Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 03, 2016 | Feb. 19, 2016 | Jul. 05, 2015 | |
Document Information [Line Items] | |||
Entity Registrant Name | BLUE NILE INC | ||
Entity Central Index Key | 1,091,171 | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 3, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --01-03 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 344 | ||
Entity Common Stock, Shares Outstanding | 11,604,082 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 03, 2016 | Jan. 04, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 86,542 | $ 91,186 |
Accounts Receivable, Gross, Current | 3,339 | 2,137 |
Other accounts receivable | 706 | 1,571 |
Notes, Loans and Financing Receivable, Net, Current | 600 | 0 |
Inventories | 46,376 | 41,668 |
Prepaids and other current assets | 1,585 | 1,524 |
Total current assets | 139,148 | 138,086 |
Property and equipment, net | 10,530 | 10,422 |
Intangible assets, net | 82 | 103 |
Deferred income taxes | 5,089 | 4,187 |
Note receivable | 0 | 2,000 |
Cost Method Investments | 2,280 | 2,280 |
Other assets | 285 | 256 |
Total assets | 157,414 | 157,334 |
Current liabilities: | ||
Accounts payable | 121,917 | 128,675 |
Accrued liabilities | 12,336 | 11,992 |
Current portion of long-term financing obligation | 33 | 32 |
Current portion of deferred rent | 290 | 292 |
Total current liabilities | 134,576 | 140,991 |
Long-term financing obligation, less current portion | 455 | 489 |
Deferred rent, less current portion | 1,697 | 1,982 |
Other Deferred Credits, Noncurrent | 1,988 | 0 |
Other long-term liabilities | $ 242 | $ 169 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 5,000 shares authorized, none issued and outstanding | $ 0 | $ 0 |
Common stock, $0.001 par value; 300,000 shares authorized; 21,714 shares and 21,615 shares issued, respectively 11,575 shares and 11,859 shares outstanding, respectively | 22 | 22 |
Additional paid-in capital | 232,148 | 227,146 |
Accumulated other comprehensive loss | (239) | (236) |
Retained earnings | 114,023 | 103,489 |
Treasury stock, at cost; 10,139 shares and 9,756 shares outstanding, respectively | (327,498) | (316,718) |
Total stockholders' equity | 18,456 | 13,703 |
Total liabilities and stockholders' equity | $ 157,414 | $ 157,334 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 03, 2016 | Jan. 04, 2015 |
Stockholders' equity: | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 21,714,000 | 21,615,000 |
Common stock, shares outstanding | 11,575,000 | 11,859,000 |
Treasury stock, shares outstanding | 10,139,000 | 9,756,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Net sales | $ 480,057 | $ 473,516 | $ 450,008 |
Cost of sales | 387,711 | 386,874 | 366,357 |
Gross profit | 92,346 | 86,642 | 83,651 |
Selling, general and administrative expenses | 76,296 | 72,430 | 69,343 |
Operating income | 16,050 | 14,212 | 14,308 |
Other income, net: | |||
Interest income, net | 86 | 117 | 107 |
Other (loss) income, net | (24) | 290 | 150 |
Total other income, net | 62 | 407 | 257 |
Income before income taxes | 16,112 | 14,619 | 14,565 |
Income tax expense | 5,578 | 4,888 | 3,690 |
Net income | $ 10,534 | $ 9,731 | $ 10,875 |
Basic net income per share | $ 0.90 | $ 0.80 | $ 0.87 |
Diluted net income per share | $ 0.90 | $ 0.80 | $ 0.85 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |||
Net income | $ 10,534 | $ 9,731 | $ 10,875 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (3) | (210) | 74 |
Total Comprehensive Income | $ 10,531 | $ 9,521 | $ 10,949 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement Of Changes In Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
Stockholder's equity at period start at Dec. 30, 2012 | $ 14,109 | $ 21 | $ 197,282 | $ 82,883 | $ (100) | $ (265,977) |
Stockholder's equity at period start, shares at Dec. 30, 2012 | 20,752,000 | |||||
Treasury stock at period start, shares at Dec. 30, 2012 | (8,249,000) | |||||
Net income | 10,875 | 10,875 | ||||
Other Comprehensive Income (Loss) | 74 | 74 | ||||
Tax deficiency from exercise of stock options | (583) | (583) | ||||
Exercise of common stock options | 21,377 | $ 1 | 21,376 | |||
Exercise of common stock options, shares | 716,000 | |||||
Issuance of common stock to directors | $ 80 | $ 0 | 80 | |||
Issuance of common stock to directors, shares | 2,000 | |||||
Vesting of restricted stock units | $ 0 | |||||
Vesting of restricted stock units, shares | 0 | 10,000 | ||||
Stock-based compensation | $ 5,106 | 5,106 | ||||
Repurchase of common stock, shares | (299,000) | |||||
Repurchase of common stock, value | (10,433) | $ (10,433) | ||||
Treasury stock at period end, shares at Dec. 29, 2013 | (8,548,000) | |||||
Stockholder's equity at period end at Dec. 29, 2013 | 40,605 | $ 22 | 223,261 | 93,758 | (26) | $ (276,410) |
Stockholder's equity at period end, shares at Dec. 29, 2013 | 21,480,000 | |||||
Net income | 9,731 | 9,731 | ||||
Other Comprehensive Income (Loss) | (210) | (210) | ||||
Tax deficiency from exercise of stock options | (2,713) | (2,713) | ||||
Exercise of common stock options | 2,413 | $ 0 | 2,413 | |||
Exercise of common stock options, shares | 99,000 | |||||
Issuance of common stock to directors | $ 80 | $ 0 | 80 | |||
Issuance of common stock to directors, shares | 3,000 | |||||
Vesting of restricted stock units | $ 0 | |||||
Vesting of restricted stock units, shares | 0 | 42,000 | ||||
Shares withheld related to net share settlement of equity awards | (9,000) | |||||
Adjustments Related to Tax Withholding for Share-based Compensation | $ (282) | (282) | ||||
Stock-based compensation | 4,387 | 4,387 | ||||
Repurchase of common stock, shares | (1,208,000) | |||||
Repurchase of common stock, value | $ (40,308) | $ (40,308) | ||||
Treasury stock at period end, shares at Jan. 04, 2015 | (9,756,000) | (9,756,000) | ||||
Stockholder's equity at period end at Jan. 04, 2015 | $ 13,703 | $ 22 | 227,146 | 103,489 | (236) | $ (316,718) |
Stockholder's equity at period end, shares at Jan. 04, 2015 | 21,615,000 | |||||
Net income | 10,534 | 10,534 | ||||
Other Comprehensive Income (Loss) | (3) | (3) | ||||
Tax deficiency from exercise of stock options | (735) | (735) | ||||
Exercise of common stock options | 1,104 | $ 0 | 1,104 | |||
Exercise of common stock options, shares | 35,000 | |||||
Issuance of common stock to directors | $ 40 | 40 | ||||
Issuance of common stock to directors, shares | 1,000 | |||||
Vesting of restricted stock units, shares | 0 | 81,000 | ||||
Shares withheld related to net share settlement of equity awards | (18,000) | |||||
Adjustments Related to Tax Withholding for Share-based Compensation | $ (558) | (558) | ||||
Stock-based compensation | 5,151 | 5,151 | ||||
Repurchase of common stock, shares | (383,000) | |||||
Repurchase of common stock, value | $ (10,780) | $ (10,780) | ||||
Treasury stock at period end, shares at Jan. 03, 2016 | (10,139,000) | (10,139,000) | ||||
Stockholder's equity at period end at Jan. 03, 2016 | $ 18,456 | $ 22 | $ 232,148 | $ 114,023 | $ (239) | $ (327,498) |
Stockholder's equity at period end, shares at Jan. 03, 2016 | 21,714,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Operating activities: | |||
Net income | $ 10,534 | $ 9,731 | $ 10,875 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Depreciation and amortization | 3,858 | 3,607 | 3,141 |
Gain on disposal of property and equipment | 0 | 0 | (7) |
Stock-based compensation | 5,081 | 4,361 | 5,028 |
Deferred income taxes | (902) | 2,321 | 2,204 |
Tax deficiency from share-based awards | (735) | (2,713) | (583) |
Excess tax benefit from share-based awards | (66) | (195) | (361) |
Changes in assets and liabilities: | |||
Receivables | (311) | (182) | (41) |
Inventories | (4,708) | (7,138) | (1,260) |
Prepaid federal income taxes | 0 | 247 | (247) |
Prepaid expenses and other assets | (90) | (216) | (218) |
Accounts payable | (6,743) | 6,323 | 6,432 |
Accrued liabilities | 344 | 1,241 | (1,688) |
Unearned income | 1,988 | 0 | 0 |
Deferred rent and other | (214) | (179) | 163 |
Net cash provided by operating activities | 8,036 | 17,208 | 23,438 |
Investing activities: | |||
Purchases of property and equipment | (3,755) | (3,771) | (5,528) |
Purchase of other investments | 0 | 0 | 280 |
Payments received on note receivable | 1,400 | 0 | 0 |
Net cash used in investing activities | (2,355) | (3,771) | (5,808) |
Financing activities: | |||
Repurchase of common stock | (10,780) | (40,308) | (10,433) |
Proceeds from stock option exercises | 1,078 | 2,413 | 21,377 |
Taxes paid for net share settlement of equity awards | (558) | (282) | 0 |
Excess tax benefit from exercise of stock options | 66 | 195 | 361 |
Principal payments under long-term financing obligation | (33) | (104) | (60) |
Net cash (used in) provided by financing activities | (10,227) | (38,086) | 11,245 |
Effect of exchange rate changes on cash and cash equivalents | (98) | (107) | 50 |
Net (decrease) increase in cash and cash equivalents | (4,644) | (24,756) | 28,925 |
Cash and cash equivalents, beginning of period | 91,186 | 115,942 | 87,017 |
Cash and cash equivalents, end of period | 86,542 | 91,186 | 115,942 |
Supplemental disclosure of cash flow information [Abstract] | |||
Cash paid for income taxes | $ 6,736 | $ 3,675 | $ 4,965 |
Description Of the Company And
Description Of the Company And Summary Of Significant Accounting Policies | 12 Months Ended |
Jan. 03, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description Of the Company And Summary Of Significant Accounting Policies [Text Block] | Description of the Company and Summary of Significant Accounting Policies The Company Blue Nile, Inc. (the “Company”) is a 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. Fiscal Year The Company’s fiscal year ends on the Sunday closest to December 31. Each fiscal year consists of four 13-week quarters, with one extra week added in the fourth quarter every five to six years. The Company's fiscal year 2015 ended January 3, 2016 included 52 weeks. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances 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 taxes, and inventory valuation. 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. Assets and liabilities 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 accumulated comprehensive income within stockholders’ equity. The Company also recognizes gains and losses associated with transactions that are denominated in foreign currencies. The Company recorded a net loss resulting from foreign currency transactions of approximately $1.0 million for the fiscal year ended January 3, 2016 , approximately $0.8 million for the fiscal year ended January 4, 2015 and approximately $0.4 million for the fiscal year ended December 29, 2013 , within other income, net in the consolidated statements of operations. Concentration of Risk The Company maintains the majority of its cash and cash equivalents in accounts with six major financial institutions within and outside the United States, in the form of demand deposits, money market accounts, and time deposits. Deposits in these institutions may exceed the amounts of insurance provided, or deposits may not be covered by insurance. The Company has not experienced losses on its deposits of cash and cash equivalents. The Company’s trade accounts receivable are primarily derived from credit card purchases from customers and the majority are settled within two business days. The Company’s ability to acquire diamonds and fine jewelry is dependent on its relationships with various suppliers from whom it purchases diamonds and fine jewelry. The Company has reached agreements with certain suppliers to provide access to their inventories of diamonds for its customers, but the terms of these agreements are limited and do not govern the purchase of diamonds for its inventory. Purchase concentration by major supply vendor in fiscal year ended January 3, 2016 with comparative information for fiscal years ended January 4, 2015 and December 29, 2013 , is as follows: Year Ended January 3, January 4, December 29, Vendor A 8 % 7 % 10 % Vendor B 6 % 6 % 5 % Vendor C 5 % 5 % 5 % 19 % 18 % 20 % Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less, from the date of purchase, to be cash equivalents. Inventories The Company’s diamond and fine jewelry inventories are valued at the lower of cost or market, using the specific identification method for diamonds and weighted average cost method for fine jewelry. The Company lists loose diamonds on its website that are typically not included in inventory until the Company receives a customer order for those diamonds. Upon receipt of a customer order, the Company purchases a specific diamond and records it in inventory until it is delivered to the customer, at which time the revenue from the sale is recognized and inventory is relieved. To determine if the cost of the Company's inventory should be written down, current and anticipated demand, customer preferences, age of the merchandise and fashion trends are considered. This write-down is equal to the difference between the cost of inventory and its estimated market value. The Company recorded inconsequential write-downs for the fiscal years ended January 3, 2016 , January 4, 2015 and December 29, 2013 . Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Maintenance and repairs are expensed as incurred. Depreciation expense is calculated on a straight-line basis over the estimated useful lives of the related assets. The cost and related accumulated depreciation of assets sold or otherwise disposed of are removed from the accounts and the related gain or loss is reported in the statement of operations. Estimated useful lives by major asset category are as follows: Asset Life (in years) Software 2-5 Computers and equipment 2-5 Leasehold improvements Shorter of lease term or asset life Building Shorter of lease term or asset life Furniture and fixtures 5-7 Capitalized Software The Company capitalizes costs to develop its website and internal-use software and amortizes such costs on a straight-line basis over the estimated useful life of the software once it is available for use. Costs related to the design and maintenance of internal-use software and website development are expensed as incurred. Impairment of Long-Lived Assets The Company reviews the carrying value of its long-lived assets, including property and equipment and definite-lived intangible assets, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. To the extent the estimated future cash inflows attributable to the assets, less estimated future cash outflows, are less than the carrying amount, an impairment loss would be recognized. The Company did not record an impairment loss for long-lived assets for the fiscal years ended January 3, 2016 , January 4, 2015 or December 29, 2013 . Amortizable Intangible Assets Intangible assets are recorded at cost and consist primarily of the costs incurred to acquire licenses and other similar agreements with finite lives. The gross carrying amount of these licenses was approximately $533,000 at both January 3, 2016 and January 4, 2015 . Accumulated amortization was approximately $485,000 at January 3, 2016 and $464,000 at January 4, 2015 . Amortization expense was approximately $22,000 in the fiscal year ended January 3, 2016 , $37,000 in the fiscal year ended January 4, 2015 and $55,000 in the fiscal year ended December 29, 2013 . Amortization expense is estimated to be $19,000 in fiscal 2016 , $14,000 in fiscal 2017 , $9,000 in fiscal 2018 , $3,000 in fiscal 2019 , $1,000 in fiscal 2020 and $2,000 thereafter. 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 held a $2.0 million note receivable (the "Note") from the same privately-held company. During the year ended January 3, 2016 , the Company received payment of $1.4 million on the principal amount, with the remainder of the principal collectable within a year. 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 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 the investments for impairment when events and circumstances indicate that the decline in fair value of the asset below the carrying value is other-than-temporary. This evaluation consists of several qualitative and quantitative factors regarding the severity and duration of the unrealized loss as well as the Company's ability and intent to hold the investment until a forecasted recovery occurs. Additionally, the Company assesses whether it has plans to sell the security or it is more likely than not that the Company will be required to sell the investment before recovery of its amortized cost basis. Factors considered include recent and projected financial results and operating trends; publicly available information that may affect the value of the investment; duration and severity of the decline in value; and our strategy and intentions for holding the investment. Fair Value of Financial Instruments The carrying amounts for the Company’s cash, cash equivalents, accounts receivable, note receivable, accounts payable and accrued liabilities approximate fair value due to their short maturities. Treasury Stock Treasury stock is recorded at cost and consists primarily of the repurchase of the Company’s common stock in the open market. Income Taxes Deferred tax assets and liabilities are determined based on the differences between financial reporting and tax bases of assets and liabilities and are measured using the tax rates that will be in effect when the differences are expected to reverse. Future tax benefits, such as return reserves, are recognized to the extent that realization of such benefits is considered to be more likely than not. The Company utilizes a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating tax positions and tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. If applicable, interest and penalties related to unrecognized tax benefits are included in the provision for income taxes. Revenue Recognition Net sales consist of products sold via the Internet and shipping revenue, net of estimated returns and promotional discounts and excluding sales taxes. The Company recognizes revenue when all of the following have occurred: persuasive evidence of an agreement with the customer exists, delivery has occurred or services have been rendered, the selling price is fixed or determinable and collectability of the selling price is reasonably assured. The Company evaluates whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned. Revenue is recorded at the gross amount when the Company is the primary obligor, is subject to inventory and credit risk, has latitude in establishing price and product specification, or has most of these indicators. When the Company is not primarily obligated and has no latitude in establishing the price, revenue will be recorded at the net amount earned. The Company requires payment at the point of sale. Amounts received before the customer assumes the risk of loss are not recorded as revenue. For sales to customers, the Company recognizes revenue when delivery has occurred, as this is when the risk of loss transfers, which is typically one to three days after shipment. The Company generally offers a return policy of 30 days and provides an allowance for sales returns during the period in which the sales are made. At January 3, 2016 and January 4, 2015 , the reserve for sales returns was $1.3 million and $1.0 million , respectively, and was recorded as an accrued liability. Sales and cost of sales reported in the consolidated statements of operations are reduced to reflect estimated returns. The estimates are based on the Company’s historical product return rates and current economic conditions. The Company currently has a lifetime diamond upgrade program on all certified diamonds purchased since the Company's inception. This is accounted for as a guarantee and at January 3, 2016 and January 4, 2015 , the estimated fair value of the guarantee was inconsequential. The Company generally does not extend credit to customers, except through third party credit cards. The majority of sales are through credit cards, and trade accounts receivable are composed primarily of amounts due from financial institutions related to credit card sales. The Company does not maintain an allowance for doubtful accounts because payment is typically received within two business days after the sale is complete. Shipping and Handling Costs The Company’s shipping and handling costs primarily include payments to third-parties for shipping merchandise to the Company’s customers. Shipping and handling costs of approximately $4.6 million , $4.8 million and $4.6 million in the fiscal years ended January 3, 2016 , January 4, 2015 and December 29, 2013 , respectively, were included in cost of sales. Cost of Sales Cost of sales consists of the cost of merchandise sold to customers, inbound and outbound shipping costs, insurance on shipments, the costs incurred to set diamonds into ring, earring and pendant settings, including labor and related facility costs, and depreciation on assembly related property, plant and equipment. Selling, General and Administrative Expenses Selling, general and administrative expenses consist primarily of payroll and related benefit costs for the Company’s employees, marketing costs, stock-based compensation and credit card fees. These expenses also include certain facility-related costs, and fulfillment, customer service, technology and depreciation expenses, as well as professional fees and other general corporate expenses. Fulfillment costs include costs incurred in operating and staffing the fulfillment center, including costs attributable to receiving, inspecting and warehousing inventories and picking, packaging and preparing customers’ orders for shipment. Fulfillment costs in the years ended January 3, 2016 , January 4, 2015 and December 29, 2013 were approximately $2.8 million , $3.3 million and $3.6 million , respectively. Marketing Marketing costs are expensed as incurred. Costs associated with web portal advertising contracts are amortized over the period such advertising is expected to be used. Costs of advertising associated with radio, print and other media are expensed when such services are used. Marketing expense for the fiscal years ended January 3, 2016 , January 4, 2015 and December 29, 2013 was approximately $27.1 million , $25.0 million and $24.3 million , respectively. Stock-Based Compensation The Company measures compensation cost for all stock options and RSUs granted based on fair value on the measurement date, which is typically the grant date. The fair value of each stock option granted is estimated on the grant date 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. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period for each stock option or RSU grant expected to vest with forfeitures estimated at the date of grant based on the Company’s historical experience and future expectations. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers (Topic 606)” which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”, which delays the effective date by one year effective on the first quarter of 2018, with the option to adopt in the first quarter of 2017. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements as well as the expected adoption method and related disclosures. In July 2015, the FASB issued guidance on the subsequent measurement of inventory, which changes the measurement from lower of cost or market to lower of cost and net realizable value. The guidance will require prospective application at the beginning of the Company’s first quarter of fiscal year 2017, but permits adoption in an earlier period. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and the timing of adoption. In November 2015, the FASB issued Accounting Standards Update No. 2015-17 (“ASU 2015-17”), “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” which simplifies the presentation of deferred income taxes by requiring deferred tax assets and liabilities to be classified as noncurrent on the balance sheet. ASU 2015-17 is effective for periods beginning on January 1, 2017 and may be applied prospectively or retrospectively. Early adoption is permitted. The Company early-adopted the guidance in ASU 2015-17 and has classified its deferred income tax assets as noncurrent in the accompanying consolidated balance sheet as of January 3, 2016. The Company applied this updated guidance retrospectively. The impact of early adopting ASU 2015-17 resulted in a reclassification of our current deferred income tax asset to the non-current deferred income tax asset in the amount of $1.1 million, in our previously presented consolidated balance sheet as of January 4, 2015. In January 2016, the FASB issued Accounting Standards Update No. 2016-01 “Financial Instruments - Overall (“ASU 2016-01”),“Recognition and Measurement of Financial Assets and Financial Liabilities” which amends various aspects of recognition, measurement, presentation and disclosure of financial instruments. With respect to our consolidated financial statements the most significant impact of this update will be revising certain classification and measurement of our investments in equity securities accounted for under the cost method. This update will require prospective application at the beginning of the Company's first quarter of fiscal year 2018. For certain provisions, early adoption is permitted.The Company is currently evaluating the impact this update will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 "Leases (Topic 842)", which increases transparency and comparability among companies accounting for lease transactions. The most significant change of this update will require the recognition of lease assets and liabilities on the balance sheet for operating lease arrangements with lease terms greater than 12 months for lessees. This update will require a modified retrospective application which includes a number of optional practical expedients related to the identification and classification of leases commenced before the effective date. This update will become effective beginning the first quarter of the Company's fiscal year 2019. Early application is permitted. The Company is currently evaluating the impact this update will have on its consolidated financial statements and the timing of adoption. |
Inventories
Inventories | 12 Months Ended |
Jan. 03, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories [Text Block] | Inventories Inventories consist of the following (in thousands): January 3, January 4, Loose diamonds $ 12,420 $ 6,439 Fine jewelry and other 33,956 35,229 Total $ 46,376 $ 41,668 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 03, 2016 | |
Property and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Property and Equipment Property and equipment consist of the following (in thousands): January 3, January 4, Computers and equipment $ 5,070 $ 4,707 Software and website development 21,990 19,731 Leasehold improvements 6,717 6,615 Furniture and fixtures 1,291 1,249 Building 545 539 Property and equipment, gross 35,613 32,841 Less: accumulated depreciation and amortization (25,083 ) (22,419 ) Property and equipment, net $ 10,530 $ 10,422 Total depreciation expense was approximately $3.9 million , $3.6 million , and $3.1 million for the fiscal years ended January 3, 2016 , January 4, 2015 and December 29, 2013 , respectively. Capitalized software costs include external direct costs and internal direct labor and related employee benefits costs of developing software for internal use. Amortization begins in the period in which the software is ready for its intended use. The Company had approximately $6.9 million and $6.3 million of unamortized computer software and website development costs at January 3, 2016 and January 4, 2015 , respectively. Depreciation and amortization expense of capitalized software and website development costs was approximately $2.7 million , $2.0 million and $1.6 million in the fiscal years ended January 3, 2016 , January 4, 2015 and December 29, 2013 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 03, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 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. Leases The Company leases its office and warehouse facilities and some equipment under non-cancelable lease agreements with initial terms that generally range from one to eleven years. Some of the leases include renewal provisions at the Company’s option. At the inception of the lease, the Company evaluates each agreement to determine whether the lease will be accounted for as an operating or capital lease. The term of the lease used for this evaluation includes renewal option periods only in instances in which the exercise of the renewal option can be reasonably assured and failure to exercise such option would result in an economic penalty. Some of the office leases contain rent escalation clauses and rent holidays. Rent expense is recorded on a straight-line basis over the lease term with the difference between the rent paid and the straight-line rent expense recorded as a deferred rent liability. Lease incentive payments received from the landlord are recorded as deferred rent liabilities and are amortized on a straight-line basis over the lease term as a reduction in rent. For January 3, 2016 and January 4, 2015 , the deferred rent balance related to lease incentives was approximately $1.4 million and $1.7 million , respectively. On May 5, 2014, the Company entered into the Third Amendment to the Commercial Lease Agreement dated July 21, 2006 for its U.S. fulfillment center. The future minimum lease payments are included in the operating lease schedule below. During 2007, the Company made tenant improvements to its U.S. fulfillment center. Due to its financial involvement in the construction of the leased property, the Company recorded the building as property and equipment during the construction period. Upon completion, the transaction did not meet the criteria for sale-leaseback accounting, and accordingly, has been recorded as a long-term financing obligation. Future minimum lease payments at January 3, 2016 are as follows (in thousands): Financing Obligation Operating Leases 2016 $ 36 $ 1,590 2017 36 1,493 2018 37 1,349 2019 30 1,266 2020 — 1,144 Thereafter — 769 Total minimum lease payments 139 $ 7,611 Less: amounts representing interest (6 ) Present value of minimum lease payments 133 Residual value 355 Less: current portion (33 ) Total long-term financing obligation less current portion $ 455 Assets under the long-term financing obligation amounted to $0.5 million at January 3, 2016 and January 4, 2015 , respectively. These amounts are net of accumulated depreciation of approximately $54,000 as of January 3, 2016 and $20,000 as of January 4, 2015 . Such assets are classified within property and equipment, net, in the accompanying balance sheets. The residual value of the long-term financing obligation represents the estimated fair value of the financing at the end of the Company’s lease term. Rent expense under non-cancelable lease terms which includes certain common area maintenance costs, was approximately $1.4 million , $1.3 million and $1.0 million for the fiscal years ended January 3, 2016 , January 4, 2015 and December 29, 2013 , respectively. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Jan. 03, 2016 | |
Preferred Stock [Abstract] | |
Preferred Stock [Text Block] | Preferred Stock The Company has 5,000,000 shares of undesignated preferred stock authorized for future issuance. Shares of preferred stock may be issued from time to time in one or more series, with designations, preferences, and limitations established by the Company’s board of directors. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Jan. 03, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock-Based Compensation Share-based Plans As of January 3, 2016 , the Company has a total of four equity plans. The Company’s 2004 Equity Incentive Plan (“2004 Plan”) provides for the grant of non-statutory stock options, restricted stock awards, stock appreciation rights, RSUs and other forms of equity compensation, which may be granted to employees, including officers, non-employee directors and consultants. Upon the effectiveness of the 2013 Plan (as defined below), the 2004 Plan was suspended and any equity compensation that would have been granted under the 2004 Plan was thereafter granted under the 2013 Plan. The Company’s 2004 Non-Employee Directors’ Stock Option Plan (“Directors’ Plan”) provides for the automatic grant of non-statutory stock options to purchase shares of common stock to non-employee directors. In April 2012, the Directors' Plan was suspended; therefore, any equity compensation that would have been granted under the Directors' Plan is now granted under the 2004 Plan. Upon the effectiveness of the 2013 Plan, any equity compensation that would have been granted under the Directors' Plan is now granted under the 2013 Plan. On May 21, 2013, the Company adopted the 2013 Equity Incentive Plan (“2013 Plan”). The 2013 Plan provides for the grant of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards, performance cash awards and other stock awards. The 2013 Plan is intended to be the successor to the 2004 Plan and the Directors' Plan. Any equity compensation that would have been granted under the 2004 Plan or Directors' Plan is now granted under the 2013 Plan. As of January 3, 2016 , there were 1,126,304 shares of common stock reserved for future grants under the 2013 Plan. The majority of options granted generally provide for 25% vesting on the first anniversary from the date of grant with the remainder vesting monthly over the subsequent three years and expire 10 years from the date of grant. All of our outstanding stock options are non-qualified stock options. RSUs generally vest 25% on the first anniversary from the date of grant with the remaining vesting quarterly over three years. Employee Stock Purchase Plans In April 2004, the Company adopted the 2004 Employee Stock Purchase Plan (the “Purchase Plan”). As of January 3, 2016 , 1,000,000 shares of common stock are authorized to be sold under the Purchase Plan. Commencing on the first day of the fiscal year in which the Company first makes an offering under the Purchase Plan, this amount will be increased annually for 20 years. The increase in amount is the lesser of 320,000 shares or one and one half percent of the number of shares of common stock outstanding on each such date, unless a lower number of shares is approved by the board of directors. The Purchase Plan is intended to qualify as an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code. As of January 3, 2016 , no shares of common stock have been offered for sale under the Purchase Plan. Stock-Based Compensation Expense The following weighted average assumptions were used for the valuation of stock options granted during the periods presented: Year Ended January 3, January 4, December 29, Expected term 4.5 years 4.5 years 4.5 years Expected volatility 46.8 % 46.9 % 56.9 % Expected dividend yield 0.0 % 0.0 % 0.0 % Risk-free interest rate 1.5 % 1.5 % 0.9 % Estimated weighted average fair value per option granted $ 11.38 $ 13.28 $ 14.68 • Expected Term — This is the estimated period of time until exercise and is based primarily on historical experience for options with similar terms and conditions, giving consideration to future expectations. • Expected Volatility — This is based on the Company’s historical stock price volatility commensurate with the expected term of the options on the date of grant. • Expected Dividend Yield — The Company has not paid dividends during the periods presented. Any future payment of dividends will be at the discretion of our board of directors. • Risk-Free Interest Rate — This is the rate on nominal U.S. Government Treasury Bills with lives commensurate with the expected term of the options on the date of grant. The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market conditions and the Company’s experience. The following table represents total stock-based compensation expense recognized in the consolidated financial statements (in thousands): Year Ended January 3, January 4, December 29, Stock-based compensation expense in selling, general and administrative expenses $ 4,944 $ 4,196 $ 4,860 Stock-based compensation expense in cost of sales 97 85 88 Total stock-based compensation expense in the consolidated statements of operations $ 5,041 $ 4,281 $ 4,948 Total related tax benefit $ 1,764 $ 1,498 $ 1,732 Stock-based compensation capitalized $ 110 $ 106 $ 158 Stock-based compensation capitalized is included in property and equipment, net, in the consolidated balance sheets as a component of the cost capitalized for website development and the development of software for internal use. As of January 3, 2016 , the Company had total unrecognized compensation costs related to unvested stock options and RSUs of approximately $8.0 million , before income taxes. The Company expects to recognize this cost over a weighted average period of 1.89 years for the options and 3.22 years for the RSUs. The following summarizes all stock option transactions from December 31, 2012 through January 3, 2016 : Options Weighted average exercise price Weighted average remaining contractual term Total intrinsic value (In thousands) (In years) (In thousands) Balance, December 31, 2012 2,199 $ 38.55 Granted 117 31.67 Exercised (716 ) 29.88 Canceled (107 ) 41.83 Balance, December 29, 2013 1,493 41.93 Granted 79 33.00 Exercised (99 ) 24.39 Canceled (452 ) 49.56 Balance January 4, 2015 1,021 39.56 Granted 39 28.31 Exercised (35 ) 32.35 Canceled (91 ) 49.08 Balance, January 3, 2016 934 $ 38.41 5.50 $ 3,593 Vested and expected to vest at January 3, 2016 921 $ 38.52 5.45 $ 3,511 Exercisable at January 3, 2016 810 $ 39.50 5.12 $ 2,871 The total intrinsic value of options exercised were approximately $0.1 million , $1.1 million and $7.3 million in the fiscal years ended January 3, 2016 , January 4, 2015 and December 29, 2013 , respectively. During the fiscal years ended January 3, 2016 , January 4, 2015 and December 29, 2013 , the total fair value of options vested was approximately $2.3 million , $2.9 million and $4.9 million , respectively. The following table summarizes additional information about stock options outstanding at January 3, 2016 : Outstanding Exercisable Options Weighted Average Remaining Contractual Life Exercise Price Range of Exercise Price Options Weighted Average Exercise Price (In thousands) (In years) (In thousands) $20.28 — $31.31 284 6.20 $ 28.51 215 $ 28.21 $31.32 — $33.45 272 6.65 33.31 223 33.32 $33.46 — $49.11 234 4.57 41.63 228 41.76 $49.12 — $94.99 144 3.41 62.34 144 62.34 934 5.50 38.41 810 39.50 The following summarizes all RSU activity from December 31, 2012 through January 3, 2016 : RSUs Weighted Weighted Aggregate (In thousands) (In years) (In thousands) Balance, December 31, 2012 3 $ 29.67 Granted 97 32.07 Vested (10 ) 38.76 Canceled (2 ) 31.34 Balance, December 29, 2013 88 31.01 Granted 91 33.01 Vested (42 ) 32.30 Canceled (28 ) 32.73 Balance January 4, 2015 109 31.74 Granted 286 28.98 Vested (81 ) 31.39 Canceled (13 ) 31.13 Balance, January 3, 2016 301 $ 29.25 1.56 $ 11,190 Vested and expected to vest at January 3, 2016 258 $ 34.68 1.43 $ 9,562 The total intrinsic value of RSUs vested was approximately $3.0 million , $1.5 million and $0.5 million in the fiscal years ended January 3, 2016 , January 4, 2015 and December 29, 2013 , respectively. During the fiscal years ended January 3, 2016 , January 4, 2015 and December 29, 2013 , the total fair value of RSUs vested was approximately $2.5 million , $1.4 million and $0.4 million , respectively. 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. |
Common Stock
Common Stock | 12 Months Ended |
Jan. 03, 2016 | |
Common Stock [Abstract] | |
Common Stock [Text Block] | Common Stock On October 28, 2013, the Company’s board of directors authorized the renewal of our stock repurchase program. Under this renewed program, we are authorized to repurchase up to $100.0 million of our common stock within the 24-month period following the approval date. In the fiscal year ended January 3, 2016 , the Company repurchased 382,491 shares of its common stock for an aggregate purchase price of approximately $10.8 million under this authorization that has since expired. In the fiscal year ended January 4, 2015 , the Company repurchased 1.2 million shares of the Company’s common stock for an aggregate purchase price of approximately $40.3 million under this authorization that has since expired. In the fiscal year ended December 29, 2013 , the Company repurchased 299,240 shares of the Company’s common stock for an aggregate purchase price of approximately $10.4 million under the same previous repurchase authorization that has since expired. On November 2, 2015, the Company’s board of directors authorized the renewal of our stock repurchase program. Under this renewed program, we are authorized to repurchase up to $100.0 million of our common stock within the 27 month period following the approval date. As of January 3, 2016 , $100.0 million remained under the repurchase authorization. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Jan. 03, 2016 | |
Employee Benefit Plan [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | Employee Benefit Plan The Company has a defined contribution plan pursuant to Section 401(k) of the Internal Revenue Code covering all eligible officers and employees. The Company provides a discretionary matching contribution, which has generally been $0.50 for every $1.00 contributed by the employee up to 4% of each employee’s salary. Such contributions were approximately $0.3 million for each of the fiscal years ended January 3, 2016 , January 4, 2015 and December 29, 2013 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 03, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The expense for income taxes consists of the following (in thousands): Year Ended January 3, January 4, December 29, Current income tax expense $ 7,215 $ 5,280 $ 2,069 Deferred income tax expense (benefit) (1,637 ) (392 ) 1,621 Total income tax expense $ 5,578 $ 4,888 $ 3,690 A reconciliation of the statutory Federal income tax rate to the effective tax rate is as follows: Year Ended January 3, January 4, December 29, Statutory Federal income tax rate 35.0 % 35.0 % 35.0 % Domestic production activities deduction (1.9 )% (1.4 )% (7.8 )% Other, net 1.5 % (0.2 )% (1.9 )% Effective tax rate 34.6 % 33.4 % 25.3 % Deferred income taxes reflect the net tax effect of temporary differences between amounts recorded for financial reporting purposes and amounts used for tax purposes. The major components of deferred tax assets are as follows (in thousands): January 3, January 4, Deferred tax assets: Reserves and allowances $ 794 $ 883 Deferred rent 693 782 Inventory 273 248 Stock-based compensation 5,270 5,135 Financing obligation 171 171 Deferred revenue 909 14 Other 781 599 Gross deferred tax assets $ 8,891 $ 7,832 Valuation allowance (214 ) (109 ) Gross deferred tax assets, net of valuation allowance $ 8,677 $ 7,723 Deferred tax liabilities: Prepaid expenses (343 ) (369 ) Leased building (170 ) (182 ) Property and Equipment (3,075 ) (2,985 ) Gross deferred tax liabilities (3,588 ) (3,536 ) Net deferred tax assets $ 5,089 $ 4,187 At January 3, 2016 , the Company had foreign net operating loss carryforwards for income tax purposes of approximately $0.8 million . If not utilized the foreign net operating loss carryforwards will begin to expire in 2017. The Company had a valuation allowance of $0.2 million and $0.1 million at January 3, 2016 and January 4, 2015 , respectively, representing an increase of $0.1 million . The valuation allowance relates to foreign net operating losses that would be realizable only upon the generation of future taxable income in the jurisdiction in which the losses were incurred. Income taxes payable were $1.7 million and $1.3 million at January 3, 2016 and January 4, 2015 , respectively, and were included in accrued liabilities on the Company's consolidated balance sheet. The Company has not provided for deferred taxes on unremitted earnings of subsidiaries outside the United States where such earnings are permanently reinvested. At January 3, 2016 , unremitted earnings of foreign subsidiaries were $1.0 million . The amount of unrecognized deferred tax liability associated with these unremitted earnings is approximately $0.3 million . If these earnings were distributed in the form of dividends or otherwise, the Company would be subject to U.S. income taxes less an adjustment for applicable foreign tax credits. The tax benefit realized for the tax deduction from stock-based compensation totaled $0.9 million , $0.9 million , and $2.7 million , for the years ended January 3, 2016 , January 4, 2015 , and December 29, 2013 , respectively. As of January 3, 2016 , the Company had $0.2 million of gross unrecognized tax benefits all of which, if recognized, would affect the effective tax rate. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2012. The following table summarizes the gross unrecognized tax benefits activity for the fiscal years ended January 3, 2016 , January 4, 2015 , and December 29, 2013 , (in thousands): Year Ended January 3, January 4, December 29, Unrecognized tax benefits - beginning balance $ 143 $ 86 $ — Increase related to current year tax positions 73 57 86 Unrecognized tax benefits - ending balance $ 216 $ 143 $ 86 |
Income Per Share
Income Per Share | 12 Months Ended |
Jan. 03, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Share [Text Block] | 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 restricted stock units except when the effect of their inclusion would be antidilutive. The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share data): Year Ended January 3, January 4, December 29, Net income $ 10,534 $ 9,731 $ 10,875 Weighted average common shares outstanding 11,668 12,144 12,540 Basic net income per share $ 0.90 $ 0.80 $ 0.87 Dilutive effect of stock options and restricted stock units 91 65 220 Common stock and common stock equivalents 11,759 12,209 12,760 Diluted net income per share $ 0.90 $ 0.80 $ 0.85 The following is a summary of the securities outstanding during the respective periods that have been excluded from the calculations because the effect on net income per share would have been antidilutive (in thousands): Year Ended January 3, January 4, December 29, 828 1,004 1,193 |
Segment Information
Segment Information | 12 Months Ended |
Jan. 03, 2016 | |
Segment Information [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment and Geographic Information The Company’s only operating segment is online retail jewelry. The Company sells jewelry to customers within and outside the United States. No customer accounted for 10% or more of the Company’s revenues. Net sales were attributed on the basis of the country to where the product was shipped. Revenue from customers in individual foreign countries was not material to the financial statements. The tables below represent information by geographic area (in thousands): Year Ended January 3, January 4, December 29, Net sales to customers: United States Engagement $ 269,857 $ 266,379 $ 255,832 Non-engagement 128,306 126,018 120,988 Total United States 398,163 392,397 376,820 Other countries Engagement 67,639 64,847 58,958 Non-engagement 14,255 16,272 14,230 Total other countries 81,894 81,119 73,188 Total $ 480,057 $ 473,516 $ 450,008 Year Ended January 3, January 4, December 29, Long-lived assets (net book value): United States $ 10,461 $ 10,403 $ 10,026 Other countries 69 19 162 Total $ 10,530 $ 10,422 $ 10,188 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 03, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Related Party Transactions As set forth in Note 1, the Company has a minority ownership in two privately-held companies. The Company sold products to these privately held entities for approximately $0.9 million for fiscal year ended January 3, 2016 , $1.5 million for fiscal year ended January 4, 2015 , and $1.9 million for fiscal year ended December 29, 2013 . The Company had trade receivables due from one of the privately held entities of approximately $0.2 million at January 3, 2016 and $0.1 million at January 4, 2015 from both privately held entities, recorded in trade accounts receivable in the Company's consolidated balance sheets. |
Revolving Line of Credit
Revolving Line of Credit | 12 Months Ended |
Jan. 03, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Revolving Line of Credit On February 11, 2013, the Company entered into a Credit Agreement with U.S. Bank National Association (the "Lender"). 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 latest renewal of the Credit Agreement with the Lender was on February 17, 2015. The Credit Agreement provides for a $40.0 million (the "New Credit Limit") unsecured, revolving credit facility with the Company's option to increase the New Credit Limit to $50.0 million . Interest on the advances is the daily reset LIBOR rate plus 1.65%. 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 New Credit Limit. As of the January 3, 2016 , there are no amounts outstanding under the Credit Agreement and the Company is in compliance with its covenants under the Credit Agreement. |
Selected Quarterly Financial In
Selected Quarterly Financial Information (unaudited) | 12 Months Ended |
Jan. 03, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Selected Quarterly Financial Information (unaudited) Summarized quarterly financial information for fiscal years 2015 and 2014 are as follows (in thousands, except per share data): Q1 Q2 Q3 Q4 2015 quarter: Net sales $ 106,447 $ 113,693 $ 109,943 $ 149,974 Gross profit 19,973 22,089 21,231 29,053 Net income 1,187 2,331 1,977 5,039 Basic net income per share 0.10 0.20 0.17 0.44 Diluted net income per share 0.10 0.20 0.17 0.43 Q1 Q2 Q3 Q4 2014 quarter: Net sales $ 103,726 $ 106,571 $ 105,760 $ 157,459 Gross profit 19,125 20,167 18,850 28,500 Net income 1,079 2,171 1,650 4,831 Basic net income per share 0.08 0.18 0.14 0.41 Diluted net income per share 0.08 0.18 0.14 0.41 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 03, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events On February 9, 2016 , the Company's Board of Directors declared a special cash dividend of $0.70 per share of common stock. The dividend will be payable on March 7, 2016 to shareholders of record at the close of business on February 22, 2016 . The Company determined the value of the dividend based on the level of earnings in fiscal year 2015. On an annual basis, the Company will reassess its use of capital, including investments in operations, strategic alternatives, share repurchases, and cash dividends. The Company's equity incentive plan and related form of award agreement provide that in connection with the declaration of such a special dividend, the outstanding RSUs shall be automatically credited with dividend equivalents to reflect dividends declared and paid and such dividend equivalents will be subject to all the terms and conditions, including vesting, of the awards to which they relate. The exact number of dividend equivalents is indeterminate at this time, but will be determined at the time of the payment date depending on the trading price of our stock on such date. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 03, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS Description Balance at Beginning of Period Charged to Revenue, Costs or Expenses Deductions (A) Balance at End of Period (In thousands) Reserve for sales returns: Year ended: January 3, 2016 $ 1,035 $ 39,779 $ (39,520 ) $ 1,294 January 4, 2015 1,386 49,860 (50,211 ) 1,035 December 29, 2013 1,367 38,911 (38,892 ) 1,386 ____________________ (A) Deductions for sales returns consist of actual sales returns in each period. |
Description Of the Company An24
Description Of the Company And Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Jan. 03, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles Of Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances are eliminated in consolidation. |
Use Of Estimates, Policy [Policy Text Block] | 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 taxes, and inventory valuation. Actual results could differ materially from those estimates. |
Foreign Currency, Policy [Policy Text Block] | Foreign Currency The functional currency of most of the Company’s subsidiaries is the applicable local currency. Assets and liabilities 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 accumulated comprehensive income within stockholders’ equity. The Company also recognizes gains and losses associated with transactions that are denominated in foreign currencies. The Company recorded a net loss resulting from foreign currency transactions of approximately $1.0 million for the fiscal year ended January 3, 2016 , approximately $0.8 million for the fiscal year ended January 4, 2015 and approximately $0.4 million for the fiscal year ended December 29, 2013 , within other income, net in the consolidated statements of operations. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less, from the date of purchase, to be cash equivalents. |
Inventories, Policy [Policy Text Block] | Inventories The Company’s diamond and fine jewelry inventories are valued at the lower of cost or market, using the specific identification method for diamonds and weighted average cost method for fine jewelry. The Company lists loose diamonds on its website that are typically not included in inventory until the Company receives a customer order for those diamonds. Upon receipt of a customer order, the Company purchases a specific diamond and records it in inventory until it is delivered to the customer, at which time the revenue from the sale is recognized and inventory is relieved. To determine if the cost of the Company's inventory should be written down, current and anticipated demand, customer preferences, age of the merchandise and fashion trends are considered. This write-down is equal to the difference between the cost of inventory and its estimated market value. The Company recorded inconsequential write-downs for the fiscal years ended January 3, 2016 , January 4, 2015 and December 29, 2013 . |
Property and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Maintenance and repairs are expensed as incurred. Depreciation expense is calculated on a straight-line basis over the estimated useful lives of the related assets. The cost and related accumulated depreciation of assets sold or otherwise disposed of are removed from the accounts and the related gain or loss is reported in the statement of operations. Estimated useful lives by major asset category are as follows: Asset Life (in years) Software 2-5 Computers and equipment 2-5 Leasehold improvements Shorter of lease term or asset life Building Shorter of lease term or asset life Furniture and fixtures 5-7 |
Capitalized Software, Policy [Policy Text Block] | Capitalized Software The Company capitalizes costs to develop its website and internal-use software and amortizes such costs on a straight-line basis over the estimated useful life of the software once it is available for use. Costs related to the design and maintenance of internal-use software and website development are expensed as incurred. |
Impairment of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets The Company reviews the carrying value of its long-lived assets, including property and equipment and definite-lived intangible assets, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. To the extent the estimated future cash inflows attributable to the assets, less estimated future cash outflows, are less than the carrying amount, an impairment loss would be recognized. |
Amortizable Intangible Assets, Policy [Policy Text Block] | Amortizable Intangible Assets Intangible assets are recorded at cost and consist primarily of the costs incurred to acquire licenses and other similar agreements with finite lives. The gross carrying amount of these licenses was approximately $533,000 at both January 3, 2016 and January 4, 2015 . Accumulated amortization was approximately $485,000 at January 3, 2016 and $464,000 at January 4, 2015 . Amortization expense was approximately $22,000 in the fiscal year ended January 3, 2016 , $37,000 in the fiscal year ended January 4, 2015 and $55,000 in the fiscal year ended December 29, 2013 . Amortization expense is estimated to be $19,000 in fiscal 2016 , $14,000 in fiscal 2017 , $9,000 in fiscal 2018 , $3,000 in fiscal 2019 , $1,000 in fiscal 2020 and $2,000 thereafter. |
Note Receivable and Other Investments, Policies [Policy Text Block] | 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 held a $2.0 million note receivable (the "Note") from the same privately-held company. During the year ended January 3, 2016 , the Company received payment of $1.4 million on the principal amount, with the remainder of the principal collectable within a year. 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 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 the investments for impairment when events and circumstances indicate that the decline in fair value of the asset below the carrying value is other-than-temporary. This evaluation consists of several qualitative and quantitative factors regarding the severity and duration of the unrealized loss as well as the Company's ability and intent to hold the investment until a forecasted recovery occurs. Additionally, the Company assesses whether it has plans to sell the security or it is more likely than not that the Company will be required to sell the investment before recovery of its amortized cost basis. Factors considered include recent and projected financial results and operating trends; publicly available information that may affect the value of the investment; duration and severity of the decline in value; and our strategy and intentions for holding the investment. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The carrying amounts for the Company’s cash, cash equivalents, accounts receivable, note receivable, accounts payable and accrued liabilities approximate fair value due to their short maturities. |
Treasury Stock, Policy [Text Block] | Treasury Stock Treasury stock is recorded at cost and consists primarily of the repurchase of the Company’s common stock in the open market. |
Income Tax, Policy [Policy Text Block] | Income Taxes Deferred tax assets and liabilities are determined based on the differences between financial reporting and tax bases of assets and liabilities and are measured using the tax rates that will be in effect when the differences are expected to reverse. Future tax benefits, such as return reserves, are recognized to the extent that realization of such benefits is considered to be more likely than not. The Company utilizes a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating tax positions and tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. If applicable, interest and penalties related to unrecognized tax benefits are included in the provision for income taxes. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Net sales consist of products sold via the Internet and shipping revenue, net of estimated returns and promotional discounts and excluding sales taxes. The Company recognizes revenue when all of the following have occurred: persuasive evidence of an agreement with the customer exists, delivery has occurred or services have been rendered, the selling price is fixed or determinable and collectability of the selling price is reasonably assured. The Company evaluates whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned. Revenue is recorded at the gross amount when the Company is the primary obligor, is subject to inventory and credit risk, has latitude in establishing price and product specification, or has most of these indicators. When the Company is not primarily obligated and has no latitude in establishing the price, revenue will be recorded at the net amount earned. The Company requires payment at the point of sale. Amounts received before the customer assumes the risk of loss are not recorded as revenue. For sales to customers, the Company recognizes revenue when delivery has occurred, as this is when the risk of loss transfers, which is typically one to three days after shipment. The Company generally offers a return policy of 30 days and provides an allowance for sales returns during the period in which the sales are made. At January 3, 2016 and January 4, 2015 , the reserve for sales returns was $1.3 million and $1.0 million , respectively, and was recorded as an accrued liability. Sales and cost of sales reported in the consolidated statements of operations are reduced to reflect estimated returns. The estimates are based on the Company’s historical product return rates and current economic conditions. The Company currently has a lifetime diamond upgrade program on all certified diamonds purchased since the Company's inception. This is accounted for as a guarantee and at January 3, 2016 and January 4, 2015 , the estimated fair value of the guarantee was inconsequential. The Company generally does not extend credit to customers, except through third party credit cards. The majority of sales are through credit cards, and trade accounts receivable are composed primarily of amounts due from financial institutions related to credit card sales. The Company does not maintain an allowance for doubtful accounts because payment is typically received within two business days after the sale is complete. |
Shipping and Handling Costs, Policy [Policy Text Block] | Shipping and Handling Costs The Company’s shipping and handling costs primarily include payments to third-parties for shipping merchandise to the Company’s customers. Shipping and handling costs of approximately $4.6 million , $4.8 million and $4.6 million in the fiscal years ended January 3, 2016 , January 4, 2015 and December 29, 2013 , respectively, were included in cost of sales. |
Cost of Sales, Policy [Policy Text Block] | Cost of Sales Cost of sales consists of the cost of merchandise sold to customers, inbound and outbound shipping costs, insurance on shipments, the costs incurred to set diamonds into ring, earring and pendant settings, including labor and related facility costs, and depreciation on assembly related property, plant and equipment. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | Selling, General and Administrative Expenses Selling, general and administrative expenses consist primarily of payroll and related benefit costs for the Company’s employees, marketing costs, stock-based compensation and credit card fees. These expenses also include certain facility-related costs, and fulfillment, customer service, technology and depreciation expenses, as well as professional fees and other general corporate expenses. Fulfillment costs include costs incurred in operating and staffing the fulfillment center, including costs attributable to receiving, inspecting and warehousing inventories and picking, packaging and preparing customers’ orders for shipment. Fulfillment costs in the years ended January 3, 2016 , January 4, 2015 and December 29, 2013 were approximately $2.8 million , $3.3 million and $3.6 million , respectively. |
Marketing, Policy [Policy Text Block] | Marketing Marketing costs are expensed as incurred. Costs associated with web portal advertising contracts are amortized over the period such advertising is expected to be used. Costs of advertising associated with radio, print and other media are expensed when such services are used. Marketing expense for the fiscal years ended January 3, 2016 , January 4, 2015 and December 29, 2013 was approximately $27.1 million , $25.0 million and $24.3 million , respectively. |
Stock-Based Compensation, Policy [Policy Text Block] | Stock-Based Compensation The Company measures compensation cost for all stock options and RSUs granted based on fair value on the measurement date, which is typically the grant date. The fair value of each stock option granted is estimated on the grant date 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. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period for each stock option or RSU grant expected to vest with forfeitures estimated at the date of grant based on the Company’s historical experience and future expectations. |
Recently Issued and Adopted Accounting Pronouncement [Policy Text Block] | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers (Topic 606)” which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”, which delays the effective date by one year effective on the first quarter of 2018, with the option to adopt in the first quarter of 2017. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements as well as the expected adoption method and related disclosures. In July 2015, the FASB issued guidance on the subsequent measurement of inventory, which changes the measurement from lower of cost or market to lower of cost and net realizable value. The guidance will require prospective application at the beginning of the Company’s first quarter of fiscal year 2017, but permits adoption in an earlier period. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and the timing of adoption. In November 2015, the FASB issued Accounting Standards Update No. 2015-17 (“ASU 2015-17”), “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” which simplifies the presentation of deferred income taxes by requiring deferred tax assets and liabilities to be classified as noncurrent on the balance sheet. ASU 2015-17 is effective for periods beginning on January 1, 2017 and may be applied prospectively or retrospectively. Early adoption is permitted. The Company early-adopted the guidance in ASU 2015-17 and has classified its deferred income tax assets as noncurrent in the accompanying consolidated balance sheet as of January 3, 2016. The Company applied this updated guidance retrospectively. The impact of early adopting ASU 2015-17 resulted in a reclassification of our current deferred income tax asset to the non-current deferred income tax asset in the amount of $1.1 million, in our previously presented consolidated balance sheet as of January 4, 2015. In January 2016, the FASB issued Accounting Standards Update No. 2016-01 “Financial Instruments - Overall (“ASU 2016-01”),“Recognition and Measurement of Financial Assets and Financial Liabilities” which amends various aspects of recognition, measurement, presentation and disclosure of financial instruments. With respect to our consolidated financial statements the most significant impact of this update will be revising certain classification and measurement of our investments in equity securities accounted for under the cost method. This update will require prospective application at the beginning of the Company's first quarter of fiscal year 2018. For certain provisions, early adoption is permitted.The Company is currently evaluating the impact this update will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 "Leases (Topic 842)", which increases transparency and comparability among companies accounting for lease transactions. The most significant change of this update will require the recognition of lease assets and liabilities on the balance sheet for operating lease arrangements with lease terms greater than 12 months for lessees. This update will require a modified retrospective application which includes a number of optional practical expedients related to the identification and classification of leases commenced before the effective date. This update will become effective beginning the first quarter of the Company's fiscal year 2019. Early application is permitted. The Company is currently evaluating the impact this update will have on its consolidated financial statements and the timing of adoption. |
Description Of the Company An25
Description Of the Company And Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Year Ended January 3, January 4, December 29, Vendor A 8 % 7 % 10 % Vendor B 6 % 6 % 5 % Vendor C 5 % 5 % 5 % 19 % 18 % 20 % |
Estimated Useful Lives By Major Asset Category [Table Text Block] | Asset Life (in years) Software 2-5 Computers and equipment 2-5 Leasehold improvements Shorter of lease term or asset life Building Shorter of lease term or asset life Furniture and fixtures 5-7 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories [Table Text Block] | January 3, January 4, Loose diamonds $ 12,420 $ 6,439 Fine jewelry and other 33,956 35,229 Total $ 46,376 $ 41,668 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Property and Equipment [Abstract] | |
Property and Equipment [Table Text Block] | January 3, January 4, Computers and equipment $ 5,070 $ 4,707 Software and website development 21,990 19,731 Leasehold improvements 6,717 6,615 Furniture and fixtures 1,291 1,249 Building 545 539 Property and equipment, gross 35,613 32,841 Less: accumulated depreciation and amortization (25,083 ) (22,419 ) Property and equipment, net $ 10,530 $ 10,422 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments [Table Text Block] | Financing Obligation Operating Leases 2016 $ 36 $ 1,590 2017 36 1,493 2018 37 1,349 2019 30 1,266 2020 — 1,144 Thereafter — 769 Total minimum lease payments 139 $ 7,611 Less: amounts representing interest (6 ) Present value of minimum lease payments 133 Residual value 355 Less: current portion (33 ) Total long-term financing obligation less current portion $ 455 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted-Average Assumptions For Valuation Of Stock Options Granted [Table Text Block] | Year Ended January 3, January 4, December 29, Expected term 4.5 years 4.5 years 4.5 years Expected volatility 46.8 % 46.9 % 56.9 % Expected dividend yield 0.0 % 0.0 % 0.0 % Risk-free interest rate 1.5 % 1.5 % 0.9 % Estimated weighted average fair value per option granted $ 11.38 $ 13.28 $ 14.68 |
Schedule of Stock Based Compensation Expense Recognized [Table Text Block] | Year Ended January 3, January 4, December 29, Stock-based compensation expense in selling, general and administrative expenses $ 4,944 $ 4,196 $ 4,860 Stock-based compensation expense in cost of sales 97 85 88 Total stock-based compensation expense in the consolidated statements of operations $ 5,041 $ 4,281 $ 4,948 Total related tax benefit $ 1,764 $ 1,498 $ 1,732 Stock-based compensation capitalized $ 110 $ 106 $ 158 |
Summary of Stock Options, Activity [Table Text Block] | Options Weighted average exercise price Weighted average remaining contractual term Total intrinsic value (In thousands) (In years) (In thousands) Balance, December 31, 2012 2,199 $ 38.55 Granted 117 31.67 Exercised (716 ) 29.88 Canceled (107 ) 41.83 Balance, December 29, 2013 1,493 41.93 Granted 79 33.00 Exercised (99 ) 24.39 Canceled (452 ) 49.56 Balance January 4, 2015 1,021 39.56 Granted 39 28.31 Exercised (35 ) 32.35 Canceled (91 ) 49.08 Balance, January 3, 2016 934 $ 38.41 5.50 $ 3,593 Vested and expected to vest at January 3, 2016 921 $ 38.52 5.45 $ 3,511 Exercisable at January 3, 2016 810 $ 39.50 5.12 $ 2,871 |
Stock Options Outstanding, range of Exercise Price [Table Text Block] | Outstanding Exercisable Options Weighted Average Remaining Contractual Life Exercise Price Range of Exercise Price Options Weighted Average Exercise Price (In thousands) (In years) (In thousands) $20.28 — $31.31 284 6.20 $ 28.51 215 $ 28.21 $31.32 — $33.45 272 6.65 33.31 223 33.32 $33.46 — $49.11 234 4.57 41.63 228 41.76 $49.12 — $94.99 144 3.41 62.34 144 62.34 934 5.50 38.41 810 39.50 |
Summary of Restricted Stock Units, Activity [Table Text Block] | RSUs Weighted Weighted Aggregate (In thousands) (In years) (In thousands) Balance, December 31, 2012 3 $ 29.67 Granted 97 32.07 Vested (10 ) 38.76 Canceled (2 ) 31.34 Balance, December 29, 2013 88 31.01 Granted 91 33.01 Vested (42 ) 32.30 Canceled (28 ) 32.73 Balance January 4, 2015 109 31.74 Granted 286 28.98 Vested (81 ) 31.39 Canceled (13 ) 31.13 Balance, January 3, 2016 301 $ 29.25 1.56 $ 11,190 Vested and expected to vest at January 3, 2016 258 $ 34.68 1.43 $ 9,562 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Income Tax Disclosure [Abstract] | |
Expense for incomes taxes [Table Text Block] | Year Ended January 3, January 4, December 29, Current income tax expense $ 7,215 $ 5,280 $ 2,069 Deferred income tax expense (benefit) (1,637 ) (392 ) 1,621 Total income tax expense $ 5,578 $ 4,888 $ 3,690 |
Reconciliation of statutory Federal income tax to effective tax rate [Table Text Block] | Year Ended January 3, January 4, December 29, Statutory Federal income tax rate 35.0 % 35.0 % 35.0 % Domestic production activities deduction (1.9 )% (1.4 )% (7.8 )% Other, net 1.5 % (0.2 )% (1.9 )% Effective tax rate 34.6 % 33.4 % 25.3 % |
Major components of deferred tax assets [Table Text Block] | January 3, January 4, Deferred tax assets: Reserves and allowances $ 794 $ 883 Deferred rent 693 782 Inventory 273 248 Stock-based compensation 5,270 5,135 Financing obligation 171 171 Deferred revenue 909 14 Other 781 599 Gross deferred tax assets $ 8,891 $ 7,832 Valuation allowance (214 ) (109 ) Gross deferred tax assets, net of valuation allowance $ 8,677 $ 7,723 Deferred tax liabilities: Prepaid expenses (343 ) (369 ) Leased building (170 ) (182 ) Property and Equipment (3,075 ) (2,985 ) Gross deferred tax liabilities (3,588 ) (3,536 ) Net deferred tax assets $ 5,089 $ 4,187 |
Gross unrecognized tax benefits activity [Table Text Block] | Year Ended January 3, January 4, December 29, Unrecognized tax benefits - beginning balance $ 143 $ 86 $ — Increase related to current year tax positions 73 57 86 Unrecognized tax benefits - ending balance $ 216 $ 143 $ 86 |
Income Per Share (Tables)
Income Per Share (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Earnings Per Share [Abstract] | |
Computation Basic And Diluted Net Income Per Share [Table Text Block] | Year Ended January 3, January 4, December 29, Net income $ 10,534 $ 9,731 $ 10,875 Weighted average common shares outstanding 11,668 12,144 12,540 Basic net income per share $ 0.90 $ 0.80 $ 0.87 Dilutive effect of stock options and restricted stock units 91 65 220 Common stock and common stock equivalents 11,759 12,209 12,760 Diluted net income per share $ 0.90 $ 0.80 $ 0.85 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Year Ended January 3, January 4, December 29, 828 1,004 1,193 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Segment Information [Abstract] | |
Schedule of Revenue from External Customers by Geographic Area [Table Text Block] | Year Ended January 3, January 4, December 29, Net sales to customers: United States Engagement $ 269,857 $ 266,379 $ 255,832 Non-engagement 128,306 126,018 120,988 Total United States 398,163 392,397 376,820 Other countries Engagement 67,639 64,847 58,958 Non-engagement 14,255 16,272 14,230 Total other countries 81,894 81,119 73,188 Total $ 480,057 $ 473,516 $ 450,008 |
Schedule of Revenue from External Customers and Long-Lived Assets (NBV), by Geographical Areas [Table Text Block] | Year Ended January 3, January 4, December 29, Long-lived assets (net book value): United States $ 10,461 $ 10,403 $ 10,026 Other countries 69 19 162 Total $ 10,530 $ 10,422 $ 10,188 |
Selected Quarterly Financial 33
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Q1 Q2 Q3 Q4 2015 quarter: Net sales $ 106,447 $ 113,693 $ 109,943 $ 149,974 Gross profit 19,973 22,089 21,231 29,053 Net income 1,187 2,331 1,977 5,039 Basic net income per share 0.10 0.20 0.17 0.44 Diluted net income per share 0.10 0.20 0.17 0.43 Q1 Q2 Q3 Q4 2014 quarter: Net sales $ 103,726 $ 106,571 $ 105,760 $ 157,459 Gross profit 19,125 20,167 18,850 28,500 Net income 1,079 2,171 1,650 4,831 Basic net income per share 0.08 0.18 0.14 0.41 Diluted net income per share 0.08 0.18 0.14 0.41 |
Description Of the Company An34
Description Of the Company And Summary Of Significant Accounting Policies (Concentration of Risk) (Details) | 12 Months Ended | ||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 19.00% | 18.00% | 20.00% |
Vendor A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 8.00% | 7.00% | 10.00% |
Vendor B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 6.00% | 6.00% | 5.00% |
Vendor C [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 5.00% | 5.00% | 5.00% |
Description Of the Company An35
Description Of the Company And Summary Of Significant Accounting Policies (Estimated Useful Lives By Major Asset Category) (Details) | 12 Months Ended |
Jan. 03, 2016 | |
Software [Member] | Minimum [Member] | |
Estimated Useful Lives By Major Asset Category [Line Items] | |
Property and Equipment, Estimated useful lives by major asset category | 2 |
Software [Member] | Maximum [Member] | |
Estimated Useful Lives By Major Asset Category [Line Items] | |
Property and Equipment, Estimated useful lives by major asset category | 5 |
Computers and equipment [Member] | Minimum [Member] | |
Estimated Useful Lives By Major Asset Category [Line Items] | |
Property and Equipment, Estimated useful lives by major asset category | 2 |
Computers and equipment [Member] | Maximum [Member] | |
Estimated Useful Lives By Major Asset Category [Line Items] | |
Property and Equipment, Estimated useful lives by major asset category | 5 |
Leasehold improvements [Member] | |
Estimated Useful Lives By Major Asset Category [Line Items] | |
Property and Equipment, Estimated useful lives by major asset category | Shorter of lease term or asset life |
Building [Member] | |
Estimated Useful Lives By Major Asset Category [Line Items] | |
Property and Equipment, Estimated useful lives by major asset category | Shorter of lease term or asset life |
Furniture and fixtures [Member] | Minimum [Member] | |
Estimated Useful Lives By Major Asset Category [Line Items] | |
Property and Equipment, Estimated useful lives by major asset category | 5 |
Furniture and fixtures [Member] | Maximum [Member] | |
Estimated Useful Lives By Major Asset Category [Line Items] | |
Property and Equipment, Estimated useful lives by major asset category | 7 |
Description Of the Company An36
Description Of the Company And Summary Of Significant Accounting Policies (Note Receivable and Other Investments) (Details) - USD ($) | 12 Months Ended | ||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Receivables [Abstract] | |||
Note receivable | $ 0 | $ 2,000,000 | |
Thereafter, Operational Leases | 769,000 | ||
2020, Operating Leases | 1,144,000 | ||
Payments received on note receivable | $ 1,400,000 | 0 | $ 0 |
Note Receivable, Interest Rate Description | LIBOR plus a predetermined rate per annum | ||
Investment Holdings [Line Items] | |||
Cost Method Investments | $ 2,280,000 | $ 2,280,000 | |
Convertible Preferred Shares [Member] | |||
Investment Holdings [Line Items] | |||
Cost Method Investments | 2,000,000 | ||
Common Stock and Warrants [Member] | |||
Investment Holdings [Line Items] | |||
Cost Method Investments | $ 280,000 |
Description Of the Company An37
Description Of the Company And Summary Of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||
Jan. 03, 2016USD ($) | Jan. 04, 2015USD ($) | Dec. 29, 2013USD ($) | |
Description Of The Company And Summary Of Significant Accounting Policies (Narrative) [Abstract] | |||
Foreign Currency Transaction Loss | $ (1,000,000) | $ (800,000) | $ (400,000) |
Inventories, write-downs | The Company recorded inconsequential write-downs | The Company recorded inconsequential write-downs | The Company recorded inconsequential write-downs |
Major financial institutions holding cash and cash equivalents | 6 | 6 | |
Losses on deposits of cash and cash equivalents | $ 0 | $ 0 | $ 0 |
Impairment for Long-Lived Assets | 0 | 0 | 0 |
Finite-Lived Intangible Assets, Gross | 533,000 | 533,000 | 533,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | 485,000 | 464,000 | |
Amortization of Intangible Assets | 22,000 | 37,000 | 55,000 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 19,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 14,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 9,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 3,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 1,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 2,000 | ||
Reserve for sales returns | 1,300,000 | 1,000,000 | |
Shipping, Handling and Transportation Costs | 4,600,000 | 4,800,000 | 4,600,000 |
Fulfillment Costs | 2,800,000 | 3,300,000 | 3,600,000 |
Marketing Expense | 27,100,000 | 25,000,000 | $ 24,300,000 |
Estimated fair value of guarantee is inconsequential | $ 0 | $ 0 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Jan. 03, 2016 | Jan. 04, 2015 |
Inventory Disclosure [Abstract] | ||
Loose diamonds | $ 12,420 | $ 6,439 |
Fine jewelry and other | 33,956 | 35,229 |
Total Inventories | $ 46,376 | $ 41,668 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Jan. 03, 2016 | Jan. 04, 2015 |
Property and Equipment [Abstract] | ||
Computer and equipment | $ 5,070 | $ 4,707 |
Software and website development | 21,990 | 19,731 |
Leasehold improvements | 6,717 | 6,615 |
Furniture and fixtures | 1,291 | 1,249 |
Building | 545 | 539 |
Property and Equipment, Gross | 35,613 | 32,841 |
Less: accumulated depreciation and amortization | (25,083) | (22,419) |
Property and equipment, net | $ 10,530 | $ 10,422 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Property and Equipment [Abstract] | |||
Depreciation expense | $ 3.9 | $ 3.6 | $ 3.1 |
Unamortized computer software and website development costs | 6.9 | 6.3 | |
Depreciation and amortization expense of capitalized software and website development costs | $ 2.7 | $ 2 | $ 1.6 |
Commitments and Contingencies41
Commitments and Contingencies (Schedule Of Future Minimum Lease Payments) (Details) $ in Thousands | Jan. 03, 2016USD ($) |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
2016, Financing Obligation | $ 36 |
2017, Financing Obligation | 36 |
2018, Financing Obligation | 37 |
2019, Financing Obligation | 30 |
2020, Financing Obligation | 0 |
Thereafter, Financing Obligation | 0 |
Total minimum lease payments, Financing Obligation | 139 |
Less: amounts representing interest, Financing obligation | (6) |
Present value of minimum lease payments, Financing Obligation | 133 |
Residual value, Financing Obligation | 355 |
Less: current maturities, Financing Obligation | (33) |
Total long-term financing obligation less current maturities, Financing Obligation | 455 |
2016, Operating Leases | 1,590 |
2017, Operating Leases | 1,493 |
2018, Operating Leases | 1,349 |
2019, Operating Leases | 1,266 |
2020, Operating Leases | 1,144 |
Thereafter, Operational Leases | 769 |
Total minimum lease payments, Operating Leases | $ 7,611 |
Commitments and Contingencies42
Commitments and Contingencies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Deferred rent credit related to leasehold improvements | $ 1,400,000 | $ 1,700,000 | |
Assets Under Long Term Financing Obligation Net | 500,000 | 500,000 | |
Accumulated Depreciation For Assets Under Long Term Financing Obligation | 54,000 | 20,000 | |
Operating Leases, Rent Expense | $ 1,400,000 | $ 1,300,000 | $ 1,000,000 |
Preferred Stock (Details)
Preferred Stock (Details) | Jan. 03, 2016shares |
Preferred Stock [Abstract] | |
Undesignated preferred stock authorized for future issuance | 5,000,000 |
Stock-based Compensation (Weigh
Stock-based Compensation (Weighted-Average Assumptions For Valuation Of Stock Options Granted) (Details) - $ / shares | 12 Months Ended | ||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected term | 4 years 6 months | 4 years 6 months | 4 years 6 months |
Expected volatility | 46.80% | 46.90% | 56.90% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.50% | 1.50% | 0.90% |
Estimated weighted-average fair value per option granted | $ 11.38 | $ 13.28 | $ 14.68 |
Stock-based Compensation (Sched
Stock-based Compensation (Schedule of Stock-Based Compensation Expense Recognized) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 5,041 | $ 4,281 | $ 4,948 |
Total related tax benefit | 1,764 | 1,498 | 1,732 |
Stock-based compensation capitalized | 110 | 106 | 158 |
Selling, general and administrative expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 4,944 | 4,196 | 4,860 |
Cost of sales [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 97 | $ 85 | $ 88 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Capital Shares Reserved for Future Issuance | 1,126,304 | ||
Employee Stock Purchase Plans, shares authorized to be sold | 1,000,000 | ||
Total unrecognized compensation costs related to unvested stock options and RSUs, before income taxes | $ 8 | ||
Total intrinsic value of options exercised | 0.1 | $ 1.1 | $ 7.3 |
Total fair value of options vested | 2.3 | 2.9 | 4.9 |
Total intrinsic value of RSUs vested | 3 | 1.5 | 0.5 |
Total fair value of RSUs vested | $ 2.5 | $ 1.4 | $ 0.4 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period in which compensation costs are expected to be recognized, in years | 1 year 10 months 21 days | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period in which compensation costs are expected to be recognized, in years | 3 years 2 months 19 days |
Stock-based Compensation (Summa
Stock-based Compensation (Summary Of Stock Option Activity) (Details) - Stock Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, Balance, Beginning | 1,021 | 1,493 | 2,199 |
Options, Granted | 39 | 79 | 117 |
Options, Exercised | (35) | (99) | (716) |
Options, Canceled | (91) | (452) | (107) |
Options, Balance, Ending | 934 | 1,021 | 1,493 |
Options, Vested and expected to vest at January 3, 2016 | 921 | ||
Options, Exercisable, January 3, 2016 | 810 | ||
Options, Weighted Average Exercise Price, Balance, Beginning | $ 39.56 | $ 41.93 | $ 38.55 |
Options, Weighted Average Exercise Price, Granted | 28.31 | 33 | 31.67 |
Options, Weighted Average Exercise Price, Exercised | 32.35 | 24.39 | 29.88 |
Options, Weighted Average Exercise Price, Cancelled | 49.08 | 49.56 | 41.83 |
Options, Weighted average exercise price, Balance, Ending | 38.41 | $ 39.56 | $ 41.93 |
Options, Weighted Average Exercise Price, Vested and expected to vest, January 3, 2016 | 38.52 | ||
Options, Weighted Average Exercise Price, Exercisable, January 3, 2016 | $ 39.50 | ||
Outstanding, Weighted average remaining contractual term (In years), Balance, January 3, 2016 | 5 years 6 months | ||
Options, Weighted average remaining contractual term (In years), Vested and expected to vest, January 3, 2016 | 5 years 5 months 12 days | ||
Options, Weighted average remaining contractual term (In years), Exercisable, January 3, 2016 | 5 years 1 month 13 days | ||
Options, Total intrinsic value, Balance, January 3, 2016 | $ 3,593 | ||
Options, Total intrinsic value, Vested and expected to vest, January 3, 2016 | 3,511 | ||
Options, Total intrinsic value, Exercisable, January 3, 2016 | $ 2,871 |
Stock-based Compensation (Range
Stock-based Compensation (Range of Exercise Price) (Details) - Options [Member] shares in Thousands | 12 Months Ended |
Jan. 03, 2016$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding, Options | shares | 934 |
Outstanding, Weighted Average Remaining Contractual Life (In years) | 5 years 6 months |
Outstanding, Weighted Average Exercise Price | $ / shares | $ 38.41 |
Exercisable Options | shares | 810 |
Exercisable Weighted Average Exercise Price | $ / shares | $ 39.50 |
$20.28 - $31.31 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding, Options | shares | 284 |
Outstanding, Weighted Average Remaining Contractual Life (In years) | 6 years 2 months 12 days |
Outstanding, Weighted Average Exercise Price | $ / shares | $ 28.51 |
Exercisable Options | shares | 215 |
Exercisable Weighted Average Exercise Price | $ / shares | $ 28.21 |
$31.32 - $33.45 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding, Options | shares | 272 |
Outstanding, Weighted Average Remaining Contractual Life (In years) | 6 years 7 months 24 days |
Outstanding, Weighted Average Exercise Price | $ / shares | $ 33.31 |
Exercisable Options | shares | 223 |
Exercisable Weighted Average Exercise Price | $ / shares | $ 33.32 |
$33.46 - $49.11 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding, Options | shares | 234 |
Outstanding, Weighted Average Remaining Contractual Life (In years) | 4 years 6 months 26 days |
Outstanding, Weighted Average Exercise Price | $ / shares | $ 41.63 |
Exercisable Options | shares | 228 |
Exercisable Weighted Average Exercise Price | $ / shares | $ 41.76 |
$49.12 - $94.99 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding, Options | shares | 144 |
Outstanding, Weighted Average Remaining Contractual Life (In years) | 3 years 4 months 28 days |
Outstanding, Weighted Average Exercise Price | $ / shares | $ 62.34 |
Exercisable Options | shares | 144 |
Exercisable Weighted Average Exercise Price | $ / shares | $ 62.34 |
Stock-based Compensation (Sum49
Stock-based Compensation (Summary of RSU Activity) (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs, Balance, Beginning | 109 | 88 | 3 |
RSUs, Granted | 286 | 91 | 97 |
RSUs, Vested | (81) | (42) | (10) |
RSUs, Canceled | (13) | (28) | (2) |
RSUs, Balance, Ending | 301 | 109 | 88 |
RSUs, Vested and expected to vest at January 3, 2016 | 258 | ||
RSUs, Weighted Average Grant Date Fair Value, Balance | $ 31.74 | $ 31.01 | $ 29.67 |
RSUs, Weighted Average Grant Date Fair Value, Granted | 28.98 | 33.01 | 32.07 |
RSUs, Weighted Average Grant Date Fair Value, Vested | 31.39 | 32.30 | 38.76 |
RSUs, Weighted Average Grant Date Fair Value, Canceled | 31.13 | 32.73 | 31.34 |
RSUs, Weighted Average Grant Date Fair Value, Balance | 29.25 | $ 31.74 | $ 31.01 |
RSUs, Weighted Average Grant Date Fair Value, Vested and expected to vest | $ 34.68 | ||
RSUs, Weighted Average Remaining Contractual Term (in years), Balance, January 3, 2016 | 1 year 6 months 22 days | ||
RSUs, Weighted Average Remaining Contractual Term (in years), Vested and expected to vest at January 3, 2016 | 1 year 5 months 5 days | ||
RSUs, Aggregate Intrinsic Value, Balance, January 3, 2016 | $ 11,190 | ||
RSUs, Aggregate Intrinsic Value, Vested and expected to vest at January 3, 2016 | $ 9,562 |
Common Stock (Details)
Common Stock (Details) - USD ($) | 12 Months Ended | ||||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | Nov. 02, 2015 | Oct. 28, 2013 | |
Aggregate purchase price of common stock repurchased | $ 10,780,000 | $ 40,308,000 | $ 10,433,000 | ||
2012 Plan [Member] | Common Stock [Member] | |||||
Repurchase of common stock, shares | 299,240 | ||||
Aggregate purchase price of common stock repurchased | $ 10,433,108 | ||||
2013 Plan [Member] | Common Stock [Member] | |||||
Stock repurchase program, authorized amount | $ 100,000,000 | ||||
Repurchase of common stock, shares | 382,491 | 1,200,000 | |||
Aggregate purchase price of common stock repurchased | $ 10,800,000 | $ 40,300,000 | |||
2015 Plan [Member] | Common Stock [Member] | |||||
Stock repurchase program, authorized amount | $ 100,000,000 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 100,000,000 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Employee Benefit Plan [Abstract] | |||
Employee Benefit Plan, Contributions by Employer | $ 0.3 | $ 0.3 | $ 0 |
Income Taxes (Schedule Of Expen
Income Taxes (Schedule Of Expense (Benefit) For Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Current income tax expense | $ 7,215 | $ 5,280 | $ 2,069 |
Deferred income tax expense (benefit) | (1,637) | (392) | 1,621 |
Total income tax expense | $ 5,578 | $ 4,888 | $ 3,690 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Statutory Federal Income Tax Rate To Effective Tax Rate) (Details) | 12 Months Ended | ||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
Domestic production activities deduction | (1.90%) | (1.40%) | (7.80%) |
Other, net | 1.50% | (0.20%) | (1.90%) |
Effective tax rate | 34.60% | 33.40% | 25.30% |
Income Taxes (Components Of Def
Income Taxes (Components Of Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Jan. 03, 2016 | Jan. 04, 2015 |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Reserves and allowances | $ 794 | $ 883 |
Deferred rent | 693 | 782 |
Inventory | 273 | 248 |
Stock-based compensation | 5,270 | 5,135 |
Financing Obligation | 171 | 171 |
Deferred Tax Assets, Deferred Income | 909 | 14 |
Other | 781 | 599 |
Gross deferred tax assets | 8,891 | 7,832 |
Valuation Allowance | (214) | (109) |
Gross deferred tax assets, net of valuation allowance | 8,677 | 7,723 |
Prepaid Expenses | (343) | (369) |
Leased building | (170) | (182) |
Property and Equipment | (3,075) | (2,985) |
Gross deferred tax liabilities | (3,588) | (3,536) |
Net deferred tax assets | $ 5,089 | $ 4,187 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Income Tax Disclosure [Abstract] | |||
Foreign net operating loss carryforwards | $ 800 | ||
Valuation Allowance | 214 | $ 109 | |
Valuation Allowance Increase Amount | 100 | ||
Income taxes payable | 1,700 | 1,300 | |
Unremitted earnings of foreign subsidiaries | 1,000 | ||
Deferred tax liabilities, undistributed foreign earnings | 300 | ||
Tax benefit realized for the tax deduction from stock-based compensation | 900 | 900 | $ 2,700 |
Unrecognized tax benefits | $ 200 | $ 143 | $ 86 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits | $ 143 | $ 86 | $ 0 |
Unrecognized tax benefits, Increase related to current year tax positions | 73 | 57 | 86 |
Unrecognized tax benefits | $ 200 | $ 143 | $ 86 |
Income Per Share (Computation B
Income Per Share (Computation Basic And Diluted Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 03, 2016 | Oct. 04, 2015 | Jul. 05, 2015 | Apr. 05, 2015 | Jan. 04, 2015 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 5,039 | $ 1,977 | $ 2,331 | $ 1,187 | $ 4,831 | $ 1,650 | $ 2,171 | $ 1,079 | $ 10,534 | $ 9,731 | $ 10,875 |
Weighted average common shares outstanding | 11,668 | 12,144 | 12,540 | ||||||||
Basic net income per share | $ 0.44 | $ 0.17 | $ 0.20 | $ 0.10 | $ 0.41 | $ 0.14 | $ 0.18 | $ 0.08 | $ 0.90 | $ 0.80 | $ 0.87 |
Dilutive effect of stock options and restricted stock units | 91 | 65 | 220 | ||||||||
Common stock and common stock equivalents | 11,759 | 12,209 | 12,760 | ||||||||
Diluted net income per share | $ 0.43 | $ 0.17 | $ 0.20 | $ 0.10 | $ 0.41 | $ 0.14 | $ 0.18 | $ 0.08 | $ 0.90 | $ 0.80 | $ 0.85 |
Income Per Share (Narrative) (D
Income Per Share (Narrative) (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Earnings Per Share [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 828 | 1,004 | 1,193 |
Segment Information (Geographic
Segment Information (Geographic Area Sales) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 03, 2016 | Oct. 04, 2015 | Jul. 05, 2015 | Apr. 05, 2015 | Jan. 04, 2015 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue, Net | $ 149,974 | $ 109,943 | $ 113,693 | $ 106,447 | $ 157,459 | $ 105,760 | $ 106,571 | $ 103,726 | $ 480,057 | $ 473,516 | $ 450,008 |
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, Net | 398,163 | 392,397 | 376,820 | ||||||||
United States | Engagement | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, Net | 269,857 | 266,379 | 255,832 | ||||||||
United States | Non-engagement | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, Net | 128,306 | 126,018 | 120,988 | ||||||||
Other countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, Net | 81,894 | 81,119 | 73,188 | ||||||||
Other countries | Engagement | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, Net | 67,639 | 64,847 | 58,958 | ||||||||
Other countries | Non-engagement | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue, Net | $ 14,255 | $ 16,272 | $ 14,230 |
Segment Information (Long-lived
Segment Information (Long-lived assets) (Details) - USD ($) $ in Thousands | Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 |
Segment Information (Long-lived assets) [Line Items] | |||
Long-lived assets (net book value) | $ 10,530 | $ 10,422 | $ 10,188 |
United States | |||
Segment Information (Long-lived assets) [Line Items] | |||
Long-lived assets (net book value) | 10,461 | 10,403 | 10,026 |
Other countries | |||
Segment Information (Long-lived assets) [Line Items] | |||
Long-lived assets (net book value) | $ 69 | $ 19 | $ 162 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Jan. 03, 2016 | |
Segment and Geographic Information [Abstract] | |
Disclosure of Major Customers, No customer accounted for 10% or more of Company's revenues | 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - Privately-held company [Member] - Other Investments [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Related Party Transaction [Line Items] | |||
Revenues from products sold | $ 0.9 | $ 1.5 | $ 1.9 |
Receivables from related parties | $ 0.2 | $ 0.1 |
Revolving Line of Credit (Detai
Revolving Line of Credit (Details) $ in Thousands | 12 Months Ended |
Jan. 03, 2016USD ($) | |
Line of Credit Facility [Line Items] | |
Accordion option | $ 50,000 |
Renewed Revolving Loan [Member] | |
Line of Credit Facility [Line Items] | |
Interest on the advances | daily reset LIBOR rate plus 1.65%. |
Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Credit Agreement, Maximum Borrowing Capacity | $ 40,000 |
Credit Agreement, Amount Outstanding | $ 0 |
Selected Quarterly Financial 64
Selected Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 03, 2016 | Oct. 04, 2015 | Jul. 05, 2015 | Apr. 05, 2015 | Jan. 04, 2015 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 149,974 | $ 109,943 | $ 113,693 | $ 106,447 | $ 157,459 | $ 105,760 | $ 106,571 | $ 103,726 | $ 480,057 | $ 473,516 | $ 450,008 |
Gross profit | 29,053 | 21,231 | 22,089 | 19,973 | 28,500 | 18,850 | 20,167 | 19,125 | 92,346 | 86,642 | 83,651 |
Net income | $ 5,039 | $ 1,977 | $ 2,331 | $ 1,187 | $ 4,831 | $ 1,650 | $ 2,171 | $ 1,079 | $ 10,534 | $ 9,731 | $ 10,875 |
Basic net income per share | $ 0.44 | $ 0.17 | $ 0.20 | $ 0.10 | $ 0.41 | $ 0.14 | $ 0.18 | $ 0.08 | $ 0.90 | $ 0.80 | $ 0.87 |
Diluted net income per share | $ 0.43 | $ 0.17 | $ 0.20 | $ 0.10 | $ 0.41 | $ 0.14 | $ 0.18 | $ 0.08 | $ 0.90 | $ 0.80 | $ 0.85 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Details) - Subsequent Event [Member] - $ / shares | Mar. 07, 2016 | Feb. 22, 2016 | Feb. 09, 2016 |
Dividends Payable [Line Items] | |||
Dividends Payable, Date Declared | Feb. 9, 2016 | ||
Dividends Payable, Amount Per Share | $ 0.70 | ||
Dividends Payable, Date to be Paid | Mar. 7, 2016 | ||
Dividends Payable, Date of Record | Feb. 22, 2016 |
Valuation and Qualifying Acco66
Valuation and Qualifying Accounts (Details) - Reserve for sales returns [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 03, 2016 | Jan. 04, 2015 | Dec. 29, 2013 | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Valuation Allowances and Reserves, Balance at Beginning of Period | $ 1,035 | $ 1,386 | $ 1,367 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | 39,779 | 49,860 | 38,911 | |
Valuation Allowances and Reserves, Deductions (A) | [1] | (39,520) | (50,211) | (38,892) |
Valuation Allowances and Reserves, Balance at End of Period | $ 1,294 | $ 1,035 | $ 1,386 | |
[1] | (A)Deductions for sales returns consist of actual sales returns in each period. |