at March 30, 2014 | $42.55 |
Options, Weighted Average Exercise Price, Exercisable, March 30, 2014 | $45.05 |
Options, Weighted Average Remaining Contractual Term (in years), Balance, March 30, 2014 | '6 years 0 months 11 days |
Options, Weighted Average Remaining Contractual Term (in years), Vested and expected to vest, March 30, 2014 | '5 years 4 months 10 days |
Options, Weighted Average Remaining Contractual Term (in years), Exercisable, March 30, 2014 | '5 years 0 months 18 days |
Options, Aggregate Intrinsic Value, Balance, March 30, 2014 | $2,221 |
Options, Aggregate Intrinsic Value, Vested and expected to vest at March 30, 2014 | 2,148 |
Options, Aggregate Intrinsic Value, Exercisable, March 30, 2014 | $1,650 |
StockBased_Compensation_Summar1
Stock-Based Compensation (Summary Of RSU Activity) (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 30, 2014 |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
RSUs, Balance, December 30, 2013 | 88 |
RSUs, Granted | 69 |
RSUs, Vested | -19 |
RSUs, Canceled | -12 |
RSUs, Balance, March 30, 2014 | 126 |
RSUs, Vested and expected to vest at March 30, 2014 | $104 |
RSUs, Weighted Average Grant Date Fair Value, Balance, December 30, 2013 | $31.01 |
RSUs, Weighted Average Grant Date Fair Value, Granted | $33.65 |
RSUs, Weighted Average Grant Date Fair Value, Vested | $33.46 |
RSUs, Weighted Average Grant Date Fair Value, Canceled | $32.87 |
RSUs, Weighted Average Grant Date Fair Value, Balance, March 30, 2014 | $31.91 |
RSUs. Weighted Average Grant Date Fair Value, Vested And Expected To Vest at March 30, 2014 | $39.44 |
RSUs, Weighted Average Remaining Contractual Term (in years), Balance, March 30, 2014 | '1 year 9 months 22 days |
RSUs, Weighted Average Remaining Contractual Term, Vested and expected to vest at March 30, 2014 | '1 year 8 months 12 days |
RSUs, Aggregate Intrinsic Value, Balance, March 30, 2014 | 4,299 |
RSUs, Aggregate Intrinsic Value, Vested and expected to vest at March 30, 2014 | $3,572 |
Inventories_Inventories_Stated
Inventories (Inventories Stated At Cost) (Details) (USD $) | Mar. 30, 2014 | Dec. 29, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | |||
Inventory Disclosure [Abstract] | ' | ' | ' |
Loose diamonds | $3,992 | $3,321 | $1,875 |
Fine jewelry and other | 31,189 | 31,209 | 32,138 |
Total Inventories | $35,181 | $34,530 | $34,013 |
Net_Income_Per_Share_Narrative
Net Income Per Share (Narrative) (Details) | 3 Months Ended | |
Mar. 30, 2014 | Mar. 31, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
Stock option shares excluded from computation of diluted net income per share | 886,586 | 1,309,700 |
Net_Income_Per_Share_Computati
Net Income Per Share (Computation Basic And Diluted Net Income Per Share) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Net income | $1,079 | $832 |
Weighted average common shares outstanding | 12,800 | 12,482 |
Basic net income per share | $0.08 | $0.07 |
Dilutive effect of stock options and RSUs | 113 | 211 |
Common stock and common stock equivalents | 12,913 | 12,693 |
Diluted net income per share | $0.08 | $0.07 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Mar. 30, 2014 |
Subsequent Events [Abstract] | ' |
Monthly rent payments from effective date through October 31, 2014 | $17,039 |
Monthly rent payments from November 1, 2014 through October 31, 2016 | 17,588 |
Monthly rent payments from November 1, 2016 through October 31, 2017 | 17,863 |
Monthly rent payments from November 1, 2017 through October 31, 2019 | $18,138 |