Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Nov. 03, 2013 | Dec. 06, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Document Period End Date | 3-Nov-13 | ' |
Amendment Flag | 'false | ' |
Entity Registrant Name | 'KRISPY KREME DOUGHNUTS INC | ' |
Entity Central Index Key | '0001100270 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Current Fiscal Year End Date | '--02-02 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Well Known Seasoned Issuer | 'Yes | ' |
Entity Common Stock Shares Outstanding | ' | 65,972,630 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONSOLIDATED_STATEMENT_OF_INCO
CONSOLIDATED STATEMENT OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Oct. 28, 2012 |
CONSOLIDATED STATEMENT OF INCOME | ' | ' | ' | ' |
Revenues | $114,231 | $107,087 | $347,585 | $317,698 |
Operating expenses: | ' | ' | ' | ' |
Direct operating expenses (exclusive of depreciation and amortization expense shown below) | 92,466 | 90,220 | 282,830 | 264,568 |
General and administrative expenses | 5,730 | 5,083 | 17,440 | 16,311 |
Depreciation and amortization expense | 2,788 | 2,357 | 8,272 | 7,238 |
Impairment charges and lease termination costs | 1,531 | 216 | 1,543 | 302 |
Operating income | 11,716 | 9,211 | 37,500 | 29,279 |
Interest income | 341 | 14 | 472 | 102 |
Interest Expense | -131 | -384 | -922 | -1,202 |
Loss on refinancing of debt | 0 | 0 | -967 | 0 |
Equity in losses of equity method franchisees | -61 | -47 | -174 | -150 |
Other non-operating income, net | 29 | 80 | 23 | 237 |
Income before income taxes | 11,894 | 8,874 | 35,932 | 28,266 |
Provision for income taxes | 5,114 | 3,830 | 16,436 | 12,267 |
Net income | $6,780 | $5,044 | $19,496 | $15,999 |
Earnings per common share: | ' | ' | ' | ' |
Basic | $0.10 | $0.08 | $0.29 | $0.24 |
Diluted | $0.09 | $0.07 | $0.27 | $0.23 |
CONSOLIDATED_STATEMENT_OF_COMP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Oct. 28, 2012 |
Statement of Income and Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $6,780 | $5,044 | $19,496 | $15,999 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Unrealized gain (loss) on cash flow hedge | 0 | 0 | 36 | -14 |
Less income taxes | 0 | 0 | -14 | 5 |
Unrealized loss on cash flow hedge, net of income taxes | 0 | 0 | 22 | -9 |
Loss on cash flow hedge reclassified to net income previously charged to other comprehensive income | 0 | 0 | 516 | 0 |
Less income taxes | 0 | 0 | -200 | 0 |
Loss Reclassification Adjustment On Derivatives Included In Net Income Net Of Tax | 0 | 0 | 316 | 0 |
Total other comprehensive income (loss) | 0 | 0 | 338 | -9 |
Comprehensive income | $6,780 | $5,044 | $19,834 | $15,990 |
CONSOLIDATED_BALANCE_SHEET
CONSOLIDATED BALANCE SHEET (USD $) | Nov. 03, 2013 | Feb. 03, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $66,745 | $66,332 |
Receivables | 28,111 | 25,627 |
Receivables from equity method franchisees | 683 | 705 |
Inventories | 14,818 | 12,358 |
Deferred income taxes | 23,067 | 23,323 |
Other current assets | 6,349 | 6,439 |
Total current assets | 139,773 | 134,784 |
Property and equipment | 87,678 | 78,024 |
Investments in equity method franchisees | 0 | 0 |
Goodwill and other intangible assets | 24,112 | 24,195 |
Deferred income taxes | 78,693 | 93,088 |
Other assets | 11,940 | 11,847 |
Total assets | 342,196 | 341,938 |
CURRENT LIABILITIES: | ' | ' |
Current maturities of long-term debt | 365 | 2,148 |
Accounts payable | 14,427 | 12,198 |
Accrued liabilities | 29,781 | 32,330 |
Total current liabilities | 44,573 | 46,676 |
Long-term debt, less current maturities | 1,632 | 23,595 |
Other long-term obligations and deferred credits | 27,063 | 25,235 |
Commitments and contingencies | ' | ' |
SHAREHOLDERS EQUITY: | ' | ' |
Preferred stock, no par value | 0 | 0 |
Common stock, no par value | 356,730 | 354,068 |
Accumulated other comprehensive loss | 0 | -338 |
Accumulated deficit | -87,802 | -107,298 |
Total shareholders equity | 268,928 | 246,432 |
Total liabilities and shareholders equity | $342,196 | $341,938 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parentheticals) | Nov. 03, 2013 | Feb. 03, 2013 |
In Thousands, unless otherwise specified | ||
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued and outstanding | 0 | 0 |
Common stock, shares authorized | 300,000 | 300,000 |
Common Shares Outstanding [Member] | ' | ' |
Common stock, shares issued and outstanding | 65,985 | 65,356 |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 03, 2013 | Oct. 28, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $19,496 | $15,999 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization expense | 8,272 | 7,238 |
Deferred income taxes | 14,438 | 10,824 |
Accrued rent expense | 578 | 369 |
Loss On Refinancing Of Debt | 967 | 0 |
(Gain) loss on disposal of property and equipment | -1,930 | 468 |
(Gain) on refranchising | -876 | 0 |
Share-based compensation | 3,160 | 3,570 |
Provision for doubtful accounts | -82 | 65 |
Amortization of deferred financing costs | 258 | 300 |
Equity in losses of equity method franchisees | 174 | 150 |
Other | -109 | -1,075 |
Cash provided by operations | 44,346 | 37,908 |
Change in assets and liabilities: | ' | ' |
Receivables | -2,523 | -1,950 |
Inventories | -2,621 | 314 |
Other current and non-current assets | 1,393 | -1,499 |
Accounts payable and accrued liabilities | -947 | 690 |
Other long-term obligations and deferred credits | 1,363 | 2,515 |
Net cash provided by operating activities | 41,011 | 37,978 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of property and equipment | -18,089 | -9,480 |
Proceeds from disposals of property and equipment | 1,681 | 66 |
Proceeds from refranchising | 681 | 0 |
Acquisition of stores from franchisee | 0 | -915 |
Other investing activities | 305 | 347 |
Net cash used for investing activities | -15,422 | -9,982 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Repayment of long-term debt | -24,546 | -1,652 |
Deferred financing costs | -132 | -11 |
Proceeds from exercise of stock options | 2,155 | 0 |
Proceeds from exercise of warrants | 0 | 9 |
Repurchase of common shares | -2,653 | -20,758 |
Net cash used for financing activities | -25,176 | -22,412 |
Net increase in cash and cash equivalents | 413 | 5,584 |
Cash and cash equivalents at beginning of period | 66,332 | 44,319 |
Cash and cash equivalents at end of period | 66,745 | 49,903 |
Assets acquired under capital leases | $803 | $12 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Shares Outstanding [Member] | Common Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
In Thousands | USD ($) | USD ($) | USD ($) | USD ($) | |
Beginning Balance at Jan. 29, 2012 | $249,126 | ' | $377,539 | ($336) | ($128,077) |
Beginning Balance at Jan. 29, 2012 | ' | 68,092 | ' | ' | ' |
Total comprehensive income | 15,990 | ' | ' | -9 | 15,999 |
Write off of deferred tax asset related to expiration of unexercised stock warrants | -7,174 | ' | -7,174 | ' | ' |
Exercise of stock options | 0 | ' | ' | ' | ' |
Exercise of warrants | 9 | ' | 9 | ' | ' |
Exercise of warrants | ' | 1 | ' | ' | ' |
Share-based compensation | 3,570 | ' | 3,570 | ' | ' |
Share-based compensation | ' | 344 | ' | ' | ' |
Repurchase of common shares | -20,758 | ' | -20,758 | ' | ' |
Repurchase of common shares | ' | -3,213 | ' | ' | ' |
Ending Balance at Oct. 28, 2012 | 240,763 | ' | 353,186 | -345 | -112,078 |
Ending Balance at Oct. 28, 2012 | ' | 65,224 | ' | ' | ' |
Beginning Balance at Feb. 03, 2013 | 246,432 | ' | 354,068 | -338 | -107,298 |
Beginning Balance at Feb. 03, 2013 | ' | 65,356 | ' | ' | ' |
Total comprehensive income | 19,834 | ' | ' | 338 | 19,496 |
Exercise of stock options | 2,155 | ' | 2,155 | ' | ' |
Exercise of stock options | ' | 434 | ' | ' | ' |
Exercise of warrants | 0 | ' | ' | ' | ' |
Share-based compensation | 3,160 | ' | 3,160 | ' | ' |
Share-based compensation | ' | 333 | ' | ' | ' |
Repurchase of common shares | -2,653 | ' | -2,653 | ' | ' |
Repurchase of common shares | ' | -138 | ' | ' | ' |
Ending Balance at Nov. 03, 2013 | $268,928 | ' | $356,730 | $0 | ($87,802) |
Ending Balance at Nov. 03, 2013 | ' | 65,985 | ' | ' | ' |
Accounting_Policies
Accounting Policies | 9 Months Ended | |||||||||||||
Nov. 03, 2013 | ||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||
Basis Of Presentation And Significant Accounting Policies [Text Block] | ' | |||||||||||||
Note 1 — Accounting Policies | ||||||||||||||
Krispy Kreme Doughnuts, Inc. (“KKDI”) and its subsidiaries (collectively, the “Company”) are engaged in the sale of doughnuts and complementary products through Company-owned stores. The Company also derives revenue from franchise and development fees and royalties from franchisees. Additionally, the Company sells doughnut mix, other ingredients and supplies and doughnut-making equipment to franchisees. | ||||||||||||||
Significant Accounting Policies | ||||||||||||||
BASIS OF PRESENTATION. The consolidated financial statements contained herein should be read in conjunction with the Company's 2013 Form 10-K. The accompanying interim consolidated financial statements are presented in accordance with the requirements of Article 10 of Regulation S-X and, accordingly, do not include all the disclosures required by generally accepted accounting principles in the United States of America (“GAAP”) with respect to annual financial statements. The interim consolidated financial statements have been prepared in accordance with the Company's accounting practices described in the 2013 Form 10-K, but have not been audited. In management's opinion, the financial statements include all adjustments, which consist only of normal recurring adjustments, necessary for a fair statement of the Company's results of operations for the periods presented. The consolidated balance sheet data as of February 3, 2013 were derived from the Company's audited financial statements but do not include all disclosures required by GAAP. | ||||||||||||||
BASIS OF CONSOLIDATION. The financial statements include the accounts of KKDI and its subsidiaries, the most significant of which is KKDI's principal operating subsidiary, Krispy Kreme Doughnut Corporation. | ||||||||||||||
Investments in entities over which the Company has the ability to exercise significant influence but which the Company does not control, and whose financial statements are not otherwise required to be consolidated, are accounted for using the equity method. These entities are 25% to 35% owned and are hereinafter sometimes referred to as “Equity Method Franchisees.” | ||||||||||||||
EARNINGS PER SHARE. The computation of basic earnings per share is based on the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share reflects the additional common shares that would have been outstanding if dilutive potential common shares had been issued, computed using the treasury stock method. Such potential common shares consist of shares issuable upon the exercise of stock options and warrants and the vesting of currently unvested restricted stock units. | ||||||||||||||
The following table sets forth amounts used in the computation of basic and diluted earnings per share: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
November 3, | October 28, | November 3, | October 28, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(In thousands) | ||||||||||||||
Numerator: net income | $ | 6,780 | $ | 5,044 | $ | 19,496 | $ | 15,999 | ||||||
Denominator: | ||||||||||||||
Basic earnings per share - weighted average shares outstanding | 67,543 | 66,668 | 67,274 | 67,897 | ||||||||||
Effect of dilutive securities: | ||||||||||||||
Stock options and warrants | 3,173 | 1,719 | 2,948 | 1,663 | ||||||||||
Restricted stock units | 790 | 416 | 836 | 481 | ||||||||||
Diluted earnings per share - weighted average shares | ||||||||||||||
outstanding plus dilutive potential common shares | 71,506 | 68,803 | 71,058 | 70,041 | ||||||||||
The sum of the quarterly earnings per share amounts does not necessarily equal earnings per share for the year to date. | ||||||||||||||
Stock options and warrants with respect to 33,000 and 3.1 million shares for the three months ended November 3, 2013 and October 28, 2012, respectively, have been excluded from the computation of the number of shares used to compute diluted earnings per share because their inclusion would be antidilutive. | ||||||||||||||
Stock options and warrants with respect to 309,000 and 3.2 million shares for the nine months ended November 3, 2013 and October 28, 2012, respectively, as well as 58,000 unvested restricted stock units for the nine months ended October 28, 2012, have been excluded from the computation of the number of shares used to compute diluted earnings per share because their inclusion would be antidilutive. | ||||||||||||||
COMPREHENSIVE INCOME. Accounting standards on reporting comprehensive income require that certain items, including foreign currency translation adjustments and certain mark-to-market adjustments on derivative contracts accounted for as cash flow hedges (which are not reflected in net income) be presented as components of comprehensive income. The cumulative amounts recognized by the Company under these standards are reflected in the consolidated balance sheet as accumulated other comprehensive income, a component of shareholders' equity. | ||||||||||||||
November 3, | October 28, | |||||||||||||
2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||
Accumulated other comprehensive loss: | ||||||||||||||
Unrealized losses on cash flow hedge | $ | - | $ | -563 | ||||||||||
Less: deferred income taxes | - | 218 | ||||||||||||
Balance at end of period, net of tax | $ | - | $ | -345 | ||||||||||
CORRECTION OF BALANCE SHEET CLASSIFICATION ERROR. The Company's KK Supply Chain transfers doughnut mixes and certain other goods to third-party distribution companies which, in turn, distribute such products to Company and franchise stores pursuant to distribution contracts with KK Supply Chain. The Company does not record revenues or profit on the product transfers to the distribution companies because all revenue recognition criteria are not met at that time. Revenues and profit are recorded only upon the delivery of the goods to the stores by the distribution companies (and the sales to Company shops are eliminated in consolidation). In the fourth quarter of fiscal 2013, the Company concluded that certain of the Company's receivables from third-party distribution companies resulting from the product transfers had been incorrectly reported as a component of inventories, rather than as a component of receivables, in prior periods. The Company corrected this classification error as of February 3, 2013. While not material to previously issued financial statements, to enhance comparability, the Company corrected the corresponding error as of October 28, 2012 and January 29, 2012, by revising the classification of $4.3 million and $3.9 million, respectively, of receivables from the distribution companies previously classified as inventories to receivables. The error also affected the change in inventories and change in receivables line items in the statement of cash flows for the nine months ended October 28, 2012, but there was no effect on net cash provided by operating activities. The Company revised its statement of cash flows to adjust the increase in receivables from $1.5 million to $2.0 million and to adjust the increase in inventories from $169,000 to a decrease in inventories of $314,000 for the nine months ended October 28, 2012. Correction of this error had no effect on the Company's results of operations, total current assets, working capital, or total operating, investing, or financing cash flows. | ||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||
In July 2013, the Financial Accounting Standard Board (the “FASB”) issued an update to its accounting guidance which requires unrecognized tax benefits to be netted with net operating loss or tax credit carryforwards in the consolidated balance sheet if specific criteria are met. The guidance is effective for the interim and annual periods beginning after December 15, 2013. Early adoption is permitted. Adoption of this accounting guidance is not expected to have any material effect on the Company's consolidated financial statements. | ||||||||||||||
In February 2013, the FASB issued guidance requiring an entity to provide information about the amounts reclassified out of each component of accumulated other comprehensive income (“AOCI”). In addition, an entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. The Company adopted this new guidance in the first quarter of fiscal 2014. Such adoption had no material effect on the Company's consolidated financial statements. | ||||||||||||||
In July 2012, the FASB issued amended accounting guidance regarding indefinite-lived intangible asset impairment testing. The amended guidance permits, but does not require, an entity to first assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test. An entity is not required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on qualitative assessment, that it is not more likely than not, the indefinite-lived intangible asset is impaired. The Company adopted this new guidance in the first quarter of fiscal 2014. Such adoption had no effect on the Company's consolidated financial statements. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Nov. 03, 2013 | ||||||||||||||||
Segment Reporting Disclosure [Abstract] | ' | |||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||||||||||
Note 2 — Segment Information | ||||||||||||||||
The Company's reportable segments are Company Stores, Domestic Franchise, International Franchise and KK Supply Chain. The Company Stores segment is comprised of the stores operated by the Company. These stores sell doughnuts and complementary products through both on-premises and wholesale sales channels, although some stores serve only one of these distribution channels. The Domestic Franchise and International Franchise segments consist of the Company's franchise operations. Under the terms of franchise agreements, domestic and international franchisees pay royalties and fees to the Company in return for the use of the Krispy Kreme name and ongoing brand and operational support. Expenses for these segments include costs to recruit new franchisees, to assist in store openings, to support franchisee operations and marketing efforts, as well as allocated corporate costs. The majority of the ingredients and materials used by Company stores are purchased from the KK Supply Chain segment, which supplies doughnut mix, other ingredients and supplies and doughnut making equipment to both Company and franchisee-owned stores. | ||||||||||||||||
All intercompany sales by the KK Supply Chain segment to the Company Stores segment are at prices intended to reflect an arms-length transfer price and are eliminated in consolidation. Operating income for the Company Stores segment does not include any profit earned by the KK Supply Chain segment on sales of doughnut mix and other items to the Company Stores segment; such profit is included in KK Supply Chain operating income. | ||||||||||||||||
The following table presents the results of operations of the Company's operating segments for the three and nine months ended November 3, 2013 and October 28, 2012. Segment operating income is consolidated operating income before unallocated general and administrative expenses and impairment charges and lease termination costs. | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
November 3, | October 28, | November 3, | October 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Revenues: | ||||||||||||||||
Company Stores | $ | 74,886 | $ | 72,493 | $ | 232,496 | $ | 215,172 | ||||||||
Domestic Franchise | 3,026 | 2,498 | 8,696 | 7,561 | ||||||||||||
International Franchise | 6,205 | 6,024 | 18,707 | 17,832 | ||||||||||||
KK Supply Chain: | ||||||||||||||||
Total revenues | 58,304 | 52,825 | 175,316 | 158,075 | ||||||||||||
Less – intersegment sales elimination | -28,190 | -26,753 | -87,630 | -80,942 | ||||||||||||
External KK Supply Chain revenues | 30,114 | 26,072 | 87,686 | 77,133 | ||||||||||||
Total revenues | $ | 114,231 | $ | 107,087 | $ | 347,585 | $ | 317,698 | ||||||||
Operating income: | ||||||||||||||||
Company Stores | $ | 2,599 | $ | 1,985 | $ | 9,703 | $ | 5,271 | ||||||||
Domestic Franchise | 3,156 | 1,174 | 6,121 | 4,072 | ||||||||||||
International Franchise | 4,449 | 4,301 | 13,219 | 12,957 | ||||||||||||
KK Supply Chain | 9,098 | 7,312 | 28,336 | 24,181 | ||||||||||||
Total segment operating income | 19,302 | 14,772 | 57,379 | 46,481 | ||||||||||||
Unallocated general and administrative expenses | ||||||||||||||||
(including depreciation and amortization expense) | -6,055 | -5,345 | -18,336 | -16,900 | ||||||||||||
Impairment charges and lease termination costs | -1,531 | -216 | -1,543 | -302 | ||||||||||||
Consolidated operating income | $ | 11,716 | $ | 9,211 | $ | 37,500 | $ | 29,279 | ||||||||
Depreciation and amortization expense: | ||||||||||||||||
Company Stores | $ | 2,255 | $ | 1,880 | $ | 6,783 | $ | 5,921 | ||||||||
Domestic Franchise | 36 | 40 | 72 | 150 | ||||||||||||
International Franchise | 2 | 3 | 6 | 9 | ||||||||||||
KK Supply Chain | 170 | 172 | 515 | 569 | ||||||||||||
Corporate | 325 | 262 | 896 | 589 | ||||||||||||
Total depreciation and amortization expense | $ | 2,788 | $ | 2,357 | $ | 8,272 | $ | 7,238 | ||||||||
Segment information for total assets and capital expenditures is not presented as such information is not used in measuring segment performance or allocating resources among segments. | ||||||||||||||||
Income_taxes
Income taxes | 9 Months Ended |
Nov. 03, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
Note 3 — Income Taxes | |
The Company recognizes deferred income tax assets and liabilities based upon management's expectation of the future tax consequences of temporary differences between the income tax and financial reporting bases of assets and liabilities. Deferred tax liabilities generally represent tax expense recognized for which payment has been deferred, or expenses which have been deducted in the Company's tax returns but which have not yet been recognized as an expense in the financial statements. Deferred tax assets generally represent tax deductions or credits that will be reflected in future tax returns for which the Company has already recorded a tax benefit in its consolidated financial statements. | |
The Company establishes valuation allowances for deferred income tax assets in accordance with GAAP, which provides that such valuation allowances shall be established unless realization of the income tax benefits is more likely than not. | |
The valuation allowance of $9.5 million at November 3, 2013 and $9.8 million at February 3, 2013 represents the portion of the Company's deferred tax assets management estimates will not be realized in the future. Such assets are associated principally with state net operating loss and state credit carryforwards having relatively short carryforward periods which are forecasted to expire unused, as well as federal foreign tax credits and federal jobs credit carryforwards forecasted to expire unused. In the second quarter of fiscal 2014, the North Carolina state legislature enacted a prospective reduction in the corporate income tax rate, which caused the Company to revalue its deferred income tax assets to reflect the lower income tax rate. Such revaluation reduced the Company's deferred tax assets by approximately $1.0 million. Because a portion of the deferred tax assets were already subject to a valuation allowance, the revaluation of the assets resulted in a reduction in the necessary valuation allowance of approximately $315,000. The effect of the legislation was therefore to reduce the Company's net deferred tax assets by approximately $685,000; such amount was included in income tax expense for the second quarter of fiscal 2014. | |
The realization of deferred income tax assets is dependent on future events. While management believes its forecast of future taxable income is reasonable, actual results inevitably will vary from management's forecasts. Such variances could result in adjustments to the valuation allowance on deferred tax assets in future periods, and such adjustments could be material to the financial statements. | |
In fiscal 2008, the Company issued warrants to acquire shares of the Company's common stock at a price of $12.21 per share in connection with the settlement of certain litigation. The warrants expired unexercised in the first quarter of fiscal 2013 and, accordingly, the Company will not be entitled to any income tax deduction related to them. Deferred tax assets at January 29, 2012 included approximately $7.2 million related to these warrants. In accordance with GAAP, such amounts were charged to common stock in the first quarter of fiscal 2013 because common stock in the accompanying consolidated balance sheet includes cumulative credits related to share-based compensation in excess of such amounts. |
Receivables
Receivables | 9 Months Ended | ||||||||
Nov. 03, 2013 | |||||||||
Receivables [Abstract] | ' | ||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | ||||||||
Note 4 — Receivables | |||||||||
The components of receivables are as follows: | |||||||||
November 3, | February 3, | ||||||||
2013 | 2013 | ||||||||
(In thousands) | |||||||||
Receivables: | |||||||||
Wholesale customers | $ | 10,209 | $ | 11,244 | |||||
Unaffiliated franchisees | 12,212 | 9,728 | |||||||
Due from third-party distributors | 4,989 | 3,590 | |||||||
Other receivables | 702 | 1,216 | |||||||
Current portion of notes receivable | 536 | 464 | |||||||
28,648 | 26,242 | ||||||||
Less — allowance for doubtful accounts: | |||||||||
Wholesale customers | -222 | -373 | |||||||
Unaffiliated franchisees | -315 | -242 | |||||||
-537 | -615 | ||||||||
$ | 28,111 | $ | 25,627 | ||||||
Receivables from Equity Method Franchisees (Note 6): | |||||||||
Trade | $ | 683 | $ | 705 | |||||
The changes in the allowance for doubtful accounts are summarized as follows: | |||||||||
Nine Months Ended | |||||||||
November 3, | October 28, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Allowance for doubtful accounts related to receivables: | |||||||||
Balance at beginning of period | $ | 615 | $ | 1,158 | |||||
Provision for doubtful accounts | -30 | 130 | |||||||
Net recoveries (chargeoffs) | -48 | -994 | |||||||
Balance at end of period | $ | 537 | $ | 294 | |||||
Allowance for doubtful accounts related to receivables from Equity Method Franchisees: | |||||||||
Balance at beginning of period | $ | - | $ | - | |||||
Provision for doubtful accounts | -47 | -59 | |||||||
Net recoveries (chargeoffs) | 47 | 59 | |||||||
Balance at end of period | $ | - | $ | - | |||||
The Company also has notes receivable from franchisees included in “Other assets” in the accompanying consolidated balance sheet, which are summarized in the following table. | |||||||||
November 3, | February 3, | ||||||||
2013 | 2013 | ||||||||
(In thousands) | |||||||||
Notes receivable: | |||||||||
Notes receivable from franchisees | $ | 3,907 | $ | 1,738 | |||||
Less — portion due within one year included in receivables | -536 | -464 | |||||||
Less — allowance for doubtful accounts | -57 | -62 | |||||||
$ | 3,314 | $ | 1,212 | ||||||
Notes receivable at November 3, 2013 and February 3, 2013 includes approximately $2.8 million and $1.4 million, respectively, related to the sale of certain leasehold interests to a franchisee. The amount at February 3, 2013 is net of a deferred gain of $1.7 million. The gain previously deferred was recognized in income in the three months ended November 3, 2013. This transaction is described under “Asset Divestitures” in Note 13. | |||||||||
The changes in the allowance for doubtful accounts related to notes receivable are summarized as follows: | |||||||||
Nine Months Ended | |||||||||
November 3, | October 28, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Balance at beginning of period | $ | 62 | $ | 68 | |||||
Provision for doubtful accounts | -5 | -6 | |||||||
Net recoveries (chargeoffs) | - | - | |||||||
Balance at end of period | $ | 57 | $ | 62 | |||||
In addition to the foregoing notes receivable, the Company had promissory notes totaling approximately $2.9 million at November 3, 2013 and $3.3 million at February 3, 2013 representing principally royalties and fees due to the Company which, as a result of doubt about their collection, the Company has not yet recorded as revenues. During the three and nine months ended November 3, 2013, the Company collected $10,000 and $370,000, respectively, related to these promissory notes and recorded such collections in revenues as received. | |||||||||
In addition to the $2.9 million of accrued but unrecognized royalties and fees at November 3, 2013, the Company is owed approximately $1.6 million from a franchisee for reimbursement to the Company for payments made by the Company in the third quarter of fiscal 2014 pursuant to the Company's guarantee of certain of the franchisee's indebtedness. Such amount is not reflected as an asset in the accompanying consolidated balance sheet at November 3, 2013. See Note 6, “Investments in Franchisees”. |
Inventories
Inventories | 9 Months Ended | |||||
Nov. 03, 2013 | ||||||
Inventory Disclosure [Abstract] | ' | |||||
Inventory Disclosure [Text Block] | ' | |||||
Note 5 — Inventories | ||||||
The components of inventories are as follows: | ||||||
November 3, | February 3, | |||||
2013 | 2013 | |||||
(In thousands) | ||||||
Raw materials | $ | 6,583 | $ | 5,678 | ||
Work in progress | 207 | 52 | ||||
Finished goods and purchased merchandise | 8,028 | 6,628 | ||||
$ | 14,818 | $ | 12,358 |
Investment_in_Franchisees
Investment in Franchisees | 9 Months Ended | |||||||||||||
Nov. 03, 2013 | ||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||||
Equity Method Investments Disclosure [Text Block] | ' | |||||||||||||
Note 6 — Investments in Franchisees | ||||||||||||||
As of November 3, 2013, the Company had investments in three franchisees. These investments have been made in the form of capital contributions and, in certain instances, loans evidenced by promissory notes. These investments are reflected as “Investments in equity method franchisees” in the consolidated balance sheet. | ||||||||||||||
The Company's financial exposures related to franchisees in which the Company has an investment are summarized in the tables below. | ||||||||||||||
3-Nov-13 | ||||||||||||||
Company | Investment | |||||||||||||
Ownership | and | Loan | ||||||||||||
Percentage | Advances | Receivables | Guarantees | |||||||||||
(Dollars in thousands) | ||||||||||||||
Kremeworks, LLC | 25.00% | $ | 900 | $ | 321 | $ | 161 | |||||||
Kremeworks Canada, LP | 24.50% | - | 36 | - | ||||||||||
Krispy Kreme of South Florida, LLC | 35.30% | - | 326 | - | ||||||||||
900 | 683 | $ | 161 | |||||||||||
Less: reserves and allowances | -900 | - | ||||||||||||
$ | - | $ | 683 | |||||||||||
3-Feb-13 | ||||||||||||||
Company | Investment | |||||||||||||
Ownership | and | Loan | ||||||||||||
Percentage | Advances | Receivables | Guarantees | |||||||||||
(Dollars in thousands) | ||||||||||||||
Kremeworks, LLC | 25.00% | $ | 900 | $ | 281 | $ | 437 | |||||||
Kremeworks Canada, LP | 24.50% | - | 20 | - | ||||||||||
Krispy Kreme of South Florida, LLC | 35.30% | - | 404 | 1,628 | ||||||||||
900 | 705 | $ | 2,065 | |||||||||||
Less: reserves and allowances | -900 | - | ||||||||||||
$ | - | $ | 705 | |||||||||||
The Company guaranteed loans from third-party lenders on behalf of Kremeworks, LLC (“Kremeworks”) and Krispy Kreme of South Florida, LLC (“KKSF”) to assist the franchisees in obtaining financing. The loans are collateralized by certain assets of the franchisee, generally the Krispy Kreme store and related equipment. The loan guarantee amounts represent the portion of the principal amount outstanding under the related loan that is subject to the Company's guarantee. | ||||||||||||||
The Company has guaranteed 20% of the outstanding principal balance of certain of Kremeworks' bank indebtedness, which, as amended, matures in October 2014. The aggregate amount of such indebtedness was approximately $800,000 at November 3, 2013. | ||||||||||||||
Current liabilities at February 3, 2013 included an accrual of $1.6 million for potential payments under a loan guarantee related to KKSF, representing the amount the Company estimated it was likely to pay under such guarantee. KKSF failed to repay the indebtedness upon its maturity in October 2009; however, the lender did not immediately exercise its right to call the loan, and KKSF continued to make payments pursuant to an informal forbearance agreement with the lender. In October 2012, KKSF received notice that the original lender had sold the loan to a new lender, who thereafter advised KKSF that the entire balance due under the loan was due and owing, but made no demand for payment on KKSF or the Company. KKSF then entered into refinancing negotiations with the new lender, while continuing to make payments on the loan. Such negotiations were unsuccessful, and in October 2013 the new lender made demand on KKSF to retire the loan in full and on the Company to perform under its guarantee. On November 1, 2013, the Company made a loan of approximately $1.6 million to KKSF, the proceeds of which KKSF used to retire the debt in full, including accrued interest and lender expenses. Such amount was charged against the guarantee liabilities accrual, and the remaining balance of the accrual of approximately $30,000 was credited to other non-operating income. The amount advanced to KKSF pursuant to the Company's guarantee is evidenced by a promissory note payable to the Company by KKSF, which is secured by a mortgage on real property at KKSF's most significant operating location as well as other KKSF assets, and which is guaranteed by KKSF's 65% majority owner; such collateral is substantially the same as that held by the prior lenders. The loan is payable in 36 monthly installments, including interest at three-month LIBOR plus 3.0%. In light of the uncertainty regarding the collectibility of the note, including KKSF's failure to repay the indebtedness when due in 2009, failure to refinance the indebtedness with either of the prior lenders, and the lender ultimately demanding payment of the debt, the Company intends to record payments on the note in non-operating earnings as they are received until such time as the Company concludes that the collectability of some or all of the balance of the note is reasonably assured. | ||||||||||||||
The Company does not believe that it will be required to perform under the Kremeworks guarantee. |
Long_Term_Debt_and_Lease_Commi
Long Term Debt and Lease Commitments | 9 Months Ended | |||||
Nov. 03, 2013 | ||||||
Long Term Debt and Lease Obilgations [Abstract] | ' | |||||
LongTermDebtTextBlock | ' | |||||
Note 7 — Long Term Debt | ||||||
Long-term debt and capital lease obligations consist of the following: | ||||||
November 3, | February 3, | |||||
2013 | 2013 | |||||
(In thousands) | ||||||
2011 Term Loan | $ | - | $ | 24,303 | ||
Capital lease obligations | 1,997 | 1,440 | ||||
1,997 | 25,743 | |||||
Less: current maturities | -365 | -2,148 | ||||
$ | 1,632 | $ | 23,595 | |||
2013 Revolving Credit Facility | ||||||
On July 12, 2013, the Company entered into a $40 million revolving secured credit facility (the “2013 Revolving Credit Facility”) which matures in July 2018. The 2013 Revolving Credit Facility is secured by a first lien on substantially all of the personal property assets of the Company and certain of its domestic subsidiaries. No borrowings were made on the 2013 Revolving Credit Facility on the closing date, and the Company repaid the $21.7 million remaining balance of the 2011 Term Loan and terminated the 2011 Secured Credit Facilities described below. The Company recorded a pretax charge of approximately $967,000 in the second quarter of fiscal 2014 to write off the unamortized deferred debt issuance costs related to the terminated facility and to reflect the termination of a related interest rate hedge. | ||||||
Interest on borrowings under the 2013 Revolving Credit Facility is payable either at LIBOR or the Base Rate (which is the greatest of the prime rate, the Fed funds rate plus 0.50%, or the one-month LIBOR rate plus 1.00%), in each case plus the Applicable Percentage. The Applicable Percentage for LIBOR loans ranges from 1.25% to 2.15%, and for Base Rate loans ranges from 0.25% to 1.15%, in each case depending on the Company's leverage ratio. As of November 3, 2013, the Applicable Margin was 1.25%. | ||||||
The 2013 Revolving Credit Facility contains provisions which permit the Company to obtain letters of credit, issuance of which constitutes usage of the lending commitments and reduces the amount available for cash borrowings. At closing, $9.2 million of letters of credit were issued under the 2013 Revolving Credit Facility to replace letters of credit issued under the terminated credit facilities, all of which secure the Company's reimbursement obligations to insurers under the Company's self-insurance programs. | ||||||
The Company is required to pay a fee equal to the Applicable Percentage for LIBOR-based loans on the outstanding amount of letters of credit. There also is a fee on the unused portion of the 2013 Revolving Credit Facility lending commitment, ranging from 0.15% to 0.35%, depending on the Company's leverage ratio. | ||||||
The 2013 Revolving Credit Facility requires the Company to meet certain financial tests, including a maximum leverage ratio and a minimum fixed charge coverage ratio. The leverage ratio is required to be not greater than 2.25 to 1.0 and the fixed charge coverage ratio is required to be not less than 1.3 to 1.0. | ||||||
As of November 3, 2013, the Company's leverage ratio was 0.2 to 1.0 and the fixed charge coverage ratio was 3.5 to 1.0. | ||||||
The leverage ratio is calculated by dividing total debt as of the end of each fiscal quarter by Consolidated EBITDA for the Reference Period (each consisting of the four most recent fiscal quarters). For this purpose, debt includes not only indebtedness reflected in the consolidated balance sheet, but also, among other things, the amount of undrawn letters of credit, the principal balance of indebtedness of third parties to the extent such indebtedness is guaranteed by the Company, and any amounts reasonably expected to be paid with respect to any other guaranty obligations. The fixed charge coverage ratio is calculated for each Reference Period by dividing (a) the sum of (i) Consolidated EBITDA, plus (ii) Cash Lease Payments, minus (iii) cash income taxes, minus (iv) unfinanced capital expenditures, minus (v) purchases, redemptions, retirements, and cash dividend payments or other distributions in respect of the Company's common stock in excess of certain amounts, and minus (vi) the purchase price of all acquisitions of all or substantially all of the assets of any Krispy Kreme store or franchisee shops by (b) Consolidated Fixed Charges. | ||||||
“Consolidated EBITDA” is a non-GAAP measure and is defined in the 2013 Revolving Credit Facility to mean, for each Reference Period, generally, consolidated net income or loss, exclusive of unrealized gains and losses on hedging instruments, gains or losses on asset dispositions, and provisions for payments on guarantee obligations, plus the sum of interest expense, income taxes, depreciation, rent expense and lease termination costs, and certain non-cash charges; and minus the sum of non-cash credits, interest income, Cash Lease Payments, and payments on guaranty obligations in excess of $1 million during the Reference Period or $3 million in the aggregate. | ||||||
“Cash Lease Payments” means the sum of cash paid or required to be paid for obligations under operating leases for real property and equipment (net of sublease income), lease payments on closed stores (but excluding payments in settlement of future obligations under terminated operating leases), and cash payments in settlement of future obligations under terminated operating leases to the extent the aggregate amount of such payments exceeds $1.5 million during a Reference Period or $5.0 million in the aggregate. | ||||||
“Consolidated Fixed Charges” means the sum of cash interest expense, Cash Lease Payments, and scheduled principal payments of indebtedness. | ||||||
The operation of the restrictive financial covenants described above may limit the amount the Company may borrow under the 2013 Revolving Credit Facility. The restrictive covenants did not limit the Company's ability to borrow the full $30.8 million of unused credit under the 2013 Revolving Credit Agreement as of November 3, 2013. | ||||||
The 2013 Revolving Credit Facility also contains covenants which, among other things, generally limit (with certain exceptions): liquidations, mergers, and consolidations; the incurrence of additional indebtedness (including guarantees); the incurrence additional liens; the sale, assignment, lease, conveyance or transfer of assets; certain investments; dividends and stock redemptions or repurchases in excess of certain amounts; transactions with affiliates; engaging in materially different lines of business; certain sale-leaseback transactions; and other activities customarily restricted in such agreements. The 2013 Revolving Credit Facility also prohibits the transfer of cash or other assets to the Parent Company, whether by dividend, loan or otherwise, but provides for exceptions to enable the Parent Company to pay taxes, directors' fees and operating expenses, as well as exceptions to permit dividends in respect of the Company's common stock and stock redemptions and repurchases, to the extent permitted by the 2013 Revolving Credit Facility. | ||||||
The 2013 Revolving Credit Facility also contains customary events of default including, without limitation, payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to other indebtedness in excess of $5 million, certain events of bankruptcy and insolvency, judgment defaults in excess of $5 million and the occurrence of a change of control. | ||||||
Borrowings and issuances of letters of credit under the 2013 Revolving Credit Facility are subject to the satisfaction of usual and customary conditions, including the accuracy of representations and warranties and the absence of defaults. | ||||||
2011 Secured Credit Facilities | ||||||
On January 28, 2011, the Company entered into secured credit facilities (the “2011 Secured Credit Facilities”), consisting of a $25 million revolving credit line (the “2011 Revolver”) and a $35 million term loan (the “2011 Term Loan”), each of which were scheduled to mature in January 2016. The 2011 Secured Credit Facilities were secured by a first lien on substantially all of the assets of the Company and its domestic subsidiaries. On July 12, 2013, the 2011 Term Loan was paid in full and the 2011 Secured Credit Facilities were terminated. | ||||||
Interest on borrowings under the 2011 Secured Credit Facilities was payable either at LIBOR or the Base Rate (which is the greatest of the prime rate, the Fed funds rate plus 0.50%, or the one-month LIBOR rate plus 1.00%), in each case plus the Applicable Percentage. The Applicable Percentage for LIBOR loans ranged from 2.25% to 3.00%, and for Base Rate loans ranged from 1.25% to 2.00%, in each case depending on the Company's leverage ratio. | ||||||
On March 3, 2011, the Company entered into an interest rate derivative contract having an aggregate notional principal amount of $17.5 million. The derivative contract entitled the Company to receive from the counterparty the excess, if any, of the three-month LIBOR rate over 3.00% for each of the calendar quarters in the period beginning April 2012 and ending December 2015. The Company accounted for this derivative contract as a cash flow hedge. The contract was terminated in July 2013 following the retirement in full of the 2011 Term Loan; the $516,000 unrealized loss on the contract previously included in AOCI was reclassified to “Loss on refinancing of debt” in the consolidated statement of income because the hedged forecasted transaction (interest on the 2011 Term Loan) will not occur. | ||||||
The 2011 Revolver contained provisions which permitted the Company to obtain letters of credit, issuance of which constituted usage of the lending commitments and reduced the amount available for cash borrowings. | ||||||
The Company was required to pay a fee equal to the Applicable Percentage for LIBOR-based loans on the outstanding amount of letters of credit, as well as a fronting fee of 0.125% of the amount of such letter of credit. There also was a fee on the unused portion of the 2011 Revolver lending commitment ranging from 0.35% to 0.65%, depending on the Company's leverage ratio. | ||||||
The 2011 Secured Credit Facilities required the Company to meet certain financial tests, including a maximum leverage ratio and a minimum fixed charge coverage ratio. For fiscal 2014, the leverage ratio was required to be not greater than 2.5 to 1.0 and the fixed charge coverage ratio was required to be not less than 1.2 to 1.0. |
Commitments_and_contingencies
Commitments and contingencies | 9 Months Ended |
Nov. 03, 2013 | |
Commitments And Contingencies [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
Note 8 — Commitments and Contingencies | |
Except as disclosed below, the Company currently is not a party to any material legal proceedings. | |
Pending Litigation | |
K2 Asia Litigation | |
On April 7, 2009, a Cayman Islands corporation, K2 Asia Ventures, and its owners filed a lawsuit in Forsyth County, North Carolina Superior Court against the Company, its franchisee in the Philippines, and other persons associated with the franchisee. The suit alleges that the Company and the other defendants conspired to deprive the plaintiffs of claimed “exclusive rights” to negotiate franchise and development agreements with prospective franchisees in the Philippines, and seeks unspecified damages. The Company believes that these allegations are false and intends to vigorously defend against the lawsuit. On July 26, 2013, the Superior Court dismissed the Philippines-based defendants for lack of personal jurisdiction, and the plaintiffs have noticed an appeal of that decision. | |
Colchester Security Litigation | |
On January 27, 2012, Colchester Security II, LLC, the Company's former landlord in Lorton, Virginia, filed a suit against the Company in the Circuit Court of Fairfax County, Virginia alleging breach of the lease and negligence resulting in property damage at a commissary facility previously operated by the Company. The plaintiff sought $2.7 million in damages. The Company denied the allegations and pursued counterclaims of approximately $3.0 million relating to indemnity claims and breach of the lease. In June and July 2013, the parties tried the case to a judge pro tem pursuant to the Fairfax County Court's alternate dispute resolution program. Oral argument on the post-trial briefs occurred in October 2013. | |
In late November 2013, the Fairfax County court entered a judgment against the Company with respect to some of the claims by the former landlord, and reserved judgment on an additional claim pending further argument. All of the Company's counterclaims were denied. Accordingly, in the third quarter of fiscal 2014, the Company recorded an additional lease termination charge of approximately $1.5 million related to this matter. Such charge increased the lease termination accrual for this lease to an aggregate of $1.9 million, representing the amount of the damages awarded and an estimate of plaintiff's attorney's fees. Subsequently, the Company reached a settlement with the landlord on all issues for an amount approximating the aggregate accrual, and such settlement currently is being documented. | |
Other Commitments and Contingencies | |
The Company's primary bank had issued letters of credit on behalf of the Company totaling $9.2 million at November 3, 2013, all of which secure the Company's reimbursement obligations to insurers under the Company's self-insurance arrangements. |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended | |||||||||||||
Nov. 03, 2013 | ||||||||||||||
Disclosure Of Compensation Related Costs Share Based Payments And Repurchase Of Shares [Abstract] | ' | |||||||||||||
Disclosure Of Compensation Related Costs Share Based Payments And Repurchase Of Shares[TextBlock] | ' | |||||||||||||
Note 9 — Shareholders' Equity | ||||||||||||||
Share-Based Compensation for Employees and Directors | ||||||||||||||
The Company measures and recognizes compensation expense for share-based payment (“SBP”) awards based on their fair values. The fair value of SBP awards for which employees and directors render the requisite service necessary for the award to vest is recognized over the related vesting period. | ||||||||||||||
The aggregate cost of SBP awards charged to earnings for the three and nine months ended November 3, 2013 and October 28, 2012 is set forth in the following table. The Company did not realize any excess tax benefits from the exercise of stock options or the vesting of restricted stock units during any of the periods. | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
November 3, | October 28, | November 3, | October 28, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(In thousands) | ||||||||||||||
Costs charged to earnings related to: | ||||||||||||||
Stock options | $ | 216 | $ | 234 | $ | 651 | $ | 1,295 | ||||||
Restricted stock units | 1,077 | 1,188 | 2,509 | 2,275 | ||||||||||
Total costs | $ | 1,293 | $ | 1,422 | $ | 3,160 | $ | 3,570 | ||||||
Costs included in: | ||||||||||||||
Direct operating expenses | $ | 737 | $ | 864 | $ | 1,704 | $ | 1,591 | ||||||
General and administrative expenses | 556 | 558 | 1,456 | 1,979 | ||||||||||
Total costs | $ | 1,293 | $ | 1,422 | $ | 3,160 | $ | 3,570 | ||||||
Repurchases of Common Stock | ||||||||||||||
On July 11, 2013, the Company's Board of Directors authorized the repurchase of up to $50 million of the Company's common stock. | ||||||||||||||
In fiscal 2013, pursuant to the authorization of the Company's Board of Directors, from March 27, 2012 through June 28, 2012, the Company repurchased $20 million of its common stock. | ||||||||||||||
The Company generally permits holders of restricted stock and restricted stock unit awards to satisfy their obligations to reimburse the Company for the minimum required statutory withholding taxes arising from the vesting of such awards by surrendering vested common shares in lieu of reimbursing the Company in cash. | ||||||||||||||
The following table summarizes repurchases of common stock for the three and nine months ended November 3, 2013 and October 28, 2012: | ||||||||||||||
Three Months Ended | ||||||||||||||
November 3, | October 28, | |||||||||||||
2013 | 2012 | |||||||||||||
Common | Common | |||||||||||||
Shares | Stock | Shares | Stock | |||||||||||
(In thousands) | ||||||||||||||
Shares repurchased under share repurchase authorization | 33 | $ | 627 | - | $ | - | ||||||||
Shares surrendered in reimbursement for withholding taxes | 105 | 2,026 | 100 | 758 | ||||||||||
138 | $ | 2,653 | 100 | $ | 758 | |||||||||
Nine Months Ended | ||||||||||||||
November 3, | October 28, | |||||||||||||
2013 | 2012 | |||||||||||||
Common | Common | |||||||||||||
Shares | Stock | Shares | Stock | |||||||||||
(In thousands) | ||||||||||||||
Shares repurchased under share repurchase authorization | 33 | $ | 627 | 3,113 | $ | 20,000 | ||||||||
Shares surrendered in reimbursement for withholding taxes | 105 | 2,026 | 100 | 758 | ||||||||||
138 | $ | 2,653 | 3,213 | $ | 20,758 | |||||||||
Through November 3, 2013, under the $50 million repurchase program, the Company repurchased 33,000 shares at an average cost of $18.88 per share, for a total cost of $627,000. | ||||||||||||||
The Company completed the $20 million share repurchase during the second quarter of fiscal 2013, purchasing a total of 3,113,000 shares at an average cost of $6.42 per share, for a total cost of $20 million. | ||||||||||||||
Impairment_Charges_and_Lease_T
Impairment Charges and Lease Termination Costs | 9 Months Ended | ||||||||||||||
Nov. 03, 2013 | |||||||||||||||
Impairment Charges And Lease Termination Costs Disclosure [Abstract] | ' | ||||||||||||||
Impairment Charges And Lease Termination Costs Disclosure [Text Block] | ' | ||||||||||||||
Note 10 — Impairment Charges and Lease Termination Costs | |||||||||||||||
The components of impairment charges and lease termination costs are as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
November 3, | October 28, | November 3, | October 28, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||||
Impairment of long-lived assets | $ | - | $ | - | $ | - | $ | - | |||||||
Lease termination costs | 1,531 | 216 | 1,543 | 302 | |||||||||||
Total impairment charges and lease termination costs | $ | 1,531 | $ | 216 | $ | 1,543 | $ | 302 | |||||||
The Company tests long-lived assets for impairment when events or changes in circumstances indicate that their carrying value may not be recoverable. These events and changes in circumstances include store closing and refranchising decisions, the effects of changing costs on current results of operations, observed trends in operating results, and evidence of changed circumstances observed as a part of periodic reforecasts of future operating results and as part of the Company's annual budgeting process. When the Company concludes that the carrying value of long-lived assets is not recoverable (based on future projected undiscounted cash flows), the Company records impairment charges to reduce the carrying value of those assets to their estimated fair values. | |||||||||||||||
Lease termination costs represent the estimated fair value of liabilities related to unexpired leases, after reduction by the amount of accrued rent expense, if any, related to the leases, and are recorded when the lease contracts are terminated or, if earlier, the date on which the Company ceases use of the leased property. The fair value of these liabilities are estimated as the excess, if any, of the contractual payments required under the unexpired leases over the current market lease rates for the properties, discounted at a credit-adjusted risk-free rate over the remaining term of the leases. The provision for lease termination costs also includes adjustments to liabilities recorded in prior periods arising from changes in estimated sublease rentals and from settlements with landlords. | |||||||||||||||
In late November, 2013, the Fairfax County court entered a judgment against the Company in its dispute with the landlord of a former Company commissary in Lorton, Virginia. The Company subsequently agreed to settle the matter with the former landlord, as more fully described in Note 8, and the Company recorded an additional lease termination charge of approximately $1.5 million for the three months ended November 3, 2013 related to the resolution of the matter. | |||||||||||||||
The transactions reflected in the accrual for lease termination costs are summarized as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
November 3, | October 28, | November 3, | October 28, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||||
Balance at beginning of period | $ | 608 | $ | 679 | $ | 646 | $ | 709 | |||||||
Provision for lease termination costs: | |||||||||||||||
Adjustments to previously recorded provisions resulting from | |||||||||||||||
settlements with lessors and adjustments of previous estimates | 1,525 | 209 | 1,525 | 279 | |||||||||||
Accretion of discount | 6 | 7 | 18 | 23 | |||||||||||
Total provision | 1,531 | 216 | 1,543 | 302 | |||||||||||
Payments on unexpired leases, including settlements with | |||||||||||||||
lessors | -20 | -48 | -70 | -164 | |||||||||||
Balance at end of period | $ | 2,119 | $ | 847 | $ | 2,119 | $ | 847 | |||||||
Included in the lease termination accrual at November 3, 2013 was $2.0 million expected to be paid within one year. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||
Nov. 03, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||
Note 11 — Fair Value Measurements | |||||||||||||
The accounting standards for fair value measurements define fair value as the price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. | |||||||||||||
The accounting standards for fair value measurements establish a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: | |||||||||||||
Level 1 - Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. | |||||||||||||
Level 2 - Observable inputs other than quoted prices included within Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | |||||||||||||
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value measurement of the assets or liabilities. These include certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. | |||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||
The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis at November 3, 2013 and February 3, 2013. | |||||||||||||
3-Nov-13 | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
(In thousands) | |||||||||||||
Assets: | |||||||||||||
401(k) mirror plan assets | $ | 2,546 | $ | - | $ | - | |||||||
Agricultural commodity futures contracts | 116 | - | - | ||||||||||
Total assets | $ | 2,662 | - | - | |||||||||
3-Feb-13 | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
(In thousands) | |||||||||||||
Assets: | |||||||||||||
401(k) mirror plan assets | $ | 1,816 | $ | - | $ | - | |||||||
Interest rate derivative | - | 16 | - | ||||||||||
Total assets | $ | 1,816 | $ | 16 | $ | - | |||||||
Liabilities: | |||||||||||||
Agricultural commodity futures contracts | $ | 15 | $ | - | $ | - | |||||||
The fair value of the interest rate derivative at February 3, 2013 was estimated based on an indicative bid price. There were no outstanding interest rate derivatives at November 3, 2013. | |||||||||||||
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | |||||||||||||
There were no material nonrecurring fair value measurements recorded during the three and nine months ended November 3, 2013 and October 28, 2012. | |||||||||||||
Fair Values of Financial Instruments at the Balance Sheet Dates | |||||||||||||
The carrying values and approximate fair values of certain financial instruments as of November 3, 2013 and February 3, 2013 were as follows: | |||||||||||||
3-Nov-13 | 3-Feb-13 | ||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||
Value | Value | Value | Value | ||||||||||
(In thousands) | |||||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 66,745 | $ | 66,745 | $ | 66,332 | $ | 66,332 | |||||
Receivables | 28,111 | 28,111 | 25,627 | 25,627 | |||||||||
Receivables from Equity Method Franchisees | 683 | 683 | 705 | 705 | |||||||||
Agricultural commodity futures contracts | 116 | 116 | - | - | |||||||||
Interest rate derivatives | - | - | 16 | 16 | |||||||||
Liabilities: | |||||||||||||
Accounts payable | 14,427 | 14,427 | 12,198 | 12,198 | |||||||||
Agricultural commodity futures contracts | - | - | 15 | 15 | |||||||||
Long-term debt (including current maturities) | 1,997 | 1,997 | 25,743 | 25,743 | |||||||||
The fair value of the 2011 Term Loan (included within long-term debt) at February 3, 2013 was estimated based on an indicative bid price, valuation input Level 2. The carrying values of all other financial instruments approximate their fair values at November 3, 2013 and February 3, 2013. | |||||||||||||
Derivative_Instruments
Derivative Instruments | 9 Months Ended | ||||||||||||||||||
Nov. 03, 2013 | |||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Text Block] | ' | ||||||||||||||||||
Note 12 — Derivative Instruments | |||||||||||||||||||
The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by using derivative instruments are commodity price risk and interest rate risk. The Company does not hold or issue derivative instruments for trading purposes. | |||||||||||||||||||
The Company is exposed to credit-related losses in the event of non-performance by the counterparties to its derivative instruments. The Company mitigates this risk of nonperformance by dealing with highly rated counterparties. | |||||||||||||||||||
Additional disclosure about the fair value of derivative instruments is included in Note 11. | |||||||||||||||||||
Commodity Price Risk | |||||||||||||||||||
The Company is exposed to the effects of commodity price fluctuations in the cost of ingredients of its products, of which flour, sugar and shortening are the most significant. In order to bring greater stability to the cost of ingredients, from time to time the Company purchases exchange-traded commodity futures contracts, and options on such contracts, for raw materials which are ingredients of its products or which are components of such ingredients, including wheat and soybean oil. The Company is also exposed to the effects of commodity price fluctuations in the cost of gasoline used by its delivery vehicles. To mitigate the risk of fluctuations in the price of its gasoline purchases, the Company may purchase exchange-traded commodity futures contracts and options on such contracts. The difference between the cost, if any, and the fair value of commodity derivatives is reflected in earnings because the Company has not designated any of these instruments as hedges. Gains and losses on these contracts are intended to offset losses and gains on the hedged transactions in an effort to reduce the earnings volatility resulting from fluctuating commodity prices. The settlement of commodity derivative contracts is reported in the consolidated statement of cash flows as a cash flow from operating activities. At November 3, 2013, the Company had commodity derivatives with an aggregate contract volume of 770,000 bushels of wheat. Other than the requirement to meet minimum margin requirements with respect to the commodity derivatives, there are no collateral requirements related to such contracts. | |||||||||||||||||||
Interest Rate Risk | |||||||||||||||||||
On March 3, 2011, the Company entered into an interest rate derivative contract having an aggregate notional principal amount of $17.5 million. The derivative contract entitled the Company to receive from the counterparty the excess, if any, of the three-month LIBOR rate over 3.00% for each of the calendar quarters in the period beginning April 2012 and ending December 2015. The Company accounted for this derivative contract as a cash flow hedge. The contract was terminated in July 2013 following the retirement in full of the 2011 Term Loan; the $516,000 unrealized loss on the contract previously included in AOCI was reclassified to “Loss on refinancing of debt” in the consolidated statement of income because the hedged forecasted transaction (interest on the 2011 Term Loan) would not occur. | |||||||||||||||||||
Quantitative Summary of Derivative Positions and Their Effect on Results of Operations | |||||||||||||||||||
The following table presents the fair values of derivative instruments included in the consolidated balance sheet as of November 3, 2013 and February 3, 2013: | |||||||||||||||||||
Asset Derivatives | |||||||||||||||||||
Fair Value | |||||||||||||||||||
November 3, | February 3, | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Balance Sheet Location | 2013 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Agricultural commodity futures contracts | Other current assets | $ | 116 | $ | - | ||||||||||||||
Liability Derivatives | |||||||||||||||||||
Fair Value | |||||||||||||||||||
November 3, | February 3, | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Balance Sheet Location | 2013 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Agricultural commodity futures contracts | Accrued liabilities | $ | - | $ | 15 | ||||||||||||||
Asset Derivatives | |||||||||||||||||||
Fair Value | |||||||||||||||||||
November 3, | February 3, | ||||||||||||||||||
Derivatives Designated as a Cash Flow Hedge | Balance Sheet Location | 2013 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Interest rate derivative | Other assets | $ | - | $ | 16 | ||||||||||||||
The effect of derivative instruments on the consolidated statement of income for the three and nine months ended November 3, 2013 and October 28, 2012, was as follows: | |||||||||||||||||||
Amount of Derivative Gain or (Loss) | |||||||||||||||||||
Recognized in Income | |||||||||||||||||||
Location of Derivative Gain or (Loss) Recognized in Income | Three Months Ended | Nine Months Ended | |||||||||||||||||
Derivatives Not Designated as Hedging Instruments | November 3, | October 28, | November 3, | October 28, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Agricultural commodity futures | |||||||||||||||||||
contracts | Direct operating expenses | $ | -53 | $ | -110 | $ | -633 | $ | 1,007 | ||||||||||
Amount of Derivative Gain or (Loss) | |||||||||||||||||||
Recognized in Income | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
Derivatives Designated as a Cash Flow Hedge | Location of Derivative Gain or (Loss) Recognized in Income | November 3, | October 28, | November 3, | October 28, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Interest rate derivative | Interest expense | $ | - | $ | -10 | $ | -39 | $ | -19 | ||||||||||
Interest rate derivative | Loss on refinancing of debt | $ | - | $ | - | $ | -516 | $ | - | ||||||||||
Amount of Derivative Gain or (Loss) | |||||||||||||||||||
Recognized in OCI | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
Derivatives Designated as a Cash Flow Hedge | Derivative Gain or (Loss) Recognized in OCI | November 3, | October 28, | November 3, | October 28, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Interest rate derivative | Change in fair value of derivative | $ | - | $ | - | $ | 36 | $ | -14 | ||||||||||
Less - income tax effect | - | - | -14 | 5 | |||||||||||||||
- | - | 22 | -9 | ||||||||||||||||
Loss on cash flow hedge reclassified to net income, previously charged to other comprehensive income | - | - | 516 | - | |||||||||||||||
Less - income tax effect | - | - | -200 | - | |||||||||||||||
- | - | 316 | - | ||||||||||||||||
Net change in amount recognized in OCI | $ | - | $ | - | $ | 338 | $ | -9 | |||||||||||
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Nov. 03, 2013 | |
Acquisitions and Divestitures [Abstract] | ' |
Acquisitions And Divestitures Disclosures [Text Block] | ' |
Note 13 — Acquisitions and Divestitures | |
Business Combination | |
On August 30, 2012, the Company acquired the assets and operations of one of its franchisees in exchange for $915,000 cash. The acquired assets consisted principally of two Krispy Kreme stores. The allocation of the purchase price was as follows: $464,000 to property and equipment, $8,000 to other assets, and the balance of $443,000 to reacquired franchise rights. The results of operations of the acquired business have been included with those of the Company from the acquisition date. The acquired business's revenues and earnings for periods subsequent to the acquisition are not material to the Company's consolidated financial statements. The Company's results of operations for the three and nine months ended October 28, 2012 on a pro forma basis assuming the acquisition had been consummated at the beginning of those periods are not materially different from the Company's historical results of operations and, accordingly, have been omitted. | |
Asset Divestitures | |
On July 11, 2013, the Company refranchised three Company-owned stores in the Dallas market to a new franchisee. The aggregate purchase price for the assets was $681,000 cash. The three stores had total sales of approximately $7.0 million in fiscal 2013, of which approximately 45% represented wholesales sales. The franchise agreements with the new franchisee do not include wholesale sales rights. The Company Stores segment recorded a gain of $876,000 on the refranchising transaction, which is included in direct operating expenses. The gain includes approximately $462,000 related to the sale of equipment, and approximately $414,000 related to the reversal of accrued rent expense related to a store lease assigned to the franchisee where the Company has been relieved of the primary lease obligation. The Company leased the other two stores, which the Company owns, to the franchisee. In connection with the refranchising, the Company executed a development agreement with the franchisee to develop 15 additional Krispy Kreme locations in the market through fiscal 2019. | |
On February 22, 2013, the Company refranchised three stores in the Kansas/Missouri market to a new franchisee who was a former employee of the Company; the Company closed a fourth store in the market in January 2013 in anticipation of the transaction. The aggregate purchase price of the assets was approximately $1.1 million, evidenced by a 7% promissory note payable in installments equal to 3.5% of the stores' sales beginning in February 2013. The four stores had total sales of approximately $9 million in fiscal 2013. The Company did not record a significant gain or loss on this refranchising transaction. | |
On September 27, 2012, the Company sold to one of its franchisees the leasehold interests and certain other assets, including rights under franchise agreements, of three Krispy Kreme stores operated by the franchisee. The Company acquired the leasehold interests and other assets related to the three stores from the franchisee in August 2006 for $2.9 million cash. After the Company's acquisition of the assets, the franchisee continued to operate the stores for its own account pursuant to an operating agreement between the Company and the franchisee. The aggregate purchase price of the three stores and the related assets in the September 2012 transaction was approximately $3.6 million, of which approximately $360,000 was paid in cash at closing. The balance of the purchase price was evidenced by a promissory note in the approximate amount of $3.2 million, payable in monthly installments of approximately $51,000, including interest, beginning in November 2012, and a final installment of the remaining principal balance on October 1, 2017. The carrying value of the divested assets was approximately $1.9 million. Because the initial investment made by the franchisee to acquire the assets was less than the 20% minimum amount of the purchase price required by GAAP to recognize a gain on the sale, the Company deferred recognition of the $1.7 million gain, and such deferred gain was reflected as a reduction in the carrying value of the note receivable. Subsequently, the Company reported the principal and interest payments received from the franchisee as a reduction of the carrying value of the note. During the third quarter of fiscal 2014, the cumulative investment made by the franchisee to acquire the assets first exceeded the required 20% of the purchase price and, accordingly, the Company recognized the deferred gain of $1.7 million, which is included as a reduction in direct operating expenses of the Domestic Franchise segment. In addition, coincident with the recognition of the deferred gain, the Company recognized approximately $210,000 of interest income for interest payments received from the franchisee which initially were reported as a reduction in the carrying value of the note. |
Accounting_Policies_Policies
Accounting Policies (Policies) | 9 Months Ended |
Nov. 03, 2013 | |
Accounting Policies [Abstract] | ' |
Basis Of Presentation [Policy Text Block] | ' |
BASIS OF PRESENTATION. The consolidated financial statements contained herein should be read in conjunction with the Company's 2013 Form 10-K. The accompanying interim consolidated financial statements are presented in accordance with the requirements of Article 10 of Regulation S-X and, accordingly, do not include all the disclosures required by generally accepted accounting principles in the United States of America (“GAAP”) with respect to annual financial statements. The interim consolidated financial statements have been prepared in accordance with the Company's accounting practices described in the 2013 Form 10-K, but have not been audited. In management's opinion, the financial statements include all adjustments, which consist only of normal recurring adjustments, necessary for a fair statement of the Company's results of operations for the periods presented. The consolidated balance sheet data as of February 3, 2013 were derived from the Company's audited financial statements but do not include all disclosures required by GAAP. | |
Consolidation, Policy [Policy Text Block] | ' |
BASIS OF CONSOLIDATION. The financial statements include the accounts of KKDI and its subsidiaries, the most significant of which is KKDI's principal operating subsidiary, Krispy Kreme Doughnut Corporation. | |
Investments in entities over which the Company has the ability to exercise significant influence but which the Company does not control, and whose financial statements are not otherwise required to be consolidated, are accounted for using the equity method. These entities are 25% to 35% owned and are hereinafter sometimes referred to as “Equity Method Franchisees.” | |
Earnings Per Share, Policy [Policy Text Block] | ' |
EARNINGS PER SHARE. The computation of basic earnings per share is based on the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share reflects the additional common shares that would have been outstanding if dilutive potential common shares had been issued, computed using the treasury stock method. Such potential common shares consist of shares issuable upon the exercise of stock options and warrants and the vesting of currently unvested restricted stock units. | |
The following table sets forth amounts used in the computation of basic and diluted earnings per share: | |
The sum of the quarterly earnings per share amounts does not necessarily equal earnings per share for the year to date. | |
Stock options and warrants with respect to 33,000 and 3.1 million shares for the three months ended November 3, 2013 and October 28, 2012, respectively, have been excluded from the computation of the number of shares used to compute diluted earnings per share because their inclusion would be antidilutive. | |
Stock options and warrants with respect to 309,000 and 3.2 million shares for the nine months ended November 3, 2013 and October 28, 2012, respectively, as well as 58,000 unvested restricted stock units for the nine months ended October 28, 2012, have been excluded from the computation of the number of shares used to compute diluted earnings per share because their inclusion would be antidilutive. | |
Comprehensive Income Policy [Policy Text Block] | ' |
COMPREHENSIVE INCOME. Accounting standards on reporting comprehensive income require that certain items, including foreign currency translation adjustments and certain mark-to-market adjustments on derivative contracts accounted for as cash flow hedges (which are not reflected in net income) be presented as components of comprehensive income. The cumulative amounts recognized by the Company under these standards are reflected in the consolidated balance sheet as accumulated other comprehensive income, a component of shareholders' equity. | |
Prior Period Reclassification Adjustment Description [Policy Text Block] | ' |
CORRECTION OF BALANCE SHEET CLASSIFICATION ERROR. The Company's KK Supply Chain transfers doughnut mixes and certain other goods to third-party distribution companies which, in turn, distribute such products to Company and franchise stores pursuant to distribution contracts with KK Supply Chain. The Company does not record revenues or profit on the product transfers to the distribution companies because all revenue recognition criteria are not met at that time. Revenues and profit are recorded only upon the delivery of the goods to the stores by the distribution companies (and the sales to Company shops are eliminated in consolidation). In the fourth quarter of fiscal 2013, the Company concluded that certain of the Company's receivables from third-party distribution companies resulting from the product transfers had been incorrectly reported as a component of inventories, rather than as a component of receivables, in prior periods. The Company corrected this classification error as of February 3, 2013. While not material to previously issued financial statements, to enhance comparability, the Company corrected the corresponding error as of October 28, 2012 and January 29, 2012, by revising the classification of $4.3 million and $3.9 million, respectively, of receivables from the distribution companies previously classified as inventories to receivables. The error also affected the change in inventories and change in receivables line items in the statement of cash flows for the nine months ended October 28, 2012, but there was no effect on net cash provided by operating activities. The Company revised its statement of cash flows to adjust the increase in receivables from $1.5 million to $2.0 million and to adjust the increase in inventories from $169,000 to a decrease in inventories of $314,000 for the nine months ended October 28, 2012. Correction of this error had no effect on the Company's results of operations, total current assets, working capital, or total operating, investing, or financing cash flows. | |
New Accounting Pronouncements Policy [Policy Text Block] | ' |
Recent Accounting Pronouncements | |
In July 2013, the Financial Accounting Standard Board (the “FASB”) issued an update to its accounting guidance which requires unrecognized tax benefits to be netted with net operating loss or tax credit carryforwards in the consolidated balance sheet if specific criteria are met. The guidance is effective for the interim and annual periods beginning after December 15, 2013. Early adoption is permitted. Adoption of this accounting guidance is not expected to have any material effect on the Company's consolidated financial statements. | |
In February 2013, the FASB issued guidance requiring an entity to provide information about the amounts reclassified out of each component of accumulated other comprehensive income (“AOCI”). In addition, an entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. The Company adopted this new guidance in the first quarter of fiscal 2014. Such adoption had no material effect on the Company's consolidated financial statements. | |
In July 2012, the FASB issued amended accounting guidance regarding indefinite-lived intangible asset impairment testing. The amended guidance permits, but does not require, an entity to first assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test. An entity is not required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on qualitative assessment, that it is not more likely than not, the indefinite-lived intangible asset is impaired. The Company adopted this new guidance in the first quarter of fiscal 2014. Such adoption had no effect on the Company's consolidated financial statements. |
Accounting_Policies_Tables
Accounting Policies (Tables) | 9 Months Ended | |||||||||||||
Nov. 03, 2013 | ||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block] | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
November 3, | October 28, | November 3, | October 28, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(In thousands) | ||||||||||||||
Numerator: net income | $ | 6,780 | $ | 5,044 | $ | 19,496 | $ | 15,999 | ||||||
Denominator: | ||||||||||||||
Basic earnings per share - weighted average shares outstanding | 67,543 | 66,668 | 67,274 | 67,897 | ||||||||||
Effect of dilutive securities: | ||||||||||||||
Stock options and warrants | 3,173 | 1,719 | 2,948 | 1,663 | ||||||||||
Restricted stock units | 790 | 416 | 836 | 481 | ||||||||||
Diluted earnings per share - weighted average shares | ||||||||||||||
outstanding plus dilutive potential common shares | 71,506 | 68,803 | 71,058 | 70,041 | ||||||||||
Schedule Of Accumulated Other Comprehensive Income Loss Table Text Block | ' | |||||||||||||
November 3, | October 28, | |||||||||||||
2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||
Accumulated other comprehensive loss: | ||||||||||||||
Unrealized losses on cash flow hedge | $ | - | $ | -563 | ||||||||||
Less: deferred income taxes | - | 218 | ||||||||||||
Balance at end of period, net of tax | $ | - | $ | -345 |
Segment_Tables
Segment (Tables) | 9 Months Ended | |||||||||||||||
Nov. 03, 2013 | ||||||||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ' | |||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
November 3, | October 28, | November 3, | October 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Revenues: | ||||||||||||||||
Company Stores | $ | 74,886 | $ | 72,493 | $ | 232,496 | $ | 215,172 | ||||||||
Domestic Franchise | 3,026 | 2,498 | 8,696 | 7,561 | ||||||||||||
International Franchise | 6,205 | 6,024 | 18,707 | 17,832 | ||||||||||||
KK Supply Chain: | ||||||||||||||||
Total revenues | 58,304 | 52,825 | 175,316 | 158,075 | ||||||||||||
Less – intersegment sales elimination | -28,190 | -26,753 | -87,630 | -80,942 | ||||||||||||
External KK Supply Chain revenues | 30,114 | 26,072 | 87,686 | 77,133 | ||||||||||||
Total revenues | $ | 114,231 | $ | 107,087 | $ | 347,585 | $ | 317,698 | ||||||||
Operating income: | ||||||||||||||||
Company Stores | $ | 2,599 | $ | 1,985 | $ | 9,703 | $ | 5,271 | ||||||||
Domestic Franchise | 3,156 | 1,174 | 6,121 | 4,072 | ||||||||||||
International Franchise | 4,449 | 4,301 | 13,219 | 12,957 | ||||||||||||
KK Supply Chain | 9,098 | 7,312 | 28,336 | 24,181 | ||||||||||||
Total segment operating income | 19,302 | 14,772 | 57,379 | 46,481 | ||||||||||||
Unallocated general and administrative expenses | ||||||||||||||||
(including depreciation and amortization expense) | -6,055 | -5,345 | -18,336 | -16,900 | ||||||||||||
Impairment charges and lease termination costs | -1,531 | -216 | -1,543 | -302 | ||||||||||||
Consolidated operating income | $ | 11,716 | $ | 9,211 | $ | 37,500 | $ | 29,279 | ||||||||
Depreciation and amortization expense: | ||||||||||||||||
Company Stores | $ | 2,255 | $ | 1,880 | $ | 6,783 | $ | 5,921 | ||||||||
Domestic Franchise | 36 | 40 | 72 | 150 | ||||||||||||
International Franchise | 2 | 3 | 6 | 9 | ||||||||||||
KK Supply Chain | 170 | 172 | 515 | 569 | ||||||||||||
Corporate | 325 | 262 | 896 | 589 | ||||||||||||
Total depreciation and amortization expense | $ | 2,788 | $ | 2,357 | $ | 8,272 | $ | 7,238 |
Receivables_Tables
Receivables (Tables) | 9 Months Ended | ||||||||
Nov. 03, 2013 | |||||||||
Receivables [Abstract] | ' | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ||||||||
November 3, | February 3, | ||||||||
2013 | 2013 | ||||||||
(In thousands) | |||||||||
Receivables: | |||||||||
Wholesale customers | $ | 10,209 | $ | 11,244 | |||||
Unaffiliated franchisees | 12,212 | 9,728 | |||||||
Due from third-party distributors | 4,989 | 3,590 | |||||||
Other receivables | 702 | 1,216 | |||||||
Current portion of notes receivable | 536 | 464 | |||||||
28,648 | 26,242 | ||||||||
Less — allowance for doubtful accounts: | |||||||||
Wholesale customers | -222 | -373 | |||||||
Unaffiliated franchisees | -315 | -242 | |||||||
-537 | -615 | ||||||||
$ | 28,111 | $ | 25,627 | ||||||
Receivables from Equity Method Franchisees (Note 6): | |||||||||
Trade | $ | 683 | $ | 705 | |||||
November 3, | February 3, | ||||||||
2013 | 2013 | ||||||||
(In thousands) | |||||||||
Notes receivable: | |||||||||
Notes receivable from franchisees | $ | 3,907 | $ | 1,738 | |||||
Less — portion due within one year included in receivables | -536 | -464 | |||||||
Less — allowance for doubtful accounts | -57 | -62 | |||||||
$ | 3,314 | $ | 1,212 | ||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | ' | ||||||||
Nine Months Ended | |||||||||
November 3, | October 28, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Allowance for doubtful accounts related to receivables: | |||||||||
Balance at beginning of period | $ | 615 | $ | 1,158 | |||||
Provision for doubtful accounts | -30 | 130 | |||||||
Net recoveries (chargeoffs) | -48 | -994 | |||||||
Balance at end of period | $ | 537 | $ | 294 | |||||
Allowance for doubtful accounts related to receivables from Equity Method Franchisees: | |||||||||
Balance at beginning of period | $ | - | $ | - | |||||
Provision for doubtful accounts | -47 | -59 | |||||||
Net recoveries (chargeoffs) | 47 | 59 | |||||||
Balance at end of period | $ | - | $ | - | |||||
Nine Months Ended | |||||||||
November 3, | October 28, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Balance at beginning of period | $ | 62 | $ | 68 | |||||
Provision for doubtful accounts | -5 | -6 | |||||||
Net recoveries (chargeoffs) | - | - | |||||||
Balance at end of period | $ | 57 | $ | 62 |
Inventory_Tables
Inventory (Tables) | 9 Months Ended | |||||
Nov. 03, 2013 | ||||||
Inventory Disclosure [Abstract] | ' | |||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||
November 3, | February 3, | |||||
2013 | 2013 | |||||
(In thousands) | ||||||
Raw materials | $ | 6,583 | $ | 5,678 | ||
Work in progress | 207 | 52 | ||||
Finished goods and purchased merchandise | 8,028 | 6,628 | ||||
$ | 14,818 | $ | 12,358 |
Investment_in_Franchisee_Table
Investment in Franchisee (Tables) | 9 Months Ended | |||||||||||||
Nov. 03, 2013 | ||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||||
Equity Method Investments In Franchisees [Table Text Block] | ' | |||||||||||||
3-Nov-13 | ||||||||||||||
Company | Investment | |||||||||||||
Ownership | and | Loan | ||||||||||||
Percentage | Advances | Receivables | Guarantees | |||||||||||
(Dollars in thousands) | ||||||||||||||
Kremeworks, LLC | 25.00% | $ | 900 | $ | 321 | $ | 161 | |||||||
Kremeworks Canada, LP | 24.50% | - | 36 | - | ||||||||||
Krispy Kreme of South Florida, LLC | 35.30% | - | 326 | - | ||||||||||
900 | 683 | $ | 161 | |||||||||||
Less: reserves and allowances | -900 | - | ||||||||||||
$ | - | $ | 683 | |||||||||||
3-Feb-13 | ||||||||||||||
Company | Investment | |||||||||||||
Ownership | and | Loan | ||||||||||||
Percentage | Advances | Receivables | Guarantees | |||||||||||
(Dollars in thousands) | ||||||||||||||
Kremeworks, LLC | 25.00% | $ | 900 | $ | 281 | $ | 437 | |||||||
Kremeworks Canada, LP | 24.50% | - | 20 | - | ||||||||||
Krispy Kreme of South Florida, LLC | 35.30% | - | 404 | 1,628 | ||||||||||
900 | 705 | $ | 2,065 | |||||||||||
Less: reserves and allowances | -900 | - | ||||||||||||
$ | - | $ | 705 |
Long_Term_Debt_and_Lease_Commi1
Long Term Debt and Lease Commitments (Tables) | 9 Months Ended | |||||
Nov. 03, 2013 | ||||||
Long Term Debt and Lease Obilgations [Abstract] | ' | |||||
ScheduleOfLongTermDebtTableTextBlock | ' | |||||
November 3, | February 3, | |||||
2013 | 2013 | |||||
(In thousands) | ||||||
2011 Term Loan | $ | - | $ | 24,303 | ||
Capital lease obligations | 1,997 | 1,440 | ||||
1,997 | 25,743 | |||||
Less: current maturities | -365 | -2,148 | ||||
$ | 1,632 | $ | 23,595 |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 9 Months Ended | |||||||||||||
Nov. 03, 2013 | ||||||||||||||
Disclosure Of Compensation Related Costs Share Based Payments And Repurchase Of Shares [Abstract] | ' | |||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
November 3, | October 28, | November 3, | October 28, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(In thousands) | ||||||||||||||
Costs charged to earnings related to: | ||||||||||||||
Stock options | $ | 216 | $ | 234 | $ | 651 | $ | 1,295 | ||||||
Restricted stock units | 1,077 | 1,188 | 2,509 | 2,275 | ||||||||||
Total costs | $ | 1,293 | $ | 1,422 | $ | 3,160 | $ | 3,570 | ||||||
Costs included in: | ||||||||||||||
Direct operating expenses | $ | 737 | $ | 864 | $ | 1,704 | $ | 1,591 | ||||||
General and administrative expenses | 556 | 558 | 1,456 | 1,979 | ||||||||||
Total costs | $ | 1,293 | $ | 1,422 | $ | 3,160 | $ | 3,570 | ||||||
Schedule of Repurchase of Stock [Table Text Block] | ' | |||||||||||||
Three Months Ended | ||||||||||||||
November 3, | October 28, | |||||||||||||
2013 | 2012 | |||||||||||||
Common | Common | |||||||||||||
Shares | Stock | Shares | Stock | |||||||||||
(In thousands) | ||||||||||||||
Shares repurchased under share repurchase authorization | 33 | $ | 627 | - | $ | - | ||||||||
Shares surrendered in reimbursement for withholding taxes | 105 | 2,026 | 100 | 758 | ||||||||||
138 | $ | 2,653 | 100 | $ | 758 | |||||||||
Nine Months Ended | ||||||||||||||
November 3, | October 28, | |||||||||||||
2013 | 2012 | |||||||||||||
Common | Common | |||||||||||||
Shares | Stock | Shares | Stock | |||||||||||
(In thousands) | ||||||||||||||
Shares repurchased under share repurchase authorization | 33 | $ | 627 | 3,113 | $ | 20,000 | ||||||||
Shares surrendered in reimbursement for withholding taxes | 105 | 2,026 | 100 | 758 | ||||||||||
138 | $ | 2,653 | 3,213 | $ | 20,758 | |||||||||
Impairment_Charges_and_Lease_T1
Impairment Charges and Lease Termination Costs (Tables) | 9 Months Ended | ||||||||||||||
Nov. 03, 2013 | |||||||||||||||
Impairment Charges And Lease Termination Costs Disclosure [Abstract] | ' | ||||||||||||||
Schedule Of Impairment Charges And Lease Termination Costs [TableTextBlock] | ' | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
November 3, | October 28, | November 3, | October 28, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||||
Impairment of long-lived assets | $ | - | $ | - | $ | - | $ | - | |||||||
Lease termination costs | 1,531 | 216 | 1,543 | 302 | |||||||||||
Total impairment charges and lease termination costs | $ | 1,531 | $ | 216 | $ | 1,543 | $ | 302 | |||||||
Rollforward Of Lease Termination Costs [TableText Block] | ' | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
November 3, | October 28, | November 3, | October 28, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||||
Balance at beginning of period | $ | 608 | $ | 679 | $ | 646 | $ | 709 | |||||||
Provision for lease termination costs: | |||||||||||||||
Adjustments to previously recorded provisions resulting from | |||||||||||||||
settlements with lessors and adjustments of previous estimates | 1,525 | 209 | 1,525 | 279 | |||||||||||
Accretion of discount | 6 | 7 | 18 | 23 | |||||||||||
Total provision | 1,531 | 216 | 1,543 | 302 | |||||||||||
Payments on unexpired leases, including settlements with | |||||||||||||||
lessors | -20 | -48 | -70 | -164 | |||||||||||
Balance at end of period | $ | 2,119 | $ | 847 | $ | 2,119 | $ | 847 |
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 9 Months Ended | ||||||||||||
Nov. 03, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||
3-Nov-13 | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
(In thousands) | |||||||||||||
Assets: | |||||||||||||
401(k) mirror plan assets | $ | 2,546 | $ | - | $ | - | |||||||
Agricultural commodity futures contracts | 116 | - | - | ||||||||||
Total assets | $ | 2,662 | - | - | |||||||||
3-Feb-13 | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
(In thousands) | |||||||||||||
Assets: | |||||||||||||
401(k) mirror plan assets | $ | 1,816 | $ | - | $ | - | |||||||
Interest rate derivative | - | 16 | - | ||||||||||
Total assets | $ | 1,816 | $ | 16 | $ | - | |||||||
Liabilities: | |||||||||||||
Agricultural commodity futures contracts | $ | 15 | $ | - | $ | - | |||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | ||||||||||||
3-Nov-13 | 3-Feb-13 | ||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||
Value | Value | Value | Value | ||||||||||
(In thousands) | |||||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 66,745 | $ | 66,745 | $ | 66,332 | $ | 66,332 | |||||
Receivables | 28,111 | 28,111 | 25,627 | 25,627 | |||||||||
Receivables from Equity Method Franchisees | 683 | 683 | 705 | 705 | |||||||||
Agricultural commodity futures contracts | 116 | 116 | - | - | |||||||||
Interest rate derivatives | - | - | 16 | 16 | |||||||||
Liabilities: | |||||||||||||
Accounts payable | 14,427 | 14,427 | 12,198 | 12,198 | |||||||||
Agricultural commodity futures contracts | - | - | 15 | 15 | |||||||||
Long-term debt (including current maturities) | 1,997 | 1,997 | 25,743 | 25,743 |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 9 Months Ended | ||||||||||||||||||
Nov. 03, 2013 | |||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | ' | ||||||||||||||||||
Asset Derivatives | |||||||||||||||||||
Fair Value | |||||||||||||||||||
November 3, | February 3, | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Balance Sheet Location | 2013 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Agricultural commodity futures contracts | Other current assets | $ | 116 | $ | - | ||||||||||||||
Liability Derivatives | |||||||||||||||||||
Fair Value | |||||||||||||||||||
November 3, | February 3, | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Balance Sheet Location | 2013 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Agricultural commodity futures contracts | Accrued liabilities | $ | - | $ | 15 | ||||||||||||||
Asset Derivatives | |||||||||||||||||||
Fair Value | |||||||||||||||||||
November 3, | February 3, | ||||||||||||||||||
Derivatives Designated as a Cash Flow Hedge | Balance Sheet Location | 2013 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Interest rate derivative | Other assets | $ | - | $ | 16 | ||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | ' | ||||||||||||||||||
Amount of Derivative Gain or (Loss) | |||||||||||||||||||
Recognized in Income | |||||||||||||||||||
Location of Derivative Gain or (Loss) Recognized in Income | Three Months Ended | Nine Months Ended | |||||||||||||||||
Derivatives Not Designated as Hedging Instruments | November 3, | October 28, | November 3, | October 28, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Agricultural commodity futures | |||||||||||||||||||
contracts | Direct operating expenses | $ | -53 | $ | -110 | $ | -633 | $ | 1,007 | ||||||||||
Amount of Derivative Gain or (Loss) | |||||||||||||||||||
Recognized in Income | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
Derivatives Designated as a Cash Flow Hedge | Location of Derivative Gain or (Loss) Recognized in Income | November 3, | October 28, | November 3, | October 28, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Interest rate derivative | Interest expense | $ | - | $ | -10 | $ | -39 | $ | -19 | ||||||||||
Interest rate derivative | Loss on refinancing of debt | $ | - | $ | - | $ | -516 | $ | - | ||||||||||
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
Derivatives Designated as a Cash Flow Hedge | Derivative Gain or (Loss) Recognized in OCI | November 3, | October 28, | November 3, | October 28, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Interest rate derivative | Change in fair value of derivative | $ | - | $ | - | $ | 36 | $ | -14 | ||||||||||
Less - income tax effect | - | - | -14 | 5 | |||||||||||||||
- | - | 22 | -9 | ||||||||||||||||
Loss on cash flow hedge reclassified to net income, previously charged to other comprehensive income | - | - | 516 | - | |||||||||||||||
Less - income tax effect | - | - | -200 | - | |||||||||||||||
- | - | 316 | - | ||||||||||||||||
Net change in amount recognized in OCI | $ | - | $ | - | $ | 338 | $ | -9 | |||||||||||
Accounting_Policies_Narratives
Accounting Policies (Narratives) (Details) (USD $) | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Nov. 03, 2013 | Oct. 28, 2012 | Jan. 29, 2012 | Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Oct. 28, 2012 | Oct. 28, 2012 | Nov. 03, 2013 | Nov. 03, 2013 | |
Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Restricted Stock [Member] | Maximum [Member] | Minimum [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 25.00% |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | ' | 33,000 | 3,100,000 | 309,000 | 3,200,000 | 58,000 | ' | ' |
Prior Period Reclassification Adjustment | ' | $4,300,000 | $3,900,000 | ' | ' | ' | ' | ' | ' | ' |
Increase Decrease In Accounts Receivable Before Reclassification | ' | -1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables | -2,523,000 | -1,950,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Increase Decrease In Inventories Before Reclassification | ' | 169,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Inventories | ($2,621,000) | $314,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Accounting_Policies_Earnings_P
Accounting Policies (Earnings Per Share) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Oct. 28, 2012 |
Earnings Per Share Reconciliation [Abstract] | ' | ' | ' | ' |
Net income | $6,780 | $5,044 | $19,496 | $15,999 |
Basic earnings per share - weighted average shares outstanding | 67,543 | 66,668 | 67,274 | 67,897 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Diluted earnings per share - weighted average shares outstanding plus dilutive potential common shares | 71,506 | 68,803 | 71,058 | 70,041 |
Stock Options [Member] | ' | ' | ' | ' |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Incremental Common Shares Attributable to Share-based Payment Arrangements | 3,173 | 1,719 | 2,948 | 1,663 |
Restricted Stock [Member] | ' | ' | ' | ' |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Incremental Common Shares Attributable to Share-based Payment Arrangements | 790 | 416 | 836 | 481 |
Accounting_Policies_Accumulate
Accounting Policies (Accumulated Comprehensive Income) (Details) (USD $) | Nov. 03, 2013 | Feb. 03, 2013 | Oct. 28, 2012 | Jan. 29, 2012 |
In Thousands, unless otherwise specified | ||||
Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Total shareholders equity | $268,928 | $246,432 | $240,763 | $249,126 |
Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | ' |
Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Unrealized losses on cash flow hedge | 0 | ' | -563 | ' |
Less: deferred income taxes | 0 | ' | 218 | ' |
Total shareholders equity | $0 | ($338) | ($345) | ($336) |
Segment_Details
Segment (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Oct. 28, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | $114,231 | $107,087 | $347,585 | $317,698 |
Segment Reporting Information, Revenue for Reportable Segment | 58,304 | 52,825 | 175,316 | 158,075 |
Segment Reporting Information, Intersegment Revenue | -28,190 | -26,753 | -87,630 | -80,942 |
Segment Operating Income Loss | 19,302 | 14,772 | 57,379 | 46,481 |
Unallocated general and administrative expenses (including depreciation and amortization expense) | -6,055 | -5,345 | -18,336 | -16,900 |
Impairment charges and lease termination costs | -1,531 | -216 | -1,543 | -302 |
Operating income | 11,716 | 9,211 | 37,500 | 29,279 |
Depreciation and amortization expense | 2,788 | 2,357 | 8,272 | 7,238 |
Company Stores [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 74,886 | 72,493 | 232,496 | 215,172 |
Segment Operating Income Loss | 2,599 | 1,985 | 9,703 | 5,271 |
Depreciation and amortization expense | 2,255 | 1,880 | 6,783 | 5,921 |
Domestic Franchise [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 3,026 | 2,498 | 8,696 | 7,561 |
Segment Operating Income Loss | 3,156 | 1,174 | 6,121 | 4,072 |
Depreciation and amortization expense | 36 | 40 | 72 | 150 |
International Franchise [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 6,205 | 6,024 | 18,707 | 17,832 |
Segment Operating Income Loss | 4,449 | 4,301 | 13,219 | 12,957 |
Depreciation and amortization expense | 2 | 3 | 6 | 9 |
KK Supply Chain [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 30,114 | 26,072 | 87,686 | 77,133 |
Segment Operating Income Loss | 9,098 | 7,312 | 28,336 | 24,181 |
Depreciation and amortization expense | 170 | 172 | 515 | 569 |
Corporate Administration [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Depreciation and amortization expense | $325 | $262 | $896 | $589 |
Income_taxes_Narratives_Detail
Income taxes (Narratives) (Details) (USD $) | 9 Months Ended | 9 Months Ended | ||
Nov. 03, 2013 | Feb. 03, 2013 | Nov. 03, 2013 | Jan. 29, 2012 | |
Litigation Warrant [Member] | Litigation Warrant [Member] | |||
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Deferred Tax Assets, Valuation Allowance | $9,500,000 | $9,800,000 | ' | ' |
Deferred tax asset change | 1,000,000 | ' | ' | ' |
Valuation Allowance Deferred Tax Asset Change In Amount | 315,000 | ' | ' | ' |
Deferred tax assets net change | 685,000 | ' | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' | ' | ' |
Warrants Issuance Date | ' | ' | 'fiscal 2008 | ' |
Warrants issue stock price | ' | ' | $12.21 | ' |
Warrants Expiration Date | ' | ' | 'first quarter of fiscal 2013 | ' |
Deferred Tax Assets Tax Deferred Expense Reserves And Accruals Legal Settlements | ' | ' | ' | $7,200,000 |
Receivables_Narratives_Details
Receivables (Narratives) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
Nov. 03, 2013 | Nov. 03, 2013 | Feb. 03, 2013 | |
Receivables [Abstract] | ' | ' | ' |
Notes Receivable Unrecognized Franchise Revenue | $2,900,000 | $2,900,000 | $3,300,000 |
Collection of previously unrecognized franchise revenue | 10,000 | 370,000 | ' |
Schedule Of Divestitures And Equity Method Franchisees [Line Items] | ' | ' | ' |
Notes receivable from franchisees | 3,907,000 | 3,907,000 | 1,738,000 |
Krispy Kreme South Florida Llc [Member] | ' | ' | ' |
Schedule Of Divestitures And Equity Method Franchisees [Line Items] | ' | ' | ' |
Notes Receivable Unrecognized | 1,600,000 | 1,600,000 | ' |
September 2012 Divestiture [Member] | ' | ' | ' |
Schedule Of Divestitures And Equity Method Franchisees [Line Items] | ' | ' | ' |
Notes receivable from franchisees | 2,800,000 | 2,800,000 | 1,400,000 |
Deferred Gain on Sale of Property | $1,700,000 | $1,700,000 | $1,700,000 |
Receivables_Receivables_by_cat
Receivables (Receivables by categories) (Details) (USD $) | Nov. 03, 2013 | Feb. 03, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Other receivables | $702 | $1,216 |
Current portion of notes receivable | 536 | 464 |
Accounts Notes And Loans Receivable Gross Current | 28,648 | 26,242 |
Allowance for Doubtful Accounts Receivable, Current | -537 | -615 |
Receivables, Net, Current, Total | 28,111 | 25,627 |
Receivables from equity method franchisees | 683 | 705 |
Wholesale Customers [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts Receivable, Gross, Current | 10,209 | 11,244 |
Allowance for Doubtful Accounts Receivable, Current | -222 | -373 |
Unaffiliated Franchisees [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts Receivable, Gross, Current | 12,212 | 9,728 |
Allowance for Doubtful Accounts Receivable, Current | -315 | -242 |
Third party distributors [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts Receivable, Gross, Current | $4,989 | $3,590 |
Receivables_Doubtful_accounts_
Receivables (Doubtful accounts summary) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 03, 2013 | Oct. 28, 2012 |
Allowance For Doubtful Accounts Receivable [Rollforward] | ' | ' |
Balance | $615 | ' |
Provision for doubtful accounts | -82 | 65 |
Balance | 537 | ' |
Trade Accounts Receivable [Member] | ' | ' |
Allowance For Doubtful Accounts Receivable [Rollforward] | ' | ' |
Balance | 615 | 1,158 |
Provision for doubtful accounts | -30 | 130 |
Net recoveries (chargeoffs) | -48 | -994 |
Balance | 537 | 294 |
Equity Method Franchisees Receivables [Member] | ' | ' |
Allowance For Doubtful Accounts Receivable [Rollforward] | ' | ' |
Balance | 0 | 0 |
Provision for doubtful accounts | -47 | -59 |
Net recoveries (chargeoffs) | 47 | 59 |
Balance | 0 | 0 |
Notes Receivable [Member] | ' | ' |
Allowance For Doubtful Accounts Receivable [Rollforward] | ' | ' |
Balance | 62 | 68 |
Provision for doubtful accounts | -5 | -6 |
Net recoveries (chargeoffs) | 0 | 0 |
Balance | $57 | $62 |
Receivables_Notes_Receivables_
Receivables (Notes Receivables from Franchisees) (Details) (USD $) | Nov. 03, 2013 | Feb. 03, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Notes receivable from franchisees | $3,907 | $1,738 |
Less - portion due within one year included in receivables | -536 | -464 |
Less - allowance for doubtful accounts | -57 | -62 |
Net Notes Receivable | $3,314 | $1,212 |
Inventories_Details
Inventories (Details) (USD $) | Nov. 03, 2013 | Feb. 03, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $6,583 | $5,678 |
Work in progress | 207 | 52 |
Finished goods and purchased merchandise | 8,028 | 6,628 |
Inventories, Net, Total | $14,818 | $12,358 |
Investments_in_Franchisees_Nar
Investments in Franchisees (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Nov. 03, 2013 | Nov. 03, 2013 | Feb. 03, 2013 | |
Kremeworks Llc [Member] | Krispy Kreme South Florida Llc [Member] | Krispy Kreme South Florida Llc [Member] | Krispy Kreme South Florida Llc [Member] | |||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number Of Investments In Franchisees | 'three | ' | 'three | ' | ' | ' | ' | ' |
Guarantee Obligations Maximum Exposure Percentage | ' | ' | ' | ' | 20.00% | ' | ' | ' |
Underlying Indebtedness Of Guaranteed Obligations Amount | ' | ' | ' | ' | $800,000 | ' | ' | ' |
Accrued guarantee liability | ' | ' | ' | ' | ' | ' | ' | 1,600,000 |
Debt Instrument, Maturity Date | ' | ' | ' | ' | ' | ' | 1-Oct-09 | ' |
Notes Receivable Unrecognized | ' | ' | ' | ' | ' | 1,600,000 | 1,600,000 | ' |
Other non-operating income, net | $29,000 | $80,000 | $23,000 | $237,000 | ' | $30,000 | ' | ' |
Equity Method Investment Third Party Ownership Percentage | ' | ' | ' | ' | ' | 65.00% | 65.00% | ' |
Notes Receivable Interest Rate | ' | ' | ' | ' | ' | 'three-month LIBOR plus 3.0% | 'three-month LIBOR plus 3.0% | ' |
Notes Receivable Number Of Payments Due | ' | ' | ' | ' | ' | 36 | 36 | ' |
Investment_in_Franchisees_Deta
Investment in Franchisees (Details) (USD $) | Nov. 03, 2013 | Feb. 03, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Equity Method Investments [Line Items] | ' | ' |
Investments in equity method franchisees | $0 | $0 |
Receivables from equity method franchisees | 683 | 705 |
Guarantor Obligations, Maximum Exposure, Undiscounted | 161 | 2,065 |
Kremeworks Llc [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | 25.00% | 25.00% |
Investments in equity method franchisees | 900 | 900 |
Receivables from equity method franchisees | 321 | 281 |
Guarantor Obligations, Maximum Exposure, Undiscounted | 161 | 437 |
Kremeworks Canada LP [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | 24.50% | 24.50% |
Investments in equity method franchisees | 0 | 0 |
Receivables from equity method franchisees | 36 | 20 |
Guarantor Obligations, Maximum Exposure, Undiscounted | 0 | 0 |
Krispy Kreme South Florida Llc [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | 35.30% | 35.30% |
Investments in equity method franchisees | 0 | 0 |
Receivables from equity method franchisees | 326 | 404 |
Guarantor Obligations, Maximum Exposure, Undiscounted | 0 | 1,628 |
Gross Amount Before Reserve [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Investments in equity method franchisees | 900 | 900 |
Receivables from equity method franchisees | 683 | 705 |
Reserves And Allowances [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Investments in equity method franchisees | -900 | -900 |
Receivables from equity method franchisees | $0 | $0 |
Long_Term_Debt_and_Lease_Commi2
Long Term Debt and Lease Commitments (Narratives) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Oct. 28, 2012 | |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Loss On Refinancing Of Debt | $0 | $0 | $967,000 | $0 |
Letters Of Credit Outstanding Amount | 9,200,000 | ' | 9,200,000 | ' |
Loss on cash flow hedge reclassified to net income previously charged to other comprehensive income | 0 | 0 | 516,000 | 0 |
March 2011 Interest Rate Derivative Contract [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Derivative, Inception Date | ' | ' | 3-Mar-11 | ' |
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | 17,500,000 | ' | 17,500,000 | ' |
Derivative, Description of Variable Rate Basis | ' | ' | 'three-month LIBOR rate over 3.00% | ' |
Derivative Effective Dates | ' | ' | 1-Apr-12 | ' |
Derivative, Maturity Date | ' | ' | 1-Dec-15 | ' |
Derivative Termination Date | ' | ' | 'July 2013 | ' |
Loss on cash flow hedge reclassified to net income previously charged to other comprehensive income | ' | ' | 516,000 | ' |
Revolving Credit Facility 2013 [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
DebtInstrumentIssuanceDate1 | ' | ' | 12-Jul-13 | ' |
Line Of Credit Facility Maximum Borrowing Capacity | 40,000,000 | ' | 40,000,000 | ' |
Debt Instrument, Maturity Date | ' | ' | 1-Jul-18 | ' |
Debt Instrument Interest Rate Terms | ' | ' | 'LIBOR or the Base Rate (which is the greatest of the prime rate, the Fed funds rate plus 0.50%, or the one-month LIBOR rate plus 1.00%), in each case plus the Applicable Percentage. | ' |
Debt Instrument Covenant Description | ' | ' | 'The 2013 Revolving Credit Facility requires the Company to meet certain financial tests, including a maximum leverage ratio and a minimum fixed charge coverage ratio. The leverage ratio is required to be not greater than 2.25 to 1.0 and the fixed charge coverage ratio is required to be not less than 1.3 to 1.0. The leverage ratio is calculated by dividing total debt as of the end of each fiscal quarter by Consolidated EBITDA for the Reference Period (each consisting of the four most recent fiscal quarters). For this purpose, debt includes not only indebtedness reflected in the consolidated balance sheet, but also, among other things, the amount of undrawn letters of credit, the principal balance of indebtedness of third parties to the extent such indebtedness is guaranteed by the Company, and any amounts reasonably expected to be paid with respect to any other guaranty obligations. The fixed charge coverage ratio is calculated for each Reference Period by dividing (a) the sum of (i) Consolidated EBITDA, plus (ii) Cash Lease Payments, minus (iii) cash income taxes, minus (iv) unfinanced capital expenditures, minus (v) purchases, redemptions, retirements, and cash dividend payments or other distributions in respect of the Company’s common stock in excess of certain amounts, and minus (vi) the purchase price of all acquisitions of all or substantially all of the assets of any Krispy Kreme store or franchisee shops by (b) Consolidated Fixed Charges. “Consolidated EBITDA” is a non-GAAP measure and is defined in the 2013 Revolving Credit Facility to mean, for each Reference Period, generally, consolidated net income or loss, exclusive of unrealized gains and losses on hedging instruments, gains or losses on asset dispositions, and provisions for payments on guarantee obligations, plus the sum of interest expense, income taxes, depreciation, rent expense and lease termination costs, and certain non-cash charges; and minus the sum of non-cash credits, interest income, Cash Lease Payments, and payments on guaranty obligations in excess of $1 million during the Reference Period or $3 million in the aggregate. “Cash Lease Payments” means the sum of cash paid or required to be paid for obligations under operating leases for real property and equipment (net of sublease income), lease payments on closed stores (but excluding payments in settlement of future obligations under terminated operating leases), and cash payments in settlement of future obligations under terminated operating leases to the extent the aggregate amount of such payments exceeds $1.5 million during a Reference Period or $5.0 million in the aggregate. “Consolidated Fixed Charges” means the sum of cash interest expense, Cash Lease Payments, and scheduled principal payments of indebtedness. The operation of the restrictive financial covenants described above may limit the amount the Company may borrow under the 2013 Revolving Credit Facility. The restrictive covenants did not limit the Company’s ability to borrow the full $30.8 million of unused credit under the 2013 Revolving Credit Agreement as of November 3, 2013. The 2013 Revolving Credit Facility also contains covenants which, among other things, generally limit (with certain exceptions): liquidations, mergers, and consolidations; the incurrence of additional indebtedness (including guarantees); the incurrence additional liens; the sale, assignment, lease, conveyance or transfer of assets; certain investments; dividends and stock redemptions or repurchases in excess of certain amounts; transactions with affiliates; engaging in materially different lines of business; certain sale-leaseback transactions; and other activities customarily restricted in such agreements. The 2013 Revolving Credit Facility also prohibits the transfer of cash or other assets to the Parent Company, whether by dividend, loan or otherwise, but provides for exceptions to enable the Parent Company to pay taxes, directors’ fees and operating expenses, as well as exceptions to permit dividends in respect of the Company’s common stock and stock redemptions and repurchases, to the extent permitted by the 2013 Revolving Credit Facility. | ' |
Leverage Ratio | ' | ' | 'As of November 3, 2013, the Company’s leverage ratio was 0.2 to 1.0 | ' |
Fixed Charge Coverage Ratio | ' | ' | 'the fixed charge coverage ratio was 3.5 to 1.0. | ' |
Debt Instrument Unused Borrowing Capacity Amount | 30,800,000 | ' | 30,800,000 | ' |
Credit Facility 2011 [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
DebtInstrumentIssuanceDate1 | ' | ' | 28-Jan-11 | ' |
Debt Instrument, Maturity Date | ' | ' | 1-Jan-16 | ' |
Debt Instrument Interest Rate Terms | ' | ' | 'LIBOR or the Base Rate (which is the greatest of the prime rate, the Fed funds rate plus 0.50%, or the one-month LIBOR rate plus 1.00%), in each case plus the Applicable Percentage. | ' |
Debt Instrument Covenant Description | ' | ' | 'The 2011 Secured Credit Facilities required the Company to meet certain financial tests, including a maximum leverage ratio and a minimum fixed charge coverage ratio. For fiscal 2014, the leverage ratio was required to be not greater than 2.5 to 1.0 and the fixed charge coverage ratio was required to be not less than 1.2 to 1.0. | ' |
Revolving Credit Facility 2011 [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Line Of Credit Facility Maximum Borrowing Capacity | 25,000,000 | ' | 25,000,000 | ' |
Secured Debt 2011 [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Debt Instrument Amount Outstanding At Termination | 21,700,000 | ' | 21,700,000 | ' |
Debt Instrument Face Amount | $35,000,000 | ' | $35,000,000 | ' |
Long_Term_Debt_and_Lease_Commi3
Long Term Debt and Lease Commitments (Components) (Details) (USD $) | Nov. 03, 2013 | Feb. 03, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Long-term debt (including current maturities) | $1,997 | $25,743 |
Current maturities of long-term debt | 365 | 2,148 |
Long-term debt, less current maturities | 1,632 | 23,595 |
Secured Debt 2011 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt (including current maturities) | 0 | 24,303 |
Capital Lease Obligations [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt (including current maturities) | $1,997 | $1,440 |
Commitments_and_Contingencies_
Commitments and Contingencies (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Oct. 28, 2012 | Aug. 04, 2013 | Feb. 03, 2013 | Jul. 29, 2012 | Jan. 29, 2012 | |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustments To Previously Recorded Provisions | $1,525,000 | $209,000 | $1,525,000 | $279,000 | ' | ' | ' | ' |
Lease Termination Liability | 2,119,000 | 847,000 | 2,119,000 | 847,000 | 608,000 | 646,000 | 679,000 | 709,000 |
Letters Of Credit Outstanding Amount | 9,200,000 | ' | 9,200,000 | ' | ' | ' | ' | ' |
K2 Asia Litigation [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency Lawsuit Filing Date | ' | ' | 'April 7, 2009 | ' | ' | ' | ' | ' |
Loss Contingency Name Of Plaintiff | ' | ' | 'K2 Asia Ventures | ' | ' | ' | ' | ' |
LossContingencyActionsTakenByPlaintiff | ' | ' | 'On April 7, 2009, a Cayman Islands corporation, K2 Asia Ventures, and its owners filed a lawsuit in Forsyth County, North Carolina Superior Court against the Company, its franchisee in the Philippines, and other persons associated with the franchisee. The suit alleges that the Company and the other defendants conspired to deprive the plaintiffs of claimed “exclusive rights” to negotiate franchise and development agreements with prospective franchisees in the Philippines, and seeks unspecified damages. The Company believes that these allegations are false and intends to vigorously defend against the lawsuit. On July 26, 2013, the Superior Court dismissed the Philippines-based defendants for lack of personal jurisdiction, and the plaintiffs have noticed an appeal of that decision. | ' | ' | ' | ' | ' |
Colchester Security Litigation [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency Lawsuit Filing Date | ' | ' | 'January 27, 2012 | ' | ' | ' | ' | ' |
Loss Contingency Name Of Plaintiff | ' | ' | 'Colchester Security II, LLC | ' | ' | ' | ' | ' |
LossContingencyActionsTakenByPlaintiff | ' | ' | 'On January 27, 2012, Colchester Security II, LLC, the Company's former landlord in Lorton, Virginia, filed a suit against the Company in the Circuit Court of Fairfax County, Virginia alleging breach of the lease and negligence resulting in property damage at a commissary facility previously operated by the Company. The plaintiff sought $2.7 million in damages. The Company denied the allegations and pursued counterclaims of approximately $3.0 million relating to indemnity claims and breach of the lease. | ' | ' | ' | ' | ' |
Loss Contingency, Damages Sought, Value | ' | ' | 2,700,000 | ' | ' | ' | ' | ' |
Gain Contingency, Unrecorded Amount | 3,000,000 | ' | 3,000,000 | ' | ' | ' | ' | ' |
Loss Contingency Trial Or Alternative Dispute Resolution | ' | ' | 'In June and July 2013, the parties tried the case to a judge pro tem pursuant to the Fairfax County Court’s alternate dispute resolution program. Oral argument on the post-trial briefs occurred in October 2013. In late November 2013, the Fairfax County court entered a judgment against the Company with respect to some of the claims by the former landlord, and reserved judgment on an additional claim pending further argument. All of the Company’s counterclaims were denied. Accordingly, in the third quarter of fiscal 2014, the Company recorded an additional lease termination charge of approximately $1.5 million related to this matter. Such charge increased the lease termination accrual for this lease to an aggregate of $1.9 million, representing the amount of the damages awarded and an estimate of plaintiff’s attorney’s fees. Subsequently, the Company reached a settlement with the landlord on all issues for an amount approximating the aggregate accrual, and such settlement currently is being documented. | ' | ' | ' | ' | ' |
Adjustments To Previously Recorded Provisions | ' | ' | 1,500,000 | ' | ' | ' | ' | ' |
Lease Termination Liability | $1,900,000 | ' | $1,900,000 | ' | ' | ' | ' | ' |
Shareholders_Equity_Narrative_
Shareholders' Equity (Narrative) (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |
Nov. 03, 2013 | Nov. 03, 2013 | Nov. 03, 2013 | Nov. 03, 2013 | Oct. 28, 2012 | Oct. 28, 2012 | Nov. 03, 2013 | Nov. 03, 2013 | Oct. 28, 2012 | Oct. 28, 2012 | |
Share repurchase 2013 program [Member] | Share repurchase 2012 program [Member] | Common Shares Outstanding [Member] | Common Shares Outstanding [Member] | Common Shares Outstanding [Member] | Common Shares Outstanding [Member] | Common Stock | Common Stock | Common Stock | Common Stock | |
Share repurchase 2013 program [Member] | Share repurchase 2013 program [Member] | Share repurchase 2012 program [Member] | Share repurchase 2012 program [Member] | Share repurchase 2013 program [Member] | Share repurchase 2013 program [Member] | Share repurchase 2012 program [Member] | Share repurchase 2012 program [Member] | |||
Equity Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program Authorized Amount | $50,000,000 | $20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased Authorized During Period Shares | 33,000 | 3,113,000 | 33,000 | 33,000 | 0 | 3,113,000 | ' | ' | ' | ' |
Stock Acquired Average Cost Per Share | $18.88 | $6.42 | ' | ' | ' | ' | ' | ' | ' | ' |
Shares repurchased under share repurchase authorization | $627,000 | $20,000,000 | ' | ' | ' | ' | $627,000 | $627,000 | $0 | $20,000,000 |
Shareholders_Equity_Sharebased
Shareholders' Equity (Share-based compensation) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Oct. 28, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award And Income Statement Location [Line Items] | ' | ' | ' | ' |
Share-based compensation | $1,293 | $1,422 | $3,160 | $3,570 |
Stock Options [Member] | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award And Income Statement Location [Line Items] | ' | ' | ' | ' |
Share-based compensation | 216 | 234 | 651 | 1,295 |
Restricted Stock [Member] | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award And Income Statement Location [Line Items] | ' | ' | ' | ' |
Share-based compensation | 1,077 | 1,188 | 2,509 | 2,275 |
Direct Operating Expense [Member] | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award And Income Statement Location [Line Items] | ' | ' | ' | ' |
Share-based compensation | 737 | 864 | 1,704 | 1,591 |
General and Administrative Expense [Member] | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award And Income Statement Location [Line Items] | ' | ' | ' | ' |
Share-based compensation | $556 | $558 | $1,456 | $1,979 |
Shareholders_Equity_Share_repu
Shareholder's Equity (Share repurchase) (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||
Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Nov. 03, 2013 | Nov. 03, 2013 | Nov. 03, 2013 | Oct. 28, 2012 | Oct. 28, 2012 | Nov. 03, 2013 | Nov. 03, 2013 | Oct. 28, 2012 | Oct. 28, 2012 | |
Share repurchase 2013 program [Member] | Share repurchase 2012 program [Member] | Common Shares Outstanding [Member] | Common Shares Outstanding [Member] | Common Shares Outstanding [Member] | Common Shares Outstanding [Member] | Common Stock | Common Stock | Common Stock | Common Stock | |||
Share repurchase 2013 program [Member] | Share repurchase 2013 program [Member] | Share repurchase 2012 program [Member] | Share repurchase 2012 program [Member] | Share repurchase 2013 program [Member] | Share repurchase 2013 program [Member] | Share repurchase 2012 program [Member] | Share repurchase 2012 program [Member] | |||||
Equity Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased Authorized During Period Shares | ' | ' | 33,000 | 3,113,000 | 33,000 | 33,000 | 0 | 3,113,000 | ' | ' | ' | ' |
Shares surrendered in reimbursement for withholding taxes | ' | ' | ' | ' | 105,000 | 105,000 | 100,000 | 100,000 | ' | ' | ' | ' |
Repurchase of common shares | ' | ' | ' | ' | 138,000 | 138,000 | 100,000 | 3,213,000 | ' | ' | ' | ' |
Shares repurchased under share repurchase authorization | ' | ' | $627,000 | $20,000,000 | ' | ' | ' | ' | $627,000 | $627,000 | $0 | $20,000,000 |
Shares surrendered in reimbursement for withholding taxes | ' | ' | ' | ' | ' | ' | ' | ' | 2,026,000 | 2,026,000 | 758,000 | 758,000 |
Repurchase of common shares | $2,653,000 | $20,758,000 | ' | ' | ' | ' | ' | ' | $2,653,000 | $2,653,000 | $758,000 | $20,758,000 |
Impairment_Charges_and_Lease_T2
Impairment Charges and Lease Terminaion Costs (Narratives) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Oct. 28, 2012 | |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Adjustments To Previously Recorded Provisions | $1,525,000 | $209,000 | $1,525,000 | $279,000 |
Lease Termination Liability Current | 2,000,000 | ' | 2,000,000 | ' |
Colchester Security Litigation [Member] | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Adjustments To Previously Recorded Provisions | ' | ' | $1,500,000 | ' |
Impairment_Charges_and_Lease_T3
Impairment Charges and Lease Termination Costs (components of impairment charges and lease termination costs) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Oct. 28, 2012 |
Impairment Charges And Lease Termination Costs Disclosure [Abstract] | ' | ' | ' | ' |
Impairment of long-lived assets | $0 | $0 | $0 | $0 |
Lease termination costs | 1,531 | 216 | 1,543 | 302 |
Total impairment charges and lease termination costs | $1,531 | $216 | $1,543 | $302 |
Impairment_Charges_and_Lease_T4
Impairment Charges and Lease Termination Costs (accrual for lease termination costs) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Oct. 28, 2012 |
Lease Termination Costs [RollForward] | ' | ' | ' | ' |
Balance | $608 | $679 | $646 | $709 |
Adjustments to previously recorded provisions resulting from settlements with lessors and adjustments of previous estimates | 1,525 | 209 | 1,525 | 279 |
Accretion of discount | 6 | 7 | 18 | 23 |
Total provision | 1,531 | 216 | 1,543 | 302 |
Payments on unexpired leases, including settlements with lessors | -20 | -48 | -70 | -164 |
Balance | $2,119 | $847 | $2,119 | $847 |
Fair_Value_Measurement_Assets_
Fair Value Measurement (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (USD $) | Nov. 03, 2013 | Feb. 03, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest rate derivative | $0 | $16 |
Agricultural Commodity Futures Contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Commodity future contracts - Assets | 116 | 0 |
Commodity future contracts - Liabilities | 0 | 15 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
401(k) mirror plan assets | 2,546 | 1,816 |
Interest rate derivative | ' | 0 |
Total Assets | 2,662 | 1,816 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Agricultural Commodity Futures Contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Commodity future contracts - Assets | 116 | ' |
Commodity future contracts - Liabilities | ' | 15 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
401(k) mirror plan assets | 0 | 0 |
Interest rate derivative | ' | 16 |
Total Assets | 0 | 16 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Agricultural Commodity Futures Contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Commodity future contracts - Assets | 0 | ' |
Commodity future contracts - Liabilities | ' | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
401(k) mirror plan assets | 0 | 0 |
Interest rate derivative | ' | 0 |
Total Assets | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Agricultural Commodity Futures Contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Commodity future contracts - Assets | 0 | ' |
Commodity future contracts - Liabilities | ' | $0 |
Fair_Value_Measurement_Assets_1
Fair Value Measurement (Assets and Liabilities Measured at Fair Value and carrying value) (Details) (USD $) | Nov. 03, 2013 | Feb. 03, 2013 | Oct. 28, 2012 | Jan. 29, 2012 |
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ' | ' |
Cash and cash equivalents | $66,745 | $66,332 | $49,903 | $44,319 |
Receivables | 28,111 | 25,627 | ' | ' |
Receivables from equity method franchisees | 683 | 705 | ' | ' |
Interest rate derivatives | 0 | 16 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Accounts payable | 14,427 | 12,198 | ' | ' |
Long-term debt (including current maturities) | 1,997 | 25,743 | ' | ' |
Fair Values By Balance Sheet Grouping [Abstract] | ' | ' | ' | ' |
Cash and Cash Equivalents, Fair Value Disclosure | 66,745 | 66,332 | ' | ' |
Accounts Receivable, Fair Value Disclosure | 28,111 | 25,627 | ' | ' |
Due From Related Parties Current Fair Value Disclosure | 683 | 705 | ' | ' |
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 16 | ' | ' |
Accounts Payable, Fair Value Disclosure | 14,427 | 12,198 | ' | ' |
Long-term Debt, Fair Value | 1,997 | 25,743 | ' | ' |
Agricultural Commodity Futures Contracts [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Commodity future contracts - Assets | 116 | 0 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Comodity future contracts - Liabilities | 0 | 15 | ' | ' |
Fair Values By Balance Sheet Grouping [Abstract] | ' | ' | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 116 | 0 | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $0 | $15 | ' | ' |
Derivative_Narratives_Details
Derivative (Narratives) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Oct. 28, 2012 | |
Derivative [Line Items] | ' | ' | ' | ' |
Loss on cash flow hedge reclassified to net income previously charged to other comprehensive income | $0 | $0 | $516,000 | $0 |
Agricultural Commodity Futures Contracts [Member] | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Derivative Nonmonetary Notional Amount | 770,000 | ' | 770,000 | ' |
March 2011 Interest Rate Derivative Contract [Member] | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Derivative, Inception Date | ' | ' | 3-Mar-11 | ' |
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | 17,500,000 | ' | 17,500,000 | ' |
Derivative, Description of Variable Rate Basis | ' | ' | 'three-month LIBOR rate over 3.00% | ' |
Derivative Effective Dates | ' | ' | 1-Apr-12 | ' |
Derivative, Maturity Date | ' | ' | 1-Dec-15 | ' |
Derivative, Description of Terms | ' | ' | 'The derivative contract entitled the Company to receive from the counterparty the excess, if any, of the three-month LIBOR rate over 3.00% for each of the calendar quarters in the period beginning April 2012 and ending December 2015. The Company accounted for this derivative contract as a cash flow hedge. | ' |
Derivative Termination Date | ' | ' | 'July 2013 | ' |
Loss on cash flow hedge reclassified to net income previously charged to other comprehensive income | ' | ' | $516,000 | ' |
Derivative_Effect_of_Derivativ
Derivative (Effect of Derivative Instruments by Balance Sheet locations) (Details) (USD $) | Nov. 03, 2013 | Feb. 03, 2013 | Nov. 03, 2013 | Feb. 03, 2013 | Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Feb. 03, 2013 | Nov. 03, 2013 | Feb. 03, 2013 |
In Thousands, unless otherwise specified | Agricultural Commodity Futures Contracts [Member] | Agricultural Commodity Futures Contracts [Member] | Other Current Assets [Member] | Other Current Assets [Member] | Accrued Liabilities [Member] | Accrued Liabilities [Member] | Other Assets [Member] | Other Assets [Member] | ||
Agricultural Commodity Futures Contracts [Member] | Agricultural Commodity Futures Contracts [Member] | Agricultural Commodity Futures Contracts [Member] | Agricultural Commodity Futures Contracts [Member] | |||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | ' | ' | $116 | $0 | $116 | $0 | ' | ' | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | ' | ' | 0 | 15 | ' | ' | 0 | 15 | ' | ' |
Interest Rate Cash Flow Hedge Asset at Fair Value | $0 | $16 | ' | ' | ' | ' | ' | ' | $0 | $16 |
Derivative_InstrumentsEffect_o
Derivative Instruments(Effect of Derivative Instuments by Income Statement Location) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Oct. 28, 2012 | |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | ' | ' | ' | ' |
Unrealized gain (loss) on cash flow hedge | $0 | $0 | $36,000 | ($14,000) |
Less income taxes | 0 | 0 | -14,000 | 5,000 |
Unrealized loss on cash flow hedge, net of income taxes | 0 | 0 | 22,000 | -9,000 |
Loss on cash flow hedge reclassified to net income previously charged to other comprehensive income | 0 | 0 | 516,000 | 0 |
Less income taxes | 0 | 0 | -200,000 | 0 |
Loss Reclassification Adjustment On Derivatives Included In Net Income Net Of Tax | 0 | 0 | 316,000 | 0 |
Total other comprehensive income (loss) | 0 | 0 | 338,000 | -9,000 |
Direct Operating Expense [Member] | Agricultural Commodity Futures Contracts [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net [Abstract] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -53,000 | -110,000 | -633,000 | 1,007,000 |
Interest Expense [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net [Abstract] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 0 | -10,000 | -39,000 | -19,000 |
Loss On Refinancing Of Debt [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net [Abstract] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $0 | $0 | ($516,000) | $0 |
Acquisitions_and_Divestitures_
Acquisitions and Divestitures (Narratives) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||||||
Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Nov. 03, 2013 | Nov. 03, 2013 | Nov. 03, 2013 | Feb. 03, 2013 | Nov. 03, 2013 | |
August 2012 Business Acquisition [Member] | February 2013 Divestiture [Member] | August 2006 Asset Acquisition [Member] | September 2012 Divestiture [Member] | September 2012 Divestiture [Member] | July 2013 Divestiture [Member] | |||||
Schedule Of Acquisitions And Divestitures [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition Effective Date Of Acquisition1 | ' | ' | ' | ' | 30-Aug-12 | ' | ' | ' | ' | 11-Jul-13 |
Payments to Acquire Businesses, Net of Cash Acquired | ' | ' | $0 | $915,000 | $915,000 | ' | ' | ' | ' | ' |
Number Of Stores Acquired | ' | ' | ' | ' | 'two | ' | ' | ' | ' | ' |
Business Acquisition, Purchase Price Allocation, Property, Plant and Equipment | ' | ' | ' | ' | 464,000 | ' | ' | ' | ' | ' |
Business Acquisition Purchase Price Allocation Other Assets | ' | ' | ' | ' | 8,000 | ' | ' | ' | ' | ' |
Business Acquisition Purchase Price Allocation Intangible assets | ' | ' | ' | ' | 443,000 | ' | ' | ' | ' | ' |
Asset Sale Effective Date Of Sale | ' | ' | ' | ' | ' | 22-Feb-13 | ' | 27-Sep-12 | ' | ' |
Number Of Stores Sold | ' | ' | ' | ' | ' | 'three | ' | 'three | ' | 'three |
Payments To Acquire Store Assets | ' | ' | ' | ' | ' | ' | 2,900,000 | ' | ' | ' |
Total Purchase Price From Sale Of Assets | ' | ' | ' | ' | ' | 1,100,000 | ' | 3,600,000 | ' | ' |
Proceeds from refranchising | ' | ' | 681,000 | 0 | ' | ' | ' | 360,000 | ' | 681,000 |
Stores Divestiture Revenue | ' | ' | ' | ' | ' | 9,000,000 | ' | ' | ' | 7,000,000 |
Wholesale sales percent of divested stores sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45.00% |
(Gain) on refranchising | ' | ' | 876,000 | 0 | ' | ' | ' | ' | ' | 876,000 |
Portion Of Gain Related To Equipment On Disposition Of Stores | ' | ' | ' | ' | ' | ' | ' | ' | ' | 462,000 |
Reversal Of Accrued Rent Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 414,000 |
Stores required to be developed | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 |
Notes Receivable Due Gross | ' | ' | ' | ' | ' | 1,100,000 | ' | 3,200,000 | ' | ' |
Notes Receivable Periodic Payment | ' | ' | ' | ' | ' | ' | ' | 51,000 | ' | ' |
Percent Of Sales Used To Calculate Note Receivable Principal Payment | ' | ' | ' | ' | ' | 3.50% | ' | ' | ' | ' |
Notes Receivable Interest Rate | ' | ' | ' | ' | ' | '7% | ' | ' | ' | ' |
Note Receivable Initial Payment Due Date | ' | ' | ' | ' | ' | 1-Feb-13 | ' | 1-Nov-12 | ' | ' |
Note Receivable Due Date | ' | ' | ' | ' | ' | ' | ' | 1-Oct-17 | ' | ' |
Assets Sold Carrying Amounts | ' | ' | ' | ' | ' | ' | ' | 1,900,000 | ' | ' |
Deferred Gain on Sale of Property | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | 1,700,000 | ' |
Percent Investment Must Exceed To Consider Gain Recognition | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' |
Gain on disposal of property and equipment | ' | ' | 1,930,000 | -468,000 | ' | ' | ' | 1,700,000 | ' | ' |
Interest income | $341,000 | $14,000 | $472,000 | $102,000 | ' | ' | ' | $210,000 | ' | ' |
Number Of Stores Leased To Franchisee Related To Divestiture | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'two |