Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Feb. 18, 2015 | Jun. 29, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 28-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BGFV | ||
Entity Registrant Name | BIG 5 SPORTING GOODS CORP | ||
Entity Central Index Key | 1156388 | ||
Current Fiscal Year End Date | -16 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 22,109,195 | ||
Entity Public Float | $198,161,016 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash | $11,503 | $9,400 |
Accounts receivable, net of allowances of $110 and $105, respectively | 15,680 | 16,301 |
Merchandise inventories, net | 310,088 | 300,952 |
Prepaid expenses | 9,358 | 6,356 |
Deferred income taxes | 11,025 | 12,000 |
Total current assets | 357,654 | 345,009 |
Property and equipment, net | 78,440 | 75,608 |
Deferred income taxes | 12,792 | 13,564 |
Other assets, net of accumulated amortization of $1,067 and $891, respectively | 2,257 | 3,274 |
Goodwill | 4,433 | 4,433 |
Total assets | 455,576 | 441,888 |
Current liabilities: | ||
Accounts payable | 92,369 | 104,826 |
Accrued expenses | 70,399 | 69,923 |
Current portion of capital lease obligations | 1,197 | 1,567 |
Total current liabilities | 163,965 | 176,316 |
Deferred rent, less current portion | 20,736 | 21,078 |
Capital lease obligations, less current portion | 1,155 | 1,595 |
Long-term debt | 66,312 | 43,018 |
Other long-term liabilities | 8,404 | 9,111 |
Total liabilities | 260,572 | 251,118 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.01 par value, authorized 50,000,000 shares; issued 24,445,345 and 24,339,537 shares, respectively; outstanding 22,180,458 and 22,297,701 shares, respectively | 245 | 244 |
Additional paid-in capital | 110,707 | 109,901 |
Retained earnings | 112,521 | 106,565 |
Less: Treasury stock, at cost; 2,264,887 and 2,041,836 shares, respectively | -28,469 | -25,940 |
Total stockholders' equity | 195,004 | 190,770 |
Total liabilities and stockholders' equity | $455,576 | $441,888 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $110 | $105 |
Accumulated amortization on other assets | $1,067 | $891 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 24,445,345 | 24,339,537 |
Common stock, shares outstanding | 22,180,458 | 22,297,701 |
Treasury stock, shares | 2,264,887 | 2,041,836 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Income Statement [Abstract] | |||
Net sales | $977,860 | $993,323 | $940,490 |
Cost of sales | 664,411 | 664,583 | 637,721 |
Gross profit | 313,449 | 328,740 | 302,769 |
Selling and administrative expense | 288,274 | 281,313 | 276,797 |
Operating income | 25,175 | 47,427 | 25,972 |
Interest expense | 1,667 | 1,745 | 2,202 |
Income before income taxes | 23,508 | 45,682 | 23,770 |
Income taxes | 8,632 | 17,736 | 8,855 |
Net income | $14,876 | $27,946 | $14,915 |
Earnings per share: | |||
Basic | $0.68 | $1.28 | $0.70 |
Diluted | $0.67 | $1.27 | $0.69 |
Dividends per share | $0.40 | $0.40 | $0.30 |
Weighted-average shares of common stock outstanding: | |||
Basic | 21,933 | 21,765 | 21,394 |
Diluted | 22,133 | 22,083 | 21,616 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock, At Cost [Member] |
In Thousands, except Share data | |||||
Beginning Balance at Jan. 01, 2012 | $156,590 | $235 | $99,665 | $79,037 | ($22,347) |
Beginning Balance, Shares at Jan. 01, 2012 | 21,890,970 | ||||
Net income | 14,915 | 14,915 | |||
Dividends on common stock | -6,488 | -6,488 | |||
Issuance of nonvested share awards | 1 | -1 | |||
Issuance of nonvested share awards, Shares | 145,100 | ||||
Exercise of share option awards | 1,491 | 2 | 1,489 | ||
Exercise of share option awards, Shares | 200,680 | ||||
Share-based compensation | 1,736 | 1,736 | |||
Tax benefit (deficiency) from share-based awards activity | 51 | 51 | |||
Forfeiture of nonvested share awards, Shares | -10,500 | ||||
Retirement of common stock for payment of withholding tax | -282 | -282 | |||
Retirement of common stock for payment of withholding tax, Shares | -36,011 | ||||
Purchases of treasury stock | -3,593 | -3,593 | |||
Purchases of treasury stock, Shares | -448,991 | ||||
Ending Balance at Dec. 30, 2012 | 164,420 | 238 | 102,658 | 87,464 | -25,940 |
Ending Balance, shares at Dec. 30, 2012 | 21,741,248 | ||||
Net income | 27,946 | 27,946 | |||
Dividends on common stock | -8,845 | -8,845 | |||
Issuance of nonvested share awards | 1 | -1 | |||
Issuance of nonvested share awards, Shares | 127,020 | ||||
Exercise of share option awards | 4,586 | 5 | 4,581 | ||
Exercise of share option awards, Shares | 482,295 | ||||
Share-based compensation | 1,877 | 1,877 | |||
Tax benefit (deficiency) from share-based awards activity | 1,427 | 1,427 | |||
Forfeiture of nonvested share awards, Shares | -11,050 | ||||
Retirement of common stock for payment of withholding tax | -641 | -641 | |||
Retirement of common stock for payment of withholding tax, Shares | -41,812 | ||||
Ending Balance at Dec. 29, 2013 | 190,770 | 244 | 109,901 | 106,565 | -25,940 |
Ending Balance, shares at Dec. 29, 2013 | 22,297,701 | ||||
Net income | 14,876 | 14,876 | |||
Dividends on common stock | -8,920 | -8,920 | |||
Issuance of nonvested share awards | 2 | -2 | |||
Issuance of nonvested share awards, Shares | 152,920 | ||||
Exercise of share option awards | 121 | 121 | |||
Exercise of share option awards, Shares | 18,125 | 18,125 | |||
Share-based compensation | 1,924 | 1,924 | |||
Tax benefit (deficiency) from share-based awards activity | -429 | -429 | |||
Forfeiture of nonvested share awards, Shares | -12,310 | ||||
Retirement of common stock for payment of withholding tax | -809 | -1 | -808 | ||
Retirement of common stock for payment of withholding tax, Shares | -52,927 | ||||
Purchases of treasury stock | -2,529 | -2,529 | |||
Purchases of treasury stock, Shares | -223,051 | ||||
Ending Balance at Dec. 28, 2014 | $195,004 | $245 | $110,707 | $112,521 | ($28,469) |
Ending Balance, shares at Dec. 28, 2014 | 22,180,458 |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Dividends per share | $0.40 | $0.40 | $0.30 |
Retained Earnings [Member] | |||
Dividends per share | $0.40 | $0.40 | $0.30 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Cash flows from operating activities: | |||
Net income | $14,876 | $27,946 | $14,915 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 21,505 | 20,192 | 18,895 |
Impairment of store assets | 1,164 | 72 | 208 |
Share-based compensation | 1,924 | 1,877 | 1,736 |
Excess tax benefit related to share-based awards | -194 | -1,733 | -222 |
Amortization of debt issuance costs | 177 | 254 | 254 |
Deferred income taxes | 1,747 | -864 | -3,054 |
Gain on disposal of property and equipment | -8 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 621 | -1,004 | -2,441 |
Merchandise inventories, net | -9,136 | -30,602 | -6,072 |
Prepaid expenses and other assets | -2,591 | 3,863 | -2,078 |
Accounts payable | -349 | 4,234 | 12,853 |
Accrued expenses and other long-term liabilities | -1,209 | 2,052 | 4,618 |
Net cash provided by operating activities | 28,535 | 26,287 | 39,604 |
Cash flows from investing activities: | |||
Purchases of property and equipment | -22,565 | -22,035 | -12,901 |
Proceeds from solar energy rebate | 100 | 250 | |
Proceeds from disposal of property and equipment | 1 | ||
Net cash used in investing activities | -22,465 | -22,035 | -12,650 |
Cash flows from financing activities: | |||
Principal borrowings under revolving credit facility | 216,086 | 248,263 | 211,824 |
Principal payments under revolving credit facility | -192,792 | -252,706 | -227,839 |
Changes in book overdraft | -13,748 | 7,115 | 2,172 |
Debt issuance costs | -164 | ||
Principal payments under capital lease obligations | -1,602 | -1,807 | -1,815 |
Proceeds from exercise of share option awards | 121 | 4,586 | 1,491 |
Excess tax benefit related to share-based awards | 194 | 1,733 | 222 |
Purchases of treasury stock | -2,529 | -75 | -3,518 |
Tax withholding payments for share-based compensation | -809 | -641 | -282 |
Dividends paid | -8,888 | -8,791 | -6,474 |
Net cash used in financing activities | -3,967 | -2,487 | -24,219 |
Net increase in cash | 2,103 | 1,765 | 2,735 |
Cash at beginning of year | 9,400 | 7,635 | 4,900 |
Cash at end of year | 11,503 | 9,400 | 7,635 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Property and equipment acquired under capital leases | 792 | 392 | 1,632 |
Property and equipment additions unpaid | 5,121 | 3,309 | 2,094 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 1,502 | 1,475 | 2,001 |
Income taxes paid | $9,995 | $18,602 | $9,767 |
Description_of_Business
Description of Business | 12 Months Ended | |
Dec. 28, 2014 | ||
Accounting Policies [Abstract] | ||
Description of Business | -1 | Description of Business |
The accompanying consolidated financial statements as of December 28, 2014 and December 29, 2013 and for the years ended December 28, 2014 (“fiscal 2014”), December 29, 2013 (“fiscal 2013”) and December 30, 2012 (“fiscal 2012”) represent the financial position, results of operations and cash flows of Big 5 Sporting Goods Corporation (the “Company”) and its 100%-owned subsidiary, Big 5 Corp. and Big 5 Corp.’s 100%-owned subsidiary, Big 5 Services Corp. The Company operates as one reportable segment, as an omni-channel sporting goods retailer under the “Big 5 Sporting Goods” name. The Company carries a full-line product offering, operating 439 stores at December 28, 2014 in California, Washington, Arizona, Oregon, Texas, New Mexico, Nevada, Utah, Idaho, Colorado, Oklahoma and Wyoming. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||
Summary of Significant Accounting Policies | -2 | Summary of Significant Accounting Policies | |||||||||||||||||
Consolidation | |||||||||||||||||||
The accompanying consolidated financial statements include the accounts of Big 5 Sporting Goods Corporation, Big 5 Corp. and Big 5 Services Corp. Intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||||
Reporting Period | |||||||||||||||||||
The Company follows the concept of a 52-53 week fiscal year, which ends on the Sunday nearest December 31. Fiscal 2014, 2013 and 2012 each included 52 weeks. | |||||||||||||||||||
Recently Issued Accounting Updates | |||||||||||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360)—Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which includes amendments that change the requirements for reporting discontinued operations and require additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations that have, or will have, a major effect on the organization’s operations and financial results should be presented as discontinued operations. Additionally, ASU No. 2014-08 requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The amendments in ASU No. 2014-08 will be applied prospectively to annual periods beginning on or after December 15, 2014, and interim periods within those years, with early adoption permitted. The Company adopted ASU No. 2014-08 in the first quarter of 2014, which did not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which includes amendments that create Topic 606 and supersede the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, the amendments supersede the cost guidance in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts, and create new Subtopic 340-40, Other Assets and Deferred Costs—Contracts with Customers. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in ASU No. 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is evaluating the future impact of the issuance of ASU No. 2014-09. | |||||||||||||||||||
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40) – Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which requires entities to evaluate their ability to continue as a going concern within one year after the date that the financial statements are issued. Disclosure is required if there is substantial doubt about an entity’s ability to continue as a going concern. The guidance in ASU No. 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter, with early application permitted. The Company does not expect that the adoption of this ASU will have a material impact on the consolidated financial statements. | |||||||||||||||||||
There have been no other recently issued accounting updates that had a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||
Use of Estimates | |||||||||||||||||||
Management has made a number of estimates and assumptions relating to the reporting of assets, liabilities and stockholders’ equity and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expense during the reporting period to prepare these consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Certain items subject to such estimates and assumptions include the carrying amount of merchandise inventories, property and equipment, and goodwill; valuation allowances for receivables, sales returns and deferred income tax assets; estimates related to gift card breakage and the valuation of share-based compensation awards; and obligations related to asset retirements, litigation, self-insurance liabilities and employee benefits. Actual results could differ significantly from these estimates under different assumptions and conditions. | |||||||||||||||||||
Segment Reporting | |||||||||||||||||||
The Company operates solely as an omni-channel sporting goods retailer, which includes both retail stores and e-commerce operations, that offers a broad range of products in the western United States and online, and whose Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer. The CODM reviews financial information presented on a consolidated basis, for purposes of allocating resources and evaluating financial performance. The Company’s stores typically have similar square footage, with the stores and e-commerce operations offering a similar general product mix. The Company’s core customer demographic remains similar across all sales channels, as does the Company’s process for the procurement and marketing of its product mix. Furthermore, the Company distributes its product mix to both the stores and e-commerce operations from a single distribution center. Given the consolidated level of review by the CODM, the Company operates as one reportable segment as defined by Accounting Standards Codification (“ASC”) 280, Segment Reporting. | |||||||||||||||||||
The approximate net sales attributable to hard goods, athletic and sport apparel, athletic and sport footwear and other for the periods presented are set forth as follows: | |||||||||||||||||||
Fiscal Year | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
(In thousands) | |||||||||||||||||||
$ | 517,968 | $ | 540,698 | $ | 514,942 | ||||||||||||||
Hard goods | |||||||||||||||||||
Athletic and sport apparel | 181,722 | 174,021 | 152,648 | ||||||||||||||||
Athletic and sport footwear | 274,355 | 275,744 | 271,596 | ||||||||||||||||
Other sales | 3,815 | 2,860 | 1,304 | ||||||||||||||||
Net sales | $ | 977,860 | $ | 993,323 | $ | 940,490 | |||||||||||||
The Company launched its e-commerce operations in the fourth quarter of fiscal 2014 and e-commerce net sales for the year were not material. | |||||||||||||||||||
Earnings Per Share | |||||||||||||||||||
The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share, which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share is calculated by dividing net income by the weighted-average shares of common stock outstanding, reduced by shares repurchased and held in treasury, during the period. Diluted earnings per share represents basic earnings per share adjusted to include the potentially dilutive effect of outstanding share option awards, nonvested share awards and nonvested share unit awards. | |||||||||||||||||||
Revenue Recognition | |||||||||||||||||||
The Company recognizes revenue from retail sales at the point of sale through its retail stores. For e-commerce sales, revenue is recognized when the merchandise is delivered to the customer. Shipping and handling fees, when billed to the customers for e-commerce sales, are included in net sales. An allowance for sales returns is estimated based upon historical experience and recorded as a reduction in sales in the relevant period. | |||||||||||||||||||
Cash received from the sale of gift cards is recorded as a liability, and revenue is recognized upon the redemption of the gift card or when it is determined that the likelihood of redemption is remote (“gift card breakage”) and no liability to relevant jurisdictions exists. The Company determines the gift card breakage rate based upon historical redemption patterns and recognizes gift card breakage on a straight-line basis over the estimated gift card redemption period (20 quarters as of the end of fiscal 2014). The Company recognized approximately $0.4 million, $0.4 million and $0.4 million in gift card breakage revenue for fiscal 2014, 2013 and 2012, respectively. | |||||||||||||||||||
The Company records sales tax collected from its customers on a net basis, and therefore excludes it from revenue as defined in ASC 605, Revenue Recognition. | |||||||||||||||||||
Included in revenue are sales of returned merchandise to vendors specializing in the resale of defective or used products, which accounted for less than 1% of net sales in each of the periods reported. | |||||||||||||||||||
Cost of Sales | |||||||||||||||||||
Cost of sales includes the cost of merchandise, net of discounts or allowances earned, freight, inventory reserves, buying, distribution center expense, including depreciation, and store occupancy expense. Store occupancy expense includes rent, amortization of leasehold improvements, common area maintenance, property taxes and insurance. | |||||||||||||||||||
Selling and Administrative Expense | |||||||||||||||||||
Selling and administrative expense includes store-related expense, other than store occupancy expense, as well as advertising, depreciation and amortization, expense associated with operating the Company’s corporate headquarters and impairment charges, if any. | |||||||||||||||||||
Vendor Allowances | |||||||||||||||||||
The Company receives allowances for co-operative advertising and volume purchase rebates earned through programs with certain vendors. The Company records a receivable for these allowances which are earned but not yet received when it is determined the amounts are probable and reasonably estimable, in accordance with ASC 605. Amounts relating to the purchase of merchandise are treated as a reduction of inventory cost and reduce cost of goods sold as the merchandise is sold. Amounts that represent a reimbursement of costs incurred, such as advertising, are recorded as a reduction in selling and administrative expense. The Company performs detailed analyses to determine the appropriate amount of vendor allowances to be applied as a reduction of merchandise cost and selling and administrative expense. | |||||||||||||||||||
Advertising Expense | |||||||||||||||||||
Advertising is expensed when the advertising first occurs. Advertising expense, net of co-operative advertising allowances, amounted to $42.6 million, $44.5 million and $45.9 million for fiscal 2014, 2013 and 2012, respectively. Advertising expense is included in selling and administrative expense in the accompanying consolidated statements of operations. The Company receives co-operative advertising allowances from product vendors in order to subsidize qualifying advertising and similar promotional expenditures made relating to vendors’ products. These advertising allowances are recognized as a reduction to selling and administrative expense when the Company incurs the advertising expense eligible for the credit. Co-operative advertising allowances recognized as a reduction to selling and administrative expense amounted to $5.9 million, $6.2 million and $6.2 million for fiscal 2014, 2013 and 2012, respectively. | |||||||||||||||||||
Share-Based Compensation | |||||||||||||||||||
The Company accounts for its share-based compensation in accordance with ASC 718, Compensation—Stock Compensation. The Company recognizes compensation expense on a straight-line basis over the requisite service period using the fair-value method for share option awards, nonvested share awards and nonvested share unit awards granted with service-only conditions. See Note 14 to the consolidated financial statements for a further discussion on share-based compensation. | |||||||||||||||||||
Pre-opening Costs | |||||||||||||||||||
Pre-opening costs for new stores, which consist primarily of payroll and recruiting expense, training, marketing, rent, travel and supplies, are expensed as incurred. | |||||||||||||||||||
Cash | |||||||||||||||||||
Cash consists of cash on hand, and the Company has no cash equivalents. Book overdrafts are classified as current liabilities. | |||||||||||||||||||
Accounts Receivable | |||||||||||||||||||
Accounts receivable consist primarily of third party purchasing card receivables, amounts due from inventory vendors for returned products, volume purchase rebates or co-operative advertising, amounts due from lessors for tenant improvement allowances and insurance recovery receivables. Accounts receivable have not historically resulted in any material credit losses. An allowance for doubtful accounts is provided when accounts are determined to be uncollectible. | |||||||||||||||||||
Valuation of Merchandise Inventories, Net | |||||||||||||||||||
The Company’s merchandise inventories are made up of finished goods and are valued at the lower of cost or market using the weighted-average cost method that approximates the first-in, first-out (“FIFO”) method. Average cost includes the direct purchase price of merchandise inventory, net of certain vendor allowances and cash discounts, in-bound freight-related expense and allocated overhead expense associated with the Company’s distribution center. | |||||||||||||||||||
Management regularly reviews inventories and records valuation reserves for damaged and defective merchandise, merchandise items with slow-moving or obsolescence exposure and merchandise that has a carrying value that exceeds market value. Because of its merchandise mix, the Company has not historically experienced significant occurrences of obsolescence. | |||||||||||||||||||
Inventory shrinkage is accrued as a percentage of merchandise sales based on historical inventory shrinkage trends. The Company performs physical inventories of its stores at least once per year and cycle counts inventories at its distribution center throughout the year. The reserve for inventory shrinkage primarily represents an estimate for inventory shrinkage for each store since the last physical inventory date through the reporting date. | |||||||||||||||||||
These reserves are estimates, which could vary significantly, either favorably or unfavorably, from actual results if future economic conditions, consumer demand and competitive environments differ from expectations. | |||||||||||||||||||
Prepaid Expenses | |||||||||||||||||||
Prepaid expenses include the prepayment of various operating expenses such as insurance, rent, income and property taxes, software maintenance and supplies, which are expensed when the operating cost is realized. | |||||||||||||||||||
Property and Equipment, Net | |||||||||||||||||||
Property and equipment are stated at cost and are being depreciated or amortized utilizing the straight-line method over the following estimated useful lives: | |||||||||||||||||||
Buildings | 20 years | ||||||||||||||||||
Leasehold improvements | Shorter of estimated useful life or term of lease | ||||||||||||||||||
Furniture, equipment and internal-use software | 3 – 10 years | ||||||||||||||||||
Maintenance and repairs are expensed as incurred. | |||||||||||||||||||
In fiscal 2014 and 2013, the Company incurred costs to purchase and develop software for internal use which included costs for its website associated with the development and implementation of an e-commerce platform, and in fiscal 2014 also included costs related to the development of a new point-of-sale system. Costs related to the application development stage are capitalized and amortized over the estimated useful life of the software. Costs related to the design or maintenance of internal-use software are expensed as incurred. The Company placed software relating to website development for its e-commerce initiative into service in fiscal 2014, at which time amortization commenced. | |||||||||||||||||||
Goodwill | |||||||||||||||||||
Goodwill represents the excess of purchase price over fair value of net assets acquired. Under ASC 350, Intangibles—Goodwill and Other, goodwill is not amortized but evaluated for impairment annually or whenever events or changes in circumstances indicate that the value may not be recoverable. | |||||||||||||||||||
The Company performed an annual impairment test as of the end of fiscal 2014, 2013 and 2012, and determined that goodwill was not impaired. | |||||||||||||||||||
Valuation of Long-Lived Assets | |||||||||||||||||||
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. | |||||||||||||||||||
Long-lived assets are reviewed for recoverability at the lowest level in which there are identifiable cash flows (“asset group”), usually at the store level. Each store typically requires investments of approximately $0.5 million in long-lived assets to be held and used, subject to recoverability testing. The carrying amount of an asset group is not considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset group. If the asset group is determined not to be recoverable, then an impairment charge will be recognized in the amount by which the carrying amount of the asset group exceeds its fair value, determined using discounted cash flow valuation techniques, as defined in ASC 360, Property, Plant, and Equipment. | |||||||||||||||||||
The Company determines the sum of the undiscounted cash flows expected to result from the asset group by projecting future revenue, gross margin and operating expense for each store under evaluation for impairment. The estimates of future cash flows involve management judgment and are based upon assumptions about expected future operating performance. Assumptions used in these forecasts are consistent with internal planning, and include assumptions about sales growth rates, gross margins and operating expense in relation to the current economic environment and future expectations, competitive factors in various markets and inflation. The actual cash flows could differ from management’s estimates due to changes in business conditions, operating performance and economic conditions. | |||||||||||||||||||
In fiscal 2014, 2013 and 2012, the Company recognized pre-tax non-cash impairment charges of $1.2 million, $0.1 million and $0.2 million, respectively, related to certain underperforming stores. These impairment charges are included in selling and administrative expense in the consolidated statements of operations. | |||||||||||||||||||
Leases and Deferred Rent | |||||||||||||||||||
The Company accounts for its leases under the provisions of ASC 840, Leases. | |||||||||||||||||||
The Company evaluates and classifies its leases as either operating or capital leases for financial reporting purposes. Operating lease commitments consist principally of leases for the Company’s retail store facilities, distribution center and corporate office. Capital lease obligations consist principally of leases for some of the Company’s distribution center delivery tractors, management information systems hardware and point-of-sale equipment for the Company’s stores. | |||||||||||||||||||
Certain of the leases for the Company’s retail store facilities provide for payments based on future sales volumes at the leased location, which are not measurable at the inception of the lease. These contingent rents are expensed as they accrue. | |||||||||||||||||||
Deferred rent represents the difference between rent paid and the amounts expensed for operating leases. Certain leases have scheduled rent increases, and certain leases include an initial period of free or reduced rent as an inducement to enter into the lease agreement (“rent holidays”). The Company recognizes rent expense for rent increases and rent holidays on a straight-line basis over the term of the underlying leases, without regard to when rent payments are made. The calculation of straight-line rent is based on the “reasonably assured” lease term as defined in ASC 840 and may exceed the initial non-cancelable lease term. | |||||||||||||||||||
Landlord allowances for tenant improvements, or lease incentives, are recorded as deferred rent and amortized on a straight-line basis over the “reasonably assured” lease term as a component of rent expense. | |||||||||||||||||||
Asset Retirement Obligations | |||||||||||||||||||
The Company accounts for its asset retirement obligations (“ARO”) in accordance with ASC 410, Asset Retirement and Environmental Obligations, which requires the recognition of a liability for the fair value of a legally required asset retirement obligation when incurred if the liability’s fair value can be reasonably estimated. The Company’s ARO liabilities are associated with the disposal and retirement of leasehold improvements resulting from contractual obligations at the end of a lease to restore the facility back to a condition specified in the lease agreement. | |||||||||||||||||||
The Company records the net present value of the ARO liability and also records a related capital asset in an equal amount for those leases that contractually obligate the Company with an asset retirement obligation. The estimate of the ARO liability is based on a number of assumptions including store closing costs, inflation rates and discount rates. Accretion expense related to the ARO liability is recognized as operating expense. The capitalized asset is depreciated on a straight-line basis over the useful life of the leasehold improvement. Upon ARO removal, any difference between the actual retirement expense incurred and the recorded estimated ARO liability is recognized as an operating gain or loss in the consolidated statements of operations. The ARO liability, which totaled $0.7 million and $0.7 million as of December 28, 2014 and December 29, 2013, respectively, is included in other long-term liabilities in the accompanying consolidated balance sheets. | |||||||||||||||||||
Self-Insurance Liabilities | |||||||||||||||||||
The Company maintains self-insurance programs for its commercial general liability risk and, in certain states, its estimated workers’ compensation liability risk. The Company also has a self-funded insurance program for a portion of its employee medical benefits. Under these programs, the Company maintains insurance coverage for losses in excess of specified per-occurrence amounts. Estimated expenses incurred under the self-insured workers’ compensation and medical benefits programs, including incurred but not reported claims, are recorded as expense based upon historical experience, trends of paid and incurred claims, and other actuarial assumptions. If actual claims trends under these programs, including the severity or frequency of claims, differ from the Company’s estimates, its financial results may be significantly impacted. The Company’s estimated self-insurance liabilities, which are reported gross of expected workers’ compensation insurance reimbursements, are classified on the balance sheet as accrued expenses or other long-term liabilities based upon whether they are expected to be paid during or beyond the normal operating cycle of 12 months from the date of the consolidated financial statements. Self-insurance liabilities totaled $10.7 million and $11.6 million as of December 28, 2014 and December 29, 2013, respectively, of which $4.4 million and $4.4 million were recorded as a component of accrued expenses as of December 28, 2014 and December 29, 2013, respectively, and $6.3 million and $7.2 million were recorded as a component of other long-term liabilities as of December 28, 2014 and December 29, 2013, respectively, in the accompanying consolidated balance sheets. | |||||||||||||||||||
Income Taxes | |||||||||||||||||||
Under the asset and liability method prescribed within ASC 740, Income Taxes, the Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The realizability of deferred tax assets is assessed throughout the year and a valuation allowance is recorded if necessary to reduce net deferred tax assets to the amount more likely than not to be realized. | |||||||||||||||||||
ASC 740 provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. ASC 740 also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. | |||||||||||||||||||
The Company’s practice is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expense. At December 28, 2014 and December 29, 2013, the Company had no accrued interest or penalties. | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
The Company maintains its cash accounts in financial institutions, and accounts at these institutions are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. | |||||||||||||||||||
The Company primarily operates traditional sporting goods retail stores located in the western United States. Because of this, the Company is subject to regional risks, such as the economy, including downturns in the housing market, state financial conditions, unemployment and gas prices. Other regional risks include weather conditions, power outages, droughts, earthquakes and other natural disasters specific to the states in which the Company operates. | |||||||||||||||||||
The Company relies on a single distribution center located in Riverside, California, which services all of its stores and e-commerce operations. Any natural disaster or other serious disruption to the distribution center due to fire, earthquake or any other cause could damage a significant portion of inventory and could materially impair the Company’s ability to adequately stock its stores and fulfill its e-commerce business. | |||||||||||||||||||
A substantial amount of the Company’s inventory is manufactured abroad, and shipped through the Port of Los Angeles. From time to time, shipping ports experience capacity constraints, labor strikes, work stoppages or other disruptions that may delay the delivery of imported products. In addition, acts of terrorism could significantly disrupt operations at shipping ports or otherwise impact transportation of the Company’s imported merchandise. Disruptions at the Port of Los Angeles, or other shipping ports, may result in delays in the transportation of such products to the Company’s distribution center and may ultimately delay the Company’s ability to adequately stock its stores and fulfill its e-commerce business. Currently, the Ports of Los Angeles and Long Beach, through which a substantial amount of the products manufactured abroad that the Company sells are imported, are experiencing delays due to a contract dispute with the International Longshore and Warehouse Union. A lengthy contract dispute may lead to protracted delays in the movement of the Company’s products, which could further delay the delivery of products to its stores and impact net sales and profitability. | |||||||||||||||||||
The Company purchases merchandise from over 700 suppliers, and the Company’s 20 largest suppliers accounted for 41.0% of total purchases in fiscal 2014. One vendor represented greater than 5% of total purchases, at 9.6%, in fiscal 2014. A significant portion of the Company’s inventory is manufactured abroad in China and other countries. If a disruption of trade were to occur from the countries in which the suppliers of the Company’s vendors are located, the Company may be unable to obtain sufficient quantities of products to satisfy its requirements, or the cost of obtaining products may increase. | |||||||||||||||||||
The Company could be exposed to credit risk in the event of nonperformance by any lender under its revolving credit facility. Instability in the financial and capital markets brings additional potential risks to the Company, including higher costs of credit, potential lender defaults, and potential commercial bank failures. The Company has received no indication that any such events will negatively impact the lenders under its current revolving credit facility; however, the possibility does exist. |
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Property and Equipment, Net | -3 | Property and Equipment, Net | |||||||||||
Property and equipment, net, consist of the following: | |||||||||||||
December 28, | December 29, | ||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
$ | 142,561 | $ | 134,740 | ||||||||||
Furniture, equipment and internal-use software | |||||||||||||
Leasehold improvements | 143,056 | 134,151 | |||||||||||
285,617 | 268,891 | ||||||||||||
Accumulated depreciation and amortization | (211,422) | (195,910) | |||||||||||
74,195 | 72,981 | ||||||||||||
Assets not placed into service (1) | 4,245 | 2,627 | |||||||||||
Property and equipment, net | $ | 78,440 | $ | 75,608 | |||||||||
(1) Includes internal-use software development costs of $2.7 million related to the development of a new point-of-sale system at December 28, 2014, and $1.6 million related to the development of the Company’s e-commerce initiative at December 29, 2013. | |||||||||||||
Depreciation expense associated with property and equipment, including assets leased under capital leases, was $10.0 million, $10.0 million and $10.1 million for fiscal 2014, 2013 and 2012, respectively. Amortization expense for leasehold improvements was $11.5 million, $10.2 million and $8.8 million for fiscal 2014, 2013 and 2012, respectively. The gross cost of equipment under capital leases, included above, was $8.5 million and $9.8 million as of December 28, 2014 and December 29, 2013, respectively. The accumulated amortization related to these capital leases was $5.9 million and $6.0 million as of December 28, 2014 and December 29, 2013, respectively. |
Impairment_of_LongLived_Assets
Impairment of Long-Lived Assets | 12 Months Ended | |
Dec. 28, 2014 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment of Long-Lived Assets | -4 | Impairment of Long-Lived Assets |
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In fiscal 2014, 2013 and 2012, the Company recognized pre-tax non-cash impairment charges of $1.2 million, $0.1 million and $0.2 million, respectively, related to certain underperforming stores. The weak sales performance, coupled with future undiscounted cash flow projections, indicated that the carrying value of these stores’ assets exceeded their estimated fair values as determined by their future discounted cash flow projections. When projecting the stream of future cash flows associated with an individual store for purposes of determining long-lived asset recoverability, management considers local market conditions and makes assumptions about key store variables including sales growth rates, gross profit and operating expenses. If economic conditions deteriorate in the markets in which the Company conducts business, or if other negative market conditions develop, the Company may experience additional impairment charges in the future for underperforming stores. These impairment charges are included in selling and administrative expense for fiscal 2014, 2013 and 2012 in the consolidated statements of operations. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |
Dec. 28, 2014 | ||
Fair Value Disclosures [Abstract] | ||
Fair Value Measurements | -5 | Fair Value Measurements |
The carrying values of cash, accounts receivable, accounts payable and accrued expenses approximate the fair values of these instruments due to their short-term nature. The carrying amount for borrowings under the revolving credit facility approximates fair value because of the variable market interest rate charged to the Company for these borrowings. When the Company recognizes impairment on certain of its underperforming stores, the carrying values of these stores are reduced to their estimated fair values. | ||
As of December 28, 2014 and December 29, 2013, the Company’s only significant assets or liabilities measured at fair value on a nonrecurring basis subsequent to their initial recognition were assets subject to long-lived asset impairment related to certain underperforming stores. As discussed in Note 4 to the consolidated financial statements, the Company estimated the fair values of these long-lived assets based on the Company’s own judgments about the assumptions that market participants would use in pricing the asset and on observable market data, when available. The Company classified these fair value measurements as Level 3 inputs, which are unobservable inputs for which market data are not available and that are developed using the best information available about pricing assumptions used by market participants in accordance with ASC 820, Fair Value Measurement. After the impairment charges, the carrying values of the remaining assets of these stores were not material. |
Accrued_Expenses
Accrued Expenses | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Payables and Accruals [Abstract] | |||||||||||||
Accrued Expenses | 6) | Accrued Expenses | |||||||||||
The major components of accrued expenses are as follows: | |||||||||||||
December 28, | December 29, | ||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
$ | 22,568 | $ | 23,240 | ||||||||||
Payroll and related expense | |||||||||||||
Sales tax | 10,432 | 10,110 | |||||||||||
Occupancy expense | 9,412 | 9,392 | |||||||||||
Other | 27,987 | 27,181 | |||||||||||
Accrued expenses | $ | 70,399 | $ | 69,923 | |||||||||
Lease_Commitments
Lease Commitments | 12 Months Ended | ||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||
Lease Commitments | -7 | Lease Commitments | |||||||||||||||||
The Company currently leases stores, distribution and headquarters facilities under non-cancelable operating leases. The Company’s leases generally contain multiple renewal options for periods ranging from five to ten years and require the Company to pay all executory costs such as maintenance and insurance. Certain of the Company’s store leases provide for the payment of contingent rent based on a percentage of sales. | |||||||||||||||||||
Rent expense for operating leases consisted of the following: | |||||||||||||||||||
Year Ended | |||||||||||||||||||
December 28, | December 29, | December 30, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
(In thousands) | |||||||||||||||||||
$ | 66,276 | $ | 62,777 | $ | 60,181 | ||||||||||||||
Rent expense | |||||||||||||||||||
Contingent rent | 858 | 1,081 | 1,074 | ||||||||||||||||
Total rent expense | $ | 67,134 | $ | 63,858 | $ | 61,255 | |||||||||||||
Rent expense includes sublease rent income of $0.1 million, $0.1 million and $0.3 million for fiscal 2014, 2013 and 2012, respectively. | |||||||||||||||||||
Future minimum lease payments under non-cancelable leases, with lease terms in excess of one year, as of December 28, 2014 are as follows: | |||||||||||||||||||
Year Ending: | Capital | Operating | Total | ||||||||||||||||
Leases | Leases | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
$ | 1,259 | $ | 75,053 | $ | 76,312 | ||||||||||||||
2015 | |||||||||||||||||||
2016 | 728 | 65,586 | 66,314 | ||||||||||||||||
2017 | 334 | 55,684 | 56,018 | ||||||||||||||||
2018 | 120 | 47,086 | 47,206 | ||||||||||||||||
2019 | 10 | 35,595 | 35,605 | ||||||||||||||||
Thereafter | — | 78,224 | 78,224 | ||||||||||||||||
Total minimum lease payments | 2,451 | $ | 357,228 | $ | 359,679 | ||||||||||||||
Imputed interest | (99 | ) | |||||||||||||||||
Present value of minimum lease payments | $ | 2,352 | |||||||||||||||||
In February 2008, the Company entered into a lease for a parcel of land with an existing building adjacent to its corporate headquarters location. The lease term commenced in 2009 and the primary term expires on February 28, 2019, which may be renewed for six successive periods of five years each. In accordance with terms of the lease agreement, the Company is committed to the construction of a new retail building on the premises before the primary term expires in 2019, regardless of whether or not any renewal options are exercised. | |||||||||||||||||||
In the first quarter of fiscal 2015, the Company executed a lease for approximately 171,000 square feet of additional distribution space in Riverside, California that will enable the Company to more efficiently fulfill its expanding distribution requirements. The lease for this additional facility is scheduled to expire on August 31, 2020, and includes four additional five-year renewal options. The Company expects to commence operations in this facility in the second quarter of fiscal 2015. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Long-Term Debt | -8 | Long-Term Debt | |||||||||||
On October 18, 2010, the Company entered into a credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, and a syndicate of other lenders, which was amended on October 31, 2011 and December 19, 2013 (as so amended, the “Credit Agreement”). Initial borrowings under the Credit Agreement on October 18, 2010 were used to, among other things, repay all of the Company’s outstanding indebtedness under the prior financing agreement, at which time the prior financing agreement was terminated. The First Amendment to Credit Agreement (“First Amendment”) entered on October 31, 2011 and the Second Amendment to Credit Agreement (“Second Amendment”) entered on December 19, 2013 amended certain provisions of the Credit Agreement, as further discussed below. | |||||||||||||
The Credit Agreement provides for a revolving credit facility (the “Credit Facility”) with an aggregate committed availability of up to $140.0 million, which amount may be increased at the Company’s option up to a maximum of $165.0 million. The Company may also request additional increases in aggregate availability, up to a maximum of $200.0 million, in which case the existing lenders under the Credit Agreement will have the option to increase their commitments to accommodate the requested increase. If such existing lenders do not exercise that option, the Company may (with the consent of Wells Fargo, not to be unreasonably withheld) seek other lenders willing to provide such commitments. The Credit Facility includes a $50.0 million sublimit for issuances of letters of credit and a $20.0 million sublimit for swingline loans. All amounts outstanding under the Credit Facility were originally to mature and become due on October 18, 2014. On October 31, 2011, the Credit Agreement was amended to extend its maturity date to October 31, 2016, and on December 19, 2013, the Credit Agreement was further amended to extend its maturity date to December 19, 2018 (see discussion below). Total remaining borrowing availability, after subtracting letters of credit, was $73.2 million and $96.1 million as of December 28, 2014 and December 29, 2013, respectively. | |||||||||||||
The Company may borrow under the Credit Facility from time to time, provided the amounts outstanding will not exceed the lesser of the then aggregate availability (as discussed above) and the Borrowing Base (such lesser amount being referred to as the “Loan Cap”). After giving effect to the amendments, the “Borrowing Base” generally is comprised of the sum, at the time of calculation of (a) 90.00% of eligible credit card receivables; plus (b) the cost of eligible inventory (other than eligible in-transit inventory), net of inventory reserves, multiplied by 90.00% of the appraised net orderly liquidation value of eligible inventory (expressed as a percentage of the cost of eligible inventory); plus (c) the lesser of (i) the cost of eligible in-transit inventory, net of inventory reserves, multiplied by 90.00% of the appraised net orderly liquidation value of eligible in-transit inventory (expressed as a percentage of the cost of eligible in-transit inventory), or (ii) $10.0 million, minus (d) certain reserves established by Wells Fargo in its role as the Administrative Agent in its reasonable discretion. | |||||||||||||
Generally, the Company may designate specific borrowings under the Credit Facility as either base rate loans or LIBO rate loans. After the First Amendment, the applicable interest rate on the Company’s borrowings was a function of the daily average, over the preceding fiscal quarter, of the excess of the Loan Cap over amounts borrowed (such amount being referred to as the “Average Daily Excess Availability”). Those loans designated as LIBO rate loans bore interest at a rate equal to the then applicable LIBO rate plus an applicable margin as shown in the table below. Those loans designated as base rate loans bore interest at a rate equal to the applicable margin for base rate loans (as shown below) plus the highest of (a) the Federal funds rate, as in effect from time to time, plus one-half of one percent (0.50%), (b) the LIBO rate, as adjusted to account for statutory reserves, plus one percent (1.00%), or (c) the rate of interest in effect for such day as publicly announced from time to time by Wells Fargo as its “prime rate.” The applicable margin for all loans was as set forth below as a function of Average Daily Excess Availability for the preceding fiscal quarter. | |||||||||||||
Level | Average Daily Excess Availability | LIBO Rate | Base Rate | ||||||||||
Applicable Margin | Applicable Margin | ||||||||||||
I | Greater than or equal to $70,000,000 | 1.50% | 0.50% | ||||||||||
II | Greater than or equal to $40,000,000 | 1.75% | 0.75% | ||||||||||
III | Less than $40,000,000 | 2.00% | 1.00% | ||||||||||
The First Amendment reduced the commitment fee assessed on the unused portion of the Credit Facility to 0.375% per annum. The First Amendment also extended the maturity date of the Credit Agreement from October 18, 2014 to October 31, 2016 and modified the provisions for restricting certain payments and investments. | |||||||||||||
After the Second Amendment, the applicable interest rate on the Company’s borrowings are a function of the daily average, over the preceding fiscal quarter, of the excess of the Loan Cap over amounts borrowed (such amount being referred to as the “Average Daily Excess Availability”). Those loans designated as LIBO rate loans shall bear interest at a rate equal to the then applicable LIBO rate plus an applicable margin as shown in the table below. Those loans designated as base rate loans shall bear interest at a rate equal to the applicable margin for base rate loans (as shown below) plus the highest of (a) the Federal funds rate, as in effect from time to time, plus one-half of one percent (0.50%), (b) the LIBO rate, as adjusted to account for statutory reserves, plus one percent (1.00%), or (c) the rate of interest in effect for such day as publicly announced from time to time by Wells Fargo as its “prime rate.” The applicable margin for all loans are set forth below as a function of Average Daily Excess Availability for the preceding fiscal quarter. | |||||||||||||
Level | Average Daily Excess Availability | LIBO Rate | Base Rate | ||||||||||
Applicable Margin | Applicable Margin | ||||||||||||
I | Greater than or equal to $100,000,000 | 1.25% | 0.25% | ||||||||||
II | Less than $100,000,000 but greater than or equal to $40,000,000 | 1.50% | 0.50% | ||||||||||
III | Less than $40,000,000 | 1.75% | 0.75% | ||||||||||
The Second Amendment reduced the commitment fee assessed on the unused portion of the Credit Facility to 0.25% per annum, and reduced certain fees for letters of credit. The Second Amendment also extended the maturity date of the Credit Agreement from October 31, 2016 to December 19, 2018. | |||||||||||||
Obligations under the Credit Facility are secured by a general lien and perfected security interest in substantially all of the Company’s assets. The Credit Agreement contains covenants that require the Company to maintain a fixed charge coverage ratio of not less than 1.0:1.0 in certain circumstances, and limit the ability to, among other things, incur liens, incur additional indebtedness, transfer or dispose of assets, change the nature of the business, guarantee obligations, pay dividends or make other distributions or repurchase stock, and make advances, loans or investments. The Company may declare or pay cash dividends or repurchase stock only if, among other things, no default or event of default then exists or would arise from such dividend or repurchase of stock and, after giving effect to such dividend or repurchase, certain availability and/or fixed charge coverage ratio requirements are satisfied. The Credit Agreement contains customary events of default, including, without limitation, failure to pay when due principal amounts with respect to the Credit Facility, failure to pay any interest or other amounts under the Credit Facility for five days after becoming due, failure to comply with certain agreements or covenants contained in the Credit Agreement, failure to satisfy certain judgments against the Company, failure to pay when due (or any other default which does or may lead to the acceleration of) certain other material indebtedness in principal amount in excess of $5.0 million, and certain insolvency and bankruptcy events. | |||||||||||||
At December 28, 2014 and December 29, 2013, the one-month LIBO rate was 0.2% and 0.2%, respectively, and the Wells Fargo Bank prime lending rate was 3.25% and 3.25%, respectively. The average interest rate on the Company’s revolving credit borrowings during fiscal 2014 and 2013 was 1.90% and 2.11%, respectively. On December 28, 2014 and December 29, 2013, the Company had borrowings outstanding bearing interest at both LIBO and the prime lending rates as follows: | |||||||||||||
December 28, | December 29, | ||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
$ | 62,000 | $ | 30,000 | ||||||||||
LIBO rate | |||||||||||||
Prime rate | 4,312 | 13,018 | |||||||||||
Total borrowings | $ | 66,312 | $ | 43,018 | |||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||
Income Taxes | -9 | Income Taxes | |||||||||||||||||
Total income tax expense (benefit) consists of the following: | |||||||||||||||||||
Current | Deferred | Total | |||||||||||||||||
(In thousands) | |||||||||||||||||||
Fiscal 2014: | |||||||||||||||||||
Federal | $ | 5,582 | $ | 1,687 | $ | 7,269 | |||||||||||||
State | 1,303 | 60 | 1,363 | ||||||||||||||||
$ | 6,885 | $ | 1,747 | $ | 8,632 | ||||||||||||||
Fiscal 2013: | |||||||||||||||||||
Federal | $ | 15,307 | $ | (777) | $ | 14,530 | |||||||||||||
State | 3,293 | (87) | 3,206 | ||||||||||||||||
$ | 18,600 | $ | (864) | $ | 17,736 | ||||||||||||||
Fiscal 2012: | |||||||||||||||||||
Federal | $ | 10,119 | $ | (2,736) | $ | 7,383 | |||||||||||||
State | 1,790 | (318) | 1,472 | ||||||||||||||||
$ | 11,909 | $ | (3,054) | $ | 8,855 | ||||||||||||||
The provision for income taxes differs from the amounts computed by applying the federal statutory tax rate of 35% to earnings before income taxes, as follows: | |||||||||||||||||||
Year Ended | |||||||||||||||||||
December 28, | December 29, | December 30, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
(In thousands) | |||||||||||||||||||
Tax expense at statutory rate | $ | 8,228 | $ | 15,989 | $ | 8,320 | |||||||||||||
State taxes, net of federal benefit | 1,062 | 2,110 | 1,088 | ||||||||||||||||
Tax credits and other | -658 | -363 | -553 | ||||||||||||||||
$ | 8,632 | $ | 17,736 | $ | 8,855 | ||||||||||||||
Deferred tax assets and liabilities consist of the following tax-effected temporary differences: | |||||||||||||||||||
December 28, | December 29, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||
Deferred rent | $ | 9,400 | $ | 9,744 | |||||||||||||||
Share-based compensation | 2,508 | 3,116 | |||||||||||||||||
Inventory | 1,243 | 2,130 | |||||||||||||||||
Accrued legal fees | 1,063 | 517 | |||||||||||||||||
Other | 11,610 | 12,077 | |||||||||||||||||
Deferred tax assets | 25,824 | 27,584 | |||||||||||||||||
Basis difference in fixed assets | (1,385) | (2,020) | |||||||||||||||||
Other | (622) | — | |||||||||||||||||
Deferred tax liabilities | (2,007) | (2,020) | |||||||||||||||||
Net deferred tax assets | $ | 23,817 | $ | 25,564 | |||||||||||||||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections of future taxable income over the periods during which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deductible differences. The amount of the deferred tax asset considered realizable, however, could be reduced if estimates of future taxable income are reduced. | |||||||||||||||||||
The Company files a consolidated federal income tax return and files tax returns in various state and local jurisdictions. The statutes of limitations for its consolidated federal income tax returns are open for fiscal years 2011 and after, and state and local income tax returns are open for fiscal years 2010 and after. | |||||||||||||||||||
Effective January 2, 2013, The American Taxpayer Relief Act of 2012 was enacted, which contained provisions that retroactively reinstated the work opportunity tax credit (“WOTC”) and the 15 year cost recovery life of qualified leasehold improvements from January 1, 2012 through December 31, 2013. As a result of this legislation, the Company applied WOTC of approximately $0.3 million to its fiscal 2013 first quarter tax provision for amounts generated in 2012, resulting in a reduction to its estimated effective tax rate for the 2013 first quarter of 137 basis points. | |||||||||||||||||||
At December 28, 2014 and December 29, 2013, the Company had no unrecognized tax benefits that, if recognized, would affect the Company’s effective income tax rate over the next 12 months. The Company’s policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expense. At December 28, 2014 and December 29, 2013, the Company had no accrued interest or penalties. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||
Earnings Per Share | -10 | Earnings Per Share | |||||||||||||||||
The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share, which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share is calculated by dividing net income by the weighted-average shares of common stock outstanding, reduced by shares repurchased and held in treasury, during the period. Diluted earnings per share represents basic earnings per share adjusted to include the potentially dilutive effect of outstanding share option awards, nonvested share awards and nonvested share unit awards. | |||||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per common share: | |||||||||||||||||||
Year Ended | |||||||||||||||||||
December 28, | December 29, | December 30, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||
Net income | $ | 14,876 | $ | 27,946 | $ | 14,915 | |||||||||||||
Weighted-average shares of common stock outstanding: | |||||||||||||||||||
Basic | 21,933 | 21,765 | 21,394 | ||||||||||||||||
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards | 200 | 318 | 222 | ||||||||||||||||
Diluted | 22,133 | 22,083 | 21,616 | ||||||||||||||||
Basic earnings per share | $ | 0.68 | $ | 1.28 | $ | 0.7 | |||||||||||||
Diluted earnings per share | $ | 0.67 | $ | 1.27 | $ | 0.69 | |||||||||||||
The computation of diluted earnings per share for fiscal 2014, 2013 and 2012 does not include share option awards in the amounts of 513,885, 763,688 and 1,240,966, respectively, that were outstanding and antidilutive (i.e., including such share option awards would result in higher earnings per share), since the exercise prices of these share option awards exceeded the average market price of the Company’s common shares. Additionally, the computation of diluted earnings per share for fiscal 2014 and 2013 does not include nonvested share awards and nonvested share unit awards in the amounts of 1,208 shares and 10,236 shares, respectively, that were outstanding and antidilutive, since the grant date fair values of these nonvested share awards and nonvested share unit awards exceeded the average market price of the Company’s common shares. No nonvested share awards and nonvested share unit awards were antidilutive for fiscal 2012. | |||||||||||||||||||
The Company repurchased 223,051 shares of common stock for $2.5 million in fiscal 2014 and 448,991 shares of common stock for $3.6 million in fiscal 2012. The Company did not repurchase shares of common stock during fiscal 2013. Of the shares of common stock repurchased in fiscal 2012, certain shares were repurchased and accrued in the amount of $75,000 in December of fiscal 2012 which the Company paid in January of fiscal 2013. Since the inception of the Company’s initial share repurchase program in May 2006 through December 28, 2014, the Company has repurchased a total of 2,150,677 shares for $27.9 million, leaving a total of $7.1 million available for share repurchases under the current share repurchase program. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |
Dec. 28, 2014 | ||
Postemployment Benefits [Abstract] | ||
Employee Benefit Plans | -11 | Employee Benefit Plans |
The Company has a 401(k) plan covering eligible employees. Employee contributions are supplemented by Company contributions subject to 401(k) plan terms. The Company recognized employer matching and profit-sharing contributions of $1.8 million, $2.3 million and $1.8 million for fiscal 2014, 2013 and 2012, respectively. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |
Dec. 28, 2014 | ||
Related Party Transactions [Abstract] | ||
Related Party Transactions | -12 | Related Party Transactions |
G. Michael Brown is a director of the Company and a partner of the law firm of Musick, Peeler & Garrett LLP. From time to time, the Company retains Musick, Peeler & Garrett LLP to handle various litigation matters. The Company received services from Musick, Peeler & Garrett LLP amounting to $0.7 million, $0.7 million and $1.0 million in fiscal 2014, 2013 and 2012, respectively. Amounts due to Musick, Peeler & Garrett LLP totaled $60,000 and $142,000 as of December 28, 2014 and December 29, 2013, respectively. | ||
Prior to his death in fiscal 2008, the Company had an employment agreement with Robert W. Miller (“Mr. Miller”), co-founder of the Company and the father of Steven G. Miller, Chairman of the Board, President, Chief Executive Officer and a director of the Company. The employment agreement provided for Mr. Miller to receive an annual base salary of $350,000. The employment agreement further provided that, following his death, the Company will pay his surviving wife $350,000 per year and provide her specified benefits for the remainder of her life. During fiscal 2014, 2013 and 2012, the Company made a payment of $350,000 to Mr. Miller’s wife. The Company recognized expense of $0.4 million, $0.3 million and $0.3 million in fiscal 2014, 2013 and 2012, respectively, to provide for a liability for the future obligations under this agreement. Based upon actuarial valuation estimates related to this agreement, the Company had a recorded liability of $1.5 million and $1.5 million as of December 28, 2014 and December 29, 2013, respectively. The short-term portion of this liability is recorded in accrued expenses and the long-term portion is recorded in other long-term liabilities. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |
Dec. 28, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | -13 | Commitments and Contingencies |
The Company was served on the following dates with the following nine complaints, each of which was brought as a purported class action on behalf of persons who made purchases at the Company’s stores in California using credit cards and were requested or required to provide personal identification information at the time of the transaction: (1) on February 22, 2011, a complaint filed in the California Superior Court in the County of Los Angeles, entitled Maria Eugenia Saenz Valiente v. Big 5 Sporting Goods Corporation, et al., Case No. BC455049; (2) on February 22, 2011, a complaint filed in the California Superior Court in the County of Los Angeles, entitled Scott Mossler v. Big 5 Sporting Goods Corporation, et al., Case No. BC455477; (3) on February 28, 2011, a complaint filed in the California Superior Court in the County of Los Angeles, entitled Yelena Matatova v. Big 5 Sporting Goods Corporation, et al., Case No. BC455459; (4) on March 8, 2011, a complaint filed in the California Superior Court in the County of Los Angeles, entitled Neal T. Wiener v. Big 5 Sporting Goods Corporation, et al., Case No. BC456300; (5) on March 22, 2011, a complaint filed in the California Superior Court in the County of San Francisco, entitled Donna Motta v. Big 5 Sporting Goods Corporation, et al., Case No. CGC-11-509228; (6) on March 30, 2011, a complaint filed in the California Superior Court in the County of Alameda, entitled Steve Holmes v. Big 5 Sporting Goods Corporation, et al., Case No. RG11563123; (7) on March 30, 2011, a complaint filed in the California Superior Court in the County of San Francisco, entitled Robin Nelson v. Big 5 Sporting Goods Corporation, et al., Case No. CGC-11-508829; (8) on April 8, 2011, a complaint filed in the California Superior Court in the County of San Joaquin, entitled Pamela B. Smith v. Big 5 Sporting Goods Corporation, et al., Case No. 39-2011-00261014-CU-BT-STK; and (9) on May 31, 2011, a complaint filed in the California Superior Court in the County of Los Angeles, entitled Deena Gabriel v. Big 5 Sporting Goods Corporation, et al., Case No. BC462213. On June 16, 2011, the Judicial Council of California issued an Order Assigning Coordination Trial Judge designating the California Superior Court in the County of Los Angeles as having jurisdiction to coordinate and to hear all nine of the cases as Case No. JCCP4667. On October 21, 2011, the plaintiffs collectively filed a Consolidated Amended Complaint, alleging violations of the California Civil Code, negligence, invasion of privacy and unlawful intrusion. The plaintiffs allege, among other things, that customers making purchases with credit cards at the Company’s stores in California were improperly requested to provide their zip code at the time of such purchases. The plaintiffs seek, on behalf of the class members, the following: statutory penalties; attorneys’ fees; expenses; restitution of property; disgorgement of profits; and injunctive relief. In an effort to negotiate a settlement of this litigation, the Company and plaintiffs engaged in Mandatory Settlement Conferences conducted by the court on February 6, 2013, February 19, 2013, April 2, 2013, September 12, 2013, and September 20, 2013, and also engaged in mediation conducted by a third party mediator on July 15, 2013. As a result of the foregoing, the parties agreed to settle the lawsuit. On March 23, 2014, the court granted preliminary approval of the settlement. On December 5, 2014, the court granted final approval of the settlement and on January 2, 2015, entered judgment on the settlement. On February 2, 2015, a Notice of Appeal was filed by an objector. Under the terms of the settlement, the Company agreed that class members who submit valid and timely claim forms will receive either a $25 gift card (with proof of purchase) or a $10 merchandise voucher (without proof of purchase). Additionally, the Company agreed to pay plaintiff’s attorneys’ fees and costs awarded by the court, enhancement payments to the class representatives and claims administrator’s fees. Under the settlement, if the total amount paid by the Company for the class payout, class representative enhancement payments and claims administrator’s fees is less than $1.0 million, then the Company will issue merchandise vouchers to a charity for the balance of the deficiency in the manner provided in the settlement agreement. The Company’s estimated total cost pursuant to this settlement is reflected in a legal settlement accrual initially recorded in the third quarter of fiscal 2013, and subsequently adjusted in fiscal 2014 to reflect the settlement. The Company admitted no liability or wrongdoing with respect to the claims set forth in the lawsuit. If the settlement is upheld on appeal, the settlement will constitute a full and complete settlement and release of all claims related to the lawsuit. Based on the terms of the settlement, the Company currently believes that settlement of this litigation will not have a material negative impact on the Company’s results of operations or financial condition. However, if the settlement is not upheld on appeal, the Company intends to defend this litigation vigorously. If the settlement is not upheld on appeal and this litigation is settled or resolved unfavorably to the Company, this litigation and the costs of defending it could have a material negative impact on the Company’s results of operations or financial condition. | ||
On September 10, 2014, a complaint was filed in the California Superior Court for the County of Los Angeles, entitled Pedro Duran v. Big 5 Corp., et al., Case No. BC557154. On October 7, 2014, an amended complaint was filed. As amended, the complaint alleges the Company violated the California Labor Code and the California Business and Professions Code. The complaint was brought as a purported class action on behalf of certain of the Company’s hourly employees who worked as “warehousemen” in the Company’s distribution center in California for the four years prior to the filing of the complaint. The plaintiff alleges, among other things, that the Company failed to pay such employees for all time worked, failed to provide such employees with compliant meal and rest periods, failed to properly itemize wage statements, and failed to pay wages within required time periods during employment and upon termination of employment. The plaintiff seeks, on behalf of the purported class members, an award of statutory and civil damages and penalties, including restitution and recovery of unpaid wages; pre-judgment interest; an award of attorneys’ fees and costs; and injunctive and declaratory relief. The Company believes that the complaint is without merit. The Company has not yet been served with the complaint or the amended complaint. In an effort to negotiate a settlement of this litigation, the Company and plaintiff engaged in mediation on January 28, 2015, but did not reach a settlement. Following the mediation, the Company recorded an estimated accrual with regard to this lawsuit in the fourth quarter of fiscal 2014. If the Company is unsuccessful in resolving the suit through a settlement, the Company intends to defend the suit vigorously. If resolved unfavorably to the Company, this litigation could have a material adverse effect on the Company’s financial condition, and costs associated with any judgment, defense of this litigation as well as any required change in the Company’s labor practices, could have a negative impact on the Company’s results of operations. | ||
The Company is involved in various other claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters is not expected to have a material adverse effect on the Company’s results of operations or financial condition. |
ShareBased_Compensation_Plans
Share-Based Compensation Plans | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Share-Based Compensation Plans | -14 | Share-Based Compensation Plans | |||||||||||||||||||
2002 Stock Incentive Plan | |||||||||||||||||||||
In June 2002, the Company adopted the 2002 Stock Incentive Plan (“2002 Plan”). The 2002 Plan provided for the grant of incentive share option awards and non-qualified share option awards to the Company’s employees, directors and specified consultants. Share option awards granted under the 2002 Plan generally vested and became exercisable at the rate of 25% per year with a maximum life of ten years. Upon exercise of granted share option awards, shares are expected to be issued from new shares previously registered for the 2002 Plan. The 2002 Plan was terminated in connection with the approval of the 2007 Equity and Performance Incentive Plan, as described below. Consequently, at December 28, 2014, no shares remained available for future grant and 393,190 share option awards remained outstanding under the 2002 Plan, subject to adjustment to reflect any changes in the outstanding common stock of the Company by reason of reorganization, recapitalization, reclassification, stock combination, stock dividend, stock split, reverse stock split, spin off or other similar transaction. | |||||||||||||||||||||
2007 Equity and Performance Incentive Plan | |||||||||||||||||||||
In June 2007, the Company adopted the 2007 Equity and Performance Incentive Plan (“2007 Plan”) and cancelled the 2002 Plan. The aggregate amount of shares authorized for issuance under the 2007 Plan is 2,399,250 shares of common stock of the Company, plus any shares subject to awards granted under the 2002 Plan which are forfeited, expire or are cancelled after April 24, 2007 (the effective date of the 2007 Plan). This amount represents the amount of shares that remained available for grant under the 2002 Plan as of April 24, 2007. Awards under the 2007 Plan may consist of share option awards (both incentive share option awards and non-qualified share option awards), stock appreciation rights, nonvested share awards, other stock unit awards, performance awards, or dividend equivalents. Any shares that are subject to awards of options or stock appreciation rights shall be counted against this limit (i.e., shares available for grant) as one share for every one share granted, regardless of the number of shares actually delivered pursuant to the awards. Any shares that are subject to awards other than share option awards or stock appreciation rights (including shares delivered on the settlement of dividend equivalents) shall be counted against this limit (i.e., shares available for grant) as 2.5 shares for every one share granted. The aggregate number of shares available under the 2007 Plan and the number of shares subject to outstanding share option awards will be increased or decreased to reflect any changes in the outstanding common stock of the Company by reason of any recapitalization, spin-off, reorganization, reclassification, stock dividend, stock split, reverse stock split, or similar transaction. Share option awards granted under the 2007 Plan generally vest and become exercisable at the rate of 25% per year with a maximum life of ten years. Share option awards, nonvested share awards and nonvested share unit awards provide for accelerated vesting if there is a change in control. The exercise price of the share option awards is equal to the quoted market price of the Company’s common stock on the date of grant. Upon the grant of nonvested share awards or the exercise of granted share option awards, shares are expected to be issued from new shares which were registered for the 2007 Plan. | |||||||||||||||||||||
Amendment and Restatement of 2007 Plan | |||||||||||||||||||||
On June 14, 2011, the Company’s shareholders approved an amendment and restatement of the Company’s 2007 Equity and Performance Incentive Plan (as so amended and restated, the “Amended 2007 Plan”). The Amended 2007 Plan did not result in any modifications to any of the Company’s outstanding share-based payment awards. Generally, the amendment and restatement made the following revisions to the 2007 Plan that had been adopted as of April 24, 2007: | |||||||||||||||||||||
• | the maximum number of shares of the Company’s common stock that may be issued or subject to awards under the Amended 2007 Plan was increased by 1,250,000 from the number authorized by the 2007 Plan; | ||||||||||||||||||||
• | the term of the Amended 2007 Plan was extended through April 26, 2021 (i.e., by approximately four years from the scheduled expiration of the 2007 Plan); | ||||||||||||||||||||
• | the continuation of the terms of Article X of the Amended 2007 Plan was approved for purposes of Section 162(m) of the Internal Revenue Code; and | ||||||||||||||||||||
• | certain technical updates and enhancements were implemented, including an exception to certain vesting requirements for up to 10% of the shares authorized under the Amended 2007 Plan. | ||||||||||||||||||||
These principal features of the Amended 2007 Plan are not intended to be a complete discussion of all of the terms of the Amended 2007 Plan. A copy of the Amended 2007 Plan was filed in a Current Report on Form 8-K in the second quarter of fiscal 2011. | |||||||||||||||||||||
In fiscal 2014, the Company granted 152,920 nonvested share awards, 12,000 nonvested share unit awards and 18,000 share option awards to certain employees, as defined by ASC 718, Compensation—Stock Compensation, under the Amended 2007 Plan. At December 28, 2014, 973,412 shares remained available for future grant and 336,715 share option awards, 336,765 nonvested share awards and 29,250 nonvested share unit awards remained outstanding under the Amended 2007 Plan. | |||||||||||||||||||||
The Company accounts for its share-based compensation in accordance with ASC 718 and recognizes compensation expense on a straight-line basis over the requisite service period, net of estimated forfeitures, using the fair-value method for share option awards, nonvested share awards and nonvested share unit awards granted with service-only conditions. The estimated forfeiture rate considers historical employee turnover rates stratified into employee pools in comparison with an overall employee turnover rate, as well as expectations about the future. The Company periodically revises the estimated forfeiture rate in subsequent periods if actual forfeitures differ from those estimates. Compensation expense recorded under this method for fiscal 2014, 2013 and 2012 was $1.9 million, $1.9 million and $1.7 million, respectively, which reduced operating income and income before income taxes by the same amount. Compensation expense recognized in cost of sales was $0.1 million, $0.1 million and $0.1 million in fiscal 2014, 2013 and 2012, respectively, and compensation expense recognized in selling and administrative expense was $1.8 million, $1.8 million and $1.6 million in fiscal 2014, 2013 and 2012, respectively. The recognized tax benefit related to compensation expense for fiscal 2014, 2013 and 2012 was $0.7 million, $0.7 million and $0.6 million, respectively. Net income for fiscal 2014, 2013 and 2012 was reduced by $1.2 million, $1.2 million and $1.1 million, respectively, or $0.05, $0.05 and $0.05 per basic and diluted share, respectively. | |||||||||||||||||||||
Share Option Awards | |||||||||||||||||||||
The fair value of each share option award on the date of grant was estimated using the Black-Scholes method based on the following weighted-average assumptions: | |||||||||||||||||||||
Year Ended | |||||||||||||||||||||
December 28, | December 29, | December 30, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Risk-free interest rate | 1.80% | 1.40% | 1.20% | ||||||||||||||||||
Expected term | 5.8 years | 6.9 years | 7.7 years | ||||||||||||||||||
Expected volatility | 57.00% | 57.50% | 53.00% | ||||||||||||||||||
Expected dividend yield | 3.30% | 2.30% | 4.70% | ||||||||||||||||||
The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected term of the option award; the expected term represents the weighted-average period of time that option awards granted are expected to be outstanding giving consideration to vesting schedules and historical participant exercise behavior; the expected volatility is based upon historical volatility of the Company’s common stock; and the expected dividend yield is based upon the Company’s current dividend rate and future expectations. | |||||||||||||||||||||
The weighted-average grant-date fair value of share option awards granted for fiscal 2014, 2013 and 2012 was $4.80 per share, $8.37 per share and $2.12 per share, respectively. | |||||||||||||||||||||
A summary of the status of the Company’s share option awards is presented below: | |||||||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||
Exercise | Remaining | Value | |||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Life | |||||||||||||||||||||
(In Years) | |||||||||||||||||||||
Outstanding at December 29, 2013 | 989,130 | $ | 17.83 | ||||||||||||||||||
Granted | 18,000 | 11.93 | |||||||||||||||||||
Exercised | (18,125 | ) | 6.66 | ||||||||||||||||||
Forfeited or Expired | (259,100 | ) | 24.14 | ||||||||||||||||||
Outstanding at December 28, 2014 | 729,905 | $ | 15.73 | 2.97 | $ | 1,954,005 | |||||||||||||||
Exercisable at December 28, 2014 | 669,905 | $ | 16 | 2.5 | $ | 1,770,440 | |||||||||||||||
Vested and Expected to Vest at December 28, 2014 | 729,247 | $ | 15.73 | 2.97 | $ | 1,952,641 | |||||||||||||||
The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based upon the Company’s closing stock price of $14.35 per share as of December 28, 2014, which would have been received by the share option award holders had all share option award holders exercised their share option awards as of that date. | |||||||||||||||||||||
The total intrinsic value of share option awards exercised for fiscal 2014, 2013 and 2012 was approximately $0.2 million, $5.1 million and $1.0 million, respectively. The total cash received from employees as a result of employee share option award exercises for fiscal 2014, 2013 and 2012 was approximately $0.1 million, $4.6 million and $1.5 million, respectively. The actual tax benefit realized for the tax deduction from share option award exercises in fiscal 2014, 2013 and 2012 totaled $0.1 million, $2.0 million and $0.4 million, respectively. | |||||||||||||||||||||
As of December 28, 2014, there was $0.3 million of total unrecognized compensation expense related to nonvested share option awards granted. That expense is expected to be recognized over a weighted-average period of 2.2 years. | |||||||||||||||||||||
Nonvested Share Awards and Nonvested Share Unit Awards | |||||||||||||||||||||
Nonvested share awards and nonvested share unit awards granted by the Company have historically vested from the date of grant in four equal annual installments of 25% per year with a maximum life of ten years. In accordance with the Company’s Director Compensation Program, as amended on July 24, 2014, nonvested share awards and nonvested share unit awards granted by the Company to non-employee directors shall vest 100% on the first anniversary of the grant date. This one-year vesting for non-employee directors shall become effective for nonvested share awards and nonvested share unit awards granted in fiscal 2015. | |||||||||||||||||||||
Nonvested share awards are delivered to the recipient upon their vesting. With respect to nonvested share unit awards, vested shares will be delivered to the recipient on the tenth business day of January following the year in which the recipient’s service to the Company is terminated. The total fair value of nonvested share awards which vested during fiscal 2014, 2013 and 2012 was $2.1 million, $1.8 million and $0.8 million, respectively. The total fair value of nonvested share unit awards which vested during fiscal 2014, 2013 and 2012 was $0.1 million, $38,000 and $19,000, respectively. | |||||||||||||||||||||
The following table details the Company’s nonvested share awards activity for fiscal 2014: | |||||||||||||||||||||
Shares | Weighted- | ||||||||||||||||||||
Average Grant- | |||||||||||||||||||||
Date Fair Value | |||||||||||||||||||||
Balance at December 29, 2013 | 333,770 | $ | 12.38 | ||||||||||||||||||
Granted | 152,920 | 15.14 | |||||||||||||||||||
Vested | -137,615 | 12.67 | |||||||||||||||||||
Forfeited | -12,310 | 13.50 | |||||||||||||||||||
Balance at December 28, 2014 | 336,765 | $ | 13.47 | ||||||||||||||||||
The following table details the Company’s nonvested share unit awards activity for fiscal 2014: | |||||||||||||||||||||
Units | Weighted- | ||||||||||||||||||||
Average Grant- | |||||||||||||||||||||
Date Fair Value | |||||||||||||||||||||
Balance at December 29, 2013 | 25,500 | $ | 13.24 | ||||||||||||||||||
Granted | 12,000 | 11.93 | |||||||||||||||||||
Vested | -8,250 | 11.93 | |||||||||||||||||||
Forfeited | — | — | |||||||||||||||||||
Balance at December 28, 2014 | 29,250 | $ | 13.07 | ||||||||||||||||||
The weighted-average grant-date fair value of nonvested share awards and nonvested share unit awards is the quoted market price of the Company’s common stock on the date of grant, as shown in the tables above. The weighted-average grant-date fair value of nonvested share awards granted in fiscal 2014, 2013 and 2012 was $15.14 per share, $15.56 per share and $7.79 per share, respectively. The weighted-average grant-date fair value per share of the Company’s nonvested share unit awards granted in fiscal 2014, 2013 and 2012 was $11.93 per share, $20.29 per share and $6.33 per share, respectively. | |||||||||||||||||||||
As of December 28, 2014, there was $3.1 million and $0.3 million of total unrecognized compensation expense related to nonvested share awards and nonvested share unit awards, respectively. That expense is expected to be recognized over a weighted-average period of approximately 2.3 years and 2.5 years for nonvested share awards and nonvested share unit awards, respectively. | |||||||||||||||||||||
To satisfy employee minimum statutory tax withholding requirements for nonvested share awards that vest, the Company withholds and retires a portion of the vesting common shares, unless an employee elects to pay cash. In fiscal 2014, the Company withheld 52,927 common shares with a total value of $0.8 million. This amount is presented as a cash outflow from financing activities in the accompanying consolidated statements of cash flows. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | ||||||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||
Selected Quarterly Financial Data | -15 | Selected Quarterly Financial Data (unaudited) | |||||||||||||||||||||||
Fiscal 2014 | |||||||||||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||||||||||
Quarter | Quarter (1) | Quarter | Quarter (1)(2) | ||||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||||
Net sales | $ | 231,263 | $ | 231,150 | $ | 265,115 | $ | 250,332 | |||||||||||||||||
Gross profit | $ | 72,678 | $ | 75,573 | $ | 86,060 | $ | 79,139 | |||||||||||||||||
Net income | $ | 2,060 | $ | 2,535 | $ | 7,466 | $ | 2,815 | |||||||||||||||||
Basic earnings per share | $ | 0.09 | $ | 0.12 | $ | 0.34 | $ | 0.13 | |||||||||||||||||
Diluted earnings per share | $ | 0.09 | $ | 0.11 | $ | 0.34 | $ | 0.13 | |||||||||||||||||
Fiscal 2013 | |||||||||||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||||||||||
Quarter | Quarter | Quarter (2)(3) | Quarter | ||||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||||
Net sales | $ | 246,266 | $ | 239,899 | $ | 259,121 | $ | 248,037 | |||||||||||||||||
Gross profit | $ | 80,475 | $ | 79,673 | $ | 87,790 | $ | 80,802 | |||||||||||||||||
Net income | $ | 7,514 | $ | 6,104 | $ | 9,138 | $ | 5,190 | |||||||||||||||||
Basic earnings per share | $ | 0.35 | $ | 0.28 | $ | 0.42 | $ | 0.24 | |||||||||||||||||
Diluted earnings per share | $ | 0.34 | $ | 0.28 | $ | 0.41 | $ | 0.23 | |||||||||||||||||
(1) | The Company recorded pre-tax non-cash impairment charges of $0.8 million and $0.4 million in the second quarter and fourth quarter of fiscal 2014, respectively, related to certain underperforming stores. These impairment charges were included in selling and administrative expense, and reduced net income in the second quarter and fourth quarter of fiscal 2014 by $0.5 million, or $0.02 per diluted share, and $0.3 million, or $0.01 per diluted share, respectively. | ||||||||||||||||||||||||
(2) | The Company recorded pre-tax charges in the fourth quarter of fiscal 2014 of $1.4 million, which were classified as selling and administrative expense, as well as a pre-tax charge in the third quarter of fiscal 2013 of $1.3 million, of which $0.3 million was classified as a reduction to net sales and $1.0 million was classified as selling and administrative expense. These charges were related to legal accruals and reduced net income in the fourth quarter of fiscal 2014 and the third quarter of fiscal 2013 by $0.9 million, or $0.04 per diluted share, and $0.8 million, or $0.04 per diluted share, respectively. | ||||||||||||||||||||||||
(3) | The Company recorded a pre-tax non-cash impairment charge in the third quarter of fiscal 2013 of $0.1 million related to an underperforming store. This impairment charge was included in selling and administrative expense, and reduced net income in the third quarter of fiscal 2013 by $44,000, or $0.00 per diluted share. |
Subsequent_Event
Subsequent Event | 12 Months Ended | |
Dec. 28, 2014 | ||
Subsequent Events [Abstract] | ||
Subsequent Event | -16 | Subsequent Event |
In the first quarter of fiscal 2015, the Company’s Board of Directors declared a quarterly cash dividend of $0.10 per share of outstanding common stock, which will be paid on March 16, 2015 to stockholders of record as of March 2, 2015. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | BIG 5 SPORTING GOODS CORPORATION | ||||||||||||||||
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
(In thousands) | |||||||||||||||||
Balance at | Charged to | Deductions | Balance at | ||||||||||||||
Beginning | Costs and | End of Period | |||||||||||||||
of Period | Expenses | ||||||||||||||||
December 28, 2014 | |||||||||||||||||
Allowance for doubtful receivables | $ | 105 | $ | 24 | $ | -19 | $ | 110 | |||||||||
Allowance for sales returns | 1,436 | (116) | (1) | — | 1,320 | ||||||||||||
Inventory reserves | 5,282 | 5,139 | -5,072 | 5,349 | |||||||||||||
December 29, 2013 | |||||||||||||||||
Allowance for doubtful receivables | $ | 99 | $ | 59 | $ | -53 | $ | 105 | |||||||||
Allowance for sales returns | 1,475 | (39) | (1) | — | 1,436 | ||||||||||||
Inventory reserves | 5,151 | 5,444 | -5,313 | 5,282 | |||||||||||||
December 30, 2012 | |||||||||||||||||
Allowance for doubtful receivables | $ | 142 | $ | (35) | (2) | $ | -8 | $ | 99 | ||||||||
Allowance for sales returns | 1,418 | 57 | (1) | — | 1,475 | ||||||||||||
Inventory reserves | 5,109 | 5,983 | -5,941 | 5,151 | |||||||||||||
(1) | Represents increase (decrease) in the required reserve based upon the Company’s evaluation of anticipated merchandise returns. | ||||||||||||||||
(2) | In fiscal 2012, “Charged to Costs and Expenses” for allowance for doubtful receivables reflects the reversal of a prior provision of $50,000. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Consolidation | Consolidation | ||||||||||||
The accompanying consolidated financial statements include the accounts of Big 5 Sporting Goods Corporation, Big 5 Corp. and Big 5 Services Corp. Intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||
Reporting Period | Reporting Period | ||||||||||||
The Company follows the concept of a 52-53 week fiscal year, which ends on the Sunday nearest December 31. Fiscal 2014, 2013 and 2012 each included 52 weeks. | |||||||||||||
Recently Issued Accounting Updates | Recently Issued Accounting Updates | ||||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360)—Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which includes amendments that change the requirements for reporting discontinued operations and require additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations that have, or will have, a major effect on the organization’s operations and financial results should be presented as discontinued operations. Additionally, ASU No. 2014-08 requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The amendments in ASU No. 2014-08 will be applied prospectively to annual periods beginning on or after December 15, 2014, and interim periods within those years, with early adoption permitted. The Company adopted ASU No. 2014-08 in the first quarter of 2014, which did not have a material impact on the Company’s consolidated financial statements. | |||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which includes amendments that create Topic 606 and supersede the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, the amendments supersede the cost guidance in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts, and create new Subtopic 340-40, Other Assets and Deferred Costs—Contracts with Customers. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in ASU No. 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is evaluating the future impact of the issuance of ASU No. 2014-09. | |||||||||||||
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40) – Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which requires entities to evaluate their ability to continue as a going concern within one year after the date that the financial statements are issued. Disclosure is required if there is substantial doubt about an entity’s ability to continue as a going concern. The guidance in ASU No. 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter, with early application permitted. The Company does not expect that the adoption of this ASU will have a material impact on the consolidated financial statements. | |||||||||||||
There have been no other recently issued accounting updates that had a material impact on the Company’s consolidated financial statements. | |||||||||||||
Use of Estimates | Use of Estimates | ||||||||||||
Management has made a number of estimates and assumptions relating to the reporting of assets, liabilities and stockholders’ equity and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expense during the reporting period to prepare these consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Certain items subject to such estimates and assumptions include the carrying amount of merchandise inventories, property and equipment, and goodwill; valuation allowances for receivables, sales returns and deferred income tax assets; estimates related to gift card breakage and the valuation of share-based compensation awards; and obligations related to asset retirements, litigation, self-insurance liabilities and employee benefits. Actual results could differ significantly from these estimates under different assumptions and conditions. | |||||||||||||
Segment Reporting | Segment Reporting | ||||||||||||
The Company operates solely as an omni-channel sporting goods retailer, which includes both retail stores and e-commerce operations, that offers a broad range of products in the western United States and online, and whose Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer. The CODM reviews financial information presented on a consolidated basis, for purposes of allocating resources and evaluating financial performance. The Company’s stores typically have similar square footage, with the stores and e-commerce operations offering a similar general product mix. The Company’s core customer demographic remains similar across all sales channels, as does the Company’s process for the procurement and marketing of its product mix. Furthermore, the Company distributes its product mix to both the stores and e-commerce operations from a single distribution center. Given the consolidated level of review by the CODM, the Company operates as one reportable segment as defined by Accounting Standards Codification (“ASC”) 280, Segment Reporting. | |||||||||||||
The approximate net sales attributable to hard goods, athletic and sport apparel, athletic and sport footwear and other for the periods presented are set forth as follows: | |||||||||||||
Fiscal Year | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Hard goods | $ | 517,968 | $ | 540,698 | $ | 514,942 | |||||||
Athletic and sport apparel | 181,722 | 174,021 | 152,648 | ||||||||||
Athletic and sport footwear | 274,355 | 275,744 | 271,596 | ||||||||||
Other sales | 3,815 | 2,860 | 1,304 | ||||||||||
Net sales | $ | 977,860 | $ | 993,323 | $ | 940,490 | |||||||
The Company launched its e-commerce operations in the fourth quarter of fiscal 2014 and e-commerce net sales for the year were not material. | |||||||||||||
Earnings Per Share | Earnings Per Share | ||||||||||||
The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share, which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share is calculated by dividing net income by the weighted-average shares of common stock outstanding, reduced by shares repurchased and held in treasury, during the period. Diluted earnings per share represents basic earnings per share adjusted to include the potentially dilutive effect of outstanding share option awards, nonvested share awards and nonvested share unit awards. | |||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||
The Company recognizes revenue from retail sales at the point of sale through its retail stores. For e-commerce sales, revenue is recognized when the merchandise is delivered to the customer. Shipping and handling fees, when billed to the customers for e-commerce sales, are included in net sales. An allowance for sales returns is estimated based upon historical experience and recorded as a reduction in sales in the relevant period. | |||||||||||||
Cash received from the sale of gift cards is recorded as a liability, and revenue is recognized upon the redemption of the gift card or when it is determined that the likelihood of redemption is remote (“gift card breakage”) and no liability to relevant jurisdictions exists. The Company determines the gift card breakage rate based upon historical redemption patterns and recognizes gift card breakage on a straight-line basis over the estimated gift card redemption period (20 quarters as of the end of fiscal 2014). The Company recognized approximately $0.4 million, $0.4 million and $0.4 million in gift card breakage revenue for fiscal 2014, 2013 and 2012, respectively. | |||||||||||||
The Company records sales tax collected from its customers on a net basis, and therefore excludes it from revenue as defined in ASC 605, Revenue Recognition. | |||||||||||||
Included in revenue are sales of returned merchandise to vendors specializing in the resale of defective or used products, which accounted for less than 1% of net sales in each of the periods reported. | |||||||||||||
Cost of Sales | Cost of Sales | ||||||||||||
Cost of sales includes the cost of merchandise, net of discounts or allowances earned, freight, inventory reserves, buying, distribution center expense, including depreciation, and store occupancy expense. Store occupancy expense includes rent, amortization of leasehold improvements, common area maintenance, property taxes and insurance. | |||||||||||||
Selling and Administrative Expense | Selling and Administrative Expense | ||||||||||||
Selling and administrative expense includes store-related expense, other than store occupancy expense, as well as advertising, depreciation and amortization, expense associated with operating the Company’s corporate headquarters and impairment charges, if any. | |||||||||||||
Vendor Allowances | Vendor Allowances | ||||||||||||
The Company receives allowances for co-operative advertising and volume purchase rebates earned through programs with certain vendors. The Company records a receivable for these allowances which are earned but not yet received when it is determined the amounts are probable and reasonably estimable, in accordance with ASC 605. Amounts relating to the purchase of merchandise are treated as a reduction of inventory cost and reduce cost of goods sold as the merchandise is sold. Amounts that represent a reimbursement of costs incurred, such as advertising, are recorded as a reduction in selling and administrative expense. The Company performs detailed analyses to determine the appropriate amount of vendor allowances to be applied as a reduction of merchandise cost and selling and administrative expense. | |||||||||||||
Advertising Expense | Advertising Expense | ||||||||||||
Advertising is expensed when the advertising first occurs. Advertising expense, net of co-operative advertising allowances, amounted to $42.6 million, $44.5 million and $45.9 million for fiscal 2014, 2013 and 2012, respectively. Advertising expense is included in selling and administrative expense in the accompanying consolidated statements of operations. The Company receives co-operative advertising allowances from product vendors in order to subsidize qualifying advertising and similar promotional expenditures made relating to vendors’ products. These advertising allowances are recognized as a reduction to selling and administrative expense when the Company incurs the advertising expense eligible for the credit. Co-operative advertising allowances recognized as a reduction to selling and administrative expense amounted to $5.9 million, $6.2 million and $6.2 million for fiscal 2014, 2013 and 2012, respectively. | |||||||||||||
Share-Based Compensation | Share-Based Compensation | ||||||||||||
The Company accounts for its share-based compensation in accordance with ASC 718, Compensation—Stock Compensation. The Company recognizes compensation expense on a straight-line basis over the requisite service period using the fair-value method for share option awards, nonvested share awards and nonvested share unit awards granted with service-only conditions. See Note 14 to the consolidated financial statements for a further discussion on share-based compensation. | |||||||||||||
Pre-opening Costs | Pre-opening Costs | ||||||||||||
Pre-opening costs for new stores, which consist primarily of payroll and recruiting expense, training, marketing, rent, travel and supplies, are expensed as incurred. | |||||||||||||
Cash | Cash | ||||||||||||
Cash consists of cash on hand, and the Company has no cash equivalents. Book overdrafts are classified as current liabilities. | |||||||||||||
Accounts Receivable | Accounts Receivable | ||||||||||||
Accounts receivable consist primarily of third party purchasing card receivables, amounts due from inventory vendors for returned products, volume purchase rebates or co-operative advertising, amounts due from lessors for tenant improvement allowances and insurance recovery receivables. Accounts receivable have not historically resulted in any material credit losses. An allowance for doubtful accounts is provided when accounts are determined to be uncollectible. | |||||||||||||
Valuation of Merchandise Inventories, Net | Valuation of Merchandise Inventories, Net | ||||||||||||
The Company’s merchandise inventories are made up of finished goods and are valued at the lower of cost or market using the weighted-average cost method that approximates the first-in, first-out (“FIFO”) method. Average cost includes the direct purchase price of merchandise inventory, net of certain vendor allowances and cash discounts, in-bound freight-related expense and allocated overhead expense associated with the Company’s distribution center. | |||||||||||||
Management regularly reviews inventories and records valuation reserves for damaged and defective merchandise, merchandise items with slow-moving or obsolescence exposure and merchandise that has a carrying value that exceeds market value. Because of its merchandise mix, the Company has not historically experienced significant occurrences of obsolescence. | |||||||||||||
Inventory shrinkage is accrued as a percentage of merchandise sales based on historical inventory shrinkage trends. The Company performs physical inventories of its stores at least once per year and cycle counts inventories at its distribution center throughout the year. The reserve for inventory shrinkage primarily represents an estimate for inventory shrinkage for each store since the last physical inventory date through the reporting date. | |||||||||||||
These reserves are estimates, which could vary significantly, either favorably or unfavorably, from actual results if future economic conditions, consumer demand and competitive environments differ from expectations. | |||||||||||||
Prepaid Expenses | Prepaid Expenses | ||||||||||||
Prepaid expenses include the prepayment of various operating expenses such as insurance, rent, income and property taxes, software maintenance and supplies, which are expensed when the operating cost is realized. | |||||||||||||
Property and Equipment, Net | Property and Equipment, Net | ||||||||||||
Property and equipment are stated at cost and are being depreciated or amortized utilizing the straight-line method over the following estimated useful lives: | |||||||||||||
Buildings | 20 years | ||||||||||||
Leasehold improvements | Shorter of estimated useful life or term of lease | ||||||||||||
Furniture, equipment and internal-use software | 3 – 10 years | ||||||||||||
Maintenance and repairs are expensed as incurred. | |||||||||||||
In fiscal 2014 and 2013, the Company incurred costs to purchase and develop software for internal use which included costs for its website associated with the development and implementation of an e-commerce platform, and in fiscal 2014 also included costs related to the development of a new point-of-sale system. Costs related to the application development stage are capitalized and amortized over the estimated useful life of the software. Costs related to the design or maintenance of internal-use software are expensed as incurred. The Company placed software relating to website development for its e-commerce initiative into service in fiscal 2014, at which time amortization commenced. | |||||||||||||
Goodwill | Goodwill | ||||||||||||
Goodwill represents the excess of purchase price over fair value of net assets acquired. Under ASC 350, Intangibles—Goodwill and Other, goodwill is not amortized but evaluated for impairment annually or whenever events or changes in circumstances indicate that the value may not be recoverable. | |||||||||||||
The Company performed an annual impairment test as of the end of fiscal 2014, 2013 and 2012, and determined that goodwill was not impaired. | |||||||||||||
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets | ||||||||||||
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. | |||||||||||||
Long-lived assets are reviewed for recoverability at the lowest level in which there are identifiable cash flows (“asset group”), usually at the store level. Each store typically requires investments of approximately $0.5 million in long-lived assets to be held and used, subject to recoverability testing. The carrying amount of an asset group is not considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset group. If the asset group is determined not to be recoverable, then an impairment charge will be recognized in the amount by which the carrying amount of the asset group exceeds its fair value, determined using discounted cash flow valuation techniques, as defined in ASC 360, Property, Plant, and Equipment. | |||||||||||||
The Company determines the sum of the undiscounted cash flows expected to result from the asset group by projecting future revenue, gross margin and operating expense for each store under evaluation for impairment. The estimates of future cash flows involve management judgment and are based upon assumptions about expected future operating performance. Assumptions used in these forecasts are consistent with internal planning, and include assumptions about sales growth rates, gross margins and operating expense in relation to the current economic environment and future expectations, competitive factors in various markets and inflation. The actual cash flows could differ from management’s estimates due to changes in business conditions, operating performance and economic conditions. | |||||||||||||
In fiscal 2014, 2013 and 2012, the Company recognized pre-tax non-cash impairment charges of $1.2 million, $0.1 million and $0.2 million, respectively, related to certain underperforming stores. These impairment charges are included in selling and administrative expense in the consolidated statements of operations. | |||||||||||||
Leases and Deferred Rent | Leases and Deferred Rent | ||||||||||||
The Company accounts for its leases under the provisions of ASC 840, Leases. | |||||||||||||
The Company evaluates and classifies its leases as either operating or capital leases for financial reporting purposes. Operating lease commitments consist principally of leases for the Company’s retail store facilities, distribution center and corporate office. Capital lease obligations consist principally of leases for some of the Company’s distribution center delivery tractors, management information systems hardware and point-of-sale equipment for the Company’s stores. | |||||||||||||
Certain of the leases for the Company’s retail store facilities provide for payments based on future sales volumes at the leased location, which are not measurable at the inception of the lease. These contingent rents are expensed as they accrue. | |||||||||||||
Deferred rent represents the difference between rent paid and the amounts expensed for operating leases. Certain leases have scheduled rent increases, and certain leases include an initial period of free or reduced rent as an inducement to enter into the lease agreement (“rent holidays”). The Company recognizes rent expense for rent increases and rent holidays on a straight-line basis over the term of the underlying leases, without regard to when rent payments are made. The calculation of straight-line rent is based on the “reasonably assured” lease term as defined in ASC 840 and may exceed the initial non-cancelable lease term. | |||||||||||||
Landlord allowances for tenant improvements, or lease incentives, are recorded as deferred rent and amortized on a straight-line basis over the “reasonably assured” lease term as a component of rent expense. | |||||||||||||
Asset Retirement Obligations | Asset Retirement Obligations | ||||||||||||
The Company accounts for its asset retirement obligations (“ARO”) in accordance with ASC 410, Asset Retirement and Environmental Obligations, which requires the recognition of a liability for the fair value of a legally required asset retirement obligation when incurred if the liability’s fair value can be reasonably estimated. The Company’s ARO liabilities are associated with the disposal and retirement of leasehold improvements resulting from contractual obligations at the end of a lease to restore the facility back to a condition specified in the lease agreement. | |||||||||||||
The Company records the net present value of the ARO liability and also records a related capital asset in an equal amount for those leases that contractually obligate the Company with an asset retirement obligation. The estimate of the ARO liability is based on a number of assumptions including store closing costs, inflation rates and discount rates. Accretion expense related to the ARO liability is recognized as operating expense. The capitalized asset is depreciated on a straight-line basis over the useful life of the leasehold improvement. Upon ARO removal, any difference between the actual retirement expense incurred and the recorded estimated ARO liability is recognized as an operating gain or loss in the consolidated statements of operations. The ARO liability, which totaled $0.7 million and $0.7 million as of December 28, 2014 and December 29, 2013, respectively, is included in other long-term liabilities in the accompanying consolidated balance sheets. | |||||||||||||
Self-Insurance Liabilities | Self-Insurance Liabilities | ||||||||||||
The Company maintains self-insurance programs for its commercial general liability risk and, in certain states, its estimated workers’ compensation liability risk. The Company also has a self-funded insurance program for a portion of its employee medical benefits. Under these programs, the Company maintains insurance coverage for losses in excess of specified per-occurrence amounts. Estimated expenses incurred under the self-insured workers’ compensation and medical benefits programs, including incurred but not reported claims, are recorded as expense based upon historical experience, trends of paid and incurred claims, and other actuarial assumptions. If actual claims trends under these programs, including the severity or frequency of claims, differ from the Company’s estimates, its financial results may be significantly impacted. The Company’s estimated self-insurance liabilities, which are reported gross of expected workers’ compensation insurance reimbursements, are classified on the balance sheet as accrued expenses or other long-term liabilities based upon whether they are expected to be paid during or beyond the normal operating cycle of 12 months from the date of the consolidated financial statements. Self-insurance liabilities totaled $10.7 million and $11.6 million as of December 28, 2014 and December 29, 2013, respectively, of which $4.4 million and $4.4 million were recorded as a component of accrued expenses as of December 28, 2014 and December 29, 2013, respectively, and $6.3 million and $7.2 million were recorded as a component of other long-term liabilities as of December 28, 2014 and December 29, 2013, respectively, in the accompanying consolidated balance sheets. | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
Under the asset and liability method prescribed within ASC 740, Income Taxes, the Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The realizability of deferred tax assets is assessed throughout the year and a valuation allowance is recorded if necessary to reduce net deferred tax assets to the amount more likely than not to be realized. | |||||||||||||
ASC 740 provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. ASC 740 also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. | |||||||||||||
The Company’s practice is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expense. At December 28, 2014 and December 29, 2013, the Company had no accrued interest or penalties. | |||||||||||||
Concentration of Risk | Concentration of Risk | ||||||||||||
The Company maintains its cash accounts in financial institutions, and accounts at these institutions are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. | |||||||||||||
The Company primarily operates traditional sporting goods retail stores located in the western United States. Because of this, the Company is subject to regional risks, such as the economy, including downturns in the housing market, state financial conditions, unemployment and gas prices. Other regional risks include weather conditions, power outages, droughts, earthquakes and other natural disasters specific to the states in which the Company operates. | |||||||||||||
The Company relies on a single distribution center located in Riverside, California, which services all of its stores and e-commerce operations. Any natural disaster or other serious disruption to the distribution center due to fire, earthquake or any other cause could damage a significant portion of inventory and could materially impair the Company’s ability to adequately stock its stores and fulfill its e-commerce business. | |||||||||||||
A substantial amount of the Company’s inventory is manufactured abroad, and shipped through the Port of Los Angeles. From time to time, shipping ports experience capacity constraints, labor strikes, work stoppages or other disruptions that may delay the delivery of imported products. In addition, acts of terrorism could significantly disrupt operations at shipping ports or otherwise impact transportation of the Company’s imported merchandise. Disruptions at the Port of Los Angeles, or other shipping ports, may result in delays in the transportation of such products to the Company’s distribution center and may ultimately delay the Company’s ability to adequately stock its stores and fulfill its e-commerce business. Currently, the Ports of Los Angeles and Long Beach, through which a substantial amount of the products manufactured abroad that the Company sells are imported, are experiencing delays due to a contract dispute with the International Longshore and Warehouse Union. A lengthy contract dispute may lead to protracted delays in the movement of the Company’s products, which could further delay the delivery of products to its stores and impact net sales and profitability. | |||||||||||||
The Company purchases merchandise from over 700 suppliers, and the Company’s 20 largest suppliers accounted for 41.0% of total purchases in fiscal 2014. One vendor represented greater than 5% of total purchases, at 9.6%, in fiscal 2014. A significant portion of the Company’s inventory is manufactured abroad in China and other countries. If a disruption of trade were to occur from the countries in which the suppliers of the Company’s vendors are located, the Company may be unable to obtain sufficient quantities of products to satisfy its requirements, or the cost of obtaining products may increase. | |||||||||||||
The Company could be exposed to credit risk in the event of nonperformance by any lender under its revolving credit facility. Instability in the financial and capital markets brings additional potential risks to the Company, including higher costs of credit, potential lender defaults, and potential commercial bank failures. The Company has received no indication that any such events will negatively impact the lenders under its current revolving credit facility; however, the possibility does exist. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||
Summary of Net Sales Attributable to Various Segments | The approximate net sales attributable to hard goods, athletic and sport apparel, athletic and sport footwear and other for the periods presented are set forth as follows: | ||||||||||||||||||
Fiscal Year | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
(In thousands) | |||||||||||||||||||
$ | 517,968 | $ | 540,698 | $ | 514,942 | ||||||||||||||
Hard goods | |||||||||||||||||||
Athletic and sport apparel | 181,722 | 174,021 | 152,648 | ||||||||||||||||
Athletic and sport footwear | 274,355 | 275,744 | 271,596 | ||||||||||||||||
Other sales | 3,815 | 2,860 | 1,304 | ||||||||||||||||
Net sales | $ | 977,860 | $ | 993,323 | $ | 940,490 | |||||||||||||
Schedule of Estimated Useful Life of Property and Equipment | Property and equipment are stated at cost and are being depreciated or amortized utilizing the straight-line method over the following estimated useful lives: | ||||||||||||||||||
Buildings | 20 years | ||||||||||||||||||
Leasehold improvements | Shorter of estimated useful life or term of lease | ||||||||||||||||||
Furniture, equipment and internal-use software | 3 – 10 years |
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Schedule of Property and Equipment | Property and equipment, net, consist of the following: | ||||||||||||
December 28, | December 29, | ||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
$ | 142,561 | $ | 134,740 | ||||||||||
Furniture, equipment and internal-use software | |||||||||||||
Leasehold improvements | 143,056 | 134,151 | |||||||||||
285,617 | 268,891 | ||||||||||||
Accumulated depreciation and amortization | (211,422) | (195,910) | |||||||||||
74,195 | 72,981 | ||||||||||||
Assets not placed into service (1) | 4,245 | 2,627 | |||||||||||
Property and equipment, net | $ | 78,440 | $ | 75,608 | |||||||||
(1) Includes internal-use software development costs of $2.7 million related to the development of a new point-of-sale system at December 28, 2014, and $1.6 million related to the development of the Company’s e-commerce initiative at December 29, 2013. |
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Payables and Accruals [Abstract] | |||||||||||||
Summary of Accrued Expenses | The major components of accrued expenses are as follows: | ||||||||||||
December 28, | December 29, | ||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
$ | 22,568 | $ | 23,240 | ||||||||||
Payroll and related expense | |||||||||||||
Sales tax | 10,432 | 10,110 | |||||||||||
Occupancy expense | 9,412 | 9,392 | |||||||||||
Other | 27,987 | 27,181 | |||||||||||
Accrued expenses | $ | 70,399 | $ | 69,923 | |||||||||
Lease_Commitments_Tables
Lease Commitments (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||
Schedule of Rent Expense | Rent expense for operating leases consisted of the following: | ||||||||||||||||||
Year Ended | |||||||||||||||||||
December 28, | December 29, | December 30, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
(In thousands) | |||||||||||||||||||
$ | 66,276 | $ | 62,777 | $ | 60,181 | ||||||||||||||
Rent expense | |||||||||||||||||||
Contingent rent | 858 | 1,081 | 1,074 | ||||||||||||||||
Total rent expense | $ | 67,134 | $ | 63,858 | $ | 61,255 | |||||||||||||
Schedule of Future Minimum Lease Payments under Non-Cancelable Leases | Future minimum lease payments under non-cancelable leases, with lease terms in excess of one year, as of December 28, 2014 are as follows: | ||||||||||||||||||
Year Ending: | Capital | Operating | Total | ||||||||||||||||
Leases | Leases | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
$ | 1,259 | $ | 75,053 | $ | 76,312 | ||||||||||||||
2015 | |||||||||||||||||||
2016 | 728 | 65,586 | 66,314 | ||||||||||||||||
2017 | 334 | 55,684 | 56,018 | ||||||||||||||||
2018 | 120 | 47,086 | 47,206 | ||||||||||||||||
2019 | 10 | 35,595 | 35,605 | ||||||||||||||||
Thereafter | — | 78,224 | 78,224 | ||||||||||||||||
Total minimum lease payments | 2,451 | $ | 357,228 | $ | 359,679 | ||||||||||||||
Imputed interest | (99 | ) | |||||||||||||||||
Present value of minimum lease payments | $ | 2,352 | |||||||||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Summary of Borrowings Outstanding | On December 28, 2014 and December 29, 2013, the Company had borrowings outstanding bearing interest at both LIBO and the prime lending rates as follows: | ||||||||||||
December 28, | December 29, | ||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
$ | 62,000 | $ | 30,000 | ||||||||||
LIBO rate | |||||||||||||
Prime rate | 4,312 | 13,018 | |||||||||||
Total borrowings | $ | 66,312 | $ | 43,018 | |||||||||
First Amendment to Credit Agreement [Member] | |||||||||||||
Average Daily Excess Availability for Preceding Fiscal Quarter | The applicable margin for all loans was as set forth below as a function of Average Daily Excess Availability for the preceding fiscal quarter. | ||||||||||||
Level | Average Daily Excess Availability | LIBO Rate | Base Rate | ||||||||||
Applicable Margin | Applicable Margin | ||||||||||||
I | Greater than or equal to $70,000,000 | 1.50% | 0.50% | ||||||||||
II | Greater than or equal to $40,000,000 | 1.75% | 0.75% | ||||||||||
III | Less than $40,000,000 | 2.00% | 1.00% | ||||||||||
Second Amendment to Credit Agreement [Member] | |||||||||||||
Average Daily Excess Availability for Preceding Fiscal Quarter | The applicable margin for all loans are set forth below as a function of Average Daily Excess Availability for the preceding fiscal quarter. | ||||||||||||
Level | Average Daily Excess Availability | LIBO Rate | Base Rate | ||||||||||
Applicable Margin | Applicable Margin | ||||||||||||
I | Greater than or equal to $100,000,000 | 1.25% | 0.25% | ||||||||||
II | Less than $100,000,000 but greater than or equal to $40,000,000 | 1.50% | 0.50% | ||||||||||
III | Less than $40,000,000 | 1.75% | 0.75% |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||
Summary of Total Income Tax Expense (Benefit) | Total income tax expense (benefit) consists of the following: | ||||||||||||||||||
Current | Deferred | Total | |||||||||||||||||
(In thousands) | |||||||||||||||||||
Fiscal 2014: | |||||||||||||||||||
Federal | $ | 5,582 | $ | 1,687 | $ | 7,269 | |||||||||||||
State | 1,303 | 60 | 1,363 | ||||||||||||||||
$ | 6,885 | $ | 1,747 | $ | 8,632 | ||||||||||||||
Fiscal 2013: | |||||||||||||||||||
Federal | $ | 15,307 | $ | (777) | $ | 14,530 | |||||||||||||
State | 3,293 | (87) | 3,206 | ||||||||||||||||
$ | 18,600 | $ | (864) | $ | 17,736 | ||||||||||||||
Fiscal 2012: | |||||||||||||||||||
Federal | $ | 10,119 | $ | (2,736) | $ | 7,383 | |||||||||||||
State | 1,790 | (318) | 1,472 | ||||||||||||||||
$ | 11,909 | $ | (3,054) | $ | 8,855 | ||||||||||||||
Schedule of Federal Statutory Tax Rate Reconciliation | The provision for income taxes differs from the amounts computed by applying the federal statutory tax rate of 35% to earnings before income taxes, as follows: | ||||||||||||||||||
Year Ended | |||||||||||||||||||
December 28, | December 29, | December 30, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
(In thousands) | |||||||||||||||||||
Tax expense at statutory rate | $ | 8,228 | $ | 15,989 | $ | 8,320 | |||||||||||||
State taxes, net of federal benefit | 1,062 | 2,110 | 1,088 | ||||||||||||||||
Tax credits and other | -658 | -363 | -553 | ||||||||||||||||
$ | 8,632 | $ | 17,736 | $ | 8,855 | ||||||||||||||
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consist of the following tax-effected temporary differences: | ||||||||||||||||||
December 28, | December 29, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||
Deferred rent | $ | 9,400 | $ | 9,744 | |||||||||||||||
Share-based compensation | 2,508 | 3,116 | |||||||||||||||||
Inventory | 1,243 | 2,130 | |||||||||||||||||
Accrued legal fees | 1,063 | 517 | |||||||||||||||||
Other | 11,610 | 12,077 | |||||||||||||||||
Deferred tax assets | 25,824 | 27,584 | |||||||||||||||||
Basis difference in fixed assets | (1,385) | (2,020) | |||||||||||||||||
Other | (622) | — | |||||||||||||||||
Deferred tax liabilities | (2,007) | (2,020) | |||||||||||||||||
Net deferred tax assets | $ | 23,817 | $ | 25,564 | |||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||
Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share: | ||||||||||||||||||
Year Ended | |||||||||||||||||||
December 28, | December 29, | December 30, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||
Net income | $ | 14,876 | $ | 27,946 | $ | 14,915 | |||||||||||||
Weighted-average shares of common stock outstanding: | |||||||||||||||||||
Basic | 21,933 | 21,765 | 21,394 | ||||||||||||||||
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards | 200 | 318 | 222 | ||||||||||||||||
Diluted | 22,133 | 22,083 | 21,616 | ||||||||||||||||
Basic earnings per share | $ | 0.68 | $ | 1.28 | $ | 0.7 | |||||||||||||
Diluted earnings per share | $ | 0.67 | $ | 1.27 | $ | 0.69 | |||||||||||||
ShareBased_Compensation_Plans_
Share-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Fair Value of Share Option Award Based on Weighted-Average Assumptions | The fair value of each share option award on the date of grant was estimated using the Black-Scholes method based on the following weighted-average assumptions: | ||||||||||||||||||||
Year Ended | |||||||||||||||||||||
December 28, | December 29, | December 30, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Risk-free interest rate | 1.80% | 1.40% | 1.20% | ||||||||||||||||||
Expected term | 5.8 years | 6.9 years | 7.7 years | ||||||||||||||||||
Expected volatility | 57.00% | 57.50% | 53.00% | ||||||||||||||||||
Expected dividend yield | 3.30% | 2.30% | 4.70% | ||||||||||||||||||
Summary of Share Option Awards | A summary of the status of the Company’s share option awards is presented below: | ||||||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||
Exercise | Remaining | Value | |||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Life | |||||||||||||||||||||
(In Years) | |||||||||||||||||||||
Outstanding at December 29, 2013 | 989,130 | $ | 17.83 | ||||||||||||||||||
Granted | 18,000 | 11.93 | |||||||||||||||||||
Exercised | (18,125 | ) | 6.66 | ||||||||||||||||||
Forfeited or Expired | (259,100 | ) | 24.14 | ||||||||||||||||||
Outstanding at December 28, 2014 | 729,905 | $ | 15.73 | 2.97 | $ | 1,954,005 | |||||||||||||||
Exercisable at December 28, 2014 | 669,905 | $ | 16 | 2.5 | $ | 1,770,440 | |||||||||||||||
Vested and Expected to Vest at December 28, 2014 | 729,247 | $ | 15.73 | 2.97 | $ | 1,952,641 | |||||||||||||||
Summary of Nonvested Share Awards Activity | The following table details the Company’s nonvested share awards activity for fiscal 2014: | ||||||||||||||||||||
Shares | Weighted- | ||||||||||||||||||||
Average Grant- | |||||||||||||||||||||
Date Fair Value | |||||||||||||||||||||
Balance at December 29, 2013 | 333,770 | $ | 12.38 | ||||||||||||||||||
Granted | 152,920 | 15.14 | |||||||||||||||||||
Vested | -137,615 | 12.67 | |||||||||||||||||||
Forfeited | -12,310 | 13.50 | |||||||||||||||||||
Balance at December 28, 2014 | 336,765 | $ | 13.47 | ||||||||||||||||||
The following table details the Company’s nonvested share unit awards activity for fiscal 2014: | |||||||||||||||||||||
Units | Weighted- | ||||||||||||||||||||
Average Grant- | |||||||||||||||||||||
Date Fair Value | |||||||||||||||||||||
Balance at December 29, 2013 | 25,500 | $ | 13.24 | ||||||||||||||||||
Granted | 12,000 | 11.93 | |||||||||||||||||||
Vested | -8,250 | 11.93 | |||||||||||||||||||
Forfeited | — | — | |||||||||||||||||||
Balance at December 28, 2014 | 29,250 | $ | 13.07 | ||||||||||||||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Quarterly Financial Information | Fiscal 2014 | ||||||||||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||||||||||
Quarter | Quarter (1) | Quarter | Quarter (1)(2) | ||||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||||
Net sales | $ | 231,263 | $ | 231,150 | $ | 265,115 | $ | 250,332 | |||||||||||||||||
Gross profit | $ | 72,678 | $ | 75,573 | $ | 86,060 | $ | 79,139 | |||||||||||||||||
Net income | $ | 2,060 | $ | 2,535 | $ | 7,466 | $ | 2,815 | |||||||||||||||||
Basic earnings per share | $ | 0.09 | $ | 0.12 | $ | 0.34 | $ | 0.13 | |||||||||||||||||
Diluted earnings per share | $ | 0.09 | $ | 0.11 | $ | 0.34 | $ | 0.13 | |||||||||||||||||
Fiscal 2013 | |||||||||||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||||||||||
Quarter | Quarter | Quarter (2)(3) | Quarter | ||||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||||
Net sales | $ | 246,266 | $ | 239,899 | $ | 259,121 | $ | 248,037 | |||||||||||||||||
Gross profit | $ | 80,475 | $ | 79,673 | $ | 87,790 | $ | 80,802 | |||||||||||||||||
Net income | $ | 7,514 | $ | 6,104 | $ | 9,138 | $ | 5,190 | |||||||||||||||||
Basic earnings per share | $ | 0.35 | $ | 0.28 | $ | 0.42 | $ | 0.24 | |||||||||||||||||
Diluted earnings per share | $ | 0.34 | $ | 0.28 | $ | 0.41 | $ | 0.23 | |||||||||||||||||
(1) | The Company recorded pre-tax non-cash impairment charges of $0.8 million and $0.4 million in the second quarter and fourth quarter of fiscal 2014, respectively, related to certain underperforming stores. These impairment charges were included in selling and administrative expense, and reduced net income in the second quarter and fourth quarter of fiscal 2014 by $0.5 million, or $0.02 per diluted share, and $0.3 million, or $0.01 per diluted share, respectively. | ||||||||||||||||||||||||
(2) | The Company recorded pre-tax charges in the fourth quarter of fiscal 2014 of $1.4 million, which were classified as selling and administrative expense, as well as a pre-tax charge in the third quarter of fiscal 2013 of $1.3 million, of which $0.3 million was classified as a reduction to net sales and $1.0 million was classified as selling and administrative expense. These charges were related to legal accruals and reduced net income in the fourth quarter of fiscal 2014 and the third quarter of fiscal 2013 by $0.9 million, or $0.04 per diluted share, and $0.8 million, or $0.04 per diluted share, respectively. | ||||||||||||||||||||||||
(3) | The Company recorded a pre-tax non-cash impairment charge in the third quarter of fiscal 2013 of $0.1 million related to an underperforming store. This impairment charge was included in selling and administrative expense, and reduced net income in the third quarter of fiscal 2013 by $44,000, or $0.00 per diluted share. |
Description_of_Business_Additi
Description of Business - Additional Information (Detail) | 12 Months Ended |
Dec. 28, 2014 | |
Segment | |
Store | |
Description Of Business [Line Items] | |
Number of reportable segment | 1 |
Number of operating stores | 439 |
Big 5 Corp [Member] | |
Description Of Business [Line Items] | |
Subsidiary interest ownership percentage | 100.00% |
Big 5 Service Corp [Member] | |
Description Of Business [Line Items] | |
Subsidiary interest ownership percentage | 100.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Dec. 28, 2014 | Jun. 29, 2014 | Sep. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Supplier | Supplier | |||||
Q | ||||||
Accounting Policies [Line Items] | ||||||
Reporting period, minimum | 364 days | |||||
Reporting period, maximum | 371 days | |||||
Recognized gift card breakage revenue | $400,000 | $400,000 | $400,000 | |||
Estimated gift card redemption period | 20 | |||||
Sales return as percentage of net sales | 1.00% | 1.00% | 1.00% | |||
Advertising expense, net of co-operative advertising allowances | 42,600,000 | 44,500,000 | 45,900,000 | |||
Co-operative advertising allowances | 5,900,000 | 6,200,000 | 6,200,000 | |||
Cash equivalents | 0 | 0 | ||||
Long-lived assets to be held and used | 500,000 | 500,000 | ||||
Impairment of store assets | 400,000 | 800,000 | 100,000 | 1,164,000 | 72,000 | 208,000 |
ARO liability | 700,000 | 700,000 | 700,000 | |||
Self-insurance liabilities | 10,700,000 | 10,700,000 | 11,600,000 | |||
Accrued interest or penalties | 0 | 0 | 0 | |||
Cash deposits insured by the Federal Deposit Insurance Corporation | 250,000 | 250,000 | ||||
Concentration risk, suppliers | 700 | |||||
Concentration risk, largest supplier | 20 | |||||
Suppliers accounted for total purchases | 41.00% | 41.00% | ||||
Vendor represented greater than of total purchases | 1 | 1 | ||||
Percentage of vendors represented greater than of total purchases | 5.00% | |||||
One vendor [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Suppliers accounted for total purchases | 9.60% | 9.60% | ||||
Accrued expenses [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Self-insurance liabilities | 4,400,000 | 4,400,000 | 4,400,000 | |||
Other long-term liabilities [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Self-insurance liabilities | $6,300,000 | $6,300,000 | $7,200,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Summary of Net Sales Attributable to Various Segments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Operating Segment Information [Line Items] | |||||||||||
Net sales | $250,332 | $265,115 | $231,150 | $231,263 | $248,037 | $259,121 | $239,899 | $246,266 | $977,860 | $993,323 | $940,490 |
Hard goods [Member] | |||||||||||
Operating Segment Information [Line Items] | |||||||||||
Net sales | 517,968 | 540,698 | 514,942 | ||||||||
Athletic and sport apparel [Member] | |||||||||||
Operating Segment Information [Line Items] | |||||||||||
Net sales | 181,722 | 174,021 | 152,648 | ||||||||
Athletic and sport footwear [Member] | |||||||||||
Operating Segment Information [Line Items] | |||||||||||
Net sales | 274,355 | 275,744 | 271,596 | ||||||||
Other sales [Member] | |||||||||||
Operating Segment Information [Line Items] | |||||||||||
Net sales | $3,815 | $2,860 | $1,304 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Life of Property and Equipment (Detail) | 12 Months Ended |
Dec. 28, 2014 | |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Shorter of estimated useful life or term of lease |
Furniture, equipment and internal-use software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture, equipment and internal-use software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Property_and_Equipment_Net_Sch
Property and Equipment, Net - Schedule of Property and Equipment (Detail) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $285,617 | $268,891 |
Accumulated depreciation and amortization | -211,422 | -195,910 |
Property and equipment, net excluding assets not placed into service | 74,195 | 72,981 |
Assets not placed into service | 4,245 | 2,627 |
Property and equipment, net | 78,440 | 75,608 |
Furniture, equipment and internal-use software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 142,561 | 134,740 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $143,056 | $134,151 |
Property_and_Equipment_Net_Sch1
Property and Equipment, Net - Schedule of Property and Equipment (Parenthetical) (Detail) (Internal-use software development [Member], USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Millions, unless otherwise specified | ||
Internal-use software development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Internal-use software development costs | $2.70 | $1.60 |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Property Plant and Equipment Useful Life and Values [Abstract] | |||
Depreciation expense | $10 | $10 | $10.10 |
Amortization expense | 11.5 | 10.2 | 8.8 |
Capital leases, gross | 8.5 | 9.8 | |
Accumulated amortization of capital leases | $5.90 | $6 |
Impairment_of_LongLived_Assets1
Impairment of Long-Lived Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Jun. 29, 2014 | Sep. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Impairment or Disposal of Tangible Assets Disclosure [Abstract] | ||||||
Impairment of store assets | $400 | $800 | $100 | $1,164 | $72 | $208 |
Accrued_Expenses_Summary_of_Ac
Accrued Expenses - Summary of Accrued Expenses (Detail) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Payroll and related expense | $22,568 | $23,240 |
Sales tax | 10,432 | 10,110 |
Occupancy expense | 9,412 | 9,392 |
Other | 27,987 | 27,181 |
Accrued expenses | $70,399 | $69,923 |
Lease_Commitments_Additional_I
Lease Commitments - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Feb. 29, 2008 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Mar. 29, 2015 |
Times | Times | ||||
sqft | |||||
Leases Disclosure [Line Items] | |||||
Sublease rent income | $0.10 | $0.10 | $0.30 | ||
Lease expiration date | 28-Feb-19 | ||||
Number of times lease can be renewed | 6 | ||||
Lease renewal period | 5 years | ||||
Scenario, Forecast [Member] | |||||
Leases Disclosure [Line Items] | |||||
Lease expiration date | 31-Aug-20 | ||||
Number of times lease can be renewed | 4 | ||||
Lease renewal period | 5 years | ||||
Company executed lease | 171,000 | ||||
Operations commencement period | Second quarter of fiscal 2015 | ||||
Minimum [Member] | |||||
Leases Disclosure [Line Items] | |||||
Operating lease renewal options, period | 5 years | ||||
Maximum [Member] | |||||
Leases Disclosure [Line Items] | |||||
Operating lease renewal options, period | 10 years |
Lease_Commitments_Schedule_of_
Lease Commitments - Schedule of Rent Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Leases [Abstract] | |||
Rent expense | $66,276 | $62,777 | $60,181 |
Contingent rent | 858 | 1,081 | 1,074 |
Total rent expense | $67,134 | $63,858 | $61,255 |
Lease_Commitments_Schedule_of_1
Lease Commitments - Schedule of Future Minimum Lease Payments under Non-Cancelable Leases (Detail) (USD $) | Dec. 28, 2014 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | |
2015, Capital Leases | $1,259 |
2016, Capital Leases | 728 |
2017, Capital Leases | 334 |
2018, Capital Leases | 120 |
2019, Capital Leases | 10 |
Thereafter, Capital Leases | 0 |
Total minimum lease payments, Capital Leases | 2,451 |
Imputed interest | -99 |
Present value of minimum lease payments | 2,352 |
2015, Operating Leases | 75,053 |
2016, Operating Leases | 65,586 |
2017, Operating Leases | 55,684 |
2018, Operating Leases | 47,086 |
2019, Operating leases | 35,595 |
Thereafter, Operating Leases | 78,224 |
Total minimum lease payments, Operating Leases | 357,228 |
2015, Total | 76,312 |
2016, Total | 66,314 |
2017, Total | 56,018 |
2018, Total | 47,206 |
2019, Total | 35,605 |
Thereafter, Total | 78,224 |
Total minimum lease payments | $359,679 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Debt Instrument [Line Items] | ||
Credit Agreement description | On October 18, 2010, the Company entered into a credit agreement with Wells Fargo Bank, National Association (bWells Fargob), as administrative agent, and a syndicate of other lenders, which was amended on October 31, 2011 and December 19, 2013 (as so amended, the bCredit Agreementb). Initial borrowings under the Credit Agreement on October 18, 2010 were used to, among other things, repay all of the Companybs outstanding indebtedness under the prior financing agreement, at which time the prior financing agreement was terminated. The First Amendment to Credit Agreement (bFirst Amendmentb) entered on October 31, 2011 and the Second Amendment to Credit Agreement (bSecond Amendmentb) entered on December 19, 2013 amended certain provisions of the Credit Agreement, as further discussed below. | |
Revolving credit facility | 140 | |
First tier of increase to the borrowing capacity | 165 | |
Maximum limit of credit facility | 200 | |
Sublimit for issuances of letters of credit | 50 | |
Sublimit for swingline loans | 20 | |
Maturity date of Credit Agreement | 18-Oct-14 | |
Remaining borrowing availability | 73.2 | 96.1 |
Percentage of eligible credit card accounts receivables | 90.00% | |
Percentage of the value of eligible inventory | 90.00% | |
Percentage of the value of eligible in-transit inventory | 90.00% | |
Eligible in-transit inventory threshold | 10 | |
Debt instrument, covenant description | Obligations under the Credit Facility are secured by a general lien and perfected security interest in substantially all of the Company's assets. The Credit Agreement contains covenants that require the Company to maintain a fixed charge coverage ratio of not less than 1.01.0 in certain circumstances, and limit the ability | |
Fixed charge coverage ratio | 1 | |
Events of default, description | The Credit Agreement contains customary events of default, including, without limitation, failure to pay when due principal amounts with respect to the Credit Facility, failure to pay any interest or other amounts under the Credit Facility for five days after becoming due, failure to comply with certain agreements or covenants contained in the Credit Agreement, failure to satisfy certain judgments against the Company, failure to pay when due (or any other default which does or may lead to the acceleration of) certain other material indebtedness in principal amount in excess of $5.0 million, and certain insolvency and bankruptcy events. | |
Line of Credit Facility default debt minimum amount | 5 | |
One-month LIBO rate [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit borrowings, interest rate | 0.20% | 0.20% |
Wells Fargo Bank [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit borrowings, interest rate | 3.25% | 3.25% |
Revolving Credit Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit borrowings, interest rate | 1.90% | 2.11% |
Second Amendment to Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Credit agreement amendment date | 19-Dec-13 | |
Maturity date of Credit Agreement | 19-Dec-18 | |
Interest rate, description | The highest of (a) the Federal funds rate, as in effect from time to time, plus one-half of one percent (0.50%), (b) the LIBO rate, as adjusted to account for statutory reserves, plus one percent (1.00%), or (c) the rate of interest in effect for such day as publicly announced from time to time by Wells Fargo as its "prime rate." | |
Commitment fee assessed | 0.25% | |
Second Amendment to Credit Agreement [Member] | Federal Funds Rate [Member] | ||
Debt Instrument [Line Items] | ||
Applicable margin in addition to variable rate | 0.50% | |
Second Amendment to Credit Agreement [Member] | LIBO Rate [Member] | ||
Debt Instrument [Line Items] | ||
Applicable margin in addition to variable rate | 1.00% | |
First Amendment to Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Credit agreement amendment date | 31-Oct-11 | |
Maturity date of Credit Agreement | 31-Oct-16 | |
Interest rate, description | The applicable margin for base rate loans (as shown below) plus the highest of (a) the Federal funds rate, as in effect from time to time, plus one-half of one percent (0.50%), (b) the LIBO rate, as adjusted to account for statutory reserves, plus one percent (1.00%), or (c) the rate of interest in effect for such day as publicly announced from time to time by Wells Fargo as its "prime rate." | |
Commitment fee assessed | 0.38% | |
First Amendment to Credit Agreement [Member] | Federal Funds Rate [Member] | ||
Debt Instrument [Line Items] | ||
Applicable margin in addition to variable rate | 0.50% | |
First Amendment to Credit Agreement [Member] | LIBO Rate [Member] | ||
Debt Instrument [Line Items] | ||
Applicable margin in addition to variable rate | 1.00% |
LongTerm_Debt_Average_Daily_Ex
Long-Term Debt - Average Daily Excess Availability for Preceding Fiscal Quarter (Detail) | 12 Months Ended |
Dec. 28, 2014 | |
First Amendment to Credit Agreement [Member] | Level I [Member] | |
Line of Credit Facility [Line Items] | |
Average Daily Excess Availability | Greater than or equal to $70,000,000 |
LIBO Rate Applicable Margin | 1.50% |
Base Rate Applicable Margin | 0.50% |
First Amendment to Credit Agreement [Member] | Level II [Member] | |
Line of Credit Facility [Line Items] | |
Average Daily Excess Availability | Greater than or equal to $40,000,000 |
LIBO Rate Applicable Margin | 1.75% |
Base Rate Applicable Margin | 0.75% |
First Amendment to Credit Agreement [Member] | Level III [Member] | |
Line of Credit Facility [Line Items] | |
Average Daily Excess Availability | Less than $40,000,000 |
LIBO Rate Applicable Margin | 2.00% |
Base Rate Applicable Margin | 1.00% |
Second Amendment to Credit Agreement [Member] | Level I [Member] | |
Line of Credit Facility [Line Items] | |
Average Daily Excess Availability | Greater than or equal to $100,000,000 |
LIBO Rate Applicable Margin | 1.25% |
Base Rate Applicable Margin | 0.25% |
Second Amendment to Credit Agreement [Member] | Level II [Member] | |
Line of Credit Facility [Line Items] | |
Average Daily Excess Availability | Less than $100,000,000 but greater than or equal to $40,000,000 |
LIBO Rate Applicable Margin | 1.50% |
Base Rate Applicable Margin | 0.50% |
Second Amendment to Credit Agreement [Member] | Level III [Member] | |
Line of Credit Facility [Line Items] | |
Average Daily Excess Availability | Less than $40,000,000 |
LIBO Rate Applicable Margin | 1.75% |
Base Rate Applicable Margin | 0.75% |
LongTerm_Debt_Summary_of_Borro
Long-Term Debt - Summary of Borrowings Outstanding (Detail) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Credit Facilities [Line Items] | ||
Total borrowings | $66,312 | $43,018 |
LIBO Rate [Member] | ||
Credit Facilities [Line Items] | ||
Total borrowings | 62,000 | 30,000 |
Prime rate [Member] | ||
Credit Facilities [Line Items] | ||
Total borrowings | $4,312 | $13,018 |
Income_Taxes_Summary_of_Total_
Income Taxes - Summary of Total Income Tax Expense (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Income Tax Disclosure [Abstract] | |||
Current, Federal | $5,582 | $15,307 | $10,119 |
Current, State | 1,303 | 3,293 | 1,790 |
Current, Total | 6,885 | 18,600 | 11,909 |
Deferred, Federal | 1,687 | -777 | -2,736 |
Deferred, State | 60 | -87 | -318 |
Deferred, Total | 1,747 | -864 | -3,054 |
Total, Federal | 7,269 | 14,530 | 7,383 |
Total, State | 1,363 | 3,206 | 1,472 |
Total income tax expense (benefit) | $8,632 | $17,736 | $8,855 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | |
Income Tax Contingency [Line Items] | |||
Federal statutory tax rate | 35.00% | ||
Expected WOTC | $300,000 | ||
Reduction to estimated effective tax rate | 1.37% | ||
Unrecognized tax benefits | 0 | 0 | |
Unrecognized tax benefits, period | Over the next 12 months | ||
Accrued interest or penalties | $0 | $0 | |
Earliest Tax Year [Member] | Federal [Member] | |||
Income Tax Contingency [Line Items] | |||
Income tax returns in period | 2011 | ||
Earliest Tax Year [Member] | State and Local [Member] | |||
Income Tax Contingency [Line Items] | |||
Income tax returns in period | 2010 | ||
Leasehold improvements [Member] | |||
Income Tax Contingency [Line Items] | |||
Cost recovery life of qualified leasehold improvements | 15 years |
Income_Taxes_Schedule_of_Feder
Income Taxes - Schedule of Federal Statutory Tax Rate Reconciliation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Income Tax Disclosure [Abstract] | |||
Tax expense at statutory rate | $8,228 | $15,989 | $8,320 |
State taxes, net of federal benefit | 1,062 | 2,110 | 1,088 |
Tax credits and other | -658 | -363 | -553 |
Total income tax expense (benefit) | $8,632 | $17,736 | $8,855 |
Income_Taxes_Schedule_of_Defer
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Deferred rent | $9,400 | $9,744 |
Share-based compensation | 2,508 | 3,116 |
Inventory | 1,243 | 2,130 |
Accrued legal fees | 1,063 | 517 |
Other | 11,610 | 12,077 |
Deferred tax assets | 25,824 | 27,584 |
Basis difference in fixed assets | -1,385 | -2,020 |
Other | -622 | |
Deferred tax liabilities | -2,007 | -2,020 |
Net deferred tax assets | $23,817 | $25,564 |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net income | $2,815 | $7,466 | $2,535 | $2,060 | $5,190 | $9,138 | $6,104 | $7,514 | $14,876 | $27,946 | $14,915 |
Weighted-average shares of common stock outstanding: | |||||||||||
Basic | 21,933 | 21,765 | 21,394 | ||||||||
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards | 200 | 318 | 222 | ||||||||
Diluted | 22,133 | 22,083 | 21,616 | ||||||||
Basic earnings per share | $0.13 | $0.34 | $0.12 | $0.09 | $0.24 | $0.42 | $0.28 | $0.35 | $0.68 | $1.28 | $0.70 |
Diluted earnings per share | $0.13 | $0.34 | $0.11 | $0.09 | $0.23 | $0.41 | $0.28 | $0.34 | $0.67 | $1.27 | $0.69 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Repurchase of common stock, shares | 223,051 | 0 | 448,991 |
Repurchase of common stock, amount | $2,500,000 | $3,600,000 | |
Common stock repurchased and accrued | 75,000 | ||
Total stock repurchased, shares | 2,150,677 | ||
Total stock repurchased, amount | 27,900,000 | ||
Shares available for repurchases | $7,100,000 | ||
Share Option Awards [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Outstanding and antidilutive awards | 513,885 | 763,688 | 1,240,966 |
Nonvested Share Awards and Nonvested Share Unit Awards [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Outstanding and antidilutive awards | 1,208 | 10,236 | 0 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Employer matching and profit-sharing contributions | $1.80 | $2.30 | $1.80 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Related Party Transactions [Abstract] | |||
Services received by Company from related party | $700,000 | $700,000 | $1,000,000 |
Amount due to related party for services received | 60,000 | 142,000 | |
Annual base salary under agreement to be paid to related party | 350,000 | ||
Salary base amount under agreement paid to related party | 350,000 | 350,000 | 350,000 |
Expense recognized to provide future obligations under agreement | 400,000 | 300,000 | 300,000 |
Liability of future obligations | $1,500,000 | $1,500,000 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 28, 2014 | |
Complaints | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of complaints | 9 |
Gift card value | $25 |
Merchandise voucher value | 10 |
Settlement amount | $1,000,000 |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Jun. 14, 2011 | Jul. 24, 2014 | Jun. 30, 2007 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares outstanding | 729,905 | 989,130 | ||||
Granted, shares | 18,000 | |||||
Compensation expense | $1,900,000 | $1,900,000 | $1,700,000 | |||
Recognized tax benefit relating to compensation expense | 700,000 | 700,000 | 600,000 | |||
Net income reduced | 1,200,000 | 1,200,000 | 1,100,000 | |||
Reduction in basic and diluted income per share | $0.05 | $0.05 | $0.05 | |||
Tax withholding payments for share-based compensation | 809,000 | 641,000 | 282,000 | |||
Cost of sales [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | 100,000 | 100,000 | 100,000 | |||
Selling and administrative expense [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | 1,800,000 | 1,800,000 | 1,600,000 | |||
Common Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted, shares | 152,920 | 127,020 | 145,100 | |||
Closing stock price per share | $14.35 | |||||
Shares withheld for tax requirements | 52,927 | 41,812 | 36,011 | |||
Tax withholding payments for share-based compensation | 1,000 | |||||
Common Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares withheld for tax requirements | 52,927 | |||||
2002 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rights (as percentage) | 25.00% | |||||
Maximum expiration period of share based payment awards granted | 10 years | |||||
Shares outstanding | 393,190 | |||||
Shares available for future grant | 0 | |||||
2007 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rights (as percentage) | 25.00% | |||||
Maximum expiration period of share based payment awards granted | 10 years | |||||
Aggregate amount of shares authorized for issuance | 2,399,250 | |||||
Shares limited for every one share granted | 2.5 | |||||
Amendment and Restatement 2007 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for future grant | 973,412 | |||||
Maximum number of shares increased | 1,250,000 | |||||
Expiration date of plan | 26-Apr-21 | |||||
Expiration period | 4 years | |||||
Share Option Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense | 300,000 | |||||
Weighted-average period of recognition | 2 years 2 months 12 days | |||||
Nonvested Share Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rights (as percentage) | 25.00% | |||||
Maximum expiration period of share based payment awards granted | 10 years | |||||
Granted, shares | 152,920 | |||||
Nonvested shares outstanding | 336,765 | 333,770 | ||||
Weighted-average period of recognition | 2 years 3 months 18 days | |||||
Fair value of nonvested share awards | 2,100,000 | 1,800,000 | 800,000 | |||
Weighted-average grant-date fair value per share | $15.14 | $15.56 | $7.79 | |||
Unrecognized compensation expense | 3,100,000 | |||||
Nonvested Share Awards [Member] | Non-Employee Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rights (as percentage) | 100.00% | |||||
Vesting period | 1 year | |||||
Nonvested Share Awards [Member] | Amendment and Restatement 2007 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted, shares | 152,920 | |||||
Nonvested Share Unit Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted, share units | 12,000 | |||||
Nonvested shares outstanding | 29,250 | 25,500 | ||||
Weighted-average period of recognition | 2 years 6 months | |||||
Fair value of nonvested share awards | 100,000 | 38,000 | 19,000 | |||
Weighted-average grant-date fair value per share | $11.93 | $20.29 | $6.33 | |||
Unrecognized compensation expense | 300,000 | |||||
Nonvested Share Unit Awards [Member] | Amendment and Restatement 2007 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted, share units | 12,000 | |||||
Nonvested shares outstanding | 29,250 | |||||
Share Option Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted-average grant-date fair value per share | $4.80 | $8.37 | $2.12 | |||
Intrinsic value of share option awards exercised | 200,000 | 5,100,000 | 1,000,000 | |||
Employee share option award exercised | 100,000 | 4,600,000 | 1,500,000 | |||
Recognized tax benefit relating to compensation expense | $100,000 | $2,000,000 | $400,000 | |||
Share Option Awards [Member] | Amendment and Restatement 2007 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares outstanding | 336,715 | |||||
Granted, shares | 18,000 | |||||
Nonvested share awards [Member] | Amendment and Restatement 2007 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Nonvested shares outstanding | 336,765 |
ShareBased_Compensation_Plans_2
Share-Based Compensation Plans - Fair Value of Share Option Award Based on Weighted-Average Assumptions (Detail) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate | 1.80% | 1.40% | 1.20% |
Expected term | 5 years 9 months 18 days | 6 years 10 months 24 days | 7 years 8 months 12 days |
Expected volatility | 57.00% | 57.50% | 53.00% |
Expected dividend yield | 3.30% | 2.30% | 4.70% |
ShareBased_Compensation_Plans_3
Share-Based Compensation Plans - Summary of Share Option Awards (Detail) (USD $) | 12 Months Ended |
Dec. 28, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shares, Outstanding at December 29, 2013 | 989,130 |
Shares, Granted | 18,000 |
Shares, Exercised | -18,125 |
Shares, Forfeited or Expired | -259,100 |
Shares, Outstanding at December 28, 2014 | 729,905 |
Shares, Exercisable at December 28, 2014 | 669,905 |
Shares, Vested and Expected to Vest at December 28, 2014 | 729,247 |
Weighted-Average Exercise Price, Outstanding at December 29, 2013 | $17.83 |
Weighted-Average Exercise Price, Granted | $11.93 |
Weighted-Average Exercise Price, Exercised | $6.66 |
Weighted-Average Exercise Price, Forfeited or Expired | $24.14 |
Weighted-Average Exercise Price, Outstanding at December 28, 2014 | $15.73 |
Weighted-Average Exercise Price, Exercisable at December 28, 2014 | $16 |
Weighted-Average Exercise Price, Vested and Expected to Vest at December 28, 2014 | $15.73 |
Weighted-Average Remaining Contractual Life (In Years), Outstanding at December 28, 2014 | 2 years 11 months 19 days |
Weighted-Average Remaining Contractual Life (In Years), Exercisable at December 28, 2014 | 2 years 6 months |
Weighted-Average Remaining Contractual Life (In Years), Vested and Expected to Vest at December 28, 2014 | 2 years 11 months 19 days |
Aggregate Intrinsic Value, Outstanding at December 28, 2014 | $1,954,005 |
Aggregate Intrinsic Value, Exercisable at December 28, 2014 | 1,770,440 |
Aggregate Intrinsic Value, Vested and Expected to Vest at December 28, 2014 | $1,952,641 |
ShareBased_Compensation_Plans_4
Share-Based Compensation Plans - Summary of Nonvested Share Awards Activity (Detail) (USD $) | 12 Months Ended |
Dec. 28, 2014 | |
Nonvested Share Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares/share units, beginning balance | 333,770 |
Granted, shares | 152,920 |
Vested, shares/share units | -137,615 |
Forfeited, shares/share units | -12,310 |
Nonvested shares/share units, ending balance | 336,765 |
Weighted-Average Grant-Date Fair Value, Beginning Balance | $12.38 |
Weighted-Average Grant-Date Fair Value, Granted | $15.14 |
Weighted-Average Grant-Date Fair Value, Vested | $12.67 |
Weighted-Average Grant-Date Fair Value, Forfeited | $13.50 |
Weighted-Average Grant-Date Fair Value, Ending Balance | $13.47 |
Nonvested Share Unit Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares/share units, beginning balance | 25,500 |
Granted, share units | 12,000 |
Vested, shares/share units | -8,250 |
Nonvested shares/share units, ending balance | 29,250 |
Weighted-Average Grant-Date Fair Value, Beginning Balance | $13.24 |
Weighted-Average Grant-Date Fair Value, Granted | $11.93 |
Weighted-Average Grant-Date Fair Value, Vested | $11.93 |
Weighted-Average Grant-Date Fair Value, Ending Balance | $13.07 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data - Schedule of Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $250,332 | $265,115 | $231,150 | $231,263 | $248,037 | $259,121 | $239,899 | $246,266 | $977,860 | $993,323 | $940,490 |
Gross profit | 79,139 | 86,060 | 75,573 | 72,678 | 80,802 | 87,790 | 79,673 | 80,475 | 313,449 | 328,740 | 302,769 |
Net income | $2,815 | $7,466 | $2,535 | $2,060 | $5,190 | $9,138 | $6,104 | $7,514 | $14,876 | $27,946 | $14,915 |
Basic earnings per share | $0.13 | $0.34 | $0.12 | $0.09 | $0.24 | $0.42 | $0.28 | $0.35 | $0.68 | $1.28 | $0.70 |
Diluted earnings per share | $0.13 | $0.34 | $0.11 | $0.09 | $0.23 | $0.41 | $0.28 | $0.34 | $0.67 | $1.27 | $0.69 |
Selected_Quarterly_Financial_D3
Selected Quarterly Financial Data - Schedule of Quarterly Financial Information (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Dec. 28, 2014 | Jun. 29, 2014 | Sep. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Quarterly Financial Information [Line Items] | ||||||
Pre-tax non-cash impairment charge | $400,000 | $800,000 | $100,000 | $1,164,000 | $72,000 | $208,000 |
Decrease in net income (loss) | 900,000 | 800,000 | ||||
Decrease in net income (loss) per diluted share | $0.04 | $0.04 | ||||
Pre-tax charge for legal settlements | 1,300,000 | |||||
Decrease in net sales | 300,000 | |||||
Selling and administrative expense | 1,400,000 | 1,000,000 | 288,274,000 | 281,313,000 | 276,797,000 | |
Impairment charge [Member] | ||||||
Quarterly Financial Information [Line Items] | ||||||
Decrease in net income (loss) | $300,000 | $500,000 | $44,000 | |||
Decrease in net income (loss) per diluted share | $0.01 | $0.02 | $0 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 28, 2014 | |
Subsequent Event [Line Items] | |
Dividend declared per share, payable date | 16-Mar-15 |
Dividend declared per share, record date | 2-Mar-15 |
First Quarter of Fiscal 2015 [Member] | |
Subsequent Event [Line Items] | |
Dividend per share | 0.1 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Charged to Costs and Expenses | $50,000 | ||
Allowance for doubtful receivables [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 105,000 | 99,000 | 142,000 |
Charged to Costs and Expenses | 24,000 | 59,000 | -35,000 |
Deductions | -19,000 | -53,000 | -8,000 |
Balance at End of Period | 110,000 | 105,000 | 99,000 |
Allowance for sales returns [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 1,436,000 | 1,475,000 | 1,418,000 |
Charged to Costs and Expenses | -116,000 | -39,000 | 57,000 |
Balance at End of Period | 1,320,000 | 1,436,000 | 1,475,000 |
Inventory reserves [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 5,282,000 | 5,151,000 | 5,109,000 |
Charged to Costs and Expenses | 5,139,000 | 5,444,000 | 5,983,000 |
Deductions | -5,072,000 | -5,313,000 | -5,941,000 |
Balance at End of Period | $5,349,000 | $5,282,000 | $5,151,000 |
Schedule_II_Valuation_and_Qual2
Schedule II - Valuation and Qualifying Accounts (Parenthetical) (Detail) (USD $) | 12 Months Ended |
Dec. 30, 2012 | |
Valuation and Qualifying Accounts [Abstract] | |
Charged to Costs and Expenses | $50,000 |