Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Feb. 01, 2015 | Mar. 20, 2015 | Aug. 03, 2014 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | 1-Feb-15 | ||
Amendment Flag | FALSE | ||
Entity Registrant Name | KRISPY KREME DOUGHNUTS INC | ||
Entity Central Index Key | 1100270 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | 1 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Common Stock Shares Outstanding | 64,927,711 | ||
Entity Public Float | $955,000,000 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | kkd |
CONSOLIDATED_STATEMENT_OF_INCO
CONSOLIDATED STATEMENT OF INCOME (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Feb. 01, 2015 | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Aug. 04, 2013 | 5-May-13 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
CONSOLIDATED STATEMENT OF INCOME [Abstract] | |||||||||||
Revenues | $125,367 | $122,871 | $120,516 | $121,580 | $112,746 | $114,231 | $112,729 | $120,625 | $490,334 | $460,331 | $435,843 |
Operating expenses: | |||||||||||
Direct operating expenses (exclusive of depreciation and amortization expense shown below) | 102,323 | 101,165 | 101,084 | 95,172 | 93,302 | 92,466 | 93,806 | 96,558 | 399,744 | 376,132 | 362,828 |
General and administrative expenses | 9,221 | 5,553 | 6,737 | 7,047 | 7,709 | 5,730 | 5,655 | 6,055 | 28,558 | 25,149 | 25,089 |
Depreciation and amortization expense | 3,354 | 3,280 | 3,033 | 3,173 | 2,834 | 2,788 | 2,664 | 2,820 | 12,840 | 11,106 | 9,891 |
Impairment charges and lease termination costs | 905 | 4 | 38 | 8 | -169 | 1,531 | 4 | 8 | 955 | 1,374 | 306 |
Operating income | 9,564 | 12,869 | 9,624 | 16,180 | 9,070 | 11,716 | 10,600 | 15,184 | 48,237 | 46,570 | 37,729 |
Interest income | 109 | 62 | 64 | 171 | 144 | 341 | 70 | 61 | 406 | 616 | 114 |
Interest expense | -321 | -230 | -162 | -143 | -135 | -131 | -354 | -437 | -856 | -1,057 | -1,642 |
Loss on retirement of debt | -967 | -967 | |||||||||
Equity in losses of equity method franchisees | 53 | -53 | -61 | -57 | -47 | -61 | -60 | -53 | -118 | -221 | -202 |
Other non-operating income and (expense), net | 136 | 91 | 152 | 168 | 96 | 29 | -1 | -5 | 547 | 119 | 317 |
Income before income taxes | 9,541 | 12,739 | 9,617 | 16,319 | 9,128 | 11,894 | 9,288 | 14,750 | 48,216 | 45,060 | 36,316 |
Provision for income taxes | 2,995 | 4,633 | 3,865 | 6,663 | -5,632 | 5,114 | 4,571 | 6,751 | 18,156 | 10,804 | 15,537 |
Net income | $6,546 | $8,106 | $5,752 | $9,656 | $14,760 | $6,780 | $4,717 | $7,999 | $30,060 | $34,256 | $20,779 |
Earnings per common share: | |||||||||||
Basic | $0.10 | $0.12 | $0.09 | $0.15 | $0.22 | $0.10 | $0.07 | $0.12 | $0.45 | $0.51 | $0.31 |
Diluted | $0.10 | $0.12 | $0.08 | $0.14 | $0.21 | $0.09 | $0.07 | $0.11 | $0.44 | $0.48 | $0.30 |
CONSOLIDATED_STATEMENT_OF_COMP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Aug. 04, 2013 | 5-May-13 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME [Abstract] | |||||||||||
Net income | $6,546 | $8,106 | $5,752 | $9,656 | $14,760 | $6,780 | $4,717 | $7,999 | $30,060 | $34,256 | $20,779 |
Other comprehensive income (loss): | |||||||||||
Unrealized gain (loss) on cash flow hedge | 36 | -3 | |||||||||
Less income taxes | -14 | 1 | |||||||||
Unrealized gain on cash flow hedge, net of taxes | 22 | -2 | |||||||||
Loss on cash flow hedge reclassified to net income, previously charged to other comprehensive income | 516 | ||||||||||
Less income taxes | -200 | ||||||||||
Loss on cash flow hedge reclassified to net income, previously charged to other comprehensive income, net of taxes | 316 | ||||||||||
Total other comprehensive income (loss) | 338 | -2 | |||||||||
Comprehensive income | $30,060 | $34,594 | $20,777 |
CONSOLIDATED_BALANCE_SHEET
CONSOLIDATED BALANCE SHEET (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $50,971 | $55,748 |
Receivables | 27,799 | 25,268 |
Receivables from equity method franchisees | 782 | 675 |
Inventories | 18,194 | 16,750 |
Deferred income taxes | 23,245 | 23,847 |
Other current assets | 6,856 | 5,199 |
Total current assets | 127,847 | 127,487 |
Property and equipment | 115,758 | 92,823 |
Investments in equity method franchisees | ||
Goodwill and other intangible assets | 30,070 | 24,097 |
Deferred income taxes | 68,278 | 83,461 |
Other assets | 10,760 | 10,678 |
Total assets | 352,713 | 338,546 |
CURRENT LIABILITIES: | ||
Current portion of lease obligations | 333 | 344 |
Accounts payable | 17,095 | 16,788 |
Accrued liabilities | 32,530 | 29,276 |
Total current liabilities | 49,958 | 46,408 |
Lease obligations, less current portion | 9,354 | 1,659 |
Other long-term obligations and deferred credits | 25,615 | 25,386 |
Commitments and contingencies | ||
SHAREHOLDERS' EQUITY: | ||
Preferred stock, no par value; 10,000 shares authorized; none issued and outstanding | ||
Common stock, no par value; 300,000 shares authorized; shares issued and outstanding: February 1, 2015 - 64,926 and February 2, 2014 - 64,940 | 310,768 | 338,135 |
Accumulated other comprehensive income | ||
Accumulated deficit | -42,982 | -73,042 |
Total shareholders equity | 267,786 | 265,093 |
Total liabilities and shareholders' equity | $352,713 | $338,546 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parentheticals) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEET [Abstract] | ||
Preferred stock, par value per share | ||
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | ||
Common stock, shares authorized | 300,000 | 300,000 |
Common stock, shares issued | 64,926 | 64,940 |
Common stock, shares outstanding | 64,926 | 64,940 |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $30,060 | $34,256 | $20,779 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 12,840 | 11,106 | 9,891 |
Deferred income taxes | 15,729 | 8,014 | 13,413 |
Impairment charges | 901 | ||
Accrued rent expense | 789 | 784 | 585 |
Loss on retirement of debt | 967 | ||
(Gain) loss on disposal of property and equipment | 238 | -1,879 | 543 |
(Gain) on refranchising | -1,247 | -876 | |
Share-based compensation | 4,466 | 6,452 | 6,801 |
Provision for doubtful accounts | 90 | -345 | 194 |
Amortization of deferred financing costs | 108 | 285 | 398 |
Equity in losses of equity method franchisees | 118 | 221 | 202 |
Unrealized losses on commodity derivative positions | 1,498 | 298 | 36 |
Other | 23 | 27 | -255 |
Change in assets and liabilities: | |||
Receivables | -3,962 | 556 | -248 |
Inventories | -1,343 | -4,553 | 299 |
Other current and non-current assets | -2,358 | 1,917 | -1,012 |
Accounts payable and accrued liabilities | 4,867 | -1,913 | 4,740 |
Other long-term obligations and deferred credits | 57 | 1,595 | 2,944 |
Net cash provided by operating activities | 62,874 | 56,912 | 59,310 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | -31,447 | -23,419 | -14,218 |
Proceeds from disposals of property and equipment | 2,341 | 1,719 | 178 |
Proceeds from refranchising | 1,847 | 681 | |
Acquisition of stores from franchisees | -7,152 | -1,603 | -915 |
Other investing activities | 766 | 456 | 517 |
Net cash used for investing activities | -33,645 | -22,166 | -14,438 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayment of long-term debt and lease obligations | -384 | -24,658 | -2,346 |
Deferred financing costs | -132 | -11 | |
Proceeds from exercise of stock options | 10,259 | 2,517 | 247 |
Proceeds from exercise of warrants | 9 | ||
Repurchase of common shares | -43,881 | -23,057 | -20,758 |
Net cash used for financing activities | -34,006 | -45,330 | -22,859 |
Net increase (decrease) in cash and cash equivalents | -4,777 | -10,584 | 22,013 |
Cash and cash equivalents at beginning of year | 55,748 | 66,332 | 44,319 |
Cash and cash equivalents at end of year | 50,971 | 55,748 | 66,332 |
Supplemental schedule of non-cash investing and financing activities: | |||
Assets acquired under leasing arrangements | $8,045 | $918 | $516 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
In Thousands, except Share data | ||||
Beginning Balance at Jan. 29, 2012 | $249,126 | $377,539 | ($336) | ($128,077) |
Balance, shares at Jan. 29, 2012 | 68,092,000 | |||
Comprehensive income (loss) | 20,777 | -2 | 20,779 | |
Write-off of deferred tax assets related to the expiration of unexercised stock warrants | -9,770 | -9,770 | ||
Exercise of warrants | 9 | 9 | ||
Exercise of warrants, shares | 1,000 | |||
Exercise of stock options | 247 | 247 | ||
Exercise of stock options, shares | 128,000 | 128,000 | ||
Share-based compensation | 6,801 | 6,801 | ||
Share-based compensation, shares | 348,000 | |||
Repurchase of common shares | -20,758 | -20,758 | ||
Repurchase of common shares, shares | -3,213,000 | -3,213,000 | ||
Ending Balance at Feb. 03, 2013 | 246,432 | 354,068 | -338 | -107,298 |
Balance, shares at Feb. 03, 2013 | 65,356,000 | |||
Comprehensive income (loss) | 34,594 | 338 | 34,256 | |
Exercise of stock options | 2,517 | 2,517 | ||
Exercise of stock options, shares | 459,500 | 460,000 | ||
Share-based compensation | 6,452 | 6,452 | ||
Share-based compensation, shares | 445,000 | |||
Repurchase of common shares | -24,902 | -24,902 | ||
Repurchase of common shares, shares | -1,321,000 | -1,321,000 | ||
Ending Balance at Feb. 02, 2014 | 265,093 | 338,135 | -73,042 | |
Balance, shares at Feb. 02, 2014 | 64,940,000 | 64,940,000 | ||
Comprehensive income (loss) | 30,060 | 30,060 | ||
Write-off of deferred tax assets related to the expiration of unexercised stock options | -56 | -56 | ||
Exercise of stock options | 10,259 | 10,259 | ||
Exercise of stock options, shares | 1,929,600 | 1,930,000 | ||
Share-based compensation | 4,466 | 4,466 | ||
Share-based compensation, shares | 446,000 | |||
Repurchase of common shares | -42,036 | -42,036 | ||
Repurchase of common shares, shares | -2,390,000 | -2,390,000 | ||
Ending Balance at Feb. 01, 2015 | $267,786 | $310,768 | ($42,982) | |
Balance, shares at Feb. 01, 2015 | 64,926,000 | 64,926,000 |
Accounting_Policies
Accounting Policies | 12 Months Ended | |||||||||||||||||
Feb. 01, 2015 | ||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||
Accounting Policies | 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 licenses the Krispy Kreme business model and certain of its intellectual property to franchisees in the United States and over 20 other countries around the world, and derives revenue from franchise and development fees and royalties from those franchisees. Additionally, the Company sells doughnut mixes, other ingredients and supplies and doughnut-making equipment to franchisees. | ||||||||||||||||||
Significant Accounting Policies | ||||||||||||||||||
The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The significant accounting policies followed by the Company in preparing the accompanying consolidated financial statements are as follows: | ||||||||||||||||||
BASIS OF CONSOLIDATION. The financial statements include the accounts of KKDI and its subsidiaries. | ||||||||||||||||||
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. | ||||||||||||||||||
REVENUE RECOGNITION. Revenue is recognized when there is a contract or other arrangement of sale; the sales price is fixed or determinable; title and the risks of ownership have been transferred to the customer; and collection of the receivable is reasonably assured. A summary of the revenue recognition policies for the Company's business segments is as follows: | ||||||||||||||||||
Company Stores revenue is derived from the sale of doughnuts and complementary products to on-premises and wholesale customers. Revenue is recognized at the time of delivery for on-premises sales. For wholesale sales, revenue is recognized either at the time of delivery, net of provisions for estimated product returns, or, with respect to those wholesale customers that take title to products purchased from the Company at the time those products are sold by the wholesale customer to consumers, simultaneously with such consumer purchases. | ||||||||||||||||||
Domestic and International Franchise revenue is derived from development and initial franchise fees relating to new store openings and ongoing royalties charged to franchisees based on their sales. Development and franchise fees are recognized when the store is opened, at which time the Company has performed substantially all of the initial services it is required to provide. Royalties are recognized in income as underlying franchisee sales occur unless there is significant uncertainty concerning the collectibility of such revenues, in which case royalty revenues are recognized when received. | ||||||||||||||||||
KK Supply Chain revenue is derived from the sale of doughnut mix, other ingredients and supplies and doughnut-making equipment. Revenues for the sale of doughnut mix and supplies are recognized upon delivery to the customer or, in the case of franchisees located outside North America, when the goods are loaded on the transport vessel at the U.S. port. Revenue for equipment sales and installation associated with new store openings is recognized at the store opening date. Revenue for equipment sales not associated with new store openings is recognized when the equipment is installed if the Company is responsible for the installation, and otherwise upon shipment of the equipment. | ||||||||||||||||||
FISCAL YEAR. The Company's fiscal year ends on the Sunday closest to January 31, which periodically results in a 53-week year. Fiscal 2015 and fiscal 2014 each contained 52 weeks, while fiscal 2013 contained 53 weeks. | ||||||||||||||||||
CASH AND CASH EQUIVALENTS. The Company considers cash on hand, demand deposits in banks and all highly liquid debt instruments with an original maturity of three months or less to be cash and cash equivalents. | ||||||||||||||||||
ALLOWANCE FOR DOUBTFUL ACCOUNTS. The Company maintains allowances for doubtful accounts related to its accounts receivable, including receivables from franchisees, in amounts which management believes are sufficient to provide for losses estimated to be sustained on realization of these receivables. Such estimates inherently involve uncertainties and assessments of the outcome of future events, and changes in facts and circumstances may result in adjustments to the allowance for doubtful accounts. | ||||||||||||||||||
INVENTORIES. Inventories are recorded at the lower of cost or market, with cost determined using the first-in, first-out method. | ||||||||||||||||||
PROPERTY AND EQUIPMENT. Depreciation of property and equipment is provided using the straight-line method over the assets' estimated useful lives, which are as follows: buildings — 5 to 35 years; machinery and equipment — 3 to 15 years; computer software — 3 to 10 years; and leasehold improvements — 5 to 20 years. | ||||||||||||||||||
REACQUIRED FRANCHISE RIGHTS. Franchise rights reacquired in connection with business combinations are valued based on the present value of the cash flows of the acquired business and are amortized on a straight-line basis from the acquisition date through the expiration date of the terminated franchise agreement. | ||||||||||||||||||
GOODWILL. Goodwill represents the excess of the purchase price over the value of identifiable net assets acquired in business combinations. Goodwill has an indefinite life and is not amortized, but is tested for impairment annually or more frequently if events or circumstances indicate the carrying amount of the asset may be impaired. Such impairment testing is performed for each reporting unit to which goodwill has been assigned. | ||||||||||||||||||
LEGAL COSTS. Legal costs associated with litigation and other loss contingencies are charged to expense as services are rendered. | ||||||||||||||||||
ASSET IMPAIRMENT. The Company assesses asset groups for potential impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The assessment is based upon a comparison of the carrying amount of the asset group, consisting primarily of property and equipment, to the estimated undiscounted cash flows expected to be generated from the asset group. To estimate cash flows, management projects the net cash flows anticipated from continuing operation of the asset group or store until its closing or abandonment as well as cash flows, if any, anticipated from disposal of the related assets. If the carrying amount of the assets exceeds the sum of the undiscounted cash flows, the Company records an impairment charge in an amount equal to the excess of the carrying value of the assets over their estimated fair value. | ||||||||||||||||||
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 shares of restricted stock and restricted stock units. | ||||||||||||||||||
The following table sets forth amounts used in the computation of basic and diluted earnings per share: | ||||||||||||||||||
Year Ended | ||||||||||||||||||
February 1, | February 2, | February 3, | ||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||
(In thousands) | ||||||||||||||||||
Numerator: net income | $ | 30,060 | $ | 34,256 | $ | 20,779 | ||||||||||||
Denominator: | ||||||||||||||||||
Basic earnings per share - weighted average shares | ||||||||||||||||||
outstanding | 66,360 | 67,261 | 67,624 | |||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||
Stock options and warrants | 2,037 | 2,998 | 1,781 | |||||||||||||||
Restricted stock and restricted stock units | 532 | 795 | 491 | |||||||||||||||
Diluted earnings per share - weighted average shares | ||||||||||||||||||
outstanding plus dilutive potential common shares | 68,929 | 71,054 | 69,896 | |||||||||||||||
Stock options and warrants with respect to 257,000, 301,000 and 2.7 million shares for fiscal 2015, fiscal 2014 and fiscal 2013, respectively, as well as 57,000 and 98,000 unvested shares of restricted stock and unvested restricted stock units for fiscal 2015 and fiscal 2013, 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. There were no antidilutive unvested shares of restricted stock and unvested restricted stock units in fiscal 2014. | ||||||||||||||||||
SHARE-BASED COMPENSATION. The Company measures and recognizes compensation expense for share-based payment awards by charging the fair value of each award at its grant date to earnings over the service period necessary for each award to vest. | ||||||||||||||||||
MARKETING AND BRAND PROMOTION. Costs associated with the Company's products including advertising and other brand promotional activities are expensed as incurred, and were approximately $9.8 million, $8.2 million and $7.5 million in fiscal 2015, 2014 and 2013, respectively. | ||||||||||||||||||
CONCENTRATION OF CREDIT RISK. Financial instruments that subject the Company to credit risk consist principally of receivables from wholesale customers and franchisees, guarantees of certain franchisee leases and, in prior years, guarantees of certain indebtedness of franchisees. Wholesale receivables are primarily from grocer/mass merchants and convenience stores. The Company maintains allowances for doubtful accounts which management believes are sufficient to provide for losses which may be sustained on realization of these receivables. In fiscal 2015, 2014 and 2013, no customer accounted for more than 10% of Company Stores segment revenues. The two largest wholesale customers collectively accounted for approximately 16%, 17% and 16% of Company Stores segment revenues in fiscal 2015, 2014 and 2013, respectively. The two wholesale customers with the largest trade receivables balances collectively accounted for approximately 24% and 27% of total wholesale customer receivables at February 1, 2015 and February 2, 2014, respectively. | ||||||||||||||||||
The Company also evaluates the recoverability of receivables from its franchisees and maintains allowances for doubtful accounts which management believes are sufficient to provide for losses which may be sustained on realization of these receivables. In addition, the Company evaluates the likelihood of potential payments by the Company under loan and lease guarantees and records estimated liabilities for payments the Company considers probable. | ||||||||||||||||||
SELF-INSURANCE RISKS AND RECEIVABLES FROM INSURERS. The Company is subject to workers' compensation, vehicle and general liability claims. The Company is self-insured for the cost of all workers' compensation, vehicle and general liability claims up to the amount of stop-loss insurance coverage purchased by the Company from commercial insurance carriers. The Company maintains accruals for the estimated cost of claims, without regard to the effects of stop-loss coverage, using actuarial methods which evaluate known open and incurred but not reported claims and consider historical loss development experience. In addition, the Company records receivables from the insurance carriers for claims amounts estimated to be recovered under the stop-loss insurance policies when these amounts are estimable and probable of collection. The Company estimates such stop-loss receivables using the same actuarial methods used to establish the related claims accruals, and taking into account the amount of risk transferred to the carriers under the stop-loss policies. The stop-loss policies provide coverage for claims in excess of retained self-insurance risks, which are determined on a claim-by-claim basis. | ||||||||||||||||||
The Company recorded favorable adjustments to its self-insurance claims liabilities related to prior years of approximately $1.7 million, $1.1 million and $730,000 in fiscal 2015, 2014 and 2013, respectively. Such adjustments represent changes in estimates of the ultimate cost of incurred claims. | ||||||||||||||||||
The Company provides health and medical benefits to eligible employees, and purchases stop-loss insurance from commercial insurance carriers which pays covered medical costs in excess of a specified annual amount incurred by each claimant. | ||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS AND DERIVATIVE COMMODITY INSTRUMENTS. The Company reflects derivative financial instruments, which typically consist of interest rate derivatives and commodity futures contracts and options on such contracts, in the consolidated balance sheet at their fair value. The difference between the cost, if any, and the fair value of the interest rate derivatives is reflected in income unless the derivative instrument qualifies as a cash flow hedge and is effective in offsetting future cash flows of the underlying hedged item, in which case such amount is reflected in other comprehensive income. 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 cash flow hedges. | ||||||||||||||||||
COMPREHENSIVE INCOME. Accounting standards on reporting comprehensive income require that certain items, including mark-to-market adjustments on interest rate 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. | ||||||||||||||||||
USE OF ESTIMATES. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results will differ from these estimates, and the differences could be material. | ||||||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||||
In February 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update ("ASU") No. 2015-02, "Consolidation: Amendments to the Consolidation Analysis." This update improves targeted areas of the consolidation guidance and reduces the number of consolidation models. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2015. Adoption of this guidance is not expected to have any effect on the Company's consolidated financial statements. | ||||||||||||||||||
In June 2014, the FASB issued ASU No. 2014-12, “Compensation – Stock Compensation”, an update to its accounting guidance related to share-based compensation. The guidance requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition, and therefore shall not be reflected in determining the fair value of the award at the grant date. The guidance is effective for annual and interim periods beginning after December 15, 2015; adoption of this guidance is not expected to have any effect on the Company's consolidated financial statements. | ||||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” to clarify the principles used to recognize revenue for all entities. The guidance is effective for annual and interim periods beginning after December 15, 2016. The Company will evaluate the effects, if any, adoption of this guidance will have on the Company's consolidated financial statements. | ||||||||||||||||||
In April 2014, the FASB issued ASU No. 2014-08, “Reporting Discontinued Operations and Disposals of Components of an Entity,” which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. The guidance is effective for annual and interim periods beginning after December 15, 2014. Adoption of this guidance could have an effect on the Company's presentation and disclosure of a future disposal compared to prior GAAP. | ||||||||||||||||||
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | |||||||||||||
Segment Information [Abstract] | |||||||||||||
Segment Information | Note 2 — Segment Information | ||||||||||||
The Company's operating and 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 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. Revenues and costs related to licensing certain Krispy Kreme trademarks to domestic third parties other than franchisees also are included in the Domestic Franchise segment. 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 and reportable segments for fiscal 2015, 2014 and 2013. Segment operating income is consolidated operating income before general and administrative expenses, corporate depreciation and amortization, and impairment charges and lease termination costs. | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | February 3, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Company Stores | $ | 325,306 | $ | 306,825 | $ | 296,494 | |||||||
Domestic Franchise | 13,450 | 11,839 | 10,325 | ||||||||||
International Franchise | 28,598 | 25,607 | 24,941 | ||||||||||
KK Supply Chain: | |||||||||||||
Total revenues | 244,688 | 231,229 | 215,412 | ||||||||||
Less – intersegment sales elimination | (121,708 | ) | (115,169 | ) | (111,329 | ) | |||||||
External KK Supply Chain revenues | 122,980 | 116,060 | 104,083 | ||||||||||
Total revenues | $ | 490,334 | $ | 460,331 | $ | 435,843 | |||||||
Operating income: | |||||||||||||
Company Stores | $ | 9,287 | $ | 11,334 | $ | 8,534 | |||||||
Domestic Franchise | 8,103 | 8,083 | 5,590 | ||||||||||
International Franchise | 20,026 | 17,977 | 17,387 | ||||||||||
KK Supply Chain | 41,823 | 36,953 | 32,450 | ||||||||||
Total segment operating income | 79,239 | 74,347 | 63,961 | ||||||||||
General and administrative expenses | (28,558 | ) | (25,149 | ) | (25,089 | ) | |||||||
Corporate depreciation and amortization expense | (1,489 | ) | (1,254 | ) | (837 | ) | |||||||
Impairment charges and lease termination costs | (955 | ) | (1,374 | ) | (306 | ) | |||||||
Consolidated operating income | $ | 48,237 | $ | 46,570 | $ | 37,729 | |||||||
Depreciation and amortization expense: | |||||||||||||
Company Stores | $ | 10,534 | $ | 9,039 | $ | 8,142 | |||||||
Domestic Franchise | 135 | 119 | 164 | ||||||||||
International Franchise | 5 | 7 | 10 | ||||||||||
KK Supply Chain | 677 | 687 | 738 | ||||||||||
Corporate | 1,489 | 1,254 | 837 | ||||||||||
Total depreciation and amortization expense | $ | 12,840 | $ | 11,106 | $ | 9,891 | |||||||
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. | |||||||||||||
Revenues for fiscal 2015, 2014 and 2013 include approximately $52 million, $48 million and $44 million, respectively, from customers outside the United States. | |||||||||||||
Receivables
Receivables | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | |||||||||||||
Receivables [Abstract] | |||||||||||||
Receivables | Note 3 — Receivables | ||||||||||||
The components of receivables are as follows: | |||||||||||||
February 1, | February 2, | ||||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Receivables: | |||||||||||||
Wholesale customers | $ | 9,557 | $ | 9,919 | |||||||||
Unaffiliated franchisees | 12,743 | 10,934 | |||||||||||
Due from third-party distributors | 4,075 | 3,262 | |||||||||||
Other receivables | 867 | 640 | |||||||||||
Current portion of notes receivable | 1,052 | 754 | |||||||||||
28,294 | 25,509 | ||||||||||||
Less — allowance for doubtful accounts: | |||||||||||||
Wholesale customers | (204 | ) | (191 | ) | |||||||||
Unaffiliated franchisees | (291 | ) | (50 | ) | |||||||||
(495 | ) | (241 | ) | ||||||||||
$ | 27,799 | $ | 25,268 | ||||||||||
Receivables from equity method franchisees (Note 7): | |||||||||||||
Trade | $ | 782 | $ | 675 | |||||||||
The changes in the allowances for doubtful accounts are summarized as follows: | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | February 3, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||
Allowance for doubtful accounts related to receivables: | |||||||||||||
Balance at beginning of year | $ | 241 | $ | 615 | $ | 1,158 | |||||||
Provision for doubtful accounts | 202 | (275 | ) | 259 | |||||||||
Net recoveries (chargeoffs) | 52 | (99 | ) | (802 | ) | ||||||||
Balance at end of year | $ | 495 | $ | 241 | $ | 615 | |||||||
See Note 9 for information about notes receivable from franchisees. | |||||||||||||
Inventories
Inventories | 12 Months Ended | ||||||
Feb. 01, 2015 | |||||||
Inventories [Abstract] | |||||||
Inventories | Note 4 — Inventories | ||||||
The components of inventories are as follows: | |||||||
February 1, | February 2, | ||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Raw materials | $ | 6,779 | $ | 6,200 | |||
Work in progress | 115 | 114 | |||||
Finished goods and purchased merchandise | 11,300 | 10,436 | |||||
$ | 18,194 | $ | 16,750 |
Other_Current_Assets
Other Current Assets | 12 Months Ended | ||||||
Feb. 01, 2015 | |||||||
Other Current Assets [Abstract] | |||||||
Other Current Assets | Note 5 — Other Current Assets | ||||||
Other current assets consist of the following: | |||||||
February 1, | February 2, | ||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Current portion of claims against insurance carriers related to self-insurance | |||||||
programs (Notes 1, 9, 10 and 12) | $ | 1,012 | $ | 893 | |||
Margin deposits in derivative brokerage accounts | 2,744 | 792 | |||||
Prepaid expenses and other | 3,100 | 3,514 | |||||
$ | 6,856 | $ | 5,199 |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Feb. 01, 2015 | |||||||||
Property and Equipment [Abstract] | |||||||||
Property and Equipment | Note 6 — Property and Equipment | ||||||||
Property and equipment consists of the following: | |||||||||
February 1, | February 2, | ||||||||
2015 | 2014 | ||||||||
(In thousands) | |||||||||
Land | $ | 13,512 | $ | 13,822 | |||||
Buildings | 86,337 | 71,873 | |||||||
Leasehold improvements | 15,200 | 14,527 | |||||||
Machinery and equipment | 65,596 | 57,611 | |||||||
Computer software | 7,911 | 7,100 | |||||||
Construction and projects in progress | 12,295 | 5,913 | |||||||
200,851 | 170,846 | ||||||||
Less: accumulated depreciation | (85,093 | ) | (78,023 | ) | |||||
$ | 115,758 | $ | 92,823 | ||||||
Machinery and equipment acquired under capital leases had a net book value of $839,000 and $921,000 at February 1, 2015 and February 2, 2014, respectively. Buildings acquired under capital leases had a net book value of $1.8 million and $920,000 at February 1, 2015 and February 2, 2014, respectively. Buildings acquired under build-to-suit leasing arrangements had a net book value of $5.7 million at February 1, 2015 and construction and projects in progress included assets acquired under build-to-suit leasing arrangements with a carrying value of $1.0 million at February 1, 2015. Depreciation expense was $12.4 million, $11.0 million and $9.9 million in fiscal 2015, 2014, and 2013, respectively. | |||||||||
Investments_in_Franchisees
Investments in Franchisees | 12 Months Ended | |||||||||||||||||||||||||||
Feb. 01, 2015 | ||||||||||||||||||||||||||||
Investments in Franchisees [Abstract] | ||||||||||||||||||||||||||||
Investment in Franchisees | Note 7 — Investments in Franchisees | |||||||||||||||||||||||||||
As of February 1, 2015, the Company had an ownership interest in three franchisees, the aggregate carrying value of which was zero. | ||||||||||||||||||||||||||||
Information about the Company's ownership in, and the markets served by, these franchisees is set forth below: | ||||||||||||||||||||||||||||
Number of | ||||||||||||||||||||||||||||
Stores as of | ||||||||||||||||||||||||||||
February 1, | Ownership% | |||||||||||||||||||||||||||
Geographic Market | 2015 | Company | Third Parties | |||||||||||||||||||||||||
Kremeworks, LLC | Alaska, Hawaii, Oregon, | |||||||||||||||||||||||||||
Washington | 9 | 25 | % | 75 | % | |||||||||||||||||||||||
Kremeworks Canada, LP | Western Canada | 1 | 24.5 | % | 75.5 | % | ||||||||||||||||||||||
Krispy Kreme of South Florida, LLC | South Florida | 3 | 35.3 | % | 64.7 | % | ||||||||||||||||||||||
The Company's financial exposures related to franchisees in which the Company has an investment are summarized in the tables below. | ||||||||||||||||||||||||||||
1-Feb-15 | ||||||||||||||||||||||||||||
Investments and | ||||||||||||||||||||||||||||
Advances | Receivables | Loan Guarantees | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Kremeworks, LLC | $ | 900 | $ | 353 | $ | - | ||||||||||||||||||||||
Kremeworks Canada, LP | 667 | 30 | - | |||||||||||||||||||||||||
Krispy Kreme of South Florida, LLC | - | 399 | - | |||||||||||||||||||||||||
1,567 | 782 | $ | - | |||||||||||||||||||||||||
Less: reserves and allowances | (1,567 | ) | - | |||||||||||||||||||||||||
$ | - | $ | 782 | |||||||||||||||||||||||||
2-Feb-14 | ||||||||||||||||||||||||||||
Investments and | ||||||||||||||||||||||||||||
Advances | Receivables | Loan Guarantees | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Kremeworks, LLC | $ | 900 | $ | 280 | $ | 140 | ||||||||||||||||||||||
Kremeworks Canada, LP | 667 | 19 | - | |||||||||||||||||||||||||
Krispy Kreme of South Florida, LLC | - | 376 | - | |||||||||||||||||||||||||
1,567 | 675 | $ | 140 | |||||||||||||||||||||||||
Less: reserves and allowances | (1,567 | ) | - | |||||||||||||||||||||||||
$ | - | $ | 675 | |||||||||||||||||||||||||
The loan guarantee amount in the preceding table represents the portion of the principal amount outstanding under the related loan that was subject to the Company's guarantee. | ||||||||||||||||||||||||||||
The Company has a 25% interest in Kremeworks, LLC (“Kremeworks”) and had guaranteed 20% of the outstanding principal balance of certain of Kremeworks' bank indebtedness which was paid in full in fiscal 2015. The carrying values of the Company's investments and advances in Kremeworks and Kremeworks Canada, LP (“Kremeworks Canada”) were zero at February 1, 2015 and February 2, 2014. In addition, the Company had reserved all of the balance of its advances to Kremeworks and Kremeworks Canada at such dates; accrued but uncollected interest on such advances of approximately $390,000 at February 1, 2015 had not been reflected in income at such date. | ||||||||||||||||||||||||||||
Current liabilities at February 3, 2013 included an accrual of $1.6 million (originally recorded in fiscal 2008) for potential payments under a loan guarantee related to Krispy Kreme of South Florida, LLC (“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 collectability 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 is recording payments on the note as a component of other non-operating income as they are received, and expects to do so until such time as the Company concludes that the collectibility of some or all of the $1.0 million remaining balance at February 1, 2015 of the note is reasonably assured. | ||||||||||||||||||||||||||||
In December 2011, the Company, KKSF and KKSF's majority owner entered into a restructuring agreement pursuant to which KKSF is to pay to the Company past due amounts totaling approximately $825,000, all of which the Company had written off in prior years. KKSF paid a total of $180,000 of such amount following the execution of the agreement, and commenced repayment of the remaining amount in fiscal 2012. All amounts paid under the agreement are being recorded as received. At such time as KKSF has paid all the agreed upon amounts and the Company has been reimbursed for all amounts paid by the Company pursuant to the Company's guarantee of the KKSF indebtedness described above, the Company has agreed to convey to KKSF's majority owner all of the Company's membership interests in KKSF, provided that neither KKSF nor its majority owner are then in default under any agreement between either of them and the Company. | ||||||||||||||||||||||||||||
The following table summarizes certain financial information with respect to the Company's investments in franchisees: | ||||||||||||||||||||||||||||
Summary Financial Information (1) | ||||||||||||||||||||||||||||
Operating | ||||||||||||||||||||||||||||
Income | Net Income | Current | Noncurrent | Current | Noncurrent | Total Equity | ||||||||||||||||||||||
Revenues | (Loss) | (Loss) (2) | Assets | Assets | Liabilities | Liabilities | (Deficit) | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Kremeworks, LLC | ||||||||||||||||||||||||||||
2015 | $ | 19,691 | $ | 1,038 | $ | 893 | $ | 2,397 | $ | 8,851 | $ | 6,520 | $ | 1,849 | $ | 2,879 | ||||||||||||
2014 | 18,512 | $ | 637 | $ | 463 | $ | 1,982 | $ | 9,791 | $ | 7,172 | $ | 1,946 | $ | 2,655 | |||||||||||||
2013 | 17,383 | (561 | ) | (781 | ) | 1,083 | 10,622 | 8,438 | 1,883 | 1,384 | ||||||||||||||||||
Kremeworks Canada, LP | ||||||||||||||||||||||||||||
2015 | 1,973 | (119 | ) | (233 | ) | 565 | 859 | 448 | 3,107 | (2,131 | ) | |||||||||||||||||
2014 | 1,800 | (92 | ) | (201 | ) | 572 | 1,061 | 672 | 3,041 | (2,080 | ) | |||||||||||||||||
2013 | 1,516 | 1 | (106 | ) | 534 | 1,247 | 883 | 2,912 | (2,014 | ) | ||||||||||||||||||
Krispy Kreme of South | ||||||||||||||||||||||||||||
Florida, LLC | ||||||||||||||||||||||||||||
2015 | 12,098 | 280 | 207 | 1,142 | 2,105 | 1,669 | 3,713 | (2,135 | ) | |||||||||||||||||||
2014 | 12,408 | 848 | 626 | 1,237 | 2,887 | 2,120 | 3,251 | (1,247 | ) | |||||||||||||||||||
2013 | 13,271 | 1,421 | 1,290 | 1,182 | 3,182 | 3,418 | 1,754 | (808 | ) | |||||||||||||||||||
-1 | Amounts shown for each of these franchisees represents the amounts reported by the franchisee for calendar 2014, 2013 and 2012, and on or about December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||||
-2 | The net income or loss of each of these entities is includable on the income tax returns of their owners to the extent required by law. Accordingly, the financial statements of these entities do not include a provision for income taxes, and as a result, pretax income or loss for each of these entities is also their net income or loss. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||||
Feb. 01, 2015 | ||||||||||||||
Goodwill and Other Intangible Assets [Abstract] | ||||||||||||||
Goodwill and Other Intangible Assets | Note 8 — Goodwill and Other Intangible Assets | |||||||||||||
Goodwill and other intangible assets consist of the following: | ||||||||||||||
February 1, | February 2, | |||||||||||||
2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||
Goodwill: | ||||||||||||||
Goodwill associated with International Franchise segment | $ | 15,664 | $ | 15,664 | ||||||||||
Goodwill associated with Domestic Franchise segment | 7,832 | 7,832 | ||||||||||||
Goodwill associated with Company Stores segment (Note 21) | 2,594 | - | ||||||||||||
Reacquired franchise rights associated with Company Stores segment, net of accumulated | ||||||||||||||
amortization of $556,000 at February 1, 2015 and $82,000 at February 2, 2014 | 3,980 | 601 | ||||||||||||
$ | 30,070 | $ | 24,097 | |||||||||||
The goodwill and reacquired franchise rights associated with Company Stores segment in the preceding table are net of accumulated impairment losses totaling $139.4 million and $1.8 million, respectively, recorded principally in fiscal 2005 through fiscal 2008. | ||||||||||||||
The changes in reacquired franchise rights are as follows: | ||||||||||||||
February 1, | February 2, | |||||||||||||
2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||
Balance at beginning of year | $ | 601 | $ | 699 | ||||||||||
Acquisition of stores from franchisee (Note 21) | 3,853 | - | ||||||||||||
Amount related to refranchised store | - | (40 | ) | |||||||||||
Amortization expense | (474 | ) | (58 | ) | ||||||||||
Balance at end of year | $ | 3,980 | $ | 601 | ||||||||||
The Company has acquired the assets and operations of certain of its franchisees as described in Note 21. The allocation of the purchase price included amounts allocated to reacquired franchise rights, which are being amortized over the terms of the reacquired franchise agreements. | ||||||||||||||
Other_Assets
Other Assets | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | |||||||||||||
Other Assets [Abstract] | |||||||||||||
Other Assets | Note 9 — Other Assets | ||||||||||||
The components of other assets are as follows: | |||||||||||||
February 1, | February 2, | ||||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Non-current portion of notes receivable | $ | 3,482 | $ | 3,172 | |||||||||
Non-current portion of claims against insurance carriers related to self-insurance | |||||||||||||
programs (Notes 1, 5, 10 and 12) | 3,290 | 3,207 | |||||||||||
401(k) mirror plan assets (Notes 12 and 18) | 2,496 | 2,585 | |||||||||||
Deposits | 734 | 765 | |||||||||||
Deferred financing costs, net of accumulated amortization | 370 | 478 | |||||||||||
Other | 388 | 471 | |||||||||||
$ | 10,760 | $ | 10,678 | ||||||||||
The Company has notes receivable from certain of its franchisees which are summarized in the following table. As of February 1, 2015 and February 2, 2014, substantially all of the notes receivable were being paid in accordance with their terms. | |||||||||||||
February 1, | February 2, | ||||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Notes receivable: | |||||||||||||
Note receivable from franchisees | $ | 4,534 | $ | 3,980 | |||||||||
Less — portion due within one year included in receivables (Note 3) | (1,052 | ) | (754 | ) | |||||||||
Less — allowance for doubtful accounts | - | (54 | ) | ||||||||||
$ | 3,482 | $ | 3,172 | ||||||||||
Notes receivable at February 1, 2015 and February 2, 2014, consist principally of amounts payable to the Company related to a refranchising transaction, to the sale of certain leasehold interests, and to sales of equipment. | |||||||||||||
The changes in the allowance for doubtful accounts related to notes receivable are summarized as follows: | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | February 3, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||
Balance at beginning of year | $ | 54 | $ | 62 | $ | 68 | |||||||
Provision for doubtful accounts | (54 | ) | (8 | ) | (6 | ) | |||||||
Balance at end of year | $ | - | $ | 54 | $ | 62 | |||||||
In addition to the foregoing notes receivable, the Company had promissory notes totaling approximately $1.9 million February 1, 2015 and $2.9 million at February 2, 2014 principally representing 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 fiscal 2015 and 2014, the Company collected approximately $900,000 and $380,000, respectively, related to these promissory notes and recorded such collections in revenues as received because of the uncertainty as to the timing and amount of such collections. | |||||||||||||
Finally, the Company has a promissory note receivable from KKSF totaling approximately $1.0 million and $1.5 million at February 1, 2015 and February 2, 2014, respectively, arising from the Company's advance to KKSF of approximately $1.6 million in November 2013 to enable KKSF to retire certain indebtedness with respect to which KKSF had been in default since October 2009, payment of which was demanded by the lender in October 2013. The lender also made demand on the Company to perform under its guarantee of such indebtedness. Because of the uncertainty of recovery of amounts advanced to KKSF as more fully described in Note 7, the note receivable is not reflected as an asset in the accompanying consolidated balance sheet. The Company is recording payments on the note as they are received from KKSF, and reflecting such amounts as a component of other non-operating income. Such collections were approximately $550,000 and $95,000 in fiscal 2015 and 2014, respectively. KKSF has informed the Company that it is negotiating a new term loan with a third-party lender, the proceeds of which would be used by KKSF to, among other things, expand its business and repay to the Company the amounts owed described above. | |||||||||||||
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | |||||||||||||
Accrued Liabilities [Abstract] | |||||||||||||
Accrued Liabilities | Note 10 — Accrued Liabilities | ||||||||||||
The components of accrued liabilities are as follows: | |||||||||||||
February 1, | February 2, | ||||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Accrued compensation | $ | 10,533 | $ | 8,901 | |||||||||
Accrued vacation pay | 5,732 | 5,530 | |||||||||||
Current portion of self-insurance claims, principally worker's compensation | |||||||||||||
(Notes 1, 5, 9, and 12) | 3,773 | 3,765 | |||||||||||
Accrued taxes, other than income | 2,541 | 2,043 | |||||||||||
Accrued health care claims | 1,330 | 1,240 | |||||||||||
Customer deposits | 1,017 | 1,115 | |||||||||||
Gasoline commodity futures contracts | 937 | - | |||||||||||
Accrued guarantee liabilities (Note 13) | 906 | 929 | |||||||||||
Current portion of deferred franchise fee revenue (Note 12) | 906 | 893 | |||||||||||
Agricultural commodity futures contracts | 874 | 313 | |||||||||||
Current portion of lease termination costs (Notes 12 and 15) | 94 | 74 | |||||||||||
Other | 3,887 | 4,473 | |||||||||||
$ | 32,530 | $ | 29,276 | ||||||||||
The changes in the assets and liabilities associated with self-insurance programs are summarized as follows: | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | February 3, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||
Accrual for self-insurance programs, net of receivables from stop-loss policies: | |||||||||||||
Balance at beginning of year | $ | 8,047 | $ | 8,455 | $ | 8,203 | |||||||
Additions charged to costs and expenses | 2,600 | 3,436 | 3,777 | ||||||||||
Claims payments | (3,079 | ) | (3,844 | ) | (3,525 | ) | |||||||
Balance at end of year | $ | 7,568 | $ | 8,047 | $ | 8,455 | |||||||
Accrual reflected in: | |||||||||||||
Accrued liabilities | $ | 3,773 | $ | 3,765 | $ | 4,156 | |||||||
Other long-term obligations and deferred credits | 8,097 | 8,382 | 9,979 | ||||||||||
Claims receivable under stop-loss insurance policies included in: | |||||||||||||
Other current assets | (1,012 | ) | (893 | ) | (1,194 | ) | |||||||
Other assets | (3,290 | ) | (3,207 | ) | (4,486 | ) | |||||||
$ | 7,568 | $ | 8,047 | $ | 8,455 |
Credit_Facilities_and_Lease_Ob
Credit Facilities and Lease Obligations | 12 Months Ended | |||||||||||||
Feb. 01, 2015 | ||||||||||||||
Credit Facilities and Lease Obligations [Abstract] | ||||||||||||||
Credit Facilities and Lease Obligations | Note 11 — Credit Facilities and Lease Obligations | |||||||||||||
Lease obligations consist of the following: | ||||||||||||||
February 1, | February 2, | |||||||||||||
2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||
Capital lease obligations | $ | 2,940 | $ | 2,003 | ||||||||||
Financing obligations | 6,747 | - | ||||||||||||
9,687 | 2,003 | |||||||||||||
Less: current portion | (333 | ) | (344 | ) | ||||||||||
$ | 9,354 | $ | 1,659 | |||||||||||
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 described below. | ||||||||||||||
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 February 1, 2015, the Applicable Percentage 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, substantially all of which secure the Company's reimbursement obligations to insurers under the Company's self-insurance programs. At February 1, 2015, the Company had approximately $8.7 million of letters of credits outstanding. | ||||||||||||||
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. As of February 1, 2015, the fee on the unused portion of the 2013 Revolving Credit Facility was 0.15%. | ||||||||||||||
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 February 1, 2015, the Company's leverage ratio was 0.3 to 1.0 and the fixed charge coverage ratio was 3.1 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 $31.3 million of unused credit under the 2013 Revolving Credit Agreement as of February 1, 2015. | ||||||||||||||
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. In the second quarter of fiscal 2014, the $516,000 unrealized loss on the contract previously included in AOCI was reclassified to earnings in the consolidated statement of income because the hedged forecasted transaction (interest on the 2011 Term Loan) would 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. | ||||||||||||||
Lease Obligations | ||||||||||||||
The Company acquires equipment and facilities under capital and operating leases and build-to-suit arrangements. | ||||||||||||||
In certain build-to-suit leasing arrangements, the Company is involved in the construction of leased stores and is deemed the owner of the leased stores for accounting purposes during the construction period. The Company records the related assets and liabilities for construction costs incurred under these build-to-suit leasing arrangements during the construction period. Upon completion of the leased store, the Company considers whether the assets and liabilities qualify for derecognition under the sale-leaseback accounting guidance. These leasing arrangements entered into to date do not qualify for sale-leaseback treatment and, accordingly, the Company records the transactions as financing obligations. A portion of the lease payments is allocated to land and is classified as an operating lease. The remainder of the lease payments is allocated between interest expense and amortization of the financing obligations. The assets are depreciated over their estimated useful lives. At the end of the lease term, the carrying value of the leased asset and of the remaining financing obligation are expected to be equal, at which time the Company may either surrender the leased assets as settlement of the remaining financing obligation or enter into a new arrangement for the continued use of the asset. | ||||||||||||||
The approximate future minimum lease payments under non-cancelable leases and build-to-suit leasing arrangements as of February 1, 2015 are set forth in the following table: | ||||||||||||||
Operating | Capital | Financing | ||||||||||||
Fiscal Year | Leases | Leases | Obligations | |||||||||||
(In thousands) | ||||||||||||||
2016 | $ | 11,379 | $ | 840 | $ | 764 | ||||||||
2017 | 9,207 | 791 | 764 | |||||||||||
2018 | 8,557 | 660 | 764 | |||||||||||
2019 | 7,382 | 472 | 765 | |||||||||||
2020 | 7,338 | 427 | 783 | |||||||||||
Thereafter | 93,487 | 6,482 | 14,257 | |||||||||||
$ | 137,350 | 9,672 | 18,097 | |||||||||||
Portion representing interest | (6,495 | ) | (14,254 | ) | ||||||||||
Portion representing executory costs | (237 | ) | - | |||||||||||
Unamortized balance of financing obligations at end of lease term | - | 2,904 | ||||||||||||
Total capital lease and financing obligations | $ | 2,940 | $ | 6,747 | ||||||||||
Rent expense, net of rental income, totaled $13.4 million in fiscal 2015, $12.3 million in fiscal 2014 and $12.8 million in fiscal 2013. Such rent expense includes rents under non-cancelable operating leases as well as sundry short-term rentals. | ||||||||||||||
Cash Payments of Interest | ||||||||||||||
Interest paid, inclusive of deferred financing costs, totaled approximately $750,000 in fiscal 2015, $940,000 in fiscal 2014 and $1.2 million in fiscal 2013. | ||||||||||||||
Other_Long_Term_Obligations_an
Other Long Term Obligations and Deferred Credits | 12 Months Ended | ||||||
Feb. 01, 2015 | |||||||
Other Long-Term Obligations and Deferred Credits [Abstract] | |||||||
Other Long-Term Obligations and Deferred Credits | Note 12 — Other Long-Term Obligations and Deferred Credits | ||||||
The components of other long-term obligations and deferred credits are as follows: | |||||||
February 1, | February 2, | ||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Non-current portion of self-insurance claims, principally worker's | |||||||
compensation (Notes 1, 5, 9 and 10) | $ | 8,097 | $ | 8,382 | |||
Accrued rent expense | 6,571 | 6,025 | |||||
Non-current portion of deferred franchise fee revenue (Note 10) | 4,877 | 4,526 | |||||
Mirror 401(k) plan liability (Notes 9 and 18) | 2,496 | 2,585 | |||||
Landlord upfit allowances on leased premises | 2,445 | 2,647 | |||||
Non-current portion of lease termination costs (Notes 10 and 15) | 22 | 104 | |||||
Other | 1,107 | 1,117 | |||||
$ | 25,615 | $ | 25,386 |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 01, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 13 — 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 therefore does not know the amount or range of possible loss related to this matter. 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 appealed that decision. On January 22, 2015, the North Carolina Supreme Court denied the plaintiffs' request to review the case. | |
The Company does not believe it is probable that a loss has been incurred with respect to this matter, and accordingly no liability related to it has been reflected in the accompanying financial statements. | |
Other Legal Matters | |
The Company also is engaged in various legal proceedings arising in the normal course of business. The Company maintains insurance policies against certain kinds of such claims and suits, including insurance policies for workers' compensation and personal injury, all of which are subject to deductibles. While the ultimate outcome of these matters could differ from management's expectations, management currently does not believe their resolution will have a material adverse effect on the Company's consolidated financial statements. | |
Other Commitments and Contingencies | |
The Company has guaranteed certain franchisee lease obligations, usually in connection with subleasing or assigning leases in connection with refranchising transactions. The aggregate liability recorded for such obligations was $906,000 at February 1, 2015, and is included in accrued liabilities. | |
The Company's primary bank had issued letters of credit on behalf of the Company totaling $8.7 million at February 1, 2015, substantially all of which secure the Company's reimbursement obligations to insurers under the Company's self-insurance arrangements. | |
The Company is exposed to the effects of commodity price fluctuations on the cost of ingredients of its products, of which flour, shortening and sugar are the most significant. In order to secure adequate supplies of products and bring greater stability to the cost of ingredients, the Company routinely enters into forward purchase contracts with suppliers under which the Company commits to purchase agreed-upon quantities of ingredients at agreed-upon prices at specified future dates. Typically, the aggregate outstanding purchase commitment at any point in time will range from one month's to several years' anticipated ingredients purchases, depending on the ingredient. In addition, from time to time the Company enters into contracts for the future delivery of equipment purchased for resale and components of doughnut-making equipment manufactured by the Company. As of February 1, 2015, the Company had approximately $60 million of commitments under ingredient and other forward purchase contracts. While the Company has multiple suppliers for most of its ingredients, the termination of the Company's relationships with vendors with whom the Company has forward purchase agreements, or those vendors' inability to honor the purchase commitments, could adversely affect the Company's results of operations and cash flows. | |
In addition to entering into forward purchase contracts, the Company from time to time purchases exchange-traded commodity futures contracts or options on such contracts for raw materials which are ingredients of the Company's products or which are components of such ingredients, including wheat and soybean oil. The Company typically assigns the futures contract to a supplier in connection with entering into a forward purchase contract for the related ingredient. The Company may also purchase futures, options on futures or enter into other contracts to hedge its exposure to rising gasoline prices. See Note 20 for additional information about these derivatives. | |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||||||||||
Feb. 01, 2015 | |||||||||||||||||
Stockholders' Equity [Abstract] | |||||||||||||||||
Shareholders' Equity | Note 14 — Shareholders' Equity | ||||||||||||||||
Share-Based Compensation for Employees and Directors | |||||||||||||||||
The Company's shareholders have approved the Krispy Kreme Doughnuts, Inc. 2012 Stock Incentive Plan (the “2012 Plan”), which provides for the grant of incentive stock options, non-qualified stock options, restricted stock awards, restricted stock units, stock awards, performance unit awards, performance share awards, stock appreciation rights and phantom stock awards. | |||||||||||||||||
The 2012 Plan provides for the issuance of approximately 5.1 million shares of Company common stock (as adjusted to reflect forfeitures and expirations subsequent to January 29, 2012 of awards issued under predecessor plans, pursuant to the 2012 Plan), of which approximately 3.5 million remain available for grant through June 2022. Any shares that are subject to options or stock appreciation rights awarded under the 2012 Plan will be counted against the 2012 Plan limit as one share for every one share granted, and any shares that are subject to 2012 Plan awards other than options or stock appreciation rights will be counted against this limit as one and thirty three-hundredths (1.33) shares for every one share granted. The 2012 Plan provides that options may be granted with exercise prices not less than the closing sale price of the Company's common stock on the date of grant. | |||||||||||||||||
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 fair value of SBP awards which vest in increments and for which vesting is subject solely to service conditions is charged to expense on a straight-line basis over the aggregate vesting period of each award, which generally is four years. | |||||||||||||||||
The aggregate cost of SBP awards charged to earnings for fiscal 2015, 2014 and 2013 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 or restricted stock units during any of the periods. | |||||||||||||||||
Year Ended | |||||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
(In thousands) | |||||||||||||||||
Costs charged to earnings related to: | |||||||||||||||||
Stock options | $ | 1,209 | $ | 1,865 | $ | 1,537 | |||||||||||
Restricted stock and restricted stock units | 3,257 | 4,587 | 5,264 | ||||||||||||||
Total costs | $ | 4,466 | $ | 6,452 | $ | 6,801 | |||||||||||
Costs included in: | |||||||||||||||||
Direct operating expenses | $ | 2,145 | $ | 2,487 | $ | 2,614 | |||||||||||
General and administrative expenses | 2,321 | 3,965 | 4,187 | ||||||||||||||
Total costs | $ | 4,466 | $ | 6,452 | $ | 6,801 | |||||||||||
The fair value of stock options was estimated using the Black-Scholes option pricing model. Options granted generally have contractual terms of 10 years, the maximum term permitted under the 2012 Plan and predecessor plans. The weighted average assumptions used in valuing stock options in are set forth in the following table. There were no stock options granted in fiscal 2013. | |||||||||||||||||
Year Ended | |||||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Expected life of option | 7.0 years | 7.0 years | N/A | ||||||||||||||
Risk-free interest rate | 2.14 | % | 2.19 | % | N/A | ||||||||||||
Expected volatility of stock | 65.0 | % | 65 | % | N/A | ||||||||||||
Expected dividend yield | 0 | % | 0 | % | N/A | ||||||||||||
The expected life of stock options valued using the Black-Scholes option pricing model is estimated by reference to historical experience and any relevant characteristics of the option. The risk-free rate of interest is based on the yield of a zero-coupon U.S. Treasury bond on the date the award is granted having a maturity approximately equal to the expected term of the award. Expected volatility is estimated based upon the historical volatility of the Company's common shares. The Company uses historical employee turnover data to estimate forfeitures of awards prior to vesting. | |||||||||||||||||
The number of options granted and the aggregate and weighed average fair value of such options were as follows: | |||||||||||||||||
Year Ended | |||||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Weighted average fair value per share of options granted | $ | 12.07 | $ | 11.17 | N/A | ||||||||||||
Total number of options granted | 88,300 | 251,000 | N/A | ||||||||||||||
Total fair value of all options granted | $ | 1,065,200 | $ | 2,804,800 | N/A | ||||||||||||
The following table summarizes stock option transactions for fiscal 2015, 2014 and 2013. | |||||||||||||||||
Weighted | |||||||||||||||||
Average | |||||||||||||||||
Weighted Average | Aggregate | Remaining | |||||||||||||||
Shares Subject | Exercise Price Per | Intrinsic | Contractual | ||||||||||||||
to Option | Share | Value | Term | ||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||
Outstanding at January 29, 2012 | 5,809,400 | $ | 9.35 | $ | 14,572 | 6.6 years | |||||||||||
Granted | - | $ | - | ||||||||||||||
Exercised | (128,000 | ) | $ | 1.93 | $ | 947 | |||||||||||
Expired | (304,900 | ) | $ | 34.4 | |||||||||||||
Forfeited | (170,000 | ) | $ | 6.84 | |||||||||||||
Outstanding at February 3, 2013 | 5,206,500 | $ | 8.15 | $ | 36,388 | 5.8 years | |||||||||||
Granted | 251,000 | $ | 17.47 | ||||||||||||||
Exercised | (459,500 | ) | $ | 5.25 | $ | 5,324 | |||||||||||
Expired | (391,000 | ) | $ | 38.66 | |||||||||||||
Forfeited | - | $ | - | ||||||||||||||
Outstanding at February 2, 2014 | 4,607,000 | $ | 6.27 | $ | 51,044 | 5.7 years | |||||||||||
Granted | 88,300 | $ | 18.88 | ||||||||||||||
Exercised | (1,929,600 | ) | $ | 5.32 | $ | 25,515 | |||||||||||
Expired | (129,800 | ) | $ | 18.15 | |||||||||||||
Forfeited | (90,700 | ) | $ | 8.66 | |||||||||||||
Outstanding at February 1, 2015 | 2,545,200 | $ | 6.75 | $ | 32,382 | 5.6 years | |||||||||||
Exercisable at February 1, 2015 | 2,227,400 | $ | 5.65 | $ | 30,775 | 5.2 years | |||||||||||
Additional information regarding stock options outstanding as of February 1, 2015 is as follows: | |||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Weighted Average | |||||||||||||||||
Remaining | |||||||||||||||||
Contractual Life | Weighted Average | Weighted Average | |||||||||||||||
Range of Exercise Prices | Shares | (Years) | Exercise Price | Shares | Exercise Price | ||||||||||||
$ | 1.40 | - $ | 3.08 | 962,600 | 3.9 | $ | 2.65 | 962,600 | $ | 2.65 | |||||||
$ | 6.39 | - $ | 9.71 | 1,259,000 | 6.1 | $ | 7.02 | 1,154,000 | $ | 7.02 | |||||||
$ | 17.47 | - $ | 19.00 | 323,600 | 9.1 | $ | 17.86 | 110,800 | $ | 17.47 | |||||||
In addition to stock options, the Company periodically has awarded restricted stock and restricted stock units (which are settled in common stock). The fair value of the restricted stock and restricted stock units is equal to the quoted market price of the Company's common stock on the date of grant. The following table summarizes changes in unvested restricted stock and restricted stock unit awards for fiscal 2015, 2014 and 2013: | |||||||||||||||||
Weighted | |||||||||||||||||
Average Grant | |||||||||||||||||
Unvested | Date Fair | ||||||||||||||||
Shares | Value | ||||||||||||||||
Unvested at January 29, 2012 | 1,056,500 | $ | 5.95 | ||||||||||||||
Granted | 757,700 | $ | 10.28 | ||||||||||||||
Vested | (497,300 | ) | $ | 5.76 | |||||||||||||
Forfeited | (78,700 | ) | $ | 6.49 | |||||||||||||
Unvested at February 3, 2013 | 1,238,200 | $ | 8.65 | ||||||||||||||
Granted | 300,200 | $ | 18.14 | ||||||||||||||
Vested | (509,900 | ) | $ | 8.46 | |||||||||||||
Forfeited | (52,600 | ) | $ | 7.38 | |||||||||||||
Unvested at February 2, 2014 | 975,900 | $ | 11.73 | ||||||||||||||
Granted | 129,700 | $ | 19.13 | ||||||||||||||
Vested | (480,700 | ) | $ | 11.45 | |||||||||||||
Forfeited | (80,300 | ) | $ | 12.35 | |||||||||||||
Unvested at February 1, 2015 | 544,600 | $ | 13.65 | ||||||||||||||
The total fair value as of the grant date of the restricted stock and restricted stock unit awards vesting during fiscal 2015, 2014 and 2013 was $2.5 million, $4.3 million and $2.9 million, respectively. | |||||||||||||||||
As of February 1, 2015, the total unrecognized compensation cost related to SBP awards was approximately $8.8 million. The remaining service periods over which compensation cost will be recognized for these awards range from approximately three months to four years, with a weighted average remaining service period of approximately 1.5 years. | |||||||||||||||||
At February 1, 2015, there were approximately 6.6 million shares of common stock reserved for issuance pursuant to awards granted under the 2012 Plan and predecessor plans. | |||||||||||||||||
Common Shares and Warrants Issued in Connection With Settlement of Litigation | |||||||||||||||||
In fiscal 2008, the Company issued warrants to acquire 4.3 million shares of common stock at a price of $12.21 per share in connection with the settlement of certain litigation. The warrants expired unexercised on March 2, 2012. | |||||||||||||||||
Warrant Issued in Exchange for Services | |||||||||||||||||
In fiscal 2006, the Company issued a warrant to purchase 1.2 million shares of the Company's common stock at a price of $7.75 per share as part of the consideration paid to a corporate recovery and advisory firm. The warrant expired unexercised on January 31, 2013. | |||||||||||||||||
Tax Asset Protection Plan | |||||||||||||||||
As of February 1, 2015, the Company had approximately $159 million of federal net operating losses, as well as state net operating losses and federal foreign tax credits, that can be carried forward to future years to reduce the amount of taxes payable by the Company in subsequent years. These carryforwards are more fully described in Note 16. | |||||||||||||||||
Under the Internal Revenue Code (the “Code”), the Company's ability to make use of these carryforwards would be subject to limitation in the event of a cumulative change of more than 50% of the Company's shares during any three year period by shareholders owning 5% or more of the Company's stock. | |||||||||||||||||
Because a limitation in the Company's ability to utilize its tax carryforwards could increase the amount of the Company's future tax payments or accelerate the timing of such payments, in January 2013, the Company's Board of Directors adopted a tax asset protection plan (the “Plan”) intended to discourage persons from acquiring more than 4.99% of the Company's common shares, in order to reduce the likelihood of an ownership change and a resulting limitation on the Company's ability to utilize its carryforwards that could adversely affect the Company's cash flows. Under the Plan, subject to certain exceptions, the acquisition by any person or group of 4.99% or more of the Company's outstanding shares of common stock could have resulted in significant dilution in the ownership and economic interest of such acquiring person. | |||||||||||||||||
Under the Plan, the Board was granted the discretion to exempt persons from the 4.99% threshold if it were to determine that such ownership is in the best interests of shareholders and not inconsistent with the purpose of the Plan. During fiscal 2014, the Board granted one person a limited exemption from the 4.99% threshold. | |||||||||||||||||
In January 2015, the Company's Board of Directors determined that the Plan was no longer necessary to protect the Company's income tax assets and amended it to accelerate its expiration to February 2, 2015, effectively terminating the Plan. | |||||||||||||||||
Repurchases of Common Shares | |||||||||||||||||
In fiscal 2014, the Company's Board of Directors authorized the repurchase of up to $50 million of the Company's common stock, and subsequently twice increased such authorization such that it now totals $105 million. The authorization has no expiration date. Through February 1, 2015, the Company had cumulatively repurchased approximately 3,422,000 shares under the repurchase authorization at an average price of $17.99 per share, for a total cost of $61.6 million. | |||||||||||||||||
In fiscal 2013, the Company repurchased $20 million of its common stock pursuant to an earlier authorization. | |||||||||||||||||
During each of the last three fiscal years, the Company permitted holders of restricted stock 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 aggregate fair value of common shares surrendered related to the vesting of restricted stock awards was $2.8 million, $2.6 million and $758,000 in fiscal 2015, 2014 and 2013, respectively. The aggregate fair value of the surrendered shares has been reflected as a financing activity in the accompanying consolidated statement of cash flows and as a repurchase of common shares in the accompanying consolidated statement of changes in shareholders' equity. | |||||||||||||||||
The following table summarizes repurchases of common stock for fiscal 2015, 2014 and 2013: | |||||||||||||||||
Year Ended | |||||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Common | Common | Common | |||||||||||||||
Shares | Stock | Shares | Stock | Shares | Stock | ||||||||||||
(In thousands) | |||||||||||||||||
Shares repurchased under share | |||||||||||||||||
repurchase authorizations | 2,237 | $ | 39,225 | 1,185 | $ | 22,342 | 3,113 | $ | 20,000 | ||||||||
Shares surrendered in reimbursement | |||||||||||||||||
for withholding taxes | 153 | 2,811 | 136 | 2,560 | 100 | 758 | |||||||||||
2,390 | $ | 42,036 | 1,321 | $ | 24,902 | 3,213 | $ | 20,758 |
Impairment_Charges_and_Lease_T
Impairment Charges and Lease Termination Costs | 12 Months Ended | ||||||||||||||
Feb. 01, 2015 | |||||||||||||||
Impairment Charges and Lease Termination Costs [Abstract] | |||||||||||||||
Impairment Charges and Lease Termination Costs | Note 15 — Impairment Charges and Lease Termination Costs | ||||||||||||||
The components of impairment charges and lease termination costs are as follows: | |||||||||||||||
Year Ended | |||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||||
(In thousands) | |||||||||||||||
Impairment of long-lived assets - current period charges | $ | 901 | $ | - | $ | - | |||||||||
Lease termination costs: | |||||||||||||||
Provision for termination costs | 56 | 1,374 | 306 | ||||||||||||
Less - reversal of previously recorded accrued rent expense | (2 | ) | - | - | |||||||||||
54 | 1,374 | 306 | |||||||||||||
Total impairment charges and lease termination costs | $ | 955 | $ | 1,374 | $ | 306 | |||||||||
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, unfavorable 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. The fair values of these assets are estimated based on the present value of estimated future cash flows, on independent appraisals and, in the case of assets the Company currently is negotiating to sell, based on the Company's negotiations with unrelated third-party buyers. Impairment charges related to Company Stores long-lived assets were $901,000 in fiscal 2015. Such charges relate to an underperforming store which management believed would not generate sufficient future cash flows to enable the Company to recover the carrying value of the store's assets, but which management had not yet decided to close. The store's impaired assets consist of a building constructed on leased land and certain other equipment. | |||||||||||||||
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 were 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 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. Following entry of the judgment, the Company recorded an additional lease termination charge of approximately $1.4 million related to the matter, and in the fourth quarter of fiscal 2014 settled with the landlord on all issues in exchange for a payment by the Company of $1.8 million. | |||||||||||||||
The transactions reflected in the accrual for lease termination costs are summarized as follows: | |||||||||||||||
Year Ended | |||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||||
(In thousands) | |||||||||||||||
Balance at beginning of year | $ | 178 | $ | 646 | $ | 709 | |||||||||
Provision for lease termination costs: | |||||||||||||||
Provisions associated with store closings, net of estimated | |||||||||||||||
sublease rentals | 44 | - | - | ||||||||||||
Adjustments to previously recorded provisions resulting from settlements | |||||||||||||||
with lessors and adjustments of previous estimates | (5 | ) | 1,351 | 276 | |||||||||||
Accretion of discount | 17 | 23 | 30 | ||||||||||||
Total provision | 56 | 1,374 | 306 | ||||||||||||
Payments on unexpired leases, including settlements with lessors | (118 | ) | (1,842 | ) | (369 | ) | |||||||||
Balance at end of year | $ | 116 | $ | 178 | $ | 646 | |||||||||
Accrued lease termination costs are included in the consolidated balance sheet | |||||||||||||||
as follows: | |||||||||||||||
Accrued liabilities | $ | 94 | $ | 74 | $ | 464 | |||||||||
Other long-term obligations and deferred credits | 22 | 104 | 182 | ||||||||||||
$ | 116 | $ | 178 | $ | 646 |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||
Feb. 01, 2015 | |||||||||||||||||||||
Income Taxes [Abstract] | |||||||||||||||||||||
Income Taxes | Note 16 — Income Taxes | ||||||||||||||||||||
The components of the provision for income taxes are as follows: | |||||||||||||||||||||
Year Ended | |||||||||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Current | $ | 2,427 | $ | 2,790 | $ | 2,124 | |||||||||||||||
Deferred | 15,729 | 8,014 | 13,413 | ||||||||||||||||||
$ | 18,156 | $ | 10,804 | $ | 15,537 | ||||||||||||||||
A reconciliation of the tax provision computed at the statutory federal income tax rate and the Company's provision for income taxes follows: | |||||||||||||||||||||
Year Ended | |||||||||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Income taxes at statutory federal rate | $ | 16,875 | $ | 15,771 | $ | 12,710 | |||||||||||||||
State income taxes, net of federal income tax benefit | 1,662 | 1,902 | 1,340 | ||||||||||||||||||
Reversal of valuation allowance on deferred income tax assets | (150 | ) | (4,306 | ) | - | ||||||||||||||||
Benefit of foreign tax credits in excess of benefit previously recorded | - | (4,481 | ) | - | |||||||||||||||||
Foreign taxes, principally withholding taxes | 2,457 | 2,309 | 2,168 | ||||||||||||||||||
Credit for foreign income taxes | (2,457 | ) | (2,309 | ) | - | ||||||||||||||||
Deduction for foreign income taxes | - | - | (759 | ) | |||||||||||||||||
Other changes in tax credit carryforwards | - | 118 | (86 | ) | |||||||||||||||||
Accruals for uncertain tax positions | - | 359 | (50 | ) | |||||||||||||||||
Accruals for interest and penalties | 15 | 3 | (82 | ) | |||||||||||||||||
Reduction in net deferred tax assets from enacted change in North Carolina | |||||||||||||||||||||
statutory income tax rate | - | 686 | - | ||||||||||||||||||
Other changes in estimated future blended state income tax rate | 73 | 31 | (565 | ) | |||||||||||||||||
Other | (319 | ) | 721 | 861 | |||||||||||||||||
$ | 18,156 | $ | 10,804 | $ | 15,537 | ||||||||||||||||
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. | |||||||||||||||||||||
In the fourth quarter of fiscal 2014, after considering all relevant factors and objectively verifiable evidence having an impact on the likelihood of future realization of the Company's deferred tax assets, management concluded that it was more likely than not that deferred tax assets would be realized in future years in excess of amounts previously estimated. Accordingly, the Company reversed $4.3 million of the valuation allowance on deferred tax assets, with an offsetting credit to the provision for income taxes. The deferred tax assets with respect to which management concluded that a valuation allowance was no longer required related principally to state income tax net operating loss carryovers. | |||||||||||||||||||||
Also in the fourth quarter of fiscal 2014, the Company concluded that foreign tax credit carryovers related to certain tax years which management previously forecasted would be deducted from future taxable income rather than being taken as a credit against future income taxes payable, would ultimately be taken as a credit rather than as a deduction. The resulting increase in management's estimate of the amount of tax benefits to be realized from the credit carryovers also was reflected as a credit to income tax expense in the fourth quarter of fiscal 2014. The effect of the change in estimate with respect to foreign tax credit carryovers generated in prior years was $4.5 million. The effect of the change in estimate with respect to the $2.3 million of foreign taxes paid in fiscal 2014 was approximately $1.5 million. | |||||||||||||||||||||
The aggregate credit to income tax expense in the fourth quarter of fiscal 2014 from the reduction in management's estimate of the necessary valuation allowance at February 2, 2014, and the increase in the aggregate amount of tax benefits expected to be realized from the foreign tax credit carryovers, was $10.3 million. All of both adjustments resulted from the increase in the fourth quarter of fiscal 2014 in management's estimate of the amount of annual pretax income to be earned in future periods. | |||||||||||||||||||||
As of February 1, 2015 and February 2, 2014, the Company had approximately $5.2 million of foreign tax credits related to other tax years which the Company continued to forecast would be reflected as a deduction from future taxable income rather than as a credit against future taxes payable. | |||||||||||||||||||||
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 these deferred tax assets was already subject to a valuation allowance, the revaluation of the assets resulted in a reduction in the necessary valuation allowance of $314,000. The effect of the legislation was therefore to reduce the Company's net deferred tax assets by $686,000, with a corresponding charge to income tax expense. | |||||||||||||||||||||
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 tax effects of temporary differences are as follows: | |||||||||||||||||||||
February 1, | February 2, | ||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Deferred income tax assets: | |||||||||||||||||||||
Goodwill and other intangible assets | $ | 2,830 | $ | 5,710 | |||||||||||||||||
Allowance for doubtful accounts | 191 | 93 | |||||||||||||||||||
Other current assets | 1,124 | 989 | |||||||||||||||||||
Property and equipment | 6,202 | 5,083 | |||||||||||||||||||
Other non-current assets | 2,777 | 2,830 | |||||||||||||||||||
Self-insurance accruals | 3,434 | 3,586 | |||||||||||||||||||
Deferred revenue | 2,608 | 2,584 | |||||||||||||||||||
Accrued compensation | 5,154 | 4,938 | |||||||||||||||||||
Other current liabilities | 998 | 1,263 | |||||||||||||||||||
Other non-current liabilities | 3,488 | 3,444 | |||||||||||||||||||
Share-based compensation | 8,489 | 10,507 | |||||||||||||||||||
Federal net operating loss carryforwards | 34,709 | 48,171 | |||||||||||||||||||
Federal tax credit carryforwards | 12,642 | 10,216 | |||||||||||||||||||
State net operating loss and credit carryforwards | 8,938 | 10,083 | |||||||||||||||||||
Other | 505 | 486 | |||||||||||||||||||
Gross deferred income tax assets | 94,089 | 109,983 | |||||||||||||||||||
Valuation allowance on deferred income tax assets | (2,566 | ) | (2,675 | ) | |||||||||||||||||
Deferred income tax assets, net of valuation allowance | 91,523 | 107,308 | |||||||||||||||||||
Deferred income tax liabilities | - | - | |||||||||||||||||||
Net deferred income tax assets | $ | 91,523 | $ | 107,308 | |||||||||||||||||
Deferred income tax assets are reflected in the accompanying balance sheet as follows: | |||||||||||||||||||||
February 1, | February 2, | ||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Net current assets | $ | 23,245 | $ | 23,847 | |||||||||||||||||
Net noncurrent assets | 68,278 | 83,461 | |||||||||||||||||||
$ | 91,523 | $ | 107,308 | ||||||||||||||||||
The changes in the valuation allowance on deferred income tax assets are summarized as follows: | |||||||||||||||||||||
Year Ended | |||||||||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Valuation allowance on deferred tax assets: | |||||||||||||||||||||
Balance at beginning of year | $ | 2,675 | $ | 9,767 | $ | 10,652 | |||||||||||||||
Reduction in allowance due to amendment of tax return | - | - | (885 | ) | |||||||||||||||||
Reversal of allowance credited to earnings | (150 | ) | (4,306 | ) | - | ||||||||||||||||
Reclassification of valuation allowance against deferred tax assets | |||||||||||||||||||||
not affecting earnings | - | (2,472 | ) | - | |||||||||||||||||
Reduction in valuation allowance related to enacted change in | |||||||||||||||||||||
North Carolina statutory income tax rate | - | (314 | ) | - | |||||||||||||||||
Other | 41 | - | - | ||||||||||||||||||
Balance at end of year | $ | 2,566 | $ | 2,675 | $ | 9,767 | |||||||||||||||
During fiscal 2013, the Company's gross deferred tax assets and the related valuation allowance were each reduced in the amount of $885,000 as a result of the Company's amendment of a prior year income tax return; the amendment had no effect on the Company's net deferred tax assets. | |||||||||||||||||||||
As more fully described above, in the fourth quarter of fiscal 2014, the Company concluded that foreign tax credit carryovers related to certain tax years which management previously forecasted would be deducted from future taxable income rather than being taken as a credit against future income taxes payable, would, based on estimates of future annual taxable income updated in the fourth quarter, ultimately be taken as a credit rather than as a deduction. As of February 3, 2013, foreign tax credits related to other, earlier years, which total approximately $3.8 million, were reflected as foreign tax credit deferred tax assets, partially offset by a valuation allowance of $2.5 million to reduce their carrying value to the amount of tax benefit the Company forecasted ultimately would be realized. In the fourth quarter of fiscal 2014, the Company reversed the $3.8 million foreign tax credit deferred tax asset and the related $2.5 million valuation allowance related to these earlier years, and reclassified the net carrying value of $1.3 million to the federal net operating loss carryforward deferred tax asset based on management's plans to amend tax returns related to those years to utilize the foreign tax credits as deductions. Such reversal and reclassification had no effect on the net carrying value of the Company's deferred tax assets or on income tax expense. | |||||||||||||||||||||
The valuation allowance of $2.6 million as of February 1, 2015 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 carryforwards related to states in which the scope of the Company's operations has decreased, which adversely affects the Company's ability to realize the net operating loss carryforwards because the Company has little income earned in or apportioned to those states. | |||||||||||||||||||||
Realization of net deferred tax assets generally is dependent on generation of taxable income in future periods. 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. | |||||||||||||||||||||
The Company has approximately $103 million of federal income tax loss carryforwards expiring in fiscal 2027 through 2031. In addition to this amount, the Company has approximately $56 million of income tax loss carryforwards resulting from tax deductions related to stock options and other equity awards to employees, the tax benefits of which, if subsequently realized, will be recorded as additions to common stock; the amount of such potential benefits is approximately $21 million. The Company also has state income tax loss carryforwards expiring in fiscal 2016 through 2033. The Company has $12.6 million of federal tax credit carryforwards expiring in fiscal 2021 through 2035, principally consisting of federal foreign tax credit carryforwards. | |||||||||||||||||||||
In fiscal 2008, the Company issued warrants to acquire shares of the Company's common stock at $12.21 per share as more fully described in Note 14. The warrants expired unexercised in the first quarter of fiscal 2013 and, accordingly, the Company will not be entitled to any income tax deductions 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. | |||||||||||||||||||||
In fiscal 2006, the Company issued a warrant to acquire shares of the Company's common stock at $7.75 per share as more fully described in Note 14. The warrant expired unexercised in the fourth quarter of fiscal 2013 and, accordingly, the Company will not be entitled to any income tax deductions related to it. Deferred tax assets at January 29, 2012 included approximately $2.6 million related to the warrant. In accordance with GAAP, such amounts were charged to common stock in the fourth 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. | |||||||||||||||||||||
The Company is subject to U.S. federal income tax, as well as income tax in multiple U.S. state and local jurisdictions and a limited number of foreign jurisdictions. The Company's income tax returns periodically are examined by the Internal Revenue Service (the “IRS”) and by other tax authorities in various jurisdictions. The Company assesses the likelihood of adverse outcomes resulting from these examinations in determining the provision for income taxes. Because of special rules applicable to companies which have incurred net operating losses that may be carried back to earlier years or forward to subsequent years, the Company's income tax returns for fiscal 2002 and later years are subject to examination and adjustment notwithstanding the normal three year statute of limitations. With the exception of fiscal 2010, which was examined by the IRS, without adjustment, the IRS has not examined the Company's federal income tax returns for years subsequent to fiscal 2004. The Company's state income tax returns generally are subject to adjustment by state tax authorities for similar reasons. | |||||||||||||||||||||
Income tax payments, net of refunds, were $2.5 million, $2.5 million and $2.3 million in fiscal 2015, 2014 and 2013, respectively. The tax payments in all three fiscal years were comprised largely of foreign withholding taxes on amounts received from foreign franchisees. | |||||||||||||||||||||
The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: | |||||||||||||||||||||
Year Ended | |||||||||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Unrecognized tax benefits at beginning of year | $ | 1,952 | $ | 1,327 | $ | 1,378 | |||||||||||||||
Increases related to positions taken in the current year | 108 | 105 | 128 | ||||||||||||||||||
Increases (decreases) related to positions taken in prior years | (21 | ) | 702 | - | |||||||||||||||||
Lapsing of statutes of limitations | (74 | ) | (182 | ) | (179 | ) | |||||||||||||||
Unrecognized tax benefits at end of year | $ | 1,965 | $ | 1,952 | $ | 1,327 | |||||||||||||||
Approximately all of the aggregate $2.0 million of unrecognized income tax benefits at February 1, 2015, would, if recognized, be reflected as a reduction in income tax expense. | |||||||||||||||||||||
Management does not expect any material change in fiscal 2016 in the amount of unrecognized tax benefits. | |||||||||||||||||||||
The Company's policy is to recognize interest and penalties related to income tax issues as components of income tax expense. The Company's balance sheet reflects approximately $313,000 and $298,000 of accrued interest and penalties as of February 1, 2015 and February 2, 2014, respectively. | |||||||||||||||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Feb. 01, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 17 — Related Party Transactions |
All franchisees are required to purchase doughnut mix and production equipment from the Company. Revenues include $9.5 million, $9.4 million and $8.9 million in fiscal 2015, 2014 and 2013, respectively, of KK Supply Chain sales to stores owned by franchisees in which the Company has an ownership interest. Revenues also include royalties from these franchisees of $1.3 million in each of fiscal 2015, 2014 and 2013. Trade receivables from these franchisees are included in receivables from related parties as shown in Note 3. These transactions were conducted pursuant to and franchise agreements, the terms of which are substantially the same as the agreements with unaffiliated franchisees. | |
The Company's franchisee for the Middle East was an affiliate of an entity which was the beneficial owner of approximately 13% of the Company's common stock. On February 11, 2013, the affiliate reported that as of December 20, 2012, it no longer held an investment in the Company. The Company had transactions in the normal course of business with this franchisee (including sales of doughnut mix and equipment to the franchisee and royalties payable to the Company by the franchisee based on its sales at Krispy Kreme franchise stores) totaling approximately $6.7 million in fiscal 2013. Such transactions were conducted pursuant to development and franchise agreements, the terms of which are substantially the same as the agreements with other international franchisees. | |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Feb. 01, 2015 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Note 18 — Employee Benefit Plans |
The Company has a 401(k) savings plan (the “401(k) Plan”) to which eligible employees may contribute up to 100% of their salary and bonus on a tax deferred basis, subject to statutory limitations. The Company currently matches 50% of the first 6% of compensation contributed by each employee to the 401(k) Plan. Contributions expense for this plan totaled approximately $910,000 in fiscal 2015, $860,000 in fiscal 2014 and $820,000 in fiscal 2013. | |
The Company also has a Nonqualified Deferred Compensation Plan (the “401(k) Mirror Plan”) designed to enable officers of the Company whose contributions to the 401(k) Plan are limited by certain statutory limitations to have the same opportunity to defer compensation as is available to other employees of the Company under the qualified 401(k) savings plan. Participants may defer from 1% to 15% of their base salary and from 1% to 100% of their bonus (reduced by their contributions to the 401(k) Plan), subject to statutory limitations, into the 401(k) Mirror Plan and may direct the investment of the amounts they have deferred. The investments, however, are not a legally separate fund of assets, are subject to the claims of the Company's general creditors, and are included in other assets in the consolidated balance sheet. The corresponding liability to participants is included in other long-term obligations. The balance in the asset and corresponding liability account was $2.5 million and $2.6 million at February 1, 2015 and February 2, 2014, respectively. | |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | |||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||
Fair-Value Measurements | Note 19 — 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 February 1, 2015 and February 2, 2014. | |||||||||||||
February 1, 2015(1) | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
(In thousands) | |||||||||||||
Assets: | |||||||||||||
401(k) mirror plan assets | $ | 2,496 | $ | - | $ | - | |||||||
Liabilities: | |||||||||||||
Agricultural commodity futures contracts | 874 | - | - | ||||||||||
Gasoline commodity futures contracts | 937 | - | - | ||||||||||
Total liabilities | $ | 1,811 | $ | - | $ | - | |||||||
February 2, 2014(1) | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
(In thousands) | |||||||||||||
Assets: | |||||||||||||
401(k) mirror plan assets | $ | 2,585 | $ | - | $ | - | |||||||
Liabilities: | |||||||||||||
Agricultural commodity futures contracts | $ | 313 | $ | - | $ | - | |||||||
-1 | There were no transfers of financial assets or liabilities among the levels within the fair value hierarchy during the years ended February 1, 2015 or February 2, 2014. | ||||||||||||
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | |||||||||||||
The following table presents the nonrecurring fair value measurements recorded during fiscal 2015. There were no material nonrecurring fair value measurements recorded in fiscal 2014 or 2013. | |||||||||||||
Year Ended February 1, 2015 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total gain (loss) | ||||||||||
(In thousands) | |||||||||||||
Long-lived assets | $ | - | $ | 270 | $ | - | $ | (901 | ) | ||||
During fiscal 2015, long-lived assets associated with a Krispy Kreme shop having an aggregate carrying value of $1.2 million were written down to their estimated fair value of $270,000, resulting in recorded impairment charges of $901,000 as described in Note 15. The charge relates to a store which currently generates negative cash flows and which management believes is unlikely to generate sufficient future cash flows to enable the Company to recover the carrying value of the stores' assets. The $270,000 fair value of the asset group relates entirely to the portion of the equipment and fixtures in the store that management believes could be moved to a different shop in the event management decides to close the shop with respect to which the impairment charge was recorded; such amount was based on the replacement cost of the equipment and fixtures, after considering refurbishment and transportation costs. These inputs are classified as Level 2 within the valuation hierarchy. No significant value was ascribed to the shop's building constructed on leased land because the value of such improvements likely would revert to the landlord if the Company closes the shop. | |||||||||||||
Fair Values of Financial Instruments at the Balance Sheet Dates | |||||||||||||
The carrying values and approximate fair values of certain financial instruments as of February 1, 2015 and February 2, 2014 were as follows: | |||||||||||||
1-Feb-15 | 2-Feb-14 | ||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||
Value | Value | Value | Value | ||||||||||
(In thousands) | |||||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 50,971 | $ | 50,971 | $ | 55,748 | $ | 55,748 | |||||
Receivables | 27,799 | 27,799 | 25,268 | 25,268 | |||||||||
Receivables from equity method franchisees | 782 | 782 | 675 | 675 | |||||||||
Liabilities: | |||||||||||||
Accounts payable | 17,095 | 17,095 | 16,788 | 16,788 | |||||||||
Agriculture commodity futures contracts | 874 | 874 | 313 | 313 | |||||||||
Gasoline commodity futures contracts | 937 | 937 | - | - | |||||||||
Lease obligations (including current portion) | 9,687 | 9,687 | 2,003 | 2,003 | |||||||||
The carrying values of all financial instruments approximate their fair values at February 1, 2015 and February 2, 2014. | |||||||||||||
Derivative_Instruments
Derivative Instruments | 12 Months Ended | ||||||||||||||
Feb. 01, 2015 | |||||||||||||||
Derivative Instruments [Abstract] | |||||||||||||||
Derivative Instruments | Note 20 — Derivative Instruments | ||||||||||||||
The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by using derivative instruments is commodity price 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 19. | |||||||||||||||
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 February 1, 2015, the Company had commodity derivatives with an aggregate contract volume of 1.3 million bushels of wheat and 2.5 million gallons of gasoline. 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 | |||||||||||||||
The Company is exposed to market risk from increases in interest rates on any borrowings outstanding under its secured revolving credit facility. As of February 1, 2015, there were no borrowings outstanding under such facility. During the second quarter of fiscal 2014, the Company repaid in full the remaining balance of its 2011 Term Loan. | |||||||||||||||
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. In the second quarter of fiscal 2014, as a result of the termination of the contract, the $516,000 unrealized loss on the contract previously included in AOCI was reclassified to earnings 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 February 1, 2015 and February 2, 2014: | |||||||||||||||
Liability Derivatives | |||||||||||||||
Fair Value | |||||||||||||||
Derivatives Not Designated as | February 1, | February 2, | |||||||||||||
Hedging Instruments | Balance Sheet Location | 2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||||
Agricultural commodity futures contracts | Accrued liabilities | $ | 874 | $ | 313 | ||||||||||
Gasoline commodity futures contracts | Accrued liabilities | 937 | - | ||||||||||||
$ | 1,811 | $ | 313 | ||||||||||||
The effect of derivative instruments on the consolidated statement of income for the year ended February 1, 2015, February 2, 2014 and February 3, 2013, was as follows: | |||||||||||||||
Amount of Derivative Gain or (Loss) | |||||||||||||||
Recognized in Income | |||||||||||||||
Year Ended | |||||||||||||||
Derivatives Not Designated as Hedging | Location of Derivative Gain or (Loss) | February 1, | February 2, | February 3, | |||||||||||
Instruments | Recognized in Income | 2015 | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||||
Agricultural commodity futures contracts | Direct operating expenses | $ | (903 | ) | $ | (1,459 | ) | $ | 837 | ||||||
Gasoline commodity futures contracts | Direct operating expenses | (1,221 | ) | - | - | ||||||||||
Total | $ | (2,124 | ) | $ | (1,459 | ) | $ | 837 | |||||||
Amount of Derivative Gain or (Loss) | |||||||||||||||
Recognized in Income | |||||||||||||||
Year Ended | |||||||||||||||
Location of Derivative Gain or (Loss) | February 1, | February 2, | February 3, | ||||||||||||
Derivatives Designated as a Cash Flow Hedge | Recognized in Income | 2015 | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||||
Interest rate derivative | Interest expense | $ | - | $ | (39 | ) | $ | (34 | ) | ||||||
Interest rate derivative | Loss on retirement of debt | $ | - | $ | (516 | ) | $ | - | |||||||
The effect of derivative instruments on other comprehensive income for the years ended February 1, 2015, February 2, 2014 and February 3, 2013, was as follows: | |||||||||||||||
Amount of Derivative Gain | |||||||||||||||
or (Loss) Recognized in OCI | |||||||||||||||
Year Ended | |||||||||||||||
Derivative Gain or (Loss) Recognized in | February 1, | February 2, | February 3, | ||||||||||||
Derivatives Designated as a Cash Flow Hedge | OCI | 2015 | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||||
Interest rate derivative | Change in fair value of derivative | $ | - | $ | 36 | $ | (3 | ) | |||||||
Less-income tax effect | - | (14 | ) | 1 | |||||||||||
$ | - | $ | 22 | $ | (2 | ) | |||||||||
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 | $ | (2 | ) |
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 12 Months Ended | |||
Feb. 01, 2015 | ||||
Acquisitions and Divestitures [Abstract] | ||||
Acquisitions and Divestitures | Note 21 — Acquisitions and Divestitures | |||
Acquisition of Krispy Kreme Shops | ||||
On June 17, 2014, the Company acquired the business and operating assets of its franchisee in Birmingham, Alabama, consisting of four Krispy Kreme shops that had fiscal 2014 sales of approximately $9 million. The acquired assets also include the seller's franchise rights for 13 counties in Alabama. The total consideration was approximately $7.5 million cash. In connection with the acquisition, the Company entered into leases with the seller for three of the shops and assumed a lease with an unrelated party on the fourth shop. | ||||
The Company recorded charges to earnings related to the acquisition of $431,000 in the quarter ended August 3, 2014, which are included in direct operating expenses. The charges include $343,000 for the settlement of the pre-existing franchise contract between the Company and the franchisee, certain terms of which were unfavorable, from the Company's point of view, to current market terms. The charge was determined by discounting to present value as of the acquisition date the excess of royalties on the acquired business's sales at the Company's current prevailing royalty rates over the lower royalties otherwise payable by the former franchisee pursuant to the terminated franchise agreement. The discount rate used reflected both the time value of money and the level of risk associated with achievement of the related cash flows. The Company also expensed transaction costs related to the acquisition of $88,000. | ||||
The cost of the acquired business was allocated as follows: | ||||
(In thousands) | ||||
Purchase price allocated to: | ||||
Working capital, exclusive of cash | $ | (5 | ) | |
Property and equipment | 710 | |||
Reacquired franchise rights associated with the Company Stores segment | 3,853 | |||
Goodwill associated with the Company Stores segment | 2,594 | |||
$ | 7,152 | |||
Amounts allocated to reacquired franchise rights are being amortized by charges to earnings on a straight-line basis through March 2020, which was the expiration date of the terminated franchise agreement. All of the goodwill recognized in the acquisition for financial reporting purposes is expected to be deductible for income tax purposes. | ||||
The results of operations of the acquired business subsequent to the acquisition had no material effect on the Company's consolidated results of operations. The Company's results of operations for the year ended February 2, 2014, computed on a pro forma basis assuming the acquisition had been consummated at the beginning of those periods, would not be materially different from the Company's historical results of operations and, accordingly, have been omitted. | ||||
In December 2013, the Company acquired the land, building and doughnut-making equipment at a facility in Illinois that had fiscal 2014 sales of approximately $3 million. The aggregate purchase price for the facility was approximately $1.6 million cash, all of which was allocated to property and equipment. The facility was being operated as a Krispy Kreme shop pursuant to a management agreement approved by the Company between the facility's former owner and one of the Company's franchisees. The management agreement was terminated in connection with the Company's acquisition of the facility, and was replaced by an operating agreement between the Company and the franchisee. Pursuant to the operating agreement, the Company agreed to permit the franchisee to continue to operate the facility for its account through June 2014 in exchange for monthly rental payments, and the payment of amounts based on the facility's sales equivalent to the amounts that would be payable to the Company if the facility were subject to a franchise agreement. The Company assumed operation of the facility for its own account in July 2014. The Company's results of operations for the year ended February 2, 2014, computed on a pro forma basis assuming the acquisition had been consummated at the beginning of those periods, would not be materially different from the Company's historical results of operations and, accordingly, have been omitted. | ||||
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 Company's results of operations for the year ended February 3, 2013 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. The acquired business's revenues and earnings for periods subsequent to the acquisition are not material to the Company's consolidated financial statements. | ||||
Asset Divestitures | ||||
On September 9, 2014, the Company refranchised its retail Krispy Kreme shop in Rockville, Maryland to a new franchisee for approximately $1.8 million cash. The Company Stores segment realized a gain of $1.2 million on the refranchising transaction, which is reflected in direct operating expenses in fiscal 2015. The refranchising included the execution of a development agreement pursuant to which the new franchisee has agreed to develop an additional 20 retail Krispy Kreme shops in Virginia, Washington, DC and Maryland over the next seven years. | ||||
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 owned, 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. In October 2014, the franchisee purchased from the Company the two stores it previously leased for $2.1 million cash, which approximated the properties' aggregate carrying value. | ||||
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 initially 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 reflected 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. | ||||
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Feb. 01, 2015 | |||||||||||||||||
Selected Quarterly Financial Data [Abstract] | |||||||||||||||||
Selected Quarterly Financial Data | Note 22 — Selected Quarterly Financial Data (Unaudited) | ||||||||||||||||
The tables below present selected quarterly financial data for fiscal 2015 and 2014. | |||||||||||||||||
Quarter Ended | |||||||||||||||||
May 4, | August 3, | November 2, | February 1, | ||||||||||||||
2014 | 2014 | 2014 | 2015 | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Revenues | $ | 121,580 | $ | 120,516 | $ | 122,871 | $ | 125,367 | |||||||||
Operating expenses: | |||||||||||||||||
Direct operating expenses (exclusive of depreciation and | |||||||||||||||||
amortization expense shown below) | 95,172 | 101,084 | 101,165 | 102,323 | |||||||||||||
General and administrative expenses | 7,047 | 6,737 | 5,553 | 9,221 | |||||||||||||
Depreciation and amortization expense | 3,173 | 3,033 | 3,280 | 3,354 | |||||||||||||
Impairment charges and lease termination costs | 8 | 38 | 4 | 905 | |||||||||||||
Operating income | 16,180 | 9,624 | 12,869 | 9,564 | |||||||||||||
Interest income | 171 | 64 | 62 | 109 | |||||||||||||
Interest expense | (143 | ) | (162 | ) | (230 | ) | (321 | ) | |||||||||
Equity in losses of equity method franchisees | (57 | ) | (61 | ) | (53 | ) | 53 | ||||||||||
Other non-operating income and (expense), net | 168 | 152 | 91 | 136 | |||||||||||||
Income before income taxes | 16,319 | 9,617 | 12,739 | 9,541 | |||||||||||||
Provision for income taxes | 6,663 | 3,865 | 4,633 | 2,995 | |||||||||||||
Net income | $ | 9,656 | $ | 5,752 | $ | 8,106 | $ | 6,546 | |||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 0.15 | $ | 0.09 | $ | 0.12 | $ | 0.10 | |||||||||
Diluted | $ | 0.14 | $ | 0.08 | $ | 0.12 | $ | 0.10 | |||||||||
The sum of the quarterly earnings per share amounts does not necessarily equal earnings per share for the year. | |||||||||||||||||
Quarter Ended | |||||||||||||||||
May 4, | August 3, | November 2, | February 1, | ||||||||||||||
2014 | 2014 | 2014 | 2015 | ||||||||||||||
(In thousands) | |||||||||||||||||
Revenues by business segment: | |||||||||||||||||
Company Stores | $ | 80,448 | $ | 78,535 | $ | 82,579 | $ | 83,744 | |||||||||
Domestic Franchise | 3,499 | 3,296 | 3,274 | 3,381 | |||||||||||||
International Franchise | 6,581 | 7,534 | 6,852 | 7,631 | |||||||||||||
KK Supply Chain: | |||||||||||||||||
Total revenues | 60,312 | 59,503 | 61,581 | 63,292 | |||||||||||||
Less - intersegment sales elimination | (29,260 | ) | (28,352 | ) | (31,415 | ) | (32,681 | ) | |||||||||
External KK Supply Chain revenues | 31,052 | 31,151 | 30,166 | 30,611 | |||||||||||||
Total revenues | $ | 121,580 | $ | 120,516 | $ | 122,871 | $ | 125,367 | |||||||||
Operating income: | |||||||||||||||||
Company Stores | $ | 4,416 | $ | 1,261 | $ | 2,233 | $ | 1,377 | |||||||||
Domestic Franchise | 2,156 | 1,900 | 1,989 | 2,058 | |||||||||||||
International Franchise | 4,280 | 5,111 | 5,048 | 5,587 | |||||||||||||
KK Supply Chain | 12,754 | 8,489 | 9,529 | 11,051 | |||||||||||||
Total segment operating income | 23,606 | 16,761 | 18,799 | 20,073 | |||||||||||||
General and administrative expenses | (7,047 | ) | (6,737 | ) | (5,553 | ) | (9,221 | ) | |||||||||
Corporate depreciation and amortization expense | (371 | ) | (362 | ) | (373 | ) | (383 | ) | |||||||||
Impairment charges and lease termination costs | (8 | ) | (38 | ) | (4 | ) | (905 | ) | |||||||||
Consolidated operating income | $ | 16,180 | $ | 9,624 | $ | 12,869 | $ | 9,564 | |||||||||
Quarter Ended | |||||||||||||||||
May 5, | August 4, | November 3, | February 2, | ||||||||||||||
2013 | 2013 | 2013 | 2014 | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Revenues | $ | 120,625 | $ | 112,729 | $ | 114,231 | $ | 112,746 | |||||||||
Operating expenses: | |||||||||||||||||
Direct operating expenses (exclusive of depreciation and | |||||||||||||||||
amortization expense shown below) | 96,558 | 93,806 | 92,466 | 93,302 | |||||||||||||
General and administrative expenses | 6,055 | 5,655 | 5,730 | 7,709 | |||||||||||||
Depreciation and amortization expense | 2,820 | 2,664 | 2,788 | 2,834 | |||||||||||||
Impairment charges and lease termination costs | 8 | 4 | 1,531 | (169 | ) | ||||||||||||
Operating income | 15,184 | 10,600 | 11,716 | 9,070 | |||||||||||||
Interest income | 61 | 70 | 341 | 144 | |||||||||||||
Interest expense | (437 | ) | (354 | ) | (131 | ) | (135 | ) | |||||||||
Loss on retirement of debt | - | (967 | ) | - | - | ||||||||||||
Equity in losses of equity method franchisees | (53 | ) | (60 | ) | (61 | ) | (47 | ) | |||||||||
Other non-operating income and (expense), net | (5 | ) | (1 | ) | 29 | 96 | |||||||||||
Income before income taxes | 14,750 | 9,288 | 11,894 | 9,128 | |||||||||||||
Provision for income taxes | 6,751 | 4,571 | 5,114 | (5,632 | ) | ||||||||||||
Net income | $ | 7,999 | $ | 4,717 | $ | 6,780 | $ | 14,760 | |||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 0.12 | $ | 0.07 | $ | 0.1 | $ | 0.22 | |||||||||
Diluted | $ | 0.11 | $ | 0.07 | $ | 0.09 | $ | 0.21 | |||||||||
The sum of the quarterly earnings per share amounts does not necessarily equal earnings per share for the year. | |||||||||||||||||
Quarter Ended | |||||||||||||||||
May 5, | August 4, | November 3, | February 2, | ||||||||||||||
2013 | 2013 | 2013 | 2014 | ||||||||||||||
(In thousands) | |||||||||||||||||
Revenues by business segment: | |||||||||||||||||
Company Stores | $ | 81,921 | $ | 75,689 | $ | 74,886 | $ | 74,329 | |||||||||
Domestic Franchise | 2,871 | 2,799 | 3,026 | 3,143 | |||||||||||||
International Franchise | 6,445 | 6,057 | 6,205 | 6,900 | |||||||||||||
KK Supply Chain: | |||||||||||||||||
Total revenues | 59,811 | 57,201 | 58,304 | 55,913 | |||||||||||||
Less - intersegment sales elimination | (30,423 | ) | (29,017 | ) | (28,190 | ) | (27,539 | ) | |||||||||
External KK Supply Chain revenues | 29,388 | 28,184 | 30,114 | 28,374 | |||||||||||||
Total revenues | $ | 120,625 | $ | 112,729 | $ | 114,231 | $ | 112,746 | |||||||||
Operating income: | |||||||||||||||||
Company Stores | $ | 5,314 | $ | 1,790 | $ | 2,599 | $ | 1,631 | |||||||||
Domestic Franchise | 1,439 | 1,526 | 3,156 | 1,962 | |||||||||||||
International Franchise | 4,531 | 4,239 | 4,449 | 4,758 | |||||||||||||
KK Supply Chain | 10,239 | 8,999 | 9,098 | 8,617 | |||||||||||||
Total segment operating income | 21,523 | 16,554 | 19,302 | 16,968 | |||||||||||||
General and administrative expenses | (6,055 | ) | (5,655 | ) | (5,730 | ) | (7,709 | ) | |||||||||
Corporate depreciation and amortization expense | (276 | ) | (295 | ) | (325 | ) | (358 | ) | |||||||||
Impairment charges and lease termination costs | (8 | ) | (4 | ) | (1,531 | ) | 169 | ||||||||||
Consolidated operating income | $ | 15,184 | $ | 10,600 | $ | 11,716 | $ | 9,070 |
SCHEDULE_I_CONDENSED_FINANCIAL
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | |||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract] | |||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||||
KRISPY KREME DOUGHNUTS, INC. | |||||||||||||
(PARENT COMPANY ONLY) | |||||||||||||
STATEMENT OF INCOME | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | February 3, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
(In thousands, except per share amounts) | |||||||||||||
Equity in income of subsidiaries | $ | 30,060 | $ | 34,256 | $ | 20,779 | |||||||
Miscellaneous expenses | - | - | - | ||||||||||
Income before income taxes | 30,060 | 34,256 | 20,779 | ||||||||||
Provision for income taxes | - | - | - | ||||||||||
Net income | $ | 30,060 | $ | 34,256 | $ | 20,779 | |||||||
Earnings per common share: | |||||||||||||
Basic | $ | 0.45 | $ | 0.51 | $ | 0.31 | |||||||
Diluted | $ | 0.44 | $ | 0.48 | $ | 0.3 | |||||||
STATEMENT OF COMPREHENSIVE INCOME | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | February 3, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||
Net income | $ | 30,060 | $ | 34,256 | $ | 20,779 | |||||||
Other comprehensive income (loss) | - | 338 | (2 | ) | |||||||||
Comprehensive income | $ | 30,060 | $ | 34,594 | $ | 20,777 | |||||||
BALANCE SHEET | |||||||||||||
February 1, | February 2, | ||||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
ASSETS | |||||||||||||
Investment in and advances to subsidiaries | $ | 267,786 | $ | 265,093 | |||||||||
SHAREHOLDERS' EQUITY | |||||||||||||
Preferred stock | $ | - | $ | - | |||||||||
Common stock | 310,768 | 338,135 | |||||||||||
Accumulated other comprehensive loss | - | - | |||||||||||
Accumulated deficit | (42,982 | ) | (73,042 | ) | |||||||||
Total shareholders' equity | $ | 267,786 | $ | 265,093 | |||||||||
STATEMENT OF CASH FLOWS | |||||||||||||
Year Ended | |||||||||||||
February 1, | February 2, | February 3, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||
CASH FLOW FROM OPERATING ACTIVITIES: | |||||||||||||
Net income | $ | 30,060 | $ | 34,256 | $ | 20,779 | |||||||
Equity in income of subsidiaries | (30,060 | ) | (34,256 | ) | (20,779 | ) | |||||||
Net cash provided by (used for) operating activities | - | - | - | ||||||||||
CASH FLOW FROM INVESTING ACTIVITIES: | |||||||||||||
Investments in subsidiaries | 33,622 | 20,540 | 20,502 | ||||||||||
Net cash provided by (used for) investing activities | 33,622 | 20,540 | 20,502 | ||||||||||
CASH FLOW FROM FINANCING ACTIVITIES: | |||||||||||||
Proceeds from exercise of stock options | 10,259 | 2,517 | 247 | ||||||||||
Proceeds from exercise of warrants | - | - | 9 | ||||||||||
Repurchase of common shares | (43,881 | ) | (23,057 | ) | (20,758 | ) | |||||||
Net cash provided by (used for) financing activities | (33,622 | ) | (20,540 | ) | (20,502 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | - | - | - | ||||||||||
Cash and cash equivalents at beginning of period | - | - | - | ||||||||||
Cash and cash equivalents at end of period | $ | - | $ | - | $ | - | |||||||
Accounting_Policies_Policies
Accounting Policies (Policies) | 12 Months Ended | |||||||||||||||||
Feb. 01, 2015 | ||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||
BASIS OF PRESENTATION | The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The significant accounting policies followed by the Company in preparing the accompanying consolidated financial statements are as follows: | |||||||||||||||||
BASIS OF CONSOLIDATION | BASIS OF CONSOLIDATION. The financial statements include the accounts of KKDI and its subsidiaries. | |||||||||||||||||
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. | ||||||||||||||||||
REVENUE RECOGNITION | REVENUE RECOGNITION. Revenue is recognized when there is a contract or other arrangement of sale; the sales price is fixed or determinable; title and the risks of ownership have been transferred to the customer; and collection of the receivable is reasonably assured. A summary of the revenue recognition policies for the Company's business segments is as follows: | |||||||||||||||||
Company Stores revenue is derived from the sale of doughnuts and complementary products to on-premises and wholesale customers. Revenue is recognized at the time of delivery for on-premises sales. For wholesale sales, revenue is recognized either at the time of delivery, net of provisions for estimated product returns, or, with respect to those wholesale customers that take title to products purchased from the Company at the time those products are sold by the wholesale customer to consumers, simultaneously with such consumer purchases. | ||||||||||||||||||
Domestic and International Franchise revenue is derived from development and initial franchise fees relating to new store openings and ongoing royalties charged to franchisees based on their sales. Development and franchise fees are recognized when the store is opened, at which time the Company has performed substantially all of the initial services it is required to provide. Royalties are recognized in income as underlying franchisee sales occur unless there is significant uncertainty concerning the collectibility of such revenues, in which case royalty revenues are recognized when received. | ||||||||||||||||||
KK Supply Chain revenue is derived from the sale of doughnut mix, other ingredients and supplies and doughnut-making equipment. Revenues for the sale of doughnut mix and supplies are recognized upon delivery to the customer or, in the case of franchisees located outside North America, when the goods are loaded on the transport vessel at the U.S. port. Revenue for equipment sales and installation associated with new store openings is recognized at the store opening date. Revenue for equipment sales not associated with new store openings is recognized when the equipment is installed if the Company is responsible for the installation, and otherwise upon shipment of the equipment. | ||||||||||||||||||
FISCAL YEAR | FISCAL YEAR. The Company's fiscal year ends on the Sunday closest to January 31, which periodically results in a 53-week year. Fiscal 2015 and fiscal 2014 each contained 52 weeks, while fiscal 2013 contained 53 weeks. | |||||||||||||||||
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS. The Company considers cash on hand, demand deposits in banks and all highly liquid debt instruments with an original maturity of three months or less to be cash and cash equivalents. | |||||||||||||||||
ALLOWANCE FOR DOUBTFUL ACCOUNTS | ALLOWANCE FOR DOUBTFUL ACCOUNTS. The Company maintains allowances for doubtful accounts related to its accounts receivable, including receivables from franchisees, in amounts which management believes are sufficient to provide for losses estimated to be sustained on realization of these receivables. Such estimates inherently involve uncertainties and assessments of the outcome of future events, and changes in facts and circumstances may result in adjustments to the allowance for doubtful accounts. | |||||||||||||||||
INVENTORIES | INVENTORIES. Inventories are recorded at the lower of cost or market, with cost determined using the first-in, first-out method. | |||||||||||||||||
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT. Depreciation of property and equipment is provided using the straight-line method over the assets' estimated useful lives, which are as follows: buildings — 5 to 35 years; machinery and equipment — 3 to 15 years; computer software — 3 to 10 years; and leasehold improvements — 5 to 20 years. | |||||||||||||||||
REACQUIRED FRANCHISE RIGHTS | REACQUIRED FRANCHISE RIGHTS. Franchise rights reacquired in connection with business combinations are valued based on the present value of the cash flows of the acquired business and are amortized on a straight-line basis from the acquisition date through the expiration date of the terminated franchise agreement. | |||||||||||||||||
GOODWILL | GOODWILL. Goodwill represents the excess of the purchase price over the value of identifiable net assets acquired in business combinations. Goodwill has an indefinite life and is not amortized, but is tested for impairment annually or more frequently if events or circumstances indicate the carrying amount of the asset may be impaired. Such impairment testing is performed for each reporting unit to which goodwill has been assigned. | |||||||||||||||||
LEGAL COSTS | LEGAL COSTS. Legal costs associated with litigation and other loss contingencies are charged to expense as services are rendered. | |||||||||||||||||
ASSET IMPAIRMENT | ASSET IMPAIRMENT. The Company assesses asset groups for potential impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The assessment is based upon a comparison of the carrying amount of the asset group, consisting primarily of property and equipment, to the estimated undiscounted cash flows expected to be generated from the asset group. To estimate cash flows, management projects the net cash flows anticipated from continuing operation of the asset group or store until its closing or abandonment as well as cash flows, if any, anticipated from disposal of the related assets. If the carrying amount of the assets exceeds the sum of the undiscounted cash flows, the Company records an impairment charge in an amount equal to the excess of the carrying value of the assets over their estimated fair value. | |||||||||||||||||
EARNINGS PER SHARE | 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 shares of restricted stock and restricted stock units. | |||||||||||||||||
The following table sets forth amounts used in the computation of basic and diluted earnings per share: | ||||||||||||||||||
Year Ended | ||||||||||||||||||
February 1, | February 2, | February 3, | ||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||
(In thousands) | ||||||||||||||||||
Numerator: net income | $ | 30,060 | $ | 34,256 | $ | 20,779 | ||||||||||||
Denominator: | ||||||||||||||||||
Basic earnings per share - weighted average shares | ||||||||||||||||||
outstanding | 66,360 | 67,261 | 67,624 | |||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||
Stock options and warrants | 2,037 | 2,998 | 1,781 | |||||||||||||||
Restricted stock and restricted stock units | 532 | 795 | 491 | |||||||||||||||
Diluted earnings per share - weighted average shares | ||||||||||||||||||
outstanding plus dilutive potential common shares | 68,929 | 71,054 | 69,896 | |||||||||||||||
Stock options and warrants with respect to 257,000, 301,000 and 2.7 million shares for fiscal 2015, fiscal 2014 and fiscal 2013, respectively, as well as 57,000 and 98,000 unvested shares of restricted stock and unvested restricted stock units for fiscal 2015 and fiscal 2013, 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. There were no antidilutive unvested shares of restricted stock and unvested restricted stock units in fiscal 2014. | ||||||||||||||||||
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION. The Company measures and recognizes compensation expense for share-based payment awards by charging the fair value of each award at its grant date to earnings over the service period necessary for each award to vest. | |||||||||||||||||
MARKETING AND BRAND PROMOTION | MARKETING AND BRAND PROMOTION. Costs associated with the Company's products including advertising and other brand promotional activities are expensed as incurred, and were approximately $9.8 million, $8.2 million and $7.5 million in fiscal 2015, 2014 and 2013, respectively. | |||||||||||||||||
CONCENTRATION OF CREDIT RISK | CONCENTRATION OF CREDIT RISK. Financial instruments that subject the Company to credit risk consist principally of receivables from wholesale customers and franchisees, guarantees of certain franchisee leases and, in prior years, guarantees of certain indebtedness of franchisees. Wholesale receivables are primarily from grocer/mass merchants and convenience stores. The Company maintains allowances for doubtful accounts which management believes are sufficient to provide for losses which may be sustained on realization of these receivables. In fiscal 2015, 2014 and 2013, no customer accounted for more than 10% of Company Stores segment revenues. The two largest wholesale customers collectively accounted for approximately 16%, 17% and 16% of Company Stores segment revenues in fiscal 2015, 2014 and 2013, respectively. The two wholesale customers with the largest trade receivables balances collectively accounted for approximately 24% and 27% of total wholesale customer receivables at February 1, 2015 and February 2, 2014, respectively. | |||||||||||||||||
The Company also evaluates the recoverability of receivables from its franchisees and maintains allowances for doubtful accounts which management believes are sufficient to provide for losses which may be sustained on realization of these receivables. In addition, the Company evaluates the likelihood of potential payments by the Company under loan and lease guarantees and records estimated liabilities for payments the Company considers probable. | ||||||||||||||||||
SELF-INSURANCE RISKS AND RECEIVABLES FROM INSURERS | SELF-INSURANCE RISKS AND RECEIVABLES FROM INSURERS. The Company is subject to workers' compensation, vehicle and general liability claims. The Company is self-insured for the cost of all workers' compensation, vehicle and general liability claims up to the amount of stop-loss insurance coverage purchased by the Company from commercial insurance carriers. The Company maintains accruals for the estimated cost of claims, without regard to the effects of stop-loss coverage, using actuarial methods which evaluate known open and incurred but not reported claims and consider historical loss development experience. In addition, the Company records receivables from the insurance carriers for claims amounts estimated to be recovered under the stop-loss insurance policies when these amounts are estimable and probable of collection. The Company estimates such stop-loss receivables using the same actuarial methods used to establish the related claims accruals, and taking into account the amount of risk transferred to the carriers under the stop-loss policies. The stop-loss policies provide coverage for claims in excess of retained self-insurance risks, which are determined on a claim-by-claim basis. | |||||||||||||||||
The Company recorded favorable adjustments to its self-insurance claims liabilities related to prior years of approximately $1.7 million, $1.1 million and $730,000 in fiscal 2015, 2014 and 2013, respectively. Such adjustments represent changes in estimates of the ultimate cost of incurred claims. | ||||||||||||||||||
The Company provides health and medical benefits to eligible employees, and purchases stop-loss insurance from commercial insurance carriers which pays covered medical costs in excess of a specified annual amount incurred by each claimant. | ||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS AND DERIVATIVE COMMODITY INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS AND DERIVATIVE COMMODITY INSTRUMENTS. The Company reflects derivative financial instruments, which typically consist of interest rate derivatives and commodity futures contracts and options on such contracts, in the consolidated balance sheet at their fair value. The difference between the cost, if any, and the fair value of the interest rate derivatives is reflected in income unless the derivative instrument qualifies as a cash flow hedge and is effective in offsetting future cash flows of the underlying hedged item, in which case such amount is reflected in other comprehensive income. 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 cash flow hedges. | |||||||||||||||||
COMPREHENSIVE INCOME | COMPREHENSIVE INCOME. Accounting standards on reporting comprehensive income require that certain items, including mark-to-market adjustments on interest rate 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. | |||||||||||||||||
USE OF ESTIMATES | USE OF ESTIMATES. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results will differ from these estimates, and the differences could be material. | |||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |||||||||||||||||
In February 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update ("ASU") No. 2015-02, "Consolidation: Amendments to the Consolidation Analysis." This update improves targeted areas of the consolidation guidance and reduces the number of consolidation models. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2015. Adoption of this guidance is not expected to have any effect on the Company's consolidated financial statements. | ||||||||||||||||||
In June 2014, the FASB issued ASU No. 2014-12, “Compensation – Stock Compensation”, an update to its accounting guidance related to share-based compensation. The guidance requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition, and therefore shall not be reflected in determining the fair value of the award at the grant date. The guidance is effective for annual and interim periods beginning after December 15, 2015; adoption of this guidance is not expected to have any effect on the Company's consolidated financial statements. | ||||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” to clarify the principles used to recognize revenue for all entities. The guidance is effective for annual and interim periods beginning after December 15, 2016. The Company will evaluate the effects, if any, adoption of this guidance will have on the Company's consolidated financial statements. | ||||||||||||||||||
In April 2014, the FASB issued ASU No. 2014-08, “Reporting Discontinued Operations and Disposals of Components of an Entity,” which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. The guidance is effective for annual and interim periods beginning after December 15, 2014. Adoption of this guidance could have an effect on the Company's presentation and disclosure of a future disposal compared to prior GAAP. | ||||||||||||||||||
Accounting_Policies_Tables
Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||
Feb. 01, 2015 | ||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||
Schedule of Computation of Earnings Per Share | Year Ended | |||||||||||||||||
February 1, | February 2, | February 3, | ||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||
(In thousands) | ||||||||||||||||||
Numerator: net income | $ | 30,060 | $ | 34,256 | $ | 20,779 | ||||||||||||
Denominator: | ||||||||||||||||||
Basic earnings per share - weighted average shares | ||||||||||||||||||
outstanding | 66,360 | 67,261 | 67,624 | |||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||
Stock options and warrants | 2,037 | 2,998 | 1,781 | |||||||||||||||
Restricted stock and restricted stock units | 532 | 795 | 491 | |||||||||||||||
Diluted earnings per share - weighted average shares | ||||||||||||||||||
outstanding plus dilutive potential common shares | 68,929 | 71,054 | 69,896 |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | |||||||||||||
Segment Information [Abstract] | |||||||||||||
Schedule of Operations by Reporting Segment | Year Ended | ||||||||||||
February 1, | February 2, | February 3, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Company Stores | $ | 325,306 | $ | 306,825 | $ | 296,494 | |||||||
Domestic Franchise | 13,450 | 11,839 | 10,325 | ||||||||||
International Franchise | 28,598 | 25,607 | 24,941 | ||||||||||
KK Supply Chain: | |||||||||||||
Total revenues | 244,688 | 231,229 | 215,412 | ||||||||||
Less – intersegment sales elimination | (121,708 | ) | (115,169 | ) | (111,329 | ) | |||||||
External KK Supply Chain revenues | 122,980 | 116,060 | 104,083 | ||||||||||
Total revenues | $ | 490,334 | $ | 460,331 | $ | 435,843 | |||||||
Operating income: | |||||||||||||
Company Stores | $ | 9,287 | $ | 11,334 | $ | 8,534 | |||||||
Domestic Franchise | 8,103 | 8,083 | 5,590 | ||||||||||
International Franchise | 20,026 | 17,977 | 17,387 | ||||||||||
KK Supply Chain | 41,823 | 36,953 | 32,450 | ||||||||||
Total segment operating income | 79,239 | 74,347 | 63,961 | ||||||||||
General and administrative expenses | (28,558 | ) | (25,149 | ) | (25,089 | ) | |||||||
Corporate depreciation and amortization expense | (1,489 | ) | (1,254 | ) | (837 | ) | |||||||
Impairment charges and lease termination costs | (955 | ) | (1,374 | ) | (306 | ) | |||||||
Consolidated operating income | $ | 48,237 | $ | 46,570 | $ | 37,729 | |||||||
Depreciation and amortization expense: | |||||||||||||
Company Stores | $ | 10,534 | $ | 9,039 | $ | 8,142 | |||||||
Domestic Franchise | 135 | 119 | 164 | ||||||||||
International Franchise | 5 | 7 | 10 | ||||||||||
KK Supply Chain | 677 | 687 | 738 | ||||||||||
Corporate | 1,489 | 1,254 | 837 | ||||||||||
Total depreciation and amortization expense | $ | 12,840 | $ | 11,106 | $ | 9,891 |
Receivables_Tables
Receivables (Tables) | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | |||||||||||||
Receivables [Abstract] | |||||||||||||
Schedule of Components of Receivables | February 1, | February 2, | |||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Receivables: | |||||||||||||
Wholesale customers | $ | 9,557 | $ | 9,919 | |||||||||
Unaffiliated franchisees | 12,743 | 10,934 | |||||||||||
Due from third-party distributors | 4,075 | 3,262 | |||||||||||
Other receivables | 867 | 640 | |||||||||||
Current portion of notes receivable | 1,052 | 754 | |||||||||||
28,294 | 25,509 | ||||||||||||
Less — allowance for doubtful accounts: | |||||||||||||
Wholesale customers | (204 | ) | (191 | ) | |||||||||
Unaffiliated franchisees | (291 | ) | (50 | ) | |||||||||
(495 | ) | (241 | ) | ||||||||||
$ | 27,799 | $ | 25,268 | ||||||||||
Receivables from equity method franchisees (Note 7): | |||||||||||||
Trade | $ | 782 | $ | 675 | |||||||||
February 1, | February 2, | ||||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Notes receivable: | |||||||||||||
Note receivable from franchisees | $ | 4,534 | $ | 3,980 | |||||||||
Less — portion due within one year included in receivables (Note 3) | (1,052 | ) | (754 | ) | |||||||||
Less — allowance for doubtful accounts | - | (54 | ) | ||||||||||
$ | 3,482 | $ | 3,172 | ||||||||||
Schedule of Changes in the Allowances for Doubtful Accounts | Year Ended | ||||||||||||
February 1, | February 2, | February 3, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||
Allowance for doubtful accounts related to receivables: | |||||||||||||
Balance at beginning of year | $ | 241 | $ | 615 | $ | 1,158 | |||||||
Provision for doubtful accounts | 202 | (275 | ) | 259 | |||||||||
Net recoveries (chargeoffs) | 52 | (99 | ) | (802 | ) | ||||||||
Balance at end of year | $ | 495 | $ | 241 | $ | 615 | |||||||
Year Ended | |||||||||||||
February 1, | February 2, | February 3, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||
Balance at beginning of year | $ | 54 | $ | 62 | $ | 68 | |||||||
Provision for doubtful accounts | (54 | ) | (8 | ) | (6 | ) | |||||||
Balance at end of year | $ | - | $ | 54 | $ | 62 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||
Feb. 01, 2015 | |||||||
Inventories [Abstract] | |||||||
Schedule of Inventory | February 1, | February 2, | |||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Raw materials | $ | 6,779 | $ | 6,200 | |||
Work in progress | 115 | 114 | |||||
Finished goods and purchased merchandise | 11,300 | 10,436 | |||||
$ | 18,194 | $ | 16,750 |
Other_Current_Assets_Tables
Other Current Assets (Tables) | 12 Months Ended | ||||||
Feb. 01, 2015 | |||||||
Other Current Assets [Abstract] | |||||||
Schedule of Other Current Assets | February 1, | February 2, | |||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Current portion of claims against insurance carriers related to self-insurance | |||||||
programs (Notes 1, 9, 10 and 12) | $ | 1,012 | $ | 893 | |||
Margin deposits in derivative brokerage accounts | 2,744 | 792 | |||||
Prepaid expenses and other | 3,100 | 3,514 | |||||
$ | 6,856 | $ | 5,199 |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Feb. 01, 2015 | |||||||||
Property and Equipment [Abstract] | |||||||||
Schedule of Property and Equipment | February 1, | February 2, | |||||||
2015 | 2014 | ||||||||
(In thousands) | |||||||||
Land | $ | 13,512 | $ | 13,822 | |||||
Buildings | 86,337 | 71,873 | |||||||
Leasehold improvements | 15,200 | 14,527 | |||||||
Machinery and equipment | 65,596 | 57,611 | |||||||
Computer software | 7,911 | 7,100 | |||||||
Construction and projects in progress | 12,295 | 5,913 | |||||||
200,851 | 170,846 | ||||||||
Less: accumulated depreciation | (85,093 | ) | (78,023 | ) | |||||
$ | 115,758 | $ | 92,823 |
Investments_in_Franchisees_Tab
Investments in Franchisees (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Feb. 01, 2015 | ||||||||||||||||||||||||||||
Investments in Franchisees [Abstract] | ||||||||||||||||||||||||||||
Schedule of Investments in Franchisees | Number of | |||||||||||||||||||||||||||
Stores as of | ||||||||||||||||||||||||||||
February 1, | Ownership% | |||||||||||||||||||||||||||
Geographic Market | 2015 | Company | Third Parties | |||||||||||||||||||||||||
Kremeworks, LLC | Alaska, Hawaii, Oregon, | |||||||||||||||||||||||||||
Washington | 9 | 25 | % | 75 | % | |||||||||||||||||||||||
Kremeworks Canada, LP | Western Canada | 1 | 24.5 | % | 75.5 | % | ||||||||||||||||||||||
Krispy Kreme of South Florida, LLC | South Florida | 3 | 35.3 | % | 64.7 | % | ||||||||||||||||||||||
1-Feb-15 | ||||||||||||||||||||||||||||
Investments and | ||||||||||||||||||||||||||||
Advances | Receivables | Loan Guarantees | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Kremeworks, LLC | $ | 900 | $ | 353 | $ | - | ||||||||||||||||||||||
Kremeworks Canada, LP | 667 | 30 | - | |||||||||||||||||||||||||
Krispy Kreme of South Florida, LLC | - | 399 | - | |||||||||||||||||||||||||
1,567 | 782 | $ | - | |||||||||||||||||||||||||
Less: reserves and allowances | (1,567 | ) | - | |||||||||||||||||||||||||
$ | - | $ | 782 | |||||||||||||||||||||||||
2-Feb-14 | ||||||||||||||||||||||||||||
Investments and | ||||||||||||||||||||||||||||
Advances | Receivables | Loan Guarantees | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Kremeworks, LLC | $ | 900 | $ | 280 | $ | 140 | ||||||||||||||||||||||
Kremeworks Canada, LP | 667 | 19 | - | |||||||||||||||||||||||||
Krispy Kreme of South Florida, LLC | - | 376 | - | |||||||||||||||||||||||||
1,567 | 675 | $ | 140 | |||||||||||||||||||||||||
Less: reserves and allowances | (1,567 | ) | - | |||||||||||||||||||||||||
$ | - | $ | 675 | |||||||||||||||||||||||||
Summary Financial Information (1) | ||||||||||||||||||||||||||||
Operating | ||||||||||||||||||||||||||||
Income | Net Income | Current | Noncurrent | Current | Noncurrent | Total Equity | ||||||||||||||||||||||
Revenues | (Loss) | (Loss) (2) | Assets | Assets | Liabilities | Liabilities | (Deficit) | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Kremeworks, LLC | ||||||||||||||||||||||||||||
2015 | $ | 19,691 | $ | 1,038 | $ | 893 | $ | 2,397 | $ | 8,851 | $ | 6,520 | $ | 1,849 | $ | 2,879 | ||||||||||||
2014 | 18,512 | $ | 637 | $ | 463 | $ | 1,982 | $ | 9,791 | $ | 7,172 | $ | 1,946 | $ | 2,655 | |||||||||||||
2013 | 17,383 | (561 | ) | (781 | ) | 1,083 | 10,622 | 8,438 | 1,883 | 1,384 | ||||||||||||||||||
Kremeworks Canada, LP | ||||||||||||||||||||||||||||
2015 | 1,973 | (119 | ) | (233 | ) | 565 | 859 | 448 | 3,107 | (2,131 | ) | |||||||||||||||||
2014 | 1,800 | (92 | ) | (201 | ) | 572 | 1,061 | 672 | 3,041 | (2,080 | ) | |||||||||||||||||
2013 | 1,516 | 1 | (106 | ) | 534 | 1,247 | 883 | 2,912 | (2,014 | ) | ||||||||||||||||||
Krispy Kreme of South | ||||||||||||||||||||||||||||
Florida, LLC | ||||||||||||||||||||||||||||
2015 | 12,098 | 280 | 207 | 1,142 | 2,105 | 1,669 | 3,713 | (2,135 | ) | |||||||||||||||||||
2014 | 12,408 | 848 | 626 | 1,237 | 2,887 | 2,120 | 3,251 | (1,247 | ) | |||||||||||||||||||
2013 | 13,271 | 1,421 | 1,290 | 1,182 | 3,182 | 3,418 | 1,754 | (808 | ) | |||||||||||||||||||
-1 | Amounts shown for each of these franchisees represents the amounts reported by the franchisee for calendar 2014, 2013 and 2012, and on or about December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||||
-2 | The net income or loss of each of these entities is includable on the income tax returns of their owners to the extent required by law. Accordingly, the financial statements of these entities do not include a provision for income taxes, and as a result, pretax income or loss for each of these entities is also their net income or loss. |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||
Feb. 01, 2015 | ||||||||||||||
Goodwill and Other Intangible Assets [Abstract] | ||||||||||||||
Schedule of Goodwill and Other Intangible Assets | February 1, | February 2, | ||||||||||||
2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||
Goodwill: | ||||||||||||||
Goodwill associated with International Franchise segment | $ | 15,664 | $ | 15,664 | ||||||||||
Goodwill associated with Domestic Franchise segment | 7,832 | 7,832 | ||||||||||||
Goodwill associated with Company Stores segment (Note 21) | 2,594 | - | ||||||||||||
Reacquired franchise rights associated with Company Stores segment, net of accumulated | ||||||||||||||
amortization of $556,000 at February 1, 2015 and $82,000 at February 2, 2014 | 3,980 | 601 | ||||||||||||
$ | 30,070 | $ | 24,097 | |||||||||||
Schedule of Reacquired Franchise Rights | ||||||||||||||
February 1, | February 2, | |||||||||||||
2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||
Balance at beginning of year | $ | 601 | $ | 699 | ||||||||||
Acquisition of stores from franchisee (Note 21) | 3,853 | - | ||||||||||||
Amount related to refranchised store | - | (40 | ) | |||||||||||
Amortization expense | (474 | ) | (58 | ) | ||||||||||
Balance at end of year | $ | 3,980 | $ | 601 |
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | |||||||||||||
Other Assets [Abstract] | |||||||||||||
Schedule of Components of Other Assets | February 1, | February 2, | |||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Non-current portion of notes receivable | $ | 3,482 | $ | 3,172 | |||||||||
Non-current portion of claims against insurance carriers related to self-insurance | |||||||||||||
programs (Notes 1, 5, 10 and 12) | 3,290 | 3,207 | |||||||||||
401(k) mirror plan assets (Notes 12 and 18) | 2,496 | 2,585 | |||||||||||
Deposits | 734 | 765 | |||||||||||
Deferred financing costs, net of accumulated amortization | 370 | 478 | |||||||||||
Other | 388 | 471 | |||||||||||
$ | 10,760 | $ | 10,678 | ||||||||||
Schedule of Components of Receivables | February 1, | February 2, | |||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Receivables: | |||||||||||||
Wholesale customers | $ | 9,557 | $ | 9,919 | |||||||||
Unaffiliated franchisees | 12,743 | 10,934 | |||||||||||
Due from third-party distributors | 4,075 | 3,262 | |||||||||||
Other receivables | 867 | 640 | |||||||||||
Current portion of notes receivable | 1,052 | 754 | |||||||||||
28,294 | 25,509 | ||||||||||||
Less — allowance for doubtful accounts: | |||||||||||||
Wholesale customers | (204 | ) | (191 | ) | |||||||||
Unaffiliated franchisees | (291 | ) | (50 | ) | |||||||||
(495 | ) | (241 | ) | ||||||||||
$ | 27,799 | $ | 25,268 | ||||||||||
Receivables from equity method franchisees (Note 7): | |||||||||||||
Trade | $ | 782 | $ | 675 | |||||||||
February 1, | February 2, | ||||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Notes receivable: | |||||||||||||
Note receivable from franchisees | $ | 4,534 | $ | 3,980 | |||||||||
Less — portion due within one year included in receivables (Note 3) | (1,052 | ) | (754 | ) | |||||||||
Less — allowance for doubtful accounts | - | (54 | ) | ||||||||||
$ | 3,482 | $ | 3,172 | ||||||||||
Schedule of Changes in the Allowances for Doubtful Accounts | Year Ended | ||||||||||||
February 1, | February 2, | February 3, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||
Allowance for doubtful accounts related to receivables: | |||||||||||||
Balance at beginning of year | $ | 241 | $ | 615 | $ | 1,158 | |||||||
Provision for doubtful accounts | 202 | (275 | ) | 259 | |||||||||
Net recoveries (chargeoffs) | 52 | (99 | ) | (802 | ) | ||||||||
Balance at end of year | $ | 495 | $ | 241 | $ | 615 | |||||||
Year Ended | |||||||||||||
February 1, | February 2, | February 3, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||
Balance at beginning of year | $ | 54 | $ | 62 | $ | 68 | |||||||
Provision for doubtful accounts | (54 | ) | (8 | ) | (6 | ) | |||||||
Balance at end of year | $ | - | $ | 54 | $ | 62 |
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | |||||||||||||
Accrued Liabilities [Abstract] | |||||||||||||
Schedule of Components of Accrued Liabilities | February 1, | February 2, | |||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Accrued compensation | $ | 10,533 | $ | 8,901 | |||||||||
Accrued vacation pay | 5,732 | 5,530 | |||||||||||
Current portion of self-insurance claims, principally worker's compensation | |||||||||||||
(Notes 1, 5, 9, and 12) | 3,773 | 3,765 | |||||||||||
Accrued taxes, other than income | 2,541 | 2,043 | |||||||||||
Accrued health care claims | 1,330 | 1,240 | |||||||||||
Customer deposits | 1,017 | 1,115 | |||||||||||
Gasoline commodity futures contracts | 937 | - | |||||||||||
Accrued guarantee liabilities (Note 13) | 906 | 929 | |||||||||||
Current portion of deferred franchise fee revenue (Note 12) | 906 | 893 | |||||||||||
Agricultural commodity futures contracts | 874 | 313 | |||||||||||
Current portion of lease termination costs (Notes 12 and 15) | 94 | 74 | |||||||||||
Other | 3,887 | 4,473 | |||||||||||
$ | 32,530 | $ | 29,276 | ||||||||||
Schedule of Changes in the Assets and Liabilities Associated with Self-Insurance Programs | Year Ended | ||||||||||||
February 1, | February 2, | February 3, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||
Accrual for self-insurance programs, net of receivables from stop-loss policies: | |||||||||||||
Balance at beginning of year | $ | 8,047 | $ | 8,455 | $ | 8,203 | |||||||
Additions charged to costs and expenses | 2,600 | 3,436 | 3,777 | ||||||||||
Claims payments | (3,079 | ) | (3,844 | ) | (3,525 | ) | |||||||
Balance at end of year | $ | 7,568 | $ | 8,047 | $ | 8,455 | |||||||
Accrual reflected in: | |||||||||||||
Accrued liabilities | $ | 3,773 | $ | 3,765 | $ | 4,156 | |||||||
Other long-term obligations and deferred credits | 8,097 | 8,382 | 9,979 | ||||||||||
Claims receivable under stop-loss insurance policies included in: | |||||||||||||
Other current assets | (1,012 | ) | (893 | ) | (1,194 | ) | |||||||
Other assets | (3,290 | ) | (3,207 | ) | (4,486 | ) | |||||||
$ | 7,568 | $ | 8,047 | $ | 8,455 |
Credit_Facilities_and_Lease_Ob1
Credit Facilities and Lease Obligations (Tables) | 12 Months Ended | |||||||||||||
Feb. 01, 2015 | ||||||||||||||
Credit Facilities and Lease Obligations [Abstract] | ||||||||||||||
Schedule of Lease Obligations | February 1, | February 2, | ||||||||||||
2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||
Capital lease obligations | $ | 2,940 | $ | 2,003 | ||||||||||
Financing obligations | 6,747 | - | ||||||||||||
9,687 | 2,003 | |||||||||||||
Less: current portion | (333 | ) | (344 | ) | ||||||||||
$ | 9,354 | $ | 1,659 | |||||||||||
Schedule of Future Minimum Lease Payments | Operating | Capital | Financing | |||||||||||
Fiscal Year | Leases | Leases | Obligations | |||||||||||
(In thousands) | ||||||||||||||
2016 | $ | 11,379 | $ | 840 | $ | 764 | ||||||||
2017 | 9,207 | 791 | 764 | |||||||||||
2018 | 8,557 | 660 | 764 | |||||||||||
2019 | 7,382 | 472 | 765 | |||||||||||
2020 | 7,338 | 427 | 783 | |||||||||||
Thereafter | 93,487 | 6,482 | 14,257 | |||||||||||
$ | 137,350 | 9,672 | 18,097 | |||||||||||
Portion representing interest | (6,495 | ) | (14,254 | ) | ||||||||||
Portion representing executory costs | (237 | ) | - | |||||||||||
Unamortized balance of financing obligations at end of lease term | - | 2,904 | ||||||||||||
Total capital lease and financing obligations | $ | 2,940 | $ | 6,747 |
Other_Long_Term_Obligations_an1
Other Long Term Obligations and Deferred Credits (Tables) | 12 Months Ended | ||||||
Feb. 01, 2015 | |||||||
Other Long-Term Obligations and Deferred Credits [Abstract] | |||||||
Schedule of Components of Other Long-Term Obligations and Deferred Credits | February 1, | February 2, | |||||
2015 | 2014 | ||||||
(In thousands) | |||||||
Non-current portion of self-insurance claims, principally worker's | |||||||
compensation (Notes 1, 5, 9 and 10) | $ | 8,097 | $ | 8,382 | |||
Accrued rent expense | 6,571 | 6,025 | |||||
Non-current portion of deferred franchise fee revenue (Note 10) | 4,877 | 4,526 | |||||
Mirror 401(k) plan liability (Notes 9 and 18) | 2,496 | 2,585 | |||||
Landlord upfit allowances on leased premises | 2,445 | 2,647 | |||||
Non-current portion of lease termination costs (Notes 10 and 15) | 22 | 104 | |||||
Other | 1,107 | 1,117 | |||||
$ | 25,615 | $ | 25,386 |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||
Feb. 01, 2015 | |||||||||||||||||
Stockholders' Equity [Abstract] | |||||||||||||||||
Schedule of Share-Based Compensation | Year Ended | ||||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
(In thousands) | |||||||||||||||||
Costs charged to earnings related to: | |||||||||||||||||
Stock options | $ | 1,209 | $ | 1,865 | $ | 1,537 | |||||||||||
Restricted stock and restricted stock units | 3,257 | 4,587 | 5,264 | ||||||||||||||
Total costs | $ | 4,466 | $ | 6,452 | $ | 6,801 | |||||||||||
Costs included in: | |||||||||||||||||
Direct operating expenses | $ | 2,145 | $ | 2,487 | $ | 2,614 | |||||||||||
General and administrative expenses | 2,321 | 3,965 | 4,187 | ||||||||||||||
Total costs | $ | 4,466 | $ | 6,452 | $ | 6,801 | |||||||||||
Schedule of Weighted Average Assumptions | Year Ended | ||||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Expected life of option | 7.0 years | 7.0 years | N/A | ||||||||||||||
Risk-free interest rate | 2.14 | % | 2.19 | % | N/A | ||||||||||||
Expected volatility of stock | 65.0 | % | 65 | % | N/A | ||||||||||||
Expected dividend yield | 0 | % | 0 | % | N/A | ||||||||||||
Schedule of Options Granted | Year Ended | ||||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Weighted average fair value per share of options granted | $ | 12.07 | $ | 11.17 | N/A | ||||||||||||
Total number of options granted | 88,300 | 251,000 | N/A | ||||||||||||||
Total fair value of all options granted | $ | 1,065,200 | $ | 2,804,800 | N/A | ||||||||||||
Schedule of Stock Option Transactions | Weighted | ||||||||||||||||
Average | |||||||||||||||||
Weighted Average | Aggregate | Remaining | |||||||||||||||
Shares Subject | Exercise Price Per | Intrinsic | Contractual | ||||||||||||||
to Option | Share | Value | Term | ||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||
Outstanding at January 29, 2012 | 5,809,400 | $ | 9.35 | $ | 14,572 | 6.6 years | |||||||||||
Granted | - | $ | - | ||||||||||||||
Exercised | (128,000 | ) | $ | 1.93 | $ | 947 | |||||||||||
Expired | (304,900 | ) | $ | 34.4 | |||||||||||||
Forfeited | (170,000 | ) | $ | 6.84 | |||||||||||||
Outstanding at February 3, 2013 | 5,206,500 | $ | 8.15 | $ | 36,388 | 5.8 years | |||||||||||
Granted | 251,000 | $ | 17.47 | ||||||||||||||
Exercised | (459,500 | ) | $ | 5.25 | $ | 5,324 | |||||||||||
Expired | (391,000 | ) | $ | 38.66 | |||||||||||||
Forfeited | - | $ | - | ||||||||||||||
Outstanding at February 2, 2014 | 4,607,000 | $ | 6.27 | $ | 51,044 | 5.7 years | |||||||||||
Granted | 88,300 | $ | 18.88 | ||||||||||||||
Exercised | (1,929,600 | ) | $ | 5.32 | $ | 25,515 | |||||||||||
Expired | (129,800 | ) | $ | 18.15 | |||||||||||||
Forfeited | (90,700 | ) | $ | 8.66 | |||||||||||||
Outstanding at February 1, 2015 | 2,545,200 | $ | 6.75 | $ | 32,382 | 5.6 years | |||||||||||
Exercisable at February 1, 2015 | 2,227,400 | $ | 5.65 | $ | 30,775 | 5.2 years | |||||||||||
Schedule of Additional Information Regarding Stock Options | Options Outstanding | Options Exercisable | |||||||||||||||
Weighted Average | |||||||||||||||||
Remaining | |||||||||||||||||
Contractual Life | Weighted Average | Weighted Average | |||||||||||||||
Range of Exercise Prices | Shares | (Years) | Exercise Price | Shares | Exercise Price | ||||||||||||
$ | 1.40 | - $ | 3.08 | 962,600 | 3.9 | $ | 2.65 | 962,600 | $ | 2.65 | |||||||
$ | 6.39 | - $ | 9.71 | 1,259,000 | 6.1 | $ | 7.02 | 1,154,000 | $ | 7.02 | |||||||
$ | 17.47 | - $ | 19.00 | 323,600 | 9.1 | $ | 17.86 | 110,800 | $ | 17.47 | |||||||
Schedule of Changes in Unvested Restricted Stock | Weighted | ||||||||||||||||
Average Grant | |||||||||||||||||
Unvested | Date Fair | ||||||||||||||||
Shares | Value | ||||||||||||||||
Unvested at January 29, 2012 | 1,056,500 | $ | 5.95 | ||||||||||||||
Granted | 757,700 | $ | 10.28 | ||||||||||||||
Vested | (497,300 | ) | $ | 5.76 | |||||||||||||
Forfeited | (78,700 | ) | $ | 6.49 | |||||||||||||
Unvested at February 3, 2013 | 1,238,200 | $ | 8.65 | ||||||||||||||
Granted | 300,200 | $ | 18.14 | ||||||||||||||
Vested | (509,900 | ) | $ | 8.46 | |||||||||||||
Forfeited | (52,600 | ) | $ | 7.38 | |||||||||||||
Unvested at February 2, 2014 | 975,900 | $ | 11.73 | ||||||||||||||
Granted | 129,700 | $ | 19.13 | ||||||||||||||
Vested | (480,700 | ) | $ | 11.45 | |||||||||||||
Forfeited | (80,300 | ) | $ | 12.35 | |||||||||||||
Unvested at February 1, 2015 | 544,600 | $ | 13.65 | ||||||||||||||
Schedule of Repurchase of Common Stock | Year Ended | ||||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Common | Common | Common | |||||||||||||||
Shares | Stock | Shares | Stock | Shares | Stock | ||||||||||||
(In thousands) | |||||||||||||||||
Shares repurchased under share | |||||||||||||||||
repurchase authorizations | 2,237 | $ | 39,225 | 1,185 | $ | 22,342 | 3,113 | $ | 20,000 | ||||||||
Shares surrendered in reimbursement | |||||||||||||||||
for withholding taxes | 153 | 2,811 | 136 | 2,560 | 100 | 758 | |||||||||||
2,390 | $ | 42,036 | 1,321 | $ | 24,902 | 3,213 | $ | 20,758 |
Impairment_Charges_and_Lease_T1
Impairment Charges and Lease Termination Costs (Tables) | 12 Months Ended | ||||||||||||||
Feb. 01, 2015 | |||||||||||||||
Impairment Charges and Lease Termination Costs [Abstract] | |||||||||||||||
Schedule of Impairment Charges and Lease Termination Costs | Year Ended | ||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||||
(In thousands) | |||||||||||||||
Impairment of long-lived assets - current period charges | $ | 901 | $ | - | $ | - | |||||||||
Lease termination costs: | |||||||||||||||
Provision for termination costs | 56 | 1,374 | 306 | ||||||||||||
Less - reversal of previously recorded accrued rent expense | (2 | ) | - | - | |||||||||||
54 | 1,374 | 306 | |||||||||||||
Total impairment charges and lease termination costs | $ | 955 | $ | 1,374 | $ | 306 | |||||||||
Schedule of Lease Termination Liability | Year Ended | ||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||||
(In thousands) | |||||||||||||||
Balance at beginning of year | $ | 178 | $ | 646 | $ | 709 | |||||||||
Provision for lease termination costs: | |||||||||||||||
Provisions associated with store closings, net of estimated | |||||||||||||||
sublease rentals | 44 | - | - | ||||||||||||
Adjustments to previously recorded provisions resulting from settlements | |||||||||||||||
with lessors and adjustments of previous estimates | (5 | ) | 1,351 | 276 | |||||||||||
Accretion of discount | 17 | 23 | 30 | ||||||||||||
Total provision | 56 | 1,374 | 306 | ||||||||||||
Payments on unexpired leases, including settlements with lessors | (118 | ) | (1,842 | ) | (369 | ) | |||||||||
Balance at end of year | $ | 116 | $ | 178 | $ | 646 | |||||||||
Accrued lease termination costs are included in the consolidated balance sheet | |||||||||||||||
as follows: | |||||||||||||||
Accrued liabilities | $ | 94 | $ | 74 | $ | 464 | |||||||||
Other long-term obligations and deferred credits | 22 | 104 | 182 | ||||||||||||
$ | 116 | $ | 178 | $ | 646 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||
Feb. 01, 2015 | |||||||||||||||||||||
Income Taxes [Abstract] | |||||||||||||||||||||
Schedule of Components of the Provision for Income Taxes | Year Ended | ||||||||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Current | $ | 2,427 | $ | 2,790 | $ | 2,124 | |||||||||||||||
Deferred | 15,729 | 8,014 | 13,413 | ||||||||||||||||||
$ | 18,156 | $ | 10,804 | $ | 15,537 | ||||||||||||||||
Reconciliation of the Tax Provision | Year Ended | ||||||||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Income taxes at statutory federal rate | $ | 16,875 | $ | 15,771 | $ | 12,710 | |||||||||||||||
State income taxes, net of federal income tax benefit | 1,662 | 1,902 | 1,340 | ||||||||||||||||||
Reversal of valuation allowance on deferred income tax assets | (150 | ) | (4,306 | ) | - | ||||||||||||||||
Benefit of foreign tax credits in excess of benefit previously recorded | - | (4,481 | ) | - | |||||||||||||||||
Foreign taxes, principally withholding taxes | 2,457 | 2,309 | 2,168 | ||||||||||||||||||
Credit for foreign income taxes | (2,457 | ) | (2,309 | ) | - | ||||||||||||||||
Deduction for foreign income taxes | - | - | (759 | ) | |||||||||||||||||
Other changes in tax credit carryforwards | - | 118 | (86 | ) | |||||||||||||||||
Accruals for uncertain tax positions | - | 359 | (50 | ) | |||||||||||||||||
Accruals for interest and penalties | 15 | 3 | (82 | ) | |||||||||||||||||
Reduction in net deferred tax assets from enacted change in North Carolina | |||||||||||||||||||||
statutory income tax rate | - | 686 | - | ||||||||||||||||||
Other changes in estimated future blended state income tax rate | 73 | 31 | (565 | ) | |||||||||||||||||
Other | (319 | ) | 721 | 861 | |||||||||||||||||
$ | 18,156 | $ | 10,804 | $ | 15,537 | ||||||||||||||||
Schedule of Tax Effects of Temporary Differences | February 1, | February 2, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Deferred income tax assets: | |||||||||||||||||||||
Goodwill and other intangible assets | $ | 2,830 | $ | 5,710 | |||||||||||||||||
Allowance for doubtful accounts | 191 | 93 | |||||||||||||||||||
Other current assets | 1,124 | 989 | |||||||||||||||||||
Property and equipment | 6,202 | 5,083 | |||||||||||||||||||
Other non-current assets | 2,777 | 2,830 | |||||||||||||||||||
Self-insurance accruals | 3,434 | 3,586 | |||||||||||||||||||
Deferred revenue | 2,608 | 2,584 | |||||||||||||||||||
Accrued compensation | 5,154 | 4,938 | |||||||||||||||||||
Other current liabilities | 998 | 1,263 | |||||||||||||||||||
Other non-current liabilities | 3,488 | 3,444 | |||||||||||||||||||
Share-based compensation | 8,489 | 10,507 | |||||||||||||||||||
Federal net operating loss carryforwards | 34,709 | 48,171 | |||||||||||||||||||
Federal tax credit carryforwards | 12,642 | 10,216 | |||||||||||||||||||
State net operating loss and credit carryforwards | 8,938 | 10,083 | |||||||||||||||||||
Other | 505 | 486 | |||||||||||||||||||
Gross deferred income tax assets | 94,089 | 109,983 | |||||||||||||||||||
Valuation allowance on deferred income tax assets | (2,566 | ) | (2,675 | ) | |||||||||||||||||
Deferred income tax assets, net of valuation allowance | 91,523 | 107,308 | |||||||||||||||||||
Deferred income tax liabilities | - | - | |||||||||||||||||||
Net deferred income tax assets | $ | 91,523 | $ | 107,308 | |||||||||||||||||
Schedule of Deferred Income Tax Assets | February 1, | February 2, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Net current assets | $ | 23,245 | $ | 23,847 | |||||||||||||||||
Net noncurrent assets | 68,278 | 83,461 | |||||||||||||||||||
$ | 91,523 | $ | 107,308 | ||||||||||||||||||
Schedule of Changes in the Valuation Allowance | Year Ended | ||||||||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Valuation allowance on deferred tax assets: | |||||||||||||||||||||
Balance at beginning of year | $ | 2,675 | $ | 9,767 | $ | 10,652 | |||||||||||||||
Reduction in allowance due to amendment of tax return | - | - | (885 | ) | |||||||||||||||||
Reversal of allowance credited to earnings | (150 | ) | (4,306 | ) | - | ||||||||||||||||
Reclassification of valuation allowance against deferred tax assets | |||||||||||||||||||||
not affecting earnings | - | (2,472 | ) | - | |||||||||||||||||
Reduction in valuation allowance related to enacted change in | |||||||||||||||||||||
North Carolina statutory income tax rate | - | (314 | ) | - | |||||||||||||||||
Other | 41 | - | - | ||||||||||||||||||
Balance at end of year | $ | 2,566 | $ | 2,675 | $ | 9,767 | |||||||||||||||
Reconciliation of the Beginning and Ending Amounts of Unrecognized Tax Benefits | Year Ended | ||||||||||||||||||||
February 1, | February 2, | February 3, | |||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Unrecognized tax benefits at beginning of year | $ | 1,952 | $ | 1,327 | $ | 1,378 | |||||||||||||||
Increases related to positions taken in the current year | 108 | 105 | 128 | ||||||||||||||||||
Increases (decreases) related to positions taken in prior years | (21 | ) | 702 | - | |||||||||||||||||
Lapsing of statutes of limitations | (74 | ) | (182 | ) | (179 | ) | |||||||||||||||
Unrecognized tax benefits at end of year | $ | 1,965 | $ | 1,952 | $ | 1,327 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | |||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | February 1, 2015(1) | ||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
(In thousands) | |||||||||||||
Assets: | |||||||||||||
401(k) mirror plan assets | $ | 2,496 | $ | - | $ | - | |||||||
Liabilities: | |||||||||||||
Agricultural commodity futures contracts | 874 | - | - | ||||||||||
Gasoline commodity futures contracts | 937 | - | - | ||||||||||
Total liabilities | $ | 1,811 | $ | - | $ | - | |||||||
February 2, 2014(1) | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
(In thousands) | |||||||||||||
Assets: | |||||||||||||
401(k) mirror plan assets | $ | 2,585 | $ | - | $ | - | |||||||
Liabilities: | |||||||||||||
Agricultural commodity futures contracts | $ | 313 | $ | - | $ | - | |||||||
-1 | There were no transfers of financial assets or liabilities among the levels within the fair value hierarchy during the years ended February 1, 2015 or February 2, 2014. | ||||||||||||
Schedule of Non-Recurring Measurements | Year Ended February 1, 2015 | ||||||||||||
Level 1 | Level 2 | Level 3 | Total gain (loss) | ||||||||||
(In thousands) | |||||||||||||
Long-lived assets | $ | - | $ | 270 | $ | - | $ | (901 | ) | ||||
Schedule of Fair Values of Financial Instruments | 1-Feb-15 | 2-Feb-14 | |||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||
Value | Value | Value | Value | ||||||||||
(In thousands) | |||||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 50,971 | $ | 50,971 | $ | 55,748 | $ | 55,748 | |||||
Receivables | 27,799 | 27,799 | 25,268 | 25,268 | |||||||||
Receivables from equity method franchisees | 782 | 782 | 675 | 675 | |||||||||
Liabilities: | |||||||||||||
Accounts payable | 17,095 | 17,095 | 16,788 | 16,788 | |||||||||
Agriculture commodity futures contracts | 874 | 874 | 313 | 313 | |||||||||
Gasoline commodity futures contracts | 937 | 937 | - | - | |||||||||
Lease obligations (including current portion) | 9,687 | 9,687 | 2,003 | 2,003 |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | ||||||||||||||
Feb. 01, 2015 | |||||||||||||||
Derivative Instruments [Abstract] | |||||||||||||||
Schedule of Derivative Fair Value | Liability Derivatives | ||||||||||||||
Fair Value | |||||||||||||||
Derivatives Not Designated as | February 1, | February 2, | |||||||||||||
Hedging Instruments | Balance Sheet Location | 2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||||
Agricultural commodity futures contracts | Accrued liabilities | $ | 874 | $ | 313 | ||||||||||
Gasoline commodity futures contracts | Accrued liabilities | 937 | - | ||||||||||||
$ | 1,811 | $ | 313 | ||||||||||||
Schedule of Derivative Gain (Loss) | Amount of Derivative Gain or (Loss) | ||||||||||||||
Recognized in Income | |||||||||||||||
Year Ended | |||||||||||||||
Derivatives Not Designated as Hedging | Location of Derivative Gain or (Loss) | February 1, | February 2, | February 3, | |||||||||||
Instruments | Recognized in Income | 2015 | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||||
Agricultural commodity futures contracts | Direct operating expenses | $ | (903 | ) | $ | (1,459 | ) | $ | 837 | ||||||
Gasoline commodity futures contracts | Direct operating expenses | (1,221 | ) | - | - | ||||||||||
Total | $ | (2,124 | ) | $ | (1,459 | ) | $ | 837 | |||||||
Amount of Derivative Gain or (Loss) | |||||||||||||||
Recognized in Income | |||||||||||||||
Year Ended | |||||||||||||||
Location of Derivative Gain or (Loss) | February 1, | February 2, | February 3, | ||||||||||||
Derivatives Designated as a Cash Flow Hedge | Recognized in Income | 2015 | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||||
Interest rate derivative | Interest expense | $ | - | $ | (39 | ) | $ | (34 | ) | ||||||
Interest rate derivative | Loss on retirement of debt | $ | - | $ | (516 | ) | $ | - | |||||||
Amount of Derivative Gain | |||||||||||||||
or (Loss) Recognized in OCI | |||||||||||||||
Year Ended | |||||||||||||||
Derivative Gain or (Loss) Recognized in | February 1, | February 2, | February 3, | ||||||||||||
Derivatives Designated as a Cash Flow Hedge | OCI | 2015 | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||||
Interest rate derivative | Change in fair value of derivative | $ | - | $ | 36 | $ | (3 | ) | |||||||
Less-income tax effect | - | (14 | ) | 1 | |||||||||||
$ | - | $ | 22 | $ | (2 | ) | |||||||||
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 | $ | (2 | ) |
Acquisitions_and_Divestitures_
Acquisitions and Divestitures (Tables) (Birmingham, Alabama Store Acquisition [Member]) | 12 Months Ended | |||
Feb. 01, 2015 | ||||
Birmingham, Alabama Store Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Summary of Purchase Price Allocation | (In thousands) | |||
Purchase price allocated to: | ||||
Working capital, exclusive of cash | $ | (5 | ) | |
Property and equipment | 710 | |||
Reacquired franchise rights associated with the Company Stores segment | 3,853 | |||
Goodwill associated with the Company Stores segment | 2,594 | |||
$ | 7,152 |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Feb. 01, 2015 | |||||||||||||||||
Selected Quarterly Financial Data [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Data | Quarter Ended | ||||||||||||||||
May 4, | August 3, | November 2, | February 1, | ||||||||||||||
2014 | 2014 | 2014 | 2015 | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Revenues | $ | 121,580 | $ | 120,516 | $ | 122,871 | $ | 125,367 | |||||||||
Operating expenses: | |||||||||||||||||
Direct operating expenses (exclusive of depreciation and | |||||||||||||||||
amortization expense shown below) | 95,172 | 101,084 | 101,165 | 102,323 | |||||||||||||
General and administrative expenses | 7,047 | 6,737 | 5,553 | 9,221 | |||||||||||||
Depreciation and amortization expense | 3,173 | 3,033 | 3,280 | 3,354 | |||||||||||||
Impairment charges and lease termination costs | 8 | 38 | 4 | 905 | |||||||||||||
Operating income | 16,180 | 9,624 | 12,869 | 9,564 | |||||||||||||
Interest income | 171 | 64 | 62 | 109 | |||||||||||||
Interest expense | (143 | ) | (162 | ) | (230 | ) | (321 | ) | |||||||||
Equity in losses of equity method franchisees | (57 | ) | (61 | ) | (53 | ) | 53 | ||||||||||
Other non-operating income and (expense), net | 168 | 152 | 91 | 136 | |||||||||||||
Income before income taxes | 16,319 | 9,617 | 12,739 | 9,541 | |||||||||||||
Provision for income taxes | 6,663 | 3,865 | 4,633 | 2,995 | |||||||||||||
Net income | $ | 9,656 | $ | 5,752 | $ | 8,106 | $ | 6,546 | |||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 0.15 | $ | 0.09 | $ | 0.12 | $ | 0.10 | |||||||||
Diluted | $ | 0.14 | $ | 0.08 | $ | 0.12 | $ | 0.10 | |||||||||
The sum of the quarterly earnings per share amounts does not necessarily equal earnings per share for the year. | |||||||||||||||||
Quarter Ended | |||||||||||||||||
May 4, | August 3, | November 2, | February 1, | ||||||||||||||
2014 | 2014 | 2014 | 2015 | ||||||||||||||
(In thousands) | |||||||||||||||||
Revenues by business segment: | |||||||||||||||||
Company Stores | $ | 80,448 | $ | 78,535 | $ | 82,579 | $ | 83,744 | |||||||||
Domestic Franchise | 3,499 | 3,296 | 3,274 | 3,381 | |||||||||||||
International Franchise | 6,581 | 7,534 | 6,852 | 7,631 | |||||||||||||
KK Supply Chain: | |||||||||||||||||
Total revenues | 60,312 | 59,503 | 61,581 | 63,292 | |||||||||||||
Less - intersegment sales elimination | (29,260 | ) | (28,352 | ) | (31,415 | ) | (32,681 | ) | |||||||||
External KK Supply Chain revenues | 31,052 | 31,151 | 30,166 | 30,611 | |||||||||||||
Total revenues | $ | 121,580 | $ | 120,516 | $ | 122,871 | $ | 125,367 | |||||||||
Operating income: | |||||||||||||||||
Company Stores | $ | 4,416 | $ | 1,261 | $ | 2,233 | $ | 1,377 | |||||||||
Domestic Franchise | 2,156 | 1,900 | 1,989 | 2,058 | |||||||||||||
International Franchise | 4,280 | 5,111 | 5,048 | 5,587 | |||||||||||||
KK Supply Chain | 12,754 | 8,489 | 9,529 | 11,051 | |||||||||||||
Total segment operating income | 23,606 | 16,761 | 18,799 | 20,073 | |||||||||||||
General and administrative expenses | (7,047 | ) | (6,737 | ) | (5,553 | ) | (9,221 | ) | |||||||||
Corporate depreciation and amortization expense | (371 | ) | (362 | ) | (373 | ) | (383 | ) | |||||||||
Impairment charges and lease termination costs | (8 | ) | (38 | ) | (4 | ) | (905 | ) | |||||||||
Consolidated operating income | $ | 16,180 | $ | 9,624 | $ | 12,869 | $ | 9,564 | |||||||||
Quarter Ended | |||||||||||||||||
May 5, | August 4, | November 3, | February 2, | ||||||||||||||
2013 | 2013 | 2013 | 2014 | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Revenues | $ | 120,625 | $ | 112,729 | $ | 114,231 | $ | 112,746 | |||||||||
Operating expenses: | |||||||||||||||||
Direct operating expenses (exclusive of depreciation and | |||||||||||||||||
amortization expense shown below) | 96,558 | 93,806 | 92,466 | 93,302 | |||||||||||||
General and administrative expenses | 6,055 | 5,655 | 5,730 | 7,709 | |||||||||||||
Depreciation and amortization expense | 2,820 | 2,664 | 2,788 | 2,834 | |||||||||||||
Impairment charges and lease termination costs | 8 | 4 | 1,531 | (169 | ) | ||||||||||||
Operating income | 15,184 | 10,600 | 11,716 | 9,070 | |||||||||||||
Interest income | 61 | 70 | 341 | 144 | |||||||||||||
Interest expense | (437 | ) | (354 | ) | (131 | ) | (135 | ) | |||||||||
Loss on retirement of debt | - | (967 | ) | - | - | ||||||||||||
Equity in losses of equity method franchisees | (53 | ) | (60 | ) | (61 | ) | (47 | ) | |||||||||
Other non-operating income and (expense), net | (5 | ) | (1 | ) | 29 | 96 | |||||||||||
Income before income taxes | 14,750 | 9,288 | 11,894 | 9,128 | |||||||||||||
Provision for income taxes | 6,751 | 4,571 | 5,114 | (5,632 | ) | ||||||||||||
Net income | $ | 7,999 | $ | 4,717 | $ | 6,780 | $ | 14,760 | |||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 0.12 | $ | 0.07 | $ | 0.1 | $ | 0.22 | |||||||||
Diluted | $ | 0.11 | $ | 0.07 | $ | 0.09 | $ | 0.21 | |||||||||
The sum of the quarterly earnings per share amounts does not necessarily equal earnings per share for the year. | |||||||||||||||||
Quarter Ended | |||||||||||||||||
May 5, | August 4, | November 3, | February 2, | ||||||||||||||
2013 | 2013 | 2013 | 2014 | ||||||||||||||
(In thousands) | |||||||||||||||||
Revenues by business segment: | |||||||||||||||||
Company Stores | $ | 81,921 | $ | 75,689 | $ | 74,886 | $ | 74,329 | |||||||||
Domestic Franchise | 2,871 | 2,799 | 3,026 | 3,143 | |||||||||||||
International Franchise | 6,445 | 6,057 | 6,205 | 6,900 | |||||||||||||
KK Supply Chain: | |||||||||||||||||
Total revenues | 59,811 | 57,201 | 58,304 | 55,913 | |||||||||||||
Less - intersegment sales elimination | (30,423 | ) | (29,017 | ) | (28,190 | ) | (27,539 | ) | |||||||||
External KK Supply Chain revenues | 29,388 | 28,184 | 30,114 | 28,374 | |||||||||||||
Total revenues | $ | 120,625 | $ | 112,729 | $ | 114,231 | $ | 112,746 | |||||||||
Operating income: | |||||||||||||||||
Company Stores | $ | 5,314 | $ | 1,790 | $ | 2,599 | $ | 1,631 | |||||||||
Domestic Franchise | 1,439 | 1,526 | 3,156 | 1,962 | |||||||||||||
International Franchise | 4,531 | 4,239 | 4,449 | 4,758 | |||||||||||||
KK Supply Chain | 10,239 | 8,999 | 9,098 | 8,617 | |||||||||||||
Total segment operating income | 21,523 | 16,554 | 19,302 | 16,968 | |||||||||||||
General and administrative expenses | (6,055 | ) | (5,655 | ) | (5,730 | ) | (7,709 | ) | |||||||||
Corporate depreciation and amortization expense | (276 | ) | (295 | ) | (325 | ) | (358 | ) | |||||||||
Impairment charges and lease termination costs | (8 | ) | (4 | ) | (1,531 | ) | 169 | ||||||||||
Consolidated operating income | $ | 15,184 | $ | 10,600 | $ | 11,716 | $ | 9,070 |
Accounting_Policies_Schedule_o
Accounting Policies (Schedule of Computation of Earnings Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Aug. 04, 2013 | 5-May-13 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Accounting Policies [Abstract] | |||||||||||
Net income | $6,546 | $8,106 | $5,752 | $9,656 | $14,760 | $6,780 | $4,717 | $7,999 | $30,060 | $34,256 | $20,779 |
Basic earnings per share - weighted average shares outstanding | 66,360 | 67,261 | 67,624 | ||||||||
Diluted earnings per share - weighted average shares outstanding plus dilutive potential common shares | 68,929 | 71,054 | 69,896 | ||||||||
Stock Options [Member] | |||||||||||
Effect of dilutive securities: | |||||||||||
Share-based payment arrangement | 2,037 | 2,998 | 1,781 | ||||||||
Restricted Stock Units [Member] | |||||||||||
Effect of dilutive securities: | |||||||||||
Share-based payment arrangement | 532 | 795 | 491 |
Accounting_Policies_Narrative_
Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | |
Marketing and Brand Promotion: | |||
Costs associated with products including advertising and other brand promotional activities | $9,800,000 | $8,200,000 | $7,500,000 |
Self-Insurance Risks and Receivables from Insurers: | |||
Adjustment self insurance claims liabilities related to prior years | $1,700,000 | $1,100,000 | $730,000 |
Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Credit Risk, Financial Instruments | In fiscal 2015, 2014 and 2013, no customer accounted for more than 10% of Company Stores segment revenues. | ||
Customer Concentration Risk [Member] | Sales Revenue, Segment [Member] | Company Stores [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 16.00% | 17.00% | 16.00% |
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Company Stores [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 24.00% | 27.00% | |
Stock options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 257,000 | 301,000 | 2,700,000 |
Restricted Stock Units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 57,000 | 98,000 | |
Buildings [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
Buildings [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 35 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 15 years | ||
Computer Software [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Computer Software [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Leasehold Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
Leasehold Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 20 years |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Aug. 04, 2013 | 5-May-13 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $125,367 | $122,871 | $120,516 | $121,580 | $112,746 | $114,231 | $112,729 | $120,625 | $490,334 | $460,331 | $435,843 |
General and administrative expenses | -9,221 | -5,553 | -6,737 | -7,047 | -7,709 | -5,730 | -5,655 | -6,055 | -28,558 | -25,149 | -25,089 |
Depreciation and amortization expense | -3,354 | -3,280 | -3,033 | -3,173 | -2,834 | -2,788 | -2,664 | -2,820 | -12,840 | -11,106 | -9,891 |
Impairment charges and lease termination costs | -905 | -4 | -38 | -8 | 169 | -1,531 | -4 | -8 | -955 | -1,374 | -306 |
Operating income | 9,564 | 12,869 | 9,624 | 16,180 | 9,070 | 11,716 | 10,600 | 15,184 | 48,237 | 46,570 | 37,729 |
Non-US [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 52,000 | 48,000 | 44,000 | ||||||||
Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | 20,073 | 18,799 | 16,761 | 23,606 | 16,968 | 19,302 | 16,554 | 21,523 | 79,239 | 74,347 | 63,961 |
Corporate [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
General and administrative expenses | -9,221 | -5,553 | -6,737 | -7,047 | -7,709 | -5,730 | -5,655 | -6,055 | -28,558 | -25,149 | -25,089 |
Depreciation and amortization expense | -383 | -373 | -362 | -371 | -358 | -325 | -295 | -276 | -1,489 | -1,254 | -837 |
Impairment charges and lease termination costs | -905 | -4 | -38 | -8 | 169 | -1,531 | -4 | -8 | -955 | -1,374 | -306 |
Company Stores [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 83,744 | 82,579 | 78,535 | 80,448 | 74,329 | 74,886 | 75,689 | 81,921 | 325,306 | 306,825 | 296,494 |
Depreciation and amortization expense | -10,534 | -9,039 | -8,142 | ||||||||
Operating income | 1,377 | 2,233 | 1,261 | 4,416 | 1,631 | 2,599 | 1,790 | 5,314 | 9,287 | 11,334 | 8,534 |
Domestic Franchise [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,381 | 3,274 | 3,296 | 3,499 | 3,143 | 3,026 | 2,799 | 2,871 | 13,450 | 11,839 | 10,325 |
Depreciation and amortization expense | -135 | -119 | -164 | ||||||||
Operating income | 2,058 | 1,989 | 1,900 | 2,156 | 1,962 | 3,156 | 1,526 | 1,439 | 8,103 | 8,083 | 5,590 |
International Franchise [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 7,631 | 6,852 | 7,534 | 6,581 | 6,900 | 6,205 | 6,057 | 6,445 | 28,598 | 25,607 | 24,941 |
Depreciation and amortization expense | -5 | -7 | -10 | ||||||||
Operating income | 5,587 | 5,048 | 5,111 | 4,280 | 4,758 | 4,449 | 4,239 | 4,531 | 20,026 | 17,977 | 17,387 |
KK Supply Chain [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 30,611 | 30,166 | 31,151 | 31,052 | 28,374 | 30,114 | 28,184 | 29,388 | 122,980 | 116,060 | 104,083 |
Depreciation and amortization expense | -677 | -687 | -738 | ||||||||
Operating income | 11,051 | 9,529 | 8,489 | 12,754 | 8,617 | 9,098 | 8,999 | 10,239 | 41,823 | 36,953 | 32,450 |
KK Supply Chain [Member] | Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 63,292 | 61,581 | 59,503 | 60,312 | 55,913 | 58,304 | 57,201 | 59,811 | 244,688 | 231,229 | 215,412 |
KK Supply Chain [Member] | Intersegment Elimination [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | ($32,681) | ($31,415) | ($28,352) | ($29,260) | ($27,539) | ($28,190) | ($29,017) | ($30,423) | ($121,708) | ($115,169) | ($111,329) |
Receivables_Components_of_Rece
Receivables (Components of Receivables) (Details) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other receivables | $867 | $640 |
Current portion of notes receivable | 1,052 | 754 |
Receivables | 28,294 | 25,509 |
Less - allowance for doubtful accounts: | -495 | -241 |
Receivables, net | 27,799 | 25,268 |
Receivables from equity method franchisees | 782 | 675 |
Wholesale Customers [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | 9,557 | 9,919 |
Less - allowance for doubtful accounts: | -204 | -191 |
Unaffiliated Franchisees [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | 12,743 | 10,934 |
Less - allowance for doubtful accounts: | -291 | -50 |
Third Party Distributors [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | $4,075 | $3,262 |
Receivables_Allowance_for_Doub
Receivables (Allowance for Doubtful Accounts) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Allowance For Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of year | $241 | ||
Provision for doubtful accounts | 90 | -345 | 194 |
Balance at end of year | 495 | 241 | |
Trade Accounts Receivable [Member] | |||
Allowance For Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of year | 241 | 615 | 1,158 |
Provision for doubtful accounts | 202 | -275 | 259 |
Net recoveries (chargeoffs) | 52 | -99 | -802 |
Balance at end of year | $495 | $241 | $615 |
Inventories_Details
Inventories (Details) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ||
Raw materials | $6,779 | $6,200 |
Work in progress | 115 | 114 |
Finished goods and purchased merchandise | 11,300 | 10,436 |
Inventories, Net, Total | $18,194 | $16,750 |
Other_Current_Assets_Details
Other Current Assets (Details) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
In Thousands, unless otherwise specified | |||
Other Current Assets [Abstract] | |||
Current portion of claims against insurance carriers related to self-insurance programs (Notes 1, 9, 10 and 12) | $1,012 | $893 | $1,194 |
Margin deposits in derivative brokerage accounts | 2,744 | 792 | |
Prepaid expenses and other | 3,100 | 3,514 | |
Other current assets | $6,856 | $5,199 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $200,851 | $170,846 |
Less: accumulated depreciation | -85,093 | -78,023 |
Property plant and equipment, net | 115,758 | 92,823 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 13,512 | 13,822 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 86,337 | 71,873 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 15,200 | 14,527 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 65,596 | 57,611 |
Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 7,911 | 7,100 |
Construction and Projects in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $12,295 | $5,913 |
Property_and_Equipment_Narrati
Property and Equipment (Narrative) (Details) (USD $) | 12 Months Ended | ||
Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $12,400,000 | $11,000,000 | $9,900,000 |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Assets acquired under capital leases, net book value | 839,000 | 921,000 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Assets acquired under capital leases, net book value | 1,800,000 | 920,000 | |
Assets acquired under build-to-suit leasing arrangements | 5,700,000 | ||
Construction and Projects in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Assets acquired under build-to-suit leasing arrangements | $1,000,000 |
Investments_in_Franchisees_Sch
Investments in Franchisees (Schedule of Information Information About the Company's Ownership) (Details) | 12 Months Ended |
Feb. 01, 2015 | |
stores | |
Kremeworks LLC [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Number of Stores | 9 |
Equity Method Investments Geographic Development Market | Alaska, Hawaii, Oregon, Washington |
Equity Method Investment, Ownership Percentage | 25.00% |
Equity Method Investment Third Party Ownership Percentage | 75.00% |
Kremeworks Canada LP [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Number of Stores | 1 |
Equity Method Investments Geographic Development Market | Western Canada |
Equity Method Investment, Ownership Percentage | 24.50% |
Equity Method Investment Third Party Ownership Percentage | 75.50% |
Krispy Kreme South Florida LLC [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Number of Stores | 3 |
Equity Method Investments Geographic Development Market | South Florida |
Equity Method Investment, Ownership Percentage | 35.30% |
Equity Method Investment Third Party Ownership Percentage | 64.70% |
Investments_in_Franchisees_Fin
Investments in Franchisees (Financial Exposure Related to Franchisee Investments) (Details) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment and advances | $1,567 | $1,567 |
Reserves and allowances | -1,567 | -1,567 |
Investment and advances | ||
Receivables | 782 | 675 |
Reserves and allowances | ||
Receivables | 782 | 675 |
Loan guarantees | 140 | |
Kremeworks LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment and advances | 900 | 900 |
Receivables | 353 | 280 |
Loan guarantees | 140 | |
Kremeworks Canada LP [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment and advances | 667 | 667 |
Receivables | 30 | 19 |
Loan guarantees | ||
Krispy Kreme South Florida LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment and advances | ||
Receivables | 399 | 376 |
Loan guarantees |
Investments_in_Franchisees_Nar
Investments in Franchisees (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Aug. 04, 2013 | 5-May-13 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | Jan. 29, 2012 | Nov. 01, 2013 | Dec. 31, 2011 | |
franchises | franchises | |||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Number Of Investments In Franchisees | 3 | 3 | ||||||||||||
Investments in equity method franchisees | ||||||||||||||
Accrued guarantee liabilities | 906,000 | 929,000 | 906,000 | 929,000 | ||||||||||
Other non-operating income and (expense), net | 136,000 | 91,000 | 152,000 | 168,000 | 96,000 | 29,000 | -1,000 | -5,000 | 547,000 | 119,000 | 317,000 | |||
Kremeworks LLC [Member] | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity Method Investment, Ownership Percentage | 25.00% | 25.00% | ||||||||||||
Guarantee Obligations Maximum Exposure Percentage | 20.00% | 20.00% | ||||||||||||
Equity Method Investment Third Party Ownership Percentage | 75.00% | 75.00% | ||||||||||||
Krispy Kreme South Florida LLC [Member] | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity Method Investment, Ownership Percentage | 35.30% | 35.30% | ||||||||||||
Accrued guarantee liabilities | 1,600,000 | |||||||||||||
Notes Receivable Unrecognized | 1,000,000 | 1,500,000 | 1,000,000 | 1,500,000 | 1,600,000 | |||||||||
Notes receivable, gross, previously written-off | 825,000 | |||||||||||||
Notes Receivable Payment Received | 550,000 | 95,000 | 180,000 | |||||||||||
Other non-operating income and (expense), net | 30,000 | |||||||||||||
Equity Method Investment Third Party Ownership Percentage | 64.70% | 64.70% | ||||||||||||
Notes Receivable Number Of Payments Due | 36 | |||||||||||||
Notes receivable, interest rate spread | 3.00% | |||||||||||||
Kremeworks, LLC and Kremeworks Canada, LP [Member] | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Accrued but uncollected interest on advances | $390,000 | $390,000 |
Investments_in_Franchisees_Sum
Investments in Franchisees (Summarized Financial Information) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Kremeworks LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenues | $19,691 | $18,512 | $17,383 |
Operating Income (Loss) | 1,038 | 637 | -561 |
Net Income (Loss) | 893 | 463 | -781 |
Current Assets | 2,397 | 1,982 | 1,083 |
Noncurrent Assets | 8,851 | 9,791 | 10,622 |
Current Liabilities | 6,520 | 7,172 | 8,438 |
Noncurrent Liabilities | 1,849 | 1,946 | 1,883 |
Total Equity (Deficit) | 2,879 | 2,655 | 1,384 |
Kremeworks Canada LP [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenues | 1,973 | 1,800 | 1,516 |
Operating Income (Loss) | -119 | -92 | 1 |
Net Income (Loss) | -233 | -201 | -106 |
Current Assets | 565 | 572 | 534 |
Noncurrent Assets | 859 | 1,061 | 1,247 |
Current Liabilities | 448 | 672 | 883 |
Noncurrent Liabilities | |||
Total Equity (Deficit) | -2,131 | -2,080 | -2,014 |
Krispy Kreme South Florida LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenues | 12,098 | 12,408 | 13,271 |
Operating Income (Loss) | 280 | 848 | 1,421 |
Net Income (Loss) | 207 | 626 | 1,290 |
Current Assets | 1,142 | 1,237 | 1,182 |
Noncurrent Assets | 2,105 | 2,887 | 3,182 |
Current Liabilities | 1,669 | 2,120 | 3,418 |
Noncurrent Liabilities | 3,713 | 3,251 | 1,754 |
Total Equity (Deficit) | ($2,135) | ($1,247) | ($808) |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Schedule of Goodwill and Other Intangibles) (Details) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill And Intangible Assets [Line Items] | ||
Goodwill and other intangible assets | $30,070 | $24,097 |
International Franchise [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | 15,664 | 15,664 |
Domestic Franchise [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | 7,832 | 7,832 |
Company Stores [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | 2,594 | |
Intangible Reacquired Franchise Rights | $3,980 | $601 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Parenthetical and Narrative Data) (Details) (Company Stores [Member], USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
Company Stores [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Goodwill, Impaired, Accumulated Impairment Loss | $139,400,000 | $139,400,000 |
Reacquired franchise rights accumulated impairment loss | 1,800,000 | 1,800,000 |
Accumulated amortization of reacquired franchise rights | $556,000 | $82,000 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Schedule of Reacquired Franchise Rights) (Details) (Franchise Rights [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 |
Franchise Rights [Member] | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Balance at beginning of year | $601 | $699 |
Acquisition of stores from franchisee (Note 21) | 3,853 | |
Amount related to refranchised store | -40 | |
Amortization expense | -474 | -58 |
Balance at end of year | $3,980 | $601 |
Other_Assets_Schedule_of_Other
Other Assets (Schedule of Other Assets) (Details) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
In Thousands, unless otherwise specified | |||
Other Assets [Abstract] | |||
Non-current portion of notes receivable | $3,482 | $3,172 | |
Non-current portion of claims against insurance carriers related to self-insurance programs (Notes 1, 5, 10 and 12) | 3,290 | 3,207 | 4,486 |
401(k) mirror plan assets (Notes 12 and 18) | 2,496 | 2,585 | |
Deposits | 734 | 765 | |
Deferred financing costs, net of accumulated amortization | 370 | 478 | |
Other | 388 | 471 | |
Other assets | $10,760 | $10,678 |
Other_Assets_Schedule_of_Other1
Other Assets (Schedule of Other Notes Receivables) (Details) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
Other Assets [Abstract] | ||
Note receivable from franchisees | $4,534 | $3,980 |
Less - portion due within one year included in receivables (Note 3) | -1,052 | -754 |
Less - allowance for doubtful accounts | -54 | |
Non-current portion of notes receivable | $3,482 | $3,172 |
Other_Assets_Narrative_Details
Other Assets (Narrative) (Details) (USD $) | 12 Months Ended | |||
Feb. 01, 2015 | Feb. 02, 2014 | Jan. 29, 2012 | Nov. 01, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unrecognized franchise revenue | $1,900,000 | $2,900,000 | ||
Collection of previously unrecognized franchise revenue | 900,000 | 380,000 | ||
Krispy Kreme South Florida LLC [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unrecognized notes receivable | 1,000,000 | 1,500,000 | 1,600,000 | |
Collection of notes receivable | $550,000 | $95,000 | $180,000 |
Other_Assets_Schedule_of_Allow
Other Assets (Schedule of Allowance) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Allowance For Doubtful Accounts Receivable [Rollforward] | |||
Balance at beginning of year | $241 | ||
Provision for doubtful accounts | 90 | -345 | 194 |
Balance at end of year | 495 | 241 | |
Notes Receivable [Member] | |||
Allowance For Doubtful Accounts Receivable [Rollforward] | |||
Balance at beginning of year | 54 | 62 | 68 |
Provision for doubtful accounts | -54 | -8 | -6 |
Balance at end of year | $54 | $62 |
Accrued_Liabilities_Components
Accrued Liabilities (Components) (Details) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
In Thousands, unless otherwise specified | |||
Accrued compensation | $10,533 | $8,901 | |
Accrued vacation pay | 5,732 | 5,530 | |
Current portion of self-insurance claims, principally worker's compensation (Notes 1, 5, 9, and 12) | 3,773 | 3,765 | 4,156 |
Accrued taxes, other than income | 2,541 | 2,043 | |
Accrued health care claims | 1,330 | 1,240 | |
Customer deposits | 1,017 | 1,115 | |
Accrued guarantee liabilities (Note 13) | 906 | 929 | |
Current portion of deferred franchise fee revenue (Note 12) | 906 | 893 | |
Commodity futures contracts | 1,811 | 313 | |
Current portion of lease termination costs (Notes 12 and 15) | 94 | 74 | 464 |
Other | 3,887 | 4,473 | |
Accrued liabilities | 32,530 | 29,276 | |
Gasoline Commodity Futures Contracts [Member] | |||
Commodity futures contracts | 937 | ||
Agricultural Commodity Futures Contracts [Member] | |||
Commodity futures contracts | $874 | $313 |
Accrued_Liabilities_Self_Insur
Accrued Liabilities (Self Insurance Rollforward) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Self Insurance [Rollforward] | |||
Balance at beginning of year | $8,047 | $8,455 | $8,203 |
Additions charged to cost and expenses | 2,600 | 3,436 | 3,777 |
Claims payments | -3,079 | -3,844 | -3,525 |
Balance at end of year | $7,568 | $8,047 | $8,455 |
Accrued_Liabilities_Self_Insur1
Accrued Liabilities (Self Insurance Balance) (Details) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | Jan. 29, 2012 |
In Thousands, unless otherwise specified | ||||
Accrued Liabilities [Abstract] | ||||
Accrued liabilities | $3,773 | $3,765 | $4,156 | |
Other long-term obligations and deferred credits | 8,097 | 8,382 | 9,979 | |
Other current assets | -1,012 | -893 | -1,194 | |
Other assets | -3,290 | -3,207 | -4,486 | |
Self Insurance Reserve Net | $7,568 | $8,047 | $8,455 | $8,203 |
Credit_Facilities_and_Lease_Ob2
Credit Facilities and Lease Obligations (Schedule of Lease Obligations) (Details) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
Lease obligations: | ||
Lease obligations | $9,687 | $2,003 |
Less: current portion | -333 | -344 |
Lease obligations, less current portion | 9,354 | 1,659 |
Capital lease obligations [Member] | ||
Lease obligations: | ||
Lease obligations | 2,940 | 2,003 |
Assets Under Financing Obligations [Member] | ||
Lease obligations: | ||
Lease obligations | $6,747 |
Credit_Facilities_and_Lease_Ob3
Credit Facilities and Lease Obligations (2013 Revolving Credit Facility) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Feb. 01, 2015 | Jul. 12, 2013 |
Credit Facilities and Lease Obligations [Abstract] | ||
Letters of credit outstanding | $8.70 | $9.20 |
2013 Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Issuance date | 12-Jul-13 | |
Debt maturity date | 12-Jul-18 | |
Maximum borrowing capacity | 40 | |
Available borrowing capacity | 31.3 | |
Spread over variable rate | 1.25% | |
Description of variable rate basis | greatest of the prime rate, the Fed funds rate plus 0.50%, or the one-month LIBOR rate plus 1.00% | |
Fee on unused portion | 0.15% | |
Leverage ratio | 0.3 | |
Fixed charge coverage ratio | 3.1 | |
Default triggering event | 5 | |
Covenant calculation, reference period threshold for guaranty obligations | 1 | |
Covenant calculation, aggregate threshold for guaranty obligations | 3 | |
Covenant calculation, reference period threshold for lease termination obligations | 1.5 | |
Covenant calculation, aggregate threshold for lease termination obligations | $5 | |
2013 Revolving Credit Facility [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Fee on unused portion | 0.15% | |
Fixed charge coverage ratio | 1.3 | |
2013 Revolving Credit Facility [Member] | Minimum [Member] | LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Spread over variable rate | 1.25% | |
2013 Revolving Credit Facility [Member] | Minimum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Spread over variable rate | 0.25% | |
2013 Revolving Credit Facility [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Fee on unused portion | 0.35% | |
Leverage ratio | 2.25 | |
2013 Revolving Credit Facility [Member] | Maximum [Member] | LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Spread over variable rate | 2.15% | |
2013 Revolving Credit Facility [Member] | Maximum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Spread over variable rate | 1.15% |
Credit_Facilities_and_Lease_Ob4
Credit Facilities and Lease Obligations (2011 Secured Credit Facilities) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Feb. 02, 2014 | Nov. 03, 2013 | Aug. 04, 2013 | 5-May-13 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | |
Debt Instrument [Line Items] | |||||||
Repayment of secured debt | $21,700,000 | ||||||
Loss on retirement of debt | 967,000 | 967,000 | |||||
Loss on cash flow hedge reclassified to net income, previously charged to other comprehensive income | 516,000 | ||||||
Interest Rate Contract [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Inception date | 3-Mar-11 | ||||||
Effective date | 1-Apr-12 | ||||||
Maturity date | 31-Dec-15 | ||||||
Termination date | 12-Jul-13 | ||||||
Notional amount | 17,500,000 | ||||||
Loss on cash flow hedge reclassified to net income, previously charged to other comprehensive income | 516,000 | ||||||
Description of variable rate basis | three-month LIBOR rate over 3.00% | ||||||
LIBOR [Member] | Interest Rate Contract [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Spread over variable rate | 3.00% | ||||||
2011 Secured Credit Facilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Issuance date | 28-Jan-11 | ||||||
Debt maturity date | 1-Jan-16 | ||||||
Retirement date | 12-Jul-13 | ||||||
Loss on retirement of debt | 967,000 | ||||||
Description of variable rate basis | greatest of the prime rate, the Fed funds rate plus 0.50%, or the one-month LIBOR rate plus 1.00% | ||||||
Fronting fee | 0.13% | ||||||
2011 Secured Credit Facilities [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Fee on unused portion | 0.35% | ||||||
2011 Secured Credit Facilities [Member] | Minimum [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Spread over variable rate | 2.25% | ||||||
2011 Secured Credit Facilities [Member] | Minimum [Member] | Base Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Spread over variable rate | 1.25% | ||||||
2011 Secured Credit Facilities [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Fee on unused portion | 0.65% | ||||||
2011 Secured Credit Facilities [Member] | Maximum [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Spread over variable rate | 3.00% | ||||||
2011 Secured Credit Facilities [Member] | Maximum [Member] | Base Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Spread over variable rate | 2.00% | ||||||
2011 Secured Credit Facilities [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 25,000,000 | ||||||
2011 Secured Credit Facilities [Member] | Secured Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $35,000,000 |
Credit_Facilities_and_Lease_Ob5
Credit Facilities and Lease Obligations (Lease Obligations and Interest) (Details) (USD $) | 12 Months Ended | ||
Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | |
Operating Leases | |||
2016 | $11,379,000 | ||
2017 | 9,207,000 | ||
2018 | 8,557,000 | ||
2019 | 7,382,000 | ||
2020 | 7,338,000 | ||
Thereafter | 93,487,000 | ||
Operating Leases, Future Minimum Payments Due | 137,350,000 | ||
Capital Leases | |||
2016 | 840,000 | ||
2017 | 791,000 | ||
2018 | 660,000 | ||
2019 | 472,000 | ||
2020 | 427,000 | ||
Thereafter | 6,482,000 | ||
Capital Leases, Future Minimum Payments Due | 9,672,000 | ||
Less: portion representing interest | -6,495,000 | ||
Less: portion representing executory costs | -237,000 | ||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | 2,940,000 | ||
Financing Obligations | |||
2016 | 764,000 | ||
2017 | 764,000 | ||
2018 | 764,000 | ||
2019 | 765,000 | ||
2020 | 783,000 | ||
Thereafter | 14,257,000 | ||
Total | 18,097,000 | ||
Portion representing interest | -14,254,000 | ||
Unamortized balance of financing obligations at end of lease term | 2,904,000 | ||
Total capital lease and financing obligations | 6,747,000 | ||
Rent expense, net of rental income | 13,400,000 | 12,300,000 | 12,800,000 |
Interest paid, inclusive of deferred financing costs | $750,000 | $940,000 | $1,200,000 |
Other_Long_Term_Obligations_an2
Other Long Term Obligations and Deferred Credits (Details) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
In Thousands, unless otherwise specified | |||
Other Long-Term Obligations and Deferred Credits [Abstract] | |||
Non-current portion of self-insurance claims, principally worker's compensation (Notes 1, 5, 9 and 10) | $8,097 | $8,382 | $9,979 |
Accrued rent expense | 6,571 | 6,025 | |
Non-current portion of deferred franchise fee revenue (Note 10) | 4,877 | 4,526 | |
Mirror 401(k) plan liability (Notes 9 and 18) | 2,496 | 2,585 | |
Landlord upfit allowances on leased premises | 2,445 | 2,647 | |
Non-current portion of lease termination costs (Notes 10 and 15) | 22 | 104 | 182 |
Other | 1,107 | 1,117 | |
Other long-term obligations and deferred credits | $25,615 | $25,386 |
Commitments_and_Contingencies_
Commitments and Contingencies (Narratives) (Details) (USD $) | 12 Months Ended | ||
Feb. 01, 2015 | Feb. 02, 2014 | Jul. 12, 2013 | |
Loss Contingencies [Line Items] | |||
Accrued guarantee liabilities | 906,000 | $929,000 | |
Letters of Credit Outstanding, Amount | 8,700,000 | 9,200,000 | |
Purchase Obligation | 60,000,000 | ||
K2 Asia Litigation [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Actions Taken by Plaintiff | 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 bexclusive rightsb to negotiate franchise and development agreements with prospective franchisees in the Philippines, and seeks unspecified damages. The Company therefore does not know the amount or range of possible loss related to this matter. 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 appealed that decision. On January 22, 2015, the North Carolina Supreme Court denied the plaintiffsb request to review the case. |
Shareholders_Equity_Narrative_
Shareholders' Equity (Narrative) (Details) (USD $) | 12 Months Ended | 19 Months Ended | ||||
Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | Feb. 01, 2015 | Feb. 03, 2008 | Jan. 29, 2006 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting term | 4 years | |||||
Options, contractual term | 10 years | |||||
Total unrecognized compensation cost | $8,800,000 | $8,800,000 | ||||
Remaining service periods, minimum | 3 months | |||||
Remaining service periods, maximum | 4 years | |||||
Weighted average remaining service period | 1 year 6 months | |||||
Shares of common stock reserved for issuance | 6,600,000 | 6,600,000 | ||||
Disclosure Of Tax Asset Protection Plan [Abstract] | ||||||
Operating Loss Carryforwards Federal | 159,000,000 | 159,000,000 | ||||
Description Of Tax Asset Protection Plan | Under the Internal Revenue Code (the bCodeb), the Companybs ability to make use of these carryforwards would be subject to limitation in the event of a cumulative change of more than 50% of the Companybs shares during any three year period by shareholders owning 5% or more of the Companybs stock. Because a limitation in the Companybs ability to utilize its tax carryforwards could increase the amount of the Companybs future tax payments or accelerate the timing of such payments, in January 2013, the Companybs Board of Directors adopted a tax asset protection plan (the bPlanb) intended to discourage persons from acquiring more than 4.99% of the Companybs common shares, in order to reduce the likelihood of an ownership change and a resulting limitation on the Companybs ability to utilize its carryforwards that could adversely affect the Companybs cash flows. Under the Plan, subject to certain exceptions, the acquisition by any person or group of 4.99% or more of the Companybs outstanding shares of common stock could have resulted in significant dilution in the ownership and economic interest of such acquiring person. Under the Plan, the Board was granted the discretion to exempt persons from the 4.99% threshold if it were to determine that such ownership is in the best interests of shareholders and not inconsistent with the purpose of the Plan. During fiscal 2014, the Board granted one person a limited exemption from the 4.99% threshold. In January 2015, the Companybs Board of Directors determined that the Plan was no longer necessary to protect the Companybs income tax assets and amended it to accelerate its expiration to February 2, 2015, effectively terminating the Plan. | |||||
Equity Disclosure [Line Items] | ||||||
Shares repurchased under share repurchase authorizations, shares | 2,237,000 | 1,185,000 | 3,113,000 | |||
Value of shares repurchased under share repurchase authorization | 39,225,000 | 22,342,000 | 20,000,000 | |||
Repurchase of common shares | 43,881,000 | 23,057,000 | 20,758,000 | |||
Shares surrendered in reimbursement for withholding taxes | 2,811,000 | 2,560,000 | 758,000 | |||
Share Repurchase 2012 Program [Member] | ||||||
Equity Disclosure [Line Items] | ||||||
Value of shares repurchased under share repurchase authorization | 20,000,000 | |||||
Authorization Under Share Repurchase 2013 Program [Member] | ||||||
Equity Disclosure [Line Items] | ||||||
Authorization amount for repurchases of common stock | 105,000,000 | 50,000,000 | 105,000,000 | |||
Shares repurchased under share repurchase authorization, average price per share | $17.99 | |||||
Shares repurchased under share repurchase authorizations, shares | 3,422,000 | |||||
Repurchase of common shares | 61,600,000 | |||||
Litigation Warrant [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of shares covered by warrants | 4,300,000 | |||||
Warrants issue stock price | $12.21 | |||||
Warrants expiration date | 2-Mar-12 | |||||
Warrants Issued As Compensation For Services Provided [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of shares covered by warrants | 1,200,000 | |||||
Warrants issue stock price | $7.75 | |||||
Warrants expiration date | 31-Jan-13 | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grant date fair value of restricted stock and restricted stock unit awards vested | $2,500,000 | $4,300,000 | $2,900,000 | |||
Stock Incentive 2012 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares provided for issuance under stock plan | 5,100,000 | 5,100,000 | ||||
Description | The Companybs shareholders have approved the Krispy Kreme Doughnuts, Inc. 2012 Stock Incentive Plan (the b2012 Planb), which provides for the grant of incentive stock options, non-qualified stock options, restricted stock awards, restricted stock units, stock awards, performance unit awards, performance share awards, stock appreciation rights and phantom stock awards. The 2012 Plan provides for the issuance of approximately 5.1 million shares of Company common stock (as adjusted to reflect forfeitures and expirations subsequent to January 29, 2012 of awards issued under predecessor plans, pursuant to the 2012 Plan), of which approximately 3.5 million remain available for grant through June 2022. Any shares that are subject to options or stock appreciation rights awarded under the 2012 Plan will be counted against the 2012 Plan limit as one share for every one share granted, and any shares that are subject to 2012 Plan awards other than options or stock appreciation rights will be counted against this limit as one and thirty three-hundredths (1.33) shares for every one share granted. The 2012 Plan provides that options may be granted with exercise prices not less than the closing sale price of the Companybs common stock on the date of grant. The Company measures and recognizes compensation expense for share-based payment (bSBPb) 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 fair value of SBP awards which vest in increments and for which vesting is subject solely to service conditions is charged to expense on a straight-line basis over the aggregate vesting period of each award, which generally is four years. | |||||
Number of shares available for grant | 3,500,000 | 3,500,000 |
Shareholders_Equity_Allocation
Shareholders' Equity (Allocation of Share-based Compensation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | $4,466 | $6,452 | $6,801 |
Direct Operating Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 2,145 | 2,487 | 2,614 |
General and Administration Expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 2,321 | 3,965 | 4,187 |
Stock Options [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 1,209 | 1,865 | 1,537 |
Restricted Stock Units [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | $3,257 | $4,587 | $5,264 |
Shareholders_Equity_Schedule_o
Shareholders' Equity (Schedule of Stock Option Fair Value Assumptions) (Details) | 12 Months Ended | ||
Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life of option | 7 years | 7 years | |
Risk-free interest rate | 2.14% | 2.19% | |
Expected volatility of stock | 65.00% | 65.00% | |
Expected dividend yield | 0.00% | 0.00% |
Shareholders_Equity_Schedule_o1
Shareholders' Equity (Schedule of Stock Options Granted) (Details) (USD $) | 12 Months Ended | ||
Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value per share of options granted | $12.07 | $11.17 | |
Total number of options granted | 88,300 | 251,000 | |
Total fair value of all options granted | $1,065,200 | $2,804,800 |
Shareholders_Equity_Schedule_o2
Shareholders' Equity (Schedule of Stock Option Transactions) (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | Jan. 29, 2012 |
Shares Subject to Option | ||||
Outstanding | 4,607,000 | 5,206,500 | 5,809,400 | |
Granted | 88,300 | 251,000 | ||
Exercised | -1,929,600 | -459,500 | -128,000 | |
Expired | -129,800 | -391,000 | -304,900 | |
Forfeited | -90,700 | -170,000 | ||
Outstanding | 2,545,200 | 4,607,000 | 5,206,500 | 5,809,400 |
Exercisable | 2,227,400 | |||
Weighted Average Exercise Price Per Share | ||||
Outstanding | $6.27 | $8.15 | $9.35 | |
Granted | $18.88 | $17.47 | ||
Exercised | $5.32 | $5.25 | $1.93 | |
Expired | $18.15 | $38.66 | $34.40 | |
Forfeited | $8.66 | $6.84 | ||
Outstanding | $6.75 | $6.27 | $8.15 | $9.35 |
Exercisable | $5.65 | |||
Aggregate Intrinsic Value | ||||
Outstanding | $51,044 | $36,388 | $14,572 | |
Exercised | 25,515 | 5,324 | 947 | |
Outstanding | 32,382 | 51,044 | 36,388 | 14,572 |
Exercisable | $30,775 | |||
Weighted Average Remaining Contractual Term | ||||
Outstanding | 5 years 7 months 6 days | 5 years 8 months 12 days | 5 years 9 months 18 days | 6 years 7 months 6 days |
Exercisable | 5 years 2 months 12 days |
Shareholders_Equity_Schedule_o3
Shareholders' Equity (Schedule of Stock Options Outstanding) (Details) (USD $) | 12 Months Ended |
Feb. 01, 2015 | |
First Exercise Price Range [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices (Minimum) | $1.40 |
Range of Exercise Prices (Maximum) | $3.08 |
Options Outstanding: Shares | 962,600 |
Options Outstanding: Weighted Average Remaining Contractual Life | 3 years 10 months 24 days |
Options Outstanding: Weighted Average Exercise Price | $2.65 |
Options Exercisable: Shares | 962,600 |
Options Exercisable: Weighted Average Exercise Price | $2.65 |
Second Exercise Price Range [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices (Minimum) | $6.39 |
Range of Exercise Prices (Maximum) | $9.71 |
Options Outstanding: Shares | 1,259,000 |
Options Outstanding: Weighted Average Remaining Contractual Life | 6 years 1 month 6 days |
Options Outstanding: Weighted Average Exercise Price | $7.02 |
Options Exercisable: Shares | 1,154,000 |
Options Exercisable: Weighted Average Exercise Price | $7.02 |
Third Exercise Price Range [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices (Minimum) | $17.47 |
Range of Exercise Prices (Maximum) | $19 |
Options Outstanding: Shares | 323,600 |
Options Outstanding: Weighted Average Remaining Contractual Life | 9 years 1 month 6 days |
Options Outstanding: Weighted Average Exercise Price | $17.86 |
Options Exercisable: Shares | 110,800 |
Options Exercisable: Weighted Average Exercise Price | $17.47 |
Shareholders_Equity_Schedule_o4
Shareholders' Equity (Schedule of Changes in Unvested Restricted Stock and Restricted Stock Unit Awards) (Details) (USD $) | 12 Months Ended | ||
Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | |
Unvested Shares | |||
Unvested | 975,900 | 1,238,200 | 1,056,500 |
Granted | 129,700 | 300,200 | 757,700 |
Vested | -480,700 | -509,900 | -497,300 |
Forfeited | -80,300 | -52,600 | -78,700 |
Unvested | 544,600 | 975,900 | 1,238,200 |
Weighted Average Grant Date Fair Value | |||
Unvested | $11.73 | $8.65 | $5.95 |
Granted | $19.13 | $18.14 | $10.28 |
Vested | $11.45 | $8.46 | $5.76 |
Forfeited | $12.35 | $7.38 | $6.49 |
Unvested | $13.65 | $11.73 | $8.65 |
Shareholders_Equity_Repurchase
Shareholders' Equity (Repurchases of Common Stock) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Stockholders' Equity [Abstract] | |||
Shares repurchased under share repurchase authorizations, shares | 2,237 | 1,185 | 3,113 |
Shares surrendered in reimbursement for withholding taxes, shares | 153 | 136 | 100 |
Repurchases of common shares, shares | 2,390 | 1,321 | 3,213 |
Shares repurchased under share repurchase authorizations | $39,225 | $22,342 | $20,000 |
Shares surrendered in reimbursement for withholding taxes | 2,811 | 2,560 | 758 |
Repurchase of common shares | $42,036 | $24,902 | $20,758 |
Impairment_Charges_and_Lease_T2
Impairment Charges and Lease Termination Costs (Schedule of Impairment Charges and Lease Termination Costs) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Aug. 04, 2013 | 5-May-13 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Impairment Charges and Lease Termination Costs [Abstract] | |||||||||||
Impairment of long-lived assets | $901 | ||||||||||
Provision for termination costs | 56 | 1,374 | 306 | ||||||||
Less - reversal of previously recorded accrued rent expense | -2 | ||||||||||
Net provision | 54 | 1,374 | 306 | ||||||||
Total impairment charges and lease termination costs | $905 | $4 | $38 | $8 | ($169) | $1,531 | $4 | $8 | $955 | $1,374 | $306 |
Impairment_Charges_and_Lease_T3
Impairment Charges and Lease Termination Costs (Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | Feb. 02, 2014 | |
Loss Contingencies [Line Items] | ||||
Impairment charges | $901,000 | |||
Adjustments to previously recorded provisions | -5,000 | 1,351,000 | 276,000 | |
Colchester Security Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Adjustments to previously recorded provisions | 1,400,000 | |||
Litigation settlement, amount | $1,800,000 |
Impairment_Charges_and_Lease_T4
Impairment Charges and Lease Termination Costs (Schedule of Lease Termination Liability) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Lease Termination Costs [Roll Forward] | |||
Balance at beginning of period | $178 | $646 | $709 |
Provisions associated with leased properties, net of estimated sublease rentals | 44 | ||
Adjustments to previously recorded provisions resulting from settlements with lessors and adjustments of previous estimates | -5 | 1,351 | 276 |
Accretion of Discount | 17 | 23 | 30 |
Total provision | 56 | 1,374 | 306 |
Payments on unexpired leases, including settlements with lessors | -118 | -1,842 | -369 |
Balance at end of period | 116 | 178 | 646 |
Current portion of lease termination costs (Notes 12 and 15) | 94 | 74 | 464 |
Non-current portion of lease termination costs (Notes 10 and 15) | 22 | 104 | 182 |
Total | $116 | $178 | $646 |
Income_Taxes_Schedule_of_Compo
Income Taxes (Schedule of Components of Provision for Income Taxes) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Aug. 04, 2013 | 5-May-13 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Income Taxes [Abstract] | |||||||||||
Current | $2,427 | $2,790 | $2,124 | ||||||||
Deferred | 15,729 | 8,014 | 13,413 | ||||||||
Provision for income taxes | $2,995 | $4,633 | $3,865 | $6,663 | ($5,632) | $5,114 | $4,571 | $6,751 | $18,156 | $10,804 | $15,537 |
Income_Taxes_Schedule_of_Recon
Income Taxes (Schedule of Reconciliation of Tax Provision) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Aug. 04, 2013 | 5-May-13 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Income Taxes [Abstract] | |||||||||||
Income taxes at statutory federal rate | $16,875 | $15,771 | $12,710 | ||||||||
State income taxes | 1,662 | 1,902 | 1,340 | ||||||||
Reversal of valuation allowance on deferred income tax assets | -150 | -4,306 | |||||||||
Benefit of foreign tax credits in excess of benefit previously recorded | -4,481 | ||||||||||
Foreign taxes, principally withholding taxes | 2,457 | 2,309 | 2,168 | ||||||||
Credit for foreign income taxes | -2,457 | -2,309 | |||||||||
Deduction for foreign income taxes | -759 | ||||||||||
Other changes in tax credit carryforwards | 118 | -86 | |||||||||
Accruals for uncertain tax positions | 359 | -50 | |||||||||
Accruals for interest and penalties | 15 | 3 | -82 | ||||||||
Reduction in net deferred tax assets from enacted change in North Carolina statutory income tax rate | 686 | ||||||||||
Other change in estimated future blended state income tax rate | 73 | 31 | -565 | ||||||||
Other | -319 | 721 | 861 | ||||||||
Provision for income taxes | $2,995 | $4,633 | $3,865 | $6,663 | ($5,632) | $5,114 | $4,571 | $6,751 | $18,156 | $10,804 | $15,537 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | |||||
Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | Jan. 29, 2012 | Feb. 03, 2008 | Jan. 29, 2006 | |
Income Taxes [Abstract] | ||||||
Valuation allowance on deferred income tax assets | $2,566,000 | $2,675,000 | $9,767,000 | $10,652,000 | ||
Reversal of valuation allowance on deferred income tax assets | -150,000 | -4,306,000 | ||||
Benefit of foreign tax credits in excess of benefit previously recorded | -4,481,000 | |||||
Current Year Benefit Of Foreign Tax Credits In Excess Of Benefit Previously Recorded | -1,500,000 | |||||
Income Tax Reconciliation Other Foreign Taxes | 2,457,000 | 2,309,000 | 2,168,000 | |||
Aggregate Credit To Income Tax Expense | 10,300,000 | |||||
Gross Deferred Tax Asset Change Due To Nc Rate Change | 1,000,000 | |||||
Reduction in valuation allowance related to enacted change in North Carolina statutory income tax rate | 314,000 | |||||
Reduction in net deferred tax assets from enacted change in North Carolina statutory income tax rate | 686,000 | |||||
Reduction In Allowance Amendment Tax Return | -885,000 | |||||
Reversal Foreign Tax Credits | 3,800,000 | |||||
Reclassification Valuation Allowance Foreign Tax Credits | 2,472,000 | |||||
Net Reclassification Related To Foreign Tax Credits | 1,300,000 | |||||
Tax Benefits If Recognized Recorded To Common Stock | 21,000,000 | |||||
Income Taxes Paid, Net | 2,500,000 | 2,500,000 | 2,300,000 | |||
Unrecognized Tax Benefits | 1,965,000 | 1,952,000 | 1,327,000 | 1,378,000 | ||
Unrecognized Tax Benefits That Would Impact Income Tax Expense | 2,000,000 | |||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 313,000 | 298,000 | ||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating Loss Carryforwards Federal | 159,000,000 | |||||
Litigation Warrant [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants issue stock price | $12.21 | |||||
Deferred Tax Assets Nonemployee Stock Warrants | 7,200,000 | |||||
Warrants Issued As Compensation For Services Provided [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants issue stock price | $7.75 | |||||
Deferred Tax Assets Nonemployee Stock Warrants | 2,600,000 | |||||
Foreign Tax Credit Carryforwards [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax Credit Carryforward, Amount | 5,200,000 | 5,200,000 | ||||
Federal Tax Credit Carryforwards [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax Credit Carryforward, Amount | 12,600,000 | |||||
Federal Income Tax Loss Carryforwards Excluding Employee Equity Awards [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating Loss Carryforwards Federal | 103,000,000 | |||||
Federal Income Tax Loss Carryforwards Related To Employee Equity Awards [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating Loss Carryforwards Federal | $56,000,000 |
Income_Taxes_Schedule_of_Tax_E
Income Taxes (Schedule of Tax Effects of Temporary Differences) (Details) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | Jan. 29, 2012 |
In Thousands, unless otherwise specified | ||||
Income Taxes [Abstract] | ||||
Goodwill and other intangible assets | $2,830 | $5,710 | ||
Allowance for doubtful accounts | 191 | 93 | ||
Other current assets | 1,124 | 989 | ||
Property and equipment | 6,202 | 5,083 | ||
Other non-current assets | 2,777 | 2,830 | ||
Self-insurance accruals | 3,434 | 3,586 | ||
Deferred revenue | 2,608 | 2,584 | ||
Accrued compensation | 5,154 | 4,938 | ||
Other current liabilities | 998 | 1,263 | ||
Other non-current liabilities | 3,488 | 3,444 | ||
Share-based compensation | 8,489 | 10,507 | ||
Federal net operating loss carryforwards | 34,709 | 48,171 | ||
Federal tax credit carryforwards | 12,642 | 10,216 | ||
State net operating loss and credit carryforwards | 8,938 | 10,083 | ||
Other | 505 | 486 | ||
Gross deferred income tax assets | 94,089 | 109,983 | ||
Valuation allowance on deferred income tax assets | -2,566 | -2,675 | -9,767 | -10,652 |
Deferred income tax assets, net of valuation allowance | 91,523 | 107,308 | ||
Deferred income tax liabilities | ||||
Net deferred income tax assets | $91,523 | $107,308 |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferred Assets and Liabilities) (Details) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
Income Taxes [Abstract] | ||
Net current assets | $23,245 | $23,847 |
Net noncurrent assets | 68,278 | 83,461 |
Net deferred income tax assets | $91,523 | $107,308 |
Income_Taxes_Schedule_of_Valua
Income Taxes (Schedule of Valuation Allowance) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Income Taxes [Abstract] | |||
Balance at beginning of year | $2,675 | $9,767 | $10,652 |
Reduction in allowance due to amendment of tax return | -885 | ||
Reversal of allowance credited to earnings | -150 | -4,306 | |
Reclassification of valuation allowance against deferred tax assets not affecting earnings | -2,472 | ||
Reduction in valuation allowance related to enacted change in North Carolina statutory income tax rate | -314 | ||
Other | 41 | ||
Balance at end of year | $2,566 | $2,675 | $9,767 |
Income_Taxes_Schedule_of_Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Income Taxes [Abstract] | |||
Unrecognized tax benefits at beginning of year | $1,952 | $1,327 | $1,378 |
Increases related to positions taken in the current year | 108 | 105 | 128 |
Increases related to positions taken in prior years | 702 | ||
(Decreases) related to positions taken in prior years | -21 | ||
Lapsing of statutes of limitations | -74 | -182 | -179 |
Unrecognized tax benefits at end of year | $1,965 | $1,952 | $1,327 |
Related_Transactions_Details
Related Transactions (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Feb. 03, 2013 | Feb. 01, 2015 | Feb. 02, 2014 | Dec. 19, 2012 |
Principal Owner [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related party | $6.70 | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 13.00% | |||
K K Supply Chain Revenue [Member] | Equity Method Investee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related party | 8.9 | 9.5 | 9.4 | |
Royalty Revenue [Member] | Equity Method Investee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related party | $1.30 | $1.30 | $1.30 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | |
Defined Contribution Plan Disclosure [Line Items] | |||
401(k) mirror plan assets | $2,496,000 | $2,585,000 | |
401(k) mirror plan liability | 2,496,000 | 2,585,000 | |
Employee 401(k) Savings Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 100.00% | ||
Company match of participant contribution | 50.00% | ||
Defined Contribution Plan Employer Matching Contribution Percent | 6.00% | ||
Defined Contribution Plan, Cost Recognized | $910,000 | $860,000 | $820,000 |
Minimum [Member] | Employee 401(k) Mirror Savings Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Nonqualified Deferred Comp Plan Annual Contribution Per Employee Percent | 1.00% | ||
Nonqualified Deferred Comp Plan Annual Bonus Contribution Per Employee Percent | 1.00% | ||
Maximum [Member] | Employee 401(k) Mirror Savings Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Nonqualified Deferred Comp Plan Annual Contribution Per Employee Percent | 15.00% | ||
Nonqualified Deferred Comp Plan Annual Bonus Contribution Per Employee Percent | 100.00% |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
Assets: | ||
401(k) mirror plan assets | $2,496 | $2,585 |
Liabilities: | ||
Commodity futures contracts | 1,811 | 313 |
Agricultural Commodity Futures Contracts [Member] | ||
Liabilities: | ||
Commodity futures contracts | 874 | 313 |
Gasoline Commodity Futures Contracts [Member] | ||
Liabilities: | ||
Commodity futures contracts | 937 | |
Recurring [Member] | Level 1 [Member] | ||
Assets: | ||
401(k) mirror plan assets | 2,496 | 2,585 |
Liabilities: | ||
Total liabilities | 1,811 | |
Recurring [Member] | Level 1 [Member] | Agricultural Commodity Futures Contracts [Member] | ||
Liabilities: | ||
Commodity futures contracts | 874 | 313 |
Recurring [Member] | Level 1 [Member] | Gasoline Commodity Futures Contracts [Member] | ||
Liabilities: | ||
Commodity futures contracts | 937 | |
Recurring [Member] | Level 2 [Member] | ||
Assets: | ||
401(k) mirror plan assets | ||
Liabilities: | ||
Total liabilities | ||
Recurring [Member] | Level 2 [Member] | Agricultural Commodity Futures Contracts [Member] | ||
Liabilities: | ||
Commodity futures contracts | ||
Recurring [Member] | Level 2 [Member] | Gasoline Commodity Futures Contracts [Member] | ||
Liabilities: | ||
Commodity futures contracts | ||
Recurring [Member] | Level 3 [Member] | ||
Assets: | ||
401(k) mirror plan assets | ||
Liabilities: | ||
Total liabilities | ||
Recurring [Member] | Level 3 [Member] | Agricultural Commodity Futures Contracts [Member] | ||
Liabilities: | ||
Commodity futures contracts | ||
Recurring [Member] | Level 3 [Member] | Gasoline Commodity Futures Contracts [Member] | ||
Liabilities: | ||
Commodity futures contracts |
Fair_Value_Measurements_Assets1
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Assets, Fair Value Disclosure [Abstract] | |||
Total gain (loss) | ($901) | ||
Fair Value, Measurements, Nonrecurring [Member] | Carrying Value [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Long-lived assets | 1,200 | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Long-lived assets | |||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Long-lived assets | 270 | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Long-lived assets |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Values of Financial Instruments at Balance Sheet Dates) (Details) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
Liabilities: | ||
Commodity futures contracts | $1,811 | $313 |
Agricultural Commodity Futures Contracts [Member] | ||
Liabilities: | ||
Commodity futures contracts | 874 | 313 |
Gasoline Commodity Futures Contracts [Member] | ||
Liabilities: | ||
Commodity futures contracts | 937 | |
Carrying Value [Member] | ||
Assets: | ||
Cash and cash equivalents | 50,971 | 55,748 |
Receivables | 27,799 | 25,268 |
Receivables from equity method franchisees | 782 | 675 |
Liabilities: | ||
Accounts payable | 17,095 | 16,788 |
Lease obligations (including current portion) | 9,687 | 2,003 |
Carrying Value [Member] | Agricultural Commodity Futures Contracts [Member] | ||
Liabilities: | ||
Commodity futures contracts | 874 | 313 |
Carrying Value [Member] | Gasoline Commodity Futures Contracts [Member] | ||
Liabilities: | ||
Commodity futures contracts | 937 | |
Fair Value [Member] | ||
Assets: | ||
Cash and cash equivalents | 50,971 | 55,748 |
Receivables | 27,799 | 25,268 |
Receivables from equity method franchisees | 782 | 675 |
Liabilities: | ||
Accounts payable | 17,095 | 16,788 |
Lease obligations (including current portion) | 9,687 | 2,003 |
Fair Value [Member] | Agricultural Commodity Futures Contracts [Member] | ||
Liabilities: | ||
Commodity futures contracts | 874 | 313 |
Fair Value [Member] | Gasoline Commodity Futures Contracts [Member] | ||
Liabilities: | ||
Commodity futures contracts | $937 |
Derivative_Instruments_Narrati
Derivative Instruments (Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | Aug. 04, 2013 | |
Derivative [Line Items] | ||||
Loss on cash flow hedge reclassified to net income, previously charged to other comprehensive income | $516,000 | |||
Agricultural Commodity Futures Contracts [Member] | ||||
Derivative [Line Items] | ||||
Aggregate contract volume | 1,300,000 | |||
Gasoline Commodity Futures Contracts [Member] | ||||
Derivative [Line Items] | ||||
Aggregate contract volume | 2,500,000 | |||
Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Inception date | 3-Mar-11 | |||
Effective date | 1-Apr-12 | |||
Maturity date | 31-Dec-15 | |||
Termination date | 12-Jul-13 | |||
Notional amount | 17,500,000 | |||
Loss on cash flow hedge reclassified to net income, previously charged to other comprehensive income | $516,000 | |||
Interest Rate Contract [Member] | LIBOR [Member] | ||||
Derivative [Line Items] | ||||
Spread over variable rate | 3.00% |
Derivative_Instruments_Fair_Va
Derivative Instruments (Fair Value by Balance Sheet Location) (Details) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Commodity futures contracts | $1,811 | $313 |
Agricultural Commodity Futures Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Commodity futures contracts | 874 | 313 |
Gasoline Commodity Futures Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Commodity futures contracts | 937 | |
Accrued Liabilities [Member] | Agricultural Commodity Futures Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Commodity futures contracts | 874 | 313 |
Accrued Liabilities [Member] | Gasoline Commodity Futures Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Commodity futures contracts | $937 |
Derivative_Instruments_Effect_
Derivative Instruments (Effect of Derivative Instuments by Income Statement Location) (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | Aug. 04, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of derivative | $36 | ($3) | ||
Less - income tax effect | -14 | 1 | ||
Unrealized gain on cash flow hedge, net of taxes | 22 | -2 | ||
Loss on cash flow hedge reclassified to net income, previously charged to other comprehensive income | 516 | |||
Less - income tax effect | -200 | |||
Loss on cash flow hedge reclassified to net income, previously charged to other comprehensive income, net of taxes | 316 | |||
Total other comprehensive income (loss) | 338 | -2 | ||
Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income | -2,124 | -1,459 | 837 | |
Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss on cash flow hedge reclassified to net income, previously charged to other comprehensive income | 516 | |||
Direct Operating Expense [Member] | Agricultural Commodity Futures Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income | -903 | -1,459 | 837 | |
Direct Operating Expense [Member] | Gasoline Commodity Futures Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income | -1,221 | |||
Interest Expense [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income | -39 | -34 | ||
Loss on Retirement of Debt [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income | ($516) |
Acquisitions_and_Divestitures_1
Acquisitions and Divestitures (Acquisition of Krispy Kreme Shops) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | |||
Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | Dec. 31, 2013 | Jun. 17, 2014 | Aug. 03, 2014 | Aug. 30, 2012 | Aug. 31, 2006 | |
stores | stores | stores | stores | |||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire businesses, net of cash acquired | $7,152,000 | $1,603,000 | $915,000 | |||||
Illinois Store Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Net sales | 3,000,000 | |||||||
Number of stores acquired | 1 | |||||||
Payments to acquire businesses, net of cash acquired | 1,600,000 | |||||||
Birmingham, Alabama Store Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Net sales | 9,000,000 | |||||||
Number of stores acquired | 4 | |||||||
Acquisition expenses | 431,000 | |||||||
Settlement of pre-existing franchise agreement | 343,000 | |||||||
Acquisition-related transaction costs | 88,000 | |||||||
Cash consideration for acquisition | 7,500,000 | |||||||
Property and equipment | 710,000 | |||||||
Birmingham, Alabama Store Acquisition [Member] | Company Stores [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Reacquired franchise rights | 3,853,000 | |||||||
August 2012 Business Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of stores acquired | 2 | |||||||
Payments to acquire businesses, net of cash acquired | 915,000 | |||||||
Property and equipment | 464,000 | |||||||
Other assets | 8,000 | |||||||
Reacquired franchise rights | 443,000 | |||||||
August 2006 Asset Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of stores acquired | 3 | |||||||
Cash consideration for acquisition | $2,900,000 |
Acquisitions_and_Divestitures_2
Acquisitions and Divestitures (Schedule of Acquired Business) (Details) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 | Aug. 03, 2014 |
Company Stores [Member] | |||
Purchase price allocated to: | |||
Goodwill | $2,594,000 | ||
Birmingham, Alabama Store Acquisition [Member] | |||
Purchase price allocated to: | |||
Working capital, exclusive of cash | -5,000 | ||
Property and equipment | 710,000 | ||
Purchase price | 7,152,000 | ||
Birmingham, Alabama Store Acquisition [Member] | Company Stores [Member] | |||
Purchase price allocated to: | |||
Reacquired franchise rights | 3,853,000 | ||
Goodwill | $2,594,000 |
Acquisitions_and_Divestitures_3
Acquisitions and Divestitures (Asset Divestitures) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||||||||
Feb. 01, 2015 | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Aug. 04, 2013 | 5-May-13 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | Sep. 09, 2014 | Jul. 11, 2013 | Oct. 31, 2014 | Jul. 31, 2013 | Feb. 22, 2013 | Sep. 27, 2012 | |
stores | stores | stores | stores | stores | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||
Proceeds from refranchising | $1,847,000 | $681,000 | |||||||||||||||
Gain on refranchising transaction | 1,247,000 | 876,000 | |||||||||||||||
Gain (loss) on sale of equipment | -238,000 | 1,879,000 | -543,000 | ||||||||||||||
Gain on reversal of accrued rent expense | 2,000 | ||||||||||||||||
Interest income | 109,000 | 62,000 | 64,000 | 171,000 | 144,000 | 341,000 | 70,000 | 61,000 | 406,000 | 616,000 | 114,000 | ||||||
Maryland Divestiture [Member] | |||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||
Proceeds from refranchising | 1,800,000 | ||||||||||||||||
Gain on refranchising transaction | 1,200,000 | ||||||||||||||||
Future store locations required | 20 | ||||||||||||||||
Dallas Divestiture [Member] | |||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||
Number of stores sold | 3 | ||||||||||||||||
Proceeds from refranchising | 681,000 | ||||||||||||||||
Aggregate purchase price | 2,100,000 | ||||||||||||||||
Net sales attributable to refranchised stores | 7,000,000 | ||||||||||||||||
Wholesale percentage of net sales | 45.00% | ||||||||||||||||
Gain on refranchising transaction | 876,000 | ||||||||||||||||
Gain (loss) on sale of equipment | 462,000 | ||||||||||||||||
Gain on reversal of accrued rent expense | 414,000 | ||||||||||||||||
Leased stores to franchisee | 2 | ||||||||||||||||
Future store locations required | 15 | ||||||||||||||||
Kansas and Missouri Divestiture [Member] | |||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||
Number of stores sold | 3 | ||||||||||||||||
Aggregate purchase price | 1,100,000 | ||||||||||||||||
Notes receivable, gross | 1,100,000 | ||||||||||||||||
Percent of sales used to calculate principal payment on note receivable | 3.50% | ||||||||||||||||
Notes receivable, interest rate spread | 7.00% | ||||||||||||||||
Net sales attributable to refranchised stores | 9,000,000 | ||||||||||||||||
September 2012 Divestiture [Member] | |||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||
Number of stores sold | 3 | ||||||||||||||||
Proceeds from refranchising | 360,000 | ||||||||||||||||
Aggregate purchase price | 3,600,000 | ||||||||||||||||
Notes receivable, gross | 3,200,000 | ||||||||||||||||
Gain on refranchising transaction | 1,700,000 | ||||||||||||||||
Notes receivable, periodic payment | 51,000 | ||||||||||||||||
Deferred gain on sale | 1,700,000 | ||||||||||||||||
Interest income | 210,000 | ||||||||||||||||
Percent investment must exceed to consider gain recognition | 20.00% | ||||||||||||||||
Carrying amount of assets sold | $1,900,000 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Schedule of Income Statement Data) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Feb. 01, 2015 | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Aug. 04, 2013 | 5-May-13 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Selected Quarterly Financial Data [Abstract] | |||||||||||
Revenues | $125,367 | $122,871 | $120,516 | $121,580 | $112,746 | $114,231 | $112,729 | $120,625 | $490,334 | $460,331 | $435,843 |
Operating expenses: | |||||||||||
Direct operating expenses (exclusive of depreciation and amortization expense shown below) | 102,323 | 101,165 | 101,084 | 95,172 | 93,302 | 92,466 | 93,806 | 96,558 | 399,744 | 376,132 | 362,828 |
General and administrative expenses | 9,221 | 5,553 | 6,737 | 7,047 | 7,709 | 5,730 | 5,655 | 6,055 | 28,558 | 25,149 | 25,089 |
Depreciation and amortization expense | 3,354 | 3,280 | 3,033 | 3,173 | 2,834 | 2,788 | 2,664 | 2,820 | 12,840 | 11,106 | 9,891 |
Impairment charges and lease termination costs | 905 | 4 | 38 | 8 | -169 | 1,531 | 4 | 8 | 955 | 1,374 | 306 |
Operating income | 9,564 | 12,869 | 9,624 | 16,180 | 9,070 | 11,716 | 10,600 | 15,184 | 48,237 | 46,570 | 37,729 |
Interest income | 109 | 62 | 64 | 171 | 144 | 341 | 70 | 61 | 406 | 616 | 114 |
Interest expense | -321 | -230 | -162 | -143 | -135 | -131 | -354 | -437 | -856 | -1,057 | -1,642 |
Loss on retirement of debt | -967 | -967 | |||||||||
Equity in losses of equity method franchisees | 53 | -53 | -61 | -57 | -47 | -61 | -60 | -53 | -118 | -221 | -202 |
Other non-operating income and (expense), net | 136 | 91 | 152 | 168 | 96 | 29 | -1 | -5 | 547 | 119 | 317 |
Income before income taxes | 9,541 | 12,739 | 9,617 | 16,319 | 9,128 | 11,894 | 9,288 | 14,750 | 48,216 | 45,060 | 36,316 |
Provision for income taxes | 2,995 | 4,633 | 3,865 | 6,663 | -5,632 | 5,114 | 4,571 | 6,751 | 18,156 | 10,804 | 15,537 |
Net income | $6,546 | $8,106 | $5,752 | $9,656 | $14,760 | $6,780 | $4,717 | $7,999 | $30,060 | $34,256 | $20,779 |
Earnings per common share: | |||||||||||
Basic | $0.10 | $0.12 | $0.09 | $0.15 | $0.22 | $0.10 | $0.07 | $0.12 | $0.45 | $0.51 | $0.31 |
Diluted | $0.10 | $0.12 | $0.08 | $0.14 | $0.21 | $0.09 | $0.07 | $0.11 | $0.44 | $0.48 | $0.30 |
Selected_Quarterly_Financial_D3
Selected Quarterly Financial Data (Schedule of Segment Data) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Aug. 04, 2013 | 5-May-13 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $125,367 | $122,871 | $120,516 | $121,580 | $112,746 | $114,231 | $112,729 | $120,625 | $490,334 | $460,331 | $435,843 |
General and administrative expenses | -9,221 | -5,553 | -6,737 | -7,047 | -7,709 | -5,730 | -5,655 | -6,055 | -28,558 | -25,149 | -25,089 |
Depreciation and amortization expense | -3,354 | -3,280 | -3,033 | -3,173 | -2,834 | -2,788 | -2,664 | -2,820 | -12,840 | -11,106 | -9,891 |
Impairment charges and lease termination costs | -905 | -4 | -38 | -8 | 169 | -1,531 | -4 | -8 | -955 | -1,374 | -306 |
Operating income | 9,564 | 12,869 | 9,624 | 16,180 | 9,070 | 11,716 | 10,600 | 15,184 | 48,237 | 46,570 | 37,729 |
Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | 20,073 | 18,799 | 16,761 | 23,606 | 16,968 | 19,302 | 16,554 | 21,523 | 79,239 | 74,347 | 63,961 |
Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
General and administrative expenses | -9,221 | -5,553 | -6,737 | -7,047 | -7,709 | -5,730 | -5,655 | -6,055 | -28,558 | -25,149 | -25,089 |
Depreciation and amortization expense | -383 | -373 | -362 | -371 | -358 | -325 | -295 | -276 | -1,489 | -1,254 | -837 |
Impairment charges and lease termination costs | -905 | -4 | -38 | -8 | 169 | -1,531 | -4 | -8 | -955 | -1,374 | -306 |
Company Stores [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 83,744 | 82,579 | 78,535 | 80,448 | 74,329 | 74,886 | 75,689 | 81,921 | 325,306 | 306,825 | 296,494 |
Depreciation and amortization expense | -10,534 | -9,039 | -8,142 | ||||||||
Operating income | 1,377 | 2,233 | 1,261 | 4,416 | 1,631 | 2,599 | 1,790 | 5,314 | 9,287 | 11,334 | 8,534 |
Domestic Franchise [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,381 | 3,274 | 3,296 | 3,499 | 3,143 | 3,026 | 2,799 | 2,871 | 13,450 | 11,839 | 10,325 |
Depreciation and amortization expense | -135 | -119 | -164 | ||||||||
Operating income | 2,058 | 1,989 | 1,900 | 2,156 | 1,962 | 3,156 | 1,526 | 1,439 | 8,103 | 8,083 | 5,590 |
International Franchise [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 7,631 | 6,852 | 7,534 | 6,581 | 6,900 | 6,205 | 6,057 | 6,445 | 28,598 | 25,607 | 24,941 |
Depreciation and amortization expense | -5 | -7 | -10 | ||||||||
Operating income | 5,587 | 5,048 | 5,111 | 4,280 | 4,758 | 4,449 | 4,239 | 4,531 | 20,026 | 17,977 | 17,387 |
KK Supply Chain [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 30,611 | 30,166 | 31,151 | 31,052 | 28,374 | 30,114 | 28,184 | 29,388 | 122,980 | 116,060 | 104,083 |
Depreciation and amortization expense | -677 | -687 | -738 | ||||||||
Operating income | 11,051 | 9,529 | 8,489 | 12,754 | 8,617 | 9,098 | 8,999 | 10,239 | 41,823 | 36,953 | 32,450 |
KK Supply Chain [Member] | Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 63,292 | 61,581 | 59,503 | 60,312 | 55,913 | 58,304 | 57,201 | 59,811 | 244,688 | 231,229 | 215,412 |
KK Supply Chain [Member] | Intersegment Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | ($32,681) | ($31,415) | ($28,352) | ($29,260) | ($27,539) | ($28,190) | ($29,017) | ($30,423) | ($121,708) | ($115,169) | ($111,329) |
SCHEDULE_I_CONDENSED_FINANCIAL1
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Feb. 01, 2015 | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Aug. 04, 2013 | 5-May-13 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | Jan. 29, 2012 | |
STATEMENT OF INCOME | ||||||||||||
Equity in income of subsidiaries | $53,000 | ($53,000) | ($61,000) | ($57,000) | ($47,000) | ($61,000) | ($60,000) | ($53,000) | ($118,000) | ($221,000) | ($202,000) | |
Miscellaneous expenses | 136,000 | 91,000 | 152,000 | 168,000 | 96,000 | 29,000 | -1,000 | -5,000 | 547,000 | 119,000 | 317,000 | |
Income before income taxes | 9,541,000 | 12,739,000 | 9,617,000 | 16,319,000 | 9,128,000 | 11,894,000 | 9,288,000 | 14,750,000 | 48,216,000 | 45,060,000 | 36,316,000 | |
Provision for income taxes | 2,995,000 | 4,633,000 | 3,865,000 | 6,663,000 | -5,632,000 | 5,114,000 | 4,571,000 | 6,751,000 | 18,156,000 | 10,804,000 | 15,537,000 | |
Net income | 6,546,000 | 8,106,000 | 5,752,000 | 9,656,000 | 14,760,000 | 6,780,000 | 4,717,000 | 7,999,000 | 30,060,000 | 34,256,000 | 20,779,000 | |
Earnings per common share: | ||||||||||||
Basic | $0.10 | $0.12 | $0.09 | $0.15 | $0.22 | $0.10 | $0.07 | $0.12 | $0.45 | $0.51 | $0.31 | |
Diluted | $0.10 | $0.12 | $0.08 | $0.14 | $0.21 | $0.09 | $0.07 | $0.11 | $0.44 | $0.48 | $0.30 | |
STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||
Net income | 6,546,000 | 8,106,000 | 5,752,000 | 9,656,000 | 14,760,000 | 6,780,000 | 4,717,000 | 7,999,000 | 30,060,000 | 34,256,000 | 20,779,000 | |
Other comprehensive income (loss) | 338,000 | -2,000 | ||||||||||
Comprehensive income | 30,060,000 | 34,594,000 | 20,777,000 | |||||||||
ASSETS | ||||||||||||
Investment in and advances to subsidiaries | ||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||
Preferred stock | ||||||||||||
Common stock | 310,768,000 | 338,135,000 | 310,768,000 | 338,135,000 | ||||||||
Accumulated other comprehensive loss | ||||||||||||
Accumulated deficit | -42,982,000 | -73,042,000 | -42,982,000 | -73,042,000 | ||||||||
Total shareholders equity | 267,786,000 | 265,093,000 | 267,786,000 | 265,093,000 | 246,432,000 | 249,126,000 | ||||||
CASH FLOW FROM OPERATING ACTIVITIES: | ||||||||||||
Net income | 6,546,000 | 8,106,000 | 5,752,000 | 9,656,000 | 14,760,000 | 6,780,000 | 4,717,000 | 7,999,000 | 30,060,000 | 34,256,000 | 20,779,000 | |
Equity in income of subsidiaries | -53,000 | 53,000 | 61,000 | 57,000 | 47,000 | 61,000 | 60,000 | 53,000 | 118,000 | 221,000 | 202,000 | |
Net cash provided by operating activities | 62,874,000 | 56,912,000 | 59,310,000 | |||||||||
CASH FLOW FROM INVESTING ACTIVITIES: | ||||||||||||
Net cash used for investing activities | -33,645,000 | -22,166,000 | -14,438,000 | |||||||||
CASH FLOW FROM FINANCING ACTIVITIES: | ||||||||||||
Proceeds from exercise of warrants | 9,000 | |||||||||||
Repurchase of common shares | -43,881,000 | -23,057,000 | -20,758,000 | |||||||||
Net cash used for financing activities | -34,006,000 | -45,330,000 | -22,859,000 | |||||||||
Net increase (decrease) in cash and cash equivalents | -4,777,000 | -10,584,000 | 22,013,000 | |||||||||
Cash and cash equivalents at beginning of year | 55,748,000 | 66,332,000 | 55,748,000 | 66,332,000 | 44,319,000 | |||||||
Cash and cash equivalents at end of year | 50,971,000 | 55,748,000 | 50,971,000 | 55,748,000 | 66,332,000 | |||||||
Parent Company [Member] | ||||||||||||
STATEMENT OF INCOME | ||||||||||||
Equity in income of subsidiaries | 30,060,000 | 34,256,000 | 20,779,000 | |||||||||
Miscellaneous expenses | ||||||||||||
Income before income taxes | 30,060,000 | 34,256,000 | 20,779,000 | |||||||||
Provision for income taxes | ||||||||||||
Net income | 30,060,000 | 34,256,000 | 20,779,000 | |||||||||
Earnings per common share: | ||||||||||||
Basic | $0.45 | $0.51 | $0.31 | |||||||||
Diluted | $0.44 | $0.48 | $0.30 | |||||||||
STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||
Net income | 30,060,000 | 34,256,000 | 20,779,000 | |||||||||
Other comprehensive income (loss) | 338,000 | -2,000 | ||||||||||
Comprehensive income | 30,060,000 | 34,594,000 | 20,777,000 | |||||||||
ASSETS | ||||||||||||
Investment in and advances to subsidiaries | 267,786,000 | 265,093,000 | 267,786,000 | 265,093,000 | ||||||||
SHAREHOLDERS' EQUITY | ||||||||||||
Preferred stock | ||||||||||||
Common stock | 310,768,000 | 338,135,000 | 310,768,000 | 338,135,000 | ||||||||
Accumulated other comprehensive loss | ||||||||||||
Accumulated deficit | -42,982,000 | -73,042,000 | -42,982,000 | -73,042,000 | ||||||||
Total shareholders equity | 267,786,000 | 265,093,000 | 267,786,000 | 265,093,000 | ||||||||
CASH FLOW FROM OPERATING ACTIVITIES: | ||||||||||||
Net income | 30,060,000 | 34,256,000 | 20,779,000 | |||||||||
Equity in income of subsidiaries | -30,060,000 | -34,256,000 | -20,779,000 | |||||||||
Net cash provided by operating activities | ||||||||||||
CASH FLOW FROM INVESTING ACTIVITIES: | ||||||||||||
Investments in subsidiaries | 33,622,000 | 20,540,000 | 20,502,000 | |||||||||
Net cash used for investing activities | 33,622,000 | 20,540,000 | 20,502,000 | |||||||||
CASH FLOW FROM FINANCING ACTIVITIES: | ||||||||||||
Proceeds from exercise of stock options | 10,259,000 | 2,517,000 | 247,000 | |||||||||
Proceeds from exercise of warrants | 9,000 | |||||||||||
Repurchase of common shares | -43,881,000 | -23,057,000 | -20,758,000 | |||||||||
Net cash used for financing activities | -33,622,000 | -20,540,000 | -20,502,000 | |||||||||
Net increase (decrease) in cash and cash equivalents | ||||||||||||
Cash and cash equivalents at beginning of year | ||||||||||||
Cash and cash equivalents at end of year |