Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 03, 2016 | Feb. 24, 2016 | Jun. 28, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 3, 2016 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BGFV | ||
Entity Registrant Name | BIG 5 SPORTING GOODS CORP | ||
Entity Central Index Key | 1,156,388 | ||
Current Fiscal Year End Date | --01-03 | ||
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 | 21,914,082 | ||
Entity Public Float | $ 238,945,947 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 03, 2016 | Dec. 28, 2014 |
Current assets: | ||
Cash | $ 7,119 | $ 11,503 |
Accounts receivable, net of allowances of $61 and $110, respectively | 14,180 | 15,680 |
Merchandise inventories, net | 299,446 | 310,088 |
Prepaid expenses | 12,185 | 9,358 |
Deferred income taxes | 11,100 | 11,025 |
Total current assets | 344,030 | 357,654 |
Property and equipment, net | 82,036 | 78,440 |
Deferred income taxes | 12,302 | 12,792 |
Other assets, net of accumulated amortization of $1,244 and $1,067, respectively | 2,228 | 2,257 |
Goodwill | 4,433 | 4,433 |
Total assets | 445,029 | 455,576 |
Current liabilities: | ||
Accounts payable | 89,961 | 92,369 |
Accrued expenses | 69,524 | 70,399 |
Current portion of capital lease obligations | 1,435 | 1,197 |
Total current liabilities | 160,920 | 163,965 |
Deferred rent, less current portion | 19,516 | 20,736 |
Capital lease obligations, less current portion | 2,392 | 1,155 |
Long-term debt | 54,846 | 66,312 |
Other long-term liabilities | 8,524 | 8,404 |
Total liabilities | $ 246,198 | $ 260,572 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value, authorized 50,000,000 shares; issued 24,562,799 and 24,445,345 shares, respectively; outstanding 21,917,982 and 22,180,458 shares, respectively | $ 246 | $ 245 |
Additional paid-in capital | 112,236 | 110,707 |
Retained earnings | 118,998 | 112,521 |
Less: Treasury stock, at cost; 2,644,817 and 2,264,887 shares, respectively | (32,649) | (28,469) |
Total stockholders’ equity | 198,831 | 195,004 |
Total liabilities and stockholders’ equity | $ 445,029 | $ 455,576 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 03, 2016 | Dec. 28, 2014 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 61 | $ 110 |
Accumulated amortization on other assets | $ 1,244 | $ 1,067 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 24,562,799 | 24,445,345 |
Common stock, shares outstanding | 21,917,982 | 22,180,458 |
Treasury stock, shares | 2,644,817 | 2,264,887 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Income Statement [Abstract] | |||
Net sales | $ 1,029,098 | $ 977,860 | $ 993,323 |
Cost of sales | 704,134 | 664,411 | 664,583 |
Gross profit | 324,964 | 313,449 | 328,740 |
Selling and administrative expense | 298,425 | 288,274 | 281,313 |
Operating income | 26,539 | 25,175 | 47,427 |
Interest expense | 1,791 | 1,667 | 1,745 |
Income before income taxes | 24,748 | 23,508 | 45,682 |
Income taxes | 9,451 | 8,632 | 17,736 |
Net income | $ 15,297 | $ 14,876 | $ 27,946 |
Earnings per share: | |||
Basic | $ 0.70 | $ 0.68 | $ 1.28 |
Diluted | 0.70 | 0.67 | 1.27 |
Dividends per share | $ 0.40 | $ 0.40 | $ 0.40 |
Weighted-average shares of common stock outstanding: | |||
Basic | 21,741 | 21,933 | 21,765 |
Diluted | 21,927 | 22,133 | 22,083 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock Outstanding [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock, At Cost [Member] |
Beginning Balance at Dec. 30, 2012 | $ 164,420 | $ 238 | $ 102,658 | $ 87,464 | $ (25,940) | |
Beginning Balance, Shares at Dec. 30, 2012 | 21,741,248 | |||||
Net income | 27,946 | 27,946 | ||||
Dividends on common stock ($0.40 per share) | (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) | |||||
Purchases of treasury stock, Shares | 0 | |||||
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 ($0.40 per share) | (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 | |||||
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) | (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 | |||||
Net income | 15,297 | 15,297 | ||||
Dividends on common stock ($0.40 per share) | (8,820) | (8,820) | ||||
Issuance of nonvested share awards | 2 | (2) | ||||
Issuance of nonvested share awards, Shares | 152,140 | |||||
Exercise of share option awards | $ 147 | 147 | ||||
Exercise of share option awards, Shares | 25,875 | 25,875 | ||||
Share-based compensation | $ 2,235 | 2,235 | ||||
Tax benefit (deficiency) from share-based awards activity | (167) | (167) | ||||
Forfeiture of nonvested share awards, Shares | (7,940) | |||||
Retirement of common stock for payment of withholding tax | $ (685) | (1) | (684) | |||
Retirement of common stock for payment of withholding tax, Shares | (52,621) | (52,621) | ||||
Purchases of treasury stock | $ (4,180) | (4,180) | ||||
Purchases of treasury stock, Shares | (379,930) | (379,930) | ||||
Ending Balance at Jan. 03, 2016 | $ 198,831 | $ 246 | $ 112,236 | $ 118,998 | $ (32,649) | |
Ending Balance, shares at Jan. 03, 2016 | 21,917,982 |
Consolidated Statements of Sto6
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Dividends per share | $ 0.40 | $ 0.40 | $ 0.40 |
Retained Earnings [Member] | |||
Dividends per share | $ 0.40 | $ 0.40 | $ 0.40 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 15,297 | $ 14,876 | $ 27,946 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 21,410 | 21,505 | 20,192 |
Impairment of store assets | 192 | 1,164 | 72 |
Share-based compensation | 2,235 | 1,924 | 1,877 |
Excess tax benefit related to share-based awards | (137) | (194) | (1,733) |
Amortization of debt issuance costs | 177 | 177 | 254 |
Deferred income taxes | 415 | 1,747 | (864) |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 1,500 | 621 | (1,004) |
Merchandise inventories, net | 10,642 | (9,136) | (30,602) |
Prepaid expenses and other assets | (3,142) | (2,591) | 3,863 |
Accounts payable | (7,368) | (349) | 4,234 |
Accrued expenses and other long-term liabilities | (1,576) | (1,209) | 2,052 |
Net cash provided by operating activities | 39,645 | 28,535 | 26,287 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (24,567) | (22,565) | (22,035) |
Proceeds from solar energy rebate | 100 | ||
Net cash used in investing activities | (24,567) | (22,465) | (22,035) |
Cash flows from financing activities: | |||
Principal borrowings under revolving credit facility | 202,218 | 216,086 | 248,263 |
Principal payments under revolving credit facility | (213,684) | (192,792) | (252,706) |
Changes in book overdraft | 6,992 | (13,748) | 7,115 |
Debt issuance costs | (164) | ||
Principal payments under capital lease obligations | (1,599) | (1,602) | (1,807) |
Proceeds from exercise of share option awards | 147 | 121 | 4,586 |
Excess tax benefit related to share-based awards | 137 | 194 | 1,733 |
Purchases of treasury stock | (4,180) | (2,529) | (75) |
Tax withholding payments for share-based compensation | (685) | (809) | (641) |
Dividends paid | (8,808) | (8,888) | (8,791) |
Net cash used in financing activities | (19,462) | (3,967) | (2,487) |
Net (decrease) increase in cash | (4,384) | 2,103 | 1,765 |
Cash at beginning of year | 11,503 | 9,400 | 7,635 |
Cash at end of year | 7,119 | 11,503 | 9,400 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Property and equipment acquired under capital leases | 3,074 | 792 | 392 |
Property and equipment additions unpaid | 2,663 | 5,121 | 3,309 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 1,691 | 1,502 | 1,475 |
Income taxes paid | $ 8,331 | $ 9,995 | $ 18,602 |
Description of Business
Description of Business | 12 Months Ended |
Jan. 03, 2016 | |
Accounting Policies [Abstract] | |
Description of Business | (1) Description of Business The accompanying consolidated financial statements as of January 3, 2016 and December 28, 2014 and for the years ended January 3, 2016 (“fiscal 2015”), December 28, 2014 (“fiscal 2014”) and December 29, 2013 (“fiscal 2013”) 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 is a leading sporting goods retailer in the western United States, operating 438 stores and an e-commerce platform as of January 3, 2016. The Company operates as one reportable segment under the “Big 5 Sporting Goods” name and provides a full-line product offering in a traditional sporting goods store format that averages approximately 11,000 square feet. The Company’s product mix includes athletic shoes, apparel and accessories, as well as a broad selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, winter and summer recreation and roller sports. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 03, 2016 | |
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 2015 included 53 weeks and fiscal 2014 and 2013 each included 52 weeks. Recently Issued Accounting Updates In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition—Construction-Type and Production-Type Contracts Other Assets and Deferred Costs—Contracts with Customers In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs Interest—Imputation of Interest (Subtopic 835-30) – Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements—Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting In April 2015, the FASB issued ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) – Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330)—Simplifying the Measurement of Inventory In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740)—Balance Sheet Classification of Deferred Taxes , which requires that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. Prior to the issuance of this guidance, deferred tax liabilities and assets were required to be separately classified into a current amount and a noncurrent amount in the balance sheet. The new accounting guidance represents a change in accounting principle and the standard is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. , and in accordance with this ASU, the Company will reclassify current deferred taxes to noncurrent deferred taxes on its consolidated balance sheet. Because the application of ASU No. 2015-17 affects classification only, such reclassification is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) 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 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 a sporting goods retailer, which includes both retail stores and an e-commerce platform, 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 platform 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 for both the stores and e-commerce platform 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 2015 2014 2013 (In thousands) Hard goods $ 534,864 $ 517,968 $ 540,698 Athletic and sport apparel 199,109 181,722 174,021 Athletic and sport footwear 291,325 274,355 275,744 Other sales 3,800 3,815 2,860 Net sales $ 1,029,098 $ 977,860 $ 993,323 The Company launched its e-commerce platform in the fourth quarter of fiscal 2014 and e-commerce net sales for fiscal 2015 and 2014 were not material. Earnings Per Share The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share 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 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 2015). The Company recognized approximately $0.4 million, $0.4 million and $0.4 million in gift card breakage revenue for fiscal 2015, 2014 and 2013, respectively. The Company had outstanding gift card liabilities of $4.9 million and $5.2 million 2014 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 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 $39.8 million, $42.6 million and $44.5 million for fiscal 2015, 2014 and 2013, 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 $6.0 million, $5.9 million and $6.2 million for fiscal 2015, 2014 and 2013, respectively. Share-Based Compensation The Company accounts for its share-based compensation in accordance with ASC 718, Compensation—Stock Compensation Pre-opening Costs Pre-opening costs for new stores, which are not material, consist primarily of payroll and recruiting expense, training, marketing, rent, travel and supplies, and 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: Leasehold improvements Shorter of estimated useful life or term of lease Furniture and equipment 3 – 10 years Internal-use software 3 – 7 years Maintenance and repairs are expensed as incurred. In fiscal 2015 and 2014, 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 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 The Company performed an annual impairment test as of the end of fiscal 2015, 2014 and 2013, and determined that goodwill was not impaired. Furthermore, the Company has no accumulated impairment losses as of January 3, 2016. 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 net 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 2015, 2014 and 2013, the Company recognized pre-tax non-cash impairment charges of $0.2 million, $1.2 million and $0.1 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, information technology 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 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 $0.8 million and $0.7 million as of January 3, 2016 and December 28, 2014, 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 $11.2 million and $10.7 million as of January 3, 2016 and December 28, 2014, respectively, of which $4.8 million and $4.4 million were recorded as a component of accrued expenses as of January 3, 2016 and December 28, 2014, respectively, and $ 6.4 Income Taxes Under the asset and liability method prescribed within ASC 740, Income Taxes 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 January 3, 2016 and December 28, 2014, 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 platform. 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. From time to time, shipping ports experience capacity constraints, labor strikes, work stoppages or other disruptions that may delay the delivery of imported products. A contract dispute, such as the one the Company experienced in the Ports of Los Angeles and Long Beach in 2015, may lead to protracted delays in the movement of the Company’s products, which could further delay the delivery of products to the Company’s stores and impact net sales and profitability. In addition, other conditions outside of the Company’s control, such as adverse weather conditions or acts of terrorism, could significantly disrupt operations at shipping ports or otherwise impact transportation of the imported merchandise we sell. The Company purchases merchandise from over 700 suppliers, and the Company’s 20 largest suppliers accounted for 41.5% of total purchases in fiscal 2015. One vendor represented greater than 5% of total purchases, at 10.8%, in fiscal 2015. 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 |
Jan. 03, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | (3) Property and Equipment, Net Property and equipment, net, consist of the following: January 2016 December 28, 2014 (In thousands) Furniture and equipment $ 128,781 $ 118,297 Leasehold improvements 150,617 143,056 Internal-use software 25,215 24,264 304,613 285,617 Accumulated depreciation and amortization (1) (228,701 ) (211,422 ) 75,912 74,195 Assets not placed into service (2) 6,124 4,245 Property and equipment, net $ 82,036 $ 78,440 (1) Includes accumulated amortization for internal-use software development costs of $20.5 million and $19.0 million as of January 3, 2016 and December 28, 2014, respectively. ( 2 ) Includes internal-use software development costs of $5.2 million and $2.7 million related to the development of a new point-of-sale system as of January 3, 2016 and December 28, 2014, respectively. As of January 3, 2016, to provide additional information, the Company separately disclosed internal-use software and related amortization expense. Prior year amounts related to this footnote have also been reclassified to conform to the current year presentation. Depreciation expense associated with property and equipment, including assets leased under capital leases, was $8.3 million, $8.8 million and $9.0 million for fiscal 2015, 2014 and 2013, respectively. Amortization expense for leasehold improvements was $11.6 million, $11.5 million and $10.2 million for fiscal 2015, 2014 and 2013, respectively. Amortization expense for internal-use software was $1.5 million, $1.2 million and $1.0 million for fiscal 2015, 2014 and 2013, respectively. The gross cost of equipment under capital leases, included above, was $9.4 million and $8.5 million as of January 3, 2016 and December 28, 2014, respectively. The accumulated amortization related to these capital leases was $5.6 million and $5.9 million as of January 3, 2016 and December 28, 2014, respectively. |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets | 12 Months Ended |
Jan. 03, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
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 2015, 2014 and 2013, the Company recognized pre-tax non-cash impairment charges of $0.2 million, $1.2 million and $0.1 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 expense. 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 2015, 2014 and 2013 in the consolidated statements of operations. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 03, 2016 | |
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 January 3, 2016 and December 28, 2014, 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 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jan. 03, 2016 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | (6) Accrued Expenses The major components of accrued expenses are as follows: January 3, 2016 December 28, 2014 (In thousands) Payroll and related expense $ 24,090 $ 22,568 Sales tax 11,307 10,432 Occupancy expense 10,693 9,412 Other 23,434 27,987 Accrued expenses $ 69,524 $ 70,399 |
Lease Commitments
Lease Commitments | 12 Months Ended |
Jan. 03, 2016 | |
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 January 3, 2016 December 28, 2014 December 29, 2013 (In thousands) Rent expense $ 71,541 $ 66,276 $ 62,777 Contingent rent 654 858 1,081 Total rent expense $ 72,195 $ 67,134 $ 63,858 Rent expense includes sublease rent income of $0.1 million, $0.1 million and $0.1 million for fiscal 2015, 2014 and 2013, respectively. Future minimum lease payments under non-cancelable leases as of January 3, 2016 are as follows: Year Ending: Capital Leases Operating Leases Total (In thousands) 2016 $ 1,533 $ 78,426 $ 79,959 2017 1,138 70,385 71,523 2018 845 61,611 62,456 2019 437 50,145 50,582 2020 64 36,461 36,525 Thereafter — 71,985 71,985 Total minimum lease payments 4,017 $ 369,013 $ 373,030 Imputed interest (190 ) Present value of minimum lease payments $ 3,827 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 November 2015, the Company commenced operations at an additional 171,000 square foot distribution space adjacent to its distribution center 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. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 03, 2016 | |
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”). The maturity date of the Credit Agreement is December 19, 2018. 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. 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”). 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. 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 Applicable Margin Base Rate 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 commitment fee assessed on the unused portion of the Credit Facility is 0.25% per annum. 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. As of January 3, 2016 and December 28, 2014, the one-month LIBO rate was 0.5% and 0.2%, respectively, and the Wells Fargo Bank prime lending rate was 3.50% and 3.25%, respectively. The average interest rate on the Company’s revolving credit borrowings during fiscal 2015 and 2014 was 1.90% and 1.90%, respectively. As of January 3, 2016 and December 28, 2014, the Company had long-term revolving credit borrowings outstanding bearing interest at both LIBO and the prime lending rates as follows: January 3, 2016 December 28, 2014 (In thousands) LIBO rate $ 53,000 $ 62,000 Prime rate 1,846 4,312 Total borrowings $ 54,846 $ 66,312 Total remaining borrowing availability, after subtracting letters of credit, was $84.7 million and $73.2 million as of January 3, 2016 and December 28, 2014, respectively, and letter of credit commitments were $0.5 million and $0.5 million as of January 3, 2016 and December 28, 2014, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 03, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (9) Income Taxes Total income tax expense (benefit) consists of the following: Current Deferred Total (In thousands) Fiscal 2015: Federal $ 7,478 $ 378 $ 7,856 State 1,558 37 1,595 $ 9,036 $ 415 $ 9,451 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 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 January 2016 December 28, 2014 December 29, 2013 (In thousands) Tax expense at statutory rate $ 8,662 $ 8,228 $ 15,989 State taxes, net of federal benefit 1,118 1,062 2,110 Tax credits and other (329 ) (658 ) (363 ) $ 9,451 $ 8,632 $ 17,736 Deferred tax assets and liabilities consist of the following tax-effected temporary differences: January 2016 December 28, 2014 (In thousands) Deferred tax assets: Deferred rent $ 9,530 $ 9,978 Insurance liabilities 4,391 4,219 Employee benefit-related liabilities 4,077 3,927 Share-based compensation 2,569 2,662 Inventory 1,941 1,320 Gift card liability 1,300 1,211 Accrued legal fees 192 1,129 Other 3,337 3,514 Deferred tax assets 27,337 27,960 Basis difference in fixed assets (1,252 ) (1,447 ) Federal liability on state deferred tax assets (2,683 ) (2,696 ) Deferred tax liabilities (3,935 ) (4,143 ) Net deferred tax assets $ 23,402 $ 23,817 As of January 3, 2016, the Company separately disclosed deferred tax assets and liabilities related to insurance liabilities, employee benefit-related liabilities, gift card liability and federal liability on state deferred tax assets to provide additional information about components of deferred tax. Prior year amounts related to this footnote have also been reclassified to conform to the current year presentation. 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 2012 and after, and state and local income tax returns are open for fiscal years 2011 and after. As of January 3, 2016 and December 28, 2014, 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. As of January 3, 2016 and December 28, 2014, the Company had no accrued interest or penalties. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 03, 2016 | |
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 The following table sets forth the computation of basic and diluted earnings per common share: Year Ended January 3, 2016 December 28, 2014 December 29, 2013 (In thousands, except per share data) Net income $ 15,297 $ 14,876 $ 27,946 Weighted-average shares of common stock outstanding: Basic 21,741 21,933 21,765 Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards 186 200 318 Diluted 21,927 22,133 22,083 Basic earnings per share $ 0.70 $ 0.68 $ 1.28 Diluted earnings per share $ 0.70 $ 0.67 $ 1.27 Antidilutive share option awards excluded from diluted calculation 480,599 513,885 763,688 Antidilutive nonvested share and nonvested share unit awards excluded from diluted calculation 165 1,208 10,236 The computation of diluted earnings per share for fiscal 2015, 2014 and 2013 does not include share option awards 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 2015, 2014 and 2013 does not include nonvested share awards and nonvested share unit awards 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. The Company repurchased 379,930 shares of common stock for $4.2 million in fiscal 2015 and 223,051 shares of common stock for $2.5 million in fiscal 2014. The Company did not repurchase shares of common stock during fiscal 2013. Since the inception of the Company’s initial share repurchase program in May 2006 through January 3, 2016, the Company has repurchased a total of 2,530,607 shares for $32.1 million, leaving a total of $2.9 million available for share repurchases under the current share repurchase program. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 03, 2016 | |
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 $2.0 million, $1.8 million and $2.3 million for fiscal 2015, 2014 and 2013, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 03, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (12) Related Party Transactions G. Michael Brown, who retired from the Company’s Board of Directors in June 2015, is 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 $0.7 million in fiscal 2015, 2014 and 2013, respectively. Amounts due to Musick, Peeler & Garrett LLP totaled $41,000 and $60,000 as of January 3, 2016 and December 28, 2014, 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 each of fiscal 2015, 2014 and 2013, the Company made a payment of $350,000 to Mr. Miller’s wife. The Company recognized expense of $0.3 million, $0.4 million and $0.3 million in fiscal 2015, 2014 and 2013, 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 January 3, 2016 and December 28, 2014, 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 |
Jan. 03, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (13) Commitments and Contingencies 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 alleged 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 alleged, 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 sought, 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 believed that the complaint was without merit. The Company was not 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. On April 1, 2015, the parties agreed to settle the lawsuit. On June 22, 2015, the court granted preliminary approval of the proposed settlement. On October 20, 2015, the court granted final approval of the settlement. Under the terms of the settlement, the Company agreed to pay approximately $1.4 million, which includes payments to class members, plaintiff’s attorneys’ fees and expenses, an enhancement payment to the class representative, claims administration fees and payment to the California Labor and Workforce Development Agency. The Company’s total payments pursuant to this settlement have been reflected in a legal settlement accrual initially recorded in the fourth quarter of fiscal 2014 prior to the settlement and subsequently adjusted in the first quarter of fiscal 2015 to reflect the settlement. The Company admitted no liability or wrongdoing with respect to the claims set forth in the lawsuit. The settlement constitutes a full and complete settlement and release of all claims related to the lawsuit. 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. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Jan. 03, 2016 | |
Disclosure Of Compensation Related Costs Sharebased 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 January 3, 2016, no shares remained available for future grant and 323,790 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 terminated 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: · 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 2015, the Company granted 152,140 nonvested share awards, 25,200 nonvested share unit awards and 20,000 share option awards to directors and certain employees, as defined by ASC 718, Compensation—Stock Compensation 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 2015, 2014 and 2013 was $2.2 million, $1.9 million and $1.9 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 2015, 2014 and 2013, respectively, and compensation expense recognized in selling and administrative expense was $2.1 million, $1.8 million and $1.8 million in fiscal 2015, 2014 and 2013, respectively. The recognized tax benefit related to compensation expense for fiscal 2015, 2014 and 2013 was $0.8 million, $0.7 million and $0.7 million, respectively. Net income for fiscal 2015, 2014 and 2013 was reduced by $1.4 million, $1.2 million and $1.2 million, respectively, or $0.06, $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 January 3, 2016 December 28, 2014 December 29, 2013 Risk-free interest rate 1.8 % 1.8 % 1.4 % Expected term 5.8 years 5.8 years 6.9 years Expected volatility 57.0 % 57.0 % 57.5 % Expected dividend yield 2.8 % 3.3 % 2.3 % 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 2015, 2014 and 2013 was $6.02 per share, $4.80 per share and $8.37 per share, respectively. A summary of the status of the Company’s share option awards is presented below: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at December 28, 2014 729,905 $ 15.73 Granted 20,000 14.31 Exercised (25,875 ) 5.70 Forfeited or Expired (69,400 ) 24.36 Outstanding at January 3, 2016 654,630 $ 15.16 2.35 $ 723,150 Exercisable at January 3, 2016 602,130 $ 15.25 1.83 $ 708,163 Vested and Expected to Vest at January 3, 2016 654,088 $ 15.17 2.35 $ 723,133 The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based upon the Company’s closing stock price of $9.99 per share as of January 3, 2016, 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 2015, 2014 and 2013 was approximately $0.2 million, $0.2 million and $5.1 million, respectively. The total cash received from employees as a result of employee share option award exercises for fiscal 2015, 2014 and 2013 was approximately $0.1 million, $0.1 million and $4.6 million, respectively. The actual tax benefit realized for the tax deduction from share option award exercises in fiscal 2015, 2014 and 2013 totaled $0.1 million, $0.1 million and $2.0 million, respectively. As of January 3, 2016, there was $0.2 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 2.4 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. 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 became 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 2015, 2014 and 2013 was $1.7 million, $2.1 million and $1.8 million, respectively. The total fair value of nonvested share unit awards which vested during fiscal 2015, 2014 and 2013 was $0.1 million, $0.1 million and $38,000, respectively. The following table details the Company’s nonvested share awards activity for fiscal 2015: Shares Weighted- Average Grant- Date Fair Value Balance at December 28, 2014 336,765 $ 13.47 Granted 152,140 13.06 Vested (132,475 ) 12.57 Forfeited (7,940 ) 13.84 Balance at January 3, 2016 348,490 $ 13.63 The following table details the Company’s nonvested share unit awards activity for fiscal 2015: Units Weighted- Average Grant- Date Fair Value Balance at December 28, 2014 29,250 $ 13.07 Granted 25,200 14.67 Vested (11,250 ) 11.93 Forfeited — — Balance at January 3, 2016 43,200 $ 14.30 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 2015, 2014 and 2013 was $13.06 per share, $15.14 per share and $15.56 per share, respectively. The weighted-average grant-date fair value per share of the Company’s nonvested share unit awards granted in fiscal 2015, 2014 and 2013 was $14.67 per share, $11.93 per share and $20.29 per share, respectively. As of January 3, 2016, there was $3.2 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 2.2 years and 1.0 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 2015, the Company withheld 52,621 common shares with a total value of $0.7 million. This amount is presented as a cash outflow from financing activities in the accompanying consolidated statements of cash flows. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Jan. 03, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | (15) Selected Quarterly Financial Data (unaudited) Fiscal 2015 First Second Third Fourth Quarter (1)(2) Quarter (2) Quarter Quarter (3)(4) (In thousands, except per share data) Net sales $ 243,555 $ 240,407 $ 270,130 $ 275,006 Gross profit $ 76,684 $ 77,276 $ 85,165 $ 85,839 Net income $ 2,314 $ 2,578 $ 6,130 $ 4,275 Basic earnings per share $ 0.11 $ 0.12 $ 0.28 $ 0.20 Diluted earnings per share $ 0.11 $ 0.12 $ 0.28 $ 0.20 Fiscal 2014 First Second Third Fourth Quarter Quarter (4) Quarter Quarter (1)(4) (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 (1) The Company recorded pre-tax charges in the first quarter of fiscal 2015 and the fourth quarter of fiscal 2014 of $0.4 million and $1.4 million, respectively, related to legal accruals. These charges were included in selling and administrative expense and reduced net income in the first quarter of fiscal 2015 and fourth quarter of fiscal 2014 by $0.2 million, or $0.01 per diluted share, and $0.9 million, or $0.04 per diluted share, respectively. (2) The Company recorded pre-tax charges of $0.5 million and $1.1 million in the first quarter and second quarter of fiscal 2015, respectively, related to a publicly-disclosed proxy contest. These charges were included in selling and administrative expense, and reduced net income in the first quarter and second quarter of fiscal 2015 by $0.3 million, or $0.01 per diluted share, and $0.7 million, or $0.03 per diluted share, respectively. (3) The Company recorded pre-tax charges of $0.4 million in the fourth quarter of fiscal 2015 related to the evaluation of store growth strategies and potential profit improvement opportunities. These charges were included in selling and administrative expense, and reduced net income in the fourth quarter of fiscal 2015 by $0.2 million, or $0.01 per diluted share. (4) The Company recorded pre-tax non-cash impairment charges of $0.2 million, $0.8 million and $0.4 million in the fourth quarter of fiscal 2015 and 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 by $0.1 million, or $0.00 per diluted share, and $0.5 million, or $0.02 per diluted share, and $0.3 million, or $0.01 per diluted share, in the fourth quarter of fiscal 2015 and the second quarter and fourth quarter of fiscal 2014, respectively. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Jan. 03, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | (16) Subsequent Event In the first quarter of fiscal 2016, the Company’s Board of Directors declared a quarterly cash dividend of $0.125 per share of outstanding common stock, which will be paid on March 22, 2016 to stockholders of record as of March 8, 2016. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 03, 2016 | |
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 Beginning of Period Charged to Costs and Expenses Deductions Balance at End of Period January 3, 2016 Allowance for doubtful receivables $ 110 $ 50 $ (99 ) $ 61 Allowance for sales returns $ 1,320 $ 5 (1) $ — $ 1,325 Inventory reserves $ 5,349 $ 6,556 $ (5,651 ) $ 6,254 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 (1) Represents an increase (decrease) in the required reserve based upon the Company’s evaluation of anticipated merchandise returns. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 03, 2016 | |
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 2015 included 53 weeks and fiscal 2014 and 2013 each included 52 weeks. |
Recently Issued Accounting Updates | Recently Issued Accounting Updates In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition—Construction-Type and Production-Type Contracts Other Assets and Deferred Costs—Contracts with Customers In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs Interest—Imputation of Interest (Subtopic 835-30) – Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements—Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting In April 2015, the FASB issued ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) – Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330)—Simplifying the Measurement of Inventory In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740)—Balance Sheet Classification of Deferred Taxes , which requires that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. Prior to the issuance of this guidance, deferred tax liabilities and assets were required to be separately classified into a current amount and a noncurrent amount in the balance sheet. The new accounting guidance represents a change in accounting principle and the standard is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. , and in accordance with this ASU, the Company will reclassify current deferred taxes to noncurrent deferred taxes on its consolidated balance sheet. Because the application of ASU No. 2015-17 affects classification only, such reclassification is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) 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 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 a sporting goods retailer, which includes both retail stores and an e-commerce platform, 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 platform 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 for both the stores and e-commerce platform 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 2015 2014 2013 (In thousands) Hard goods $ 534,864 $ 517,968 $ 540,698 Athletic and sport apparel 199,109 181,722 174,021 Athletic and sport footwear 291,325 274,355 275,744 Other sales 3,800 3,815 2,860 Net sales $ 1,029,098 $ 977,860 $ 993,323 The Company launched its e-commerce platform in the fourth quarter of fiscal 2014 and e-commerce net sales for fiscal 2015 and 2014 were not material. |
Earnings Per Share | Earnings Per Share The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share |
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 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 2015). The Company recognized approximately $0.4 million, $0.4 million and $0.4 million in gift card breakage revenue for fiscal 2015, 2014 and 2013, respectively. The Company had outstanding gift card liabilities of $4.9 million and $5.2 million 2014 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 |
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 $39.8 million, $42.6 million and $44.5 million for fiscal 2015, 2014 and 2013, 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 $6.0 million, $5.9 million and $6.2 million for fiscal 2015, 2014 and 2013, respectively. |
Share-Based Compensation | Share-Based Compensation The Company accounts for its share-based compensation in accordance with ASC 718, Compensation—Stock Compensation |
Pre-opening Costs | Pre-opening Costs Pre-opening costs for new stores, which are not material, consist primarily of payroll and recruiting expense, training, marketing, rent, travel and supplies, and 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: Leasehold improvements Shorter of estimated useful life or term of lease Furniture and equipment 3 – 10 years Internal-use software 3 – 7 years Maintenance and repairs are expensed as incurred. In fiscal 2015 and 2014, 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 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 The Company performed an annual impairment test as of the end of fiscal 2015, 2014 and 2013, and determined that goodwill was not impaired. Furthermore, the Company has no accumulated impairment losses as of January 3, 2016. |
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 net 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 2015, 2014 and 2013, the Company recognized pre-tax non-cash impairment charges of $0.2 million, $1.2 million and $0.1 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, information technology 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 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 $0.8 million and $0.7 million as of January 3, 2016 and December 28, 2014, 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 $11.2 million and $10.7 million as of January 3, 2016 and December 28, 2014, respectively, of which $4.8 million and $4.4 million were recorded as a component of accrued expenses as of January 3, 2016 and December 28, 2014, respectively, and $ 6.4 |
Income Taxes | Income Taxes Under the asset and liability method prescribed within ASC 740, Income Taxes 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 January 3, 2016 and December 28, 2014, 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 platform. 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. From time to time, shipping ports experience capacity constraints, labor strikes, work stoppages or other disruptions that may delay the delivery of imported products. A contract dispute, such as the one the Company experienced in the Ports of Los Angeles and Long Beach in 2015, may lead to protracted delays in the movement of the Company’s products, which could further delay the delivery of products to the Company’s stores and impact net sales and profitability. In addition, other conditions outside of the Company’s control, such as adverse weather conditions or acts of terrorism, could significantly disrupt operations at shipping ports or otherwise impact transportation of the imported merchandise we sell. The Company purchases merchandise from over 700 suppliers, and the Company’s 20 largest suppliers accounted for 41.5% of total purchases in fiscal 2015. One vendor represented greater than 5% of total purchases, at 10.8%, in fiscal 2015. 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 Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
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 2015 2014 2013 (In thousands) Hard goods $ 534,864 $ 517,968 $ 540,698 Athletic and sport apparel 199,109 181,722 174,021 Athletic and sport footwear 291,325 274,355 275,744 Other sales 3,800 3,815 2,860 Net sales $ 1,029,098 $ 977,860 $ 993,323 |
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: Leasehold improvements Shorter of estimated useful life or term of lease Furniture and equipment 3 – 10 years Internal-use software 3 – 7 years |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net, consist of the following: January 2016 December 28, 2014 (In thousands) Furniture and equipment $ 128,781 $ 118,297 Leasehold improvements 150,617 143,056 Internal-use software 25,215 24,264 304,613 285,617 Accumulated depreciation and amortization (1) (228,701 ) (211,422 ) 75,912 74,195 Assets not placed into service (2) 6,124 4,245 Property and equipment, net $ 82,036 $ 78,440 (1) Includes accumulated amortization for internal-use software development costs of $20.5 million and $19.0 million as of January 3, 2016 and December 28, 2014, respectively. ( 2 ) Includes internal-use software development costs of $5.2 million and $2.7 million related to the development of a new point-of-sale system as of January 3, 2016 and December 28, 2014, respectively. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Expenses | The major components of accrued expenses are as follows: January 3, 2016 December 28, 2014 (In thousands) Payroll and related expense $ 24,090 $ 22,568 Sales tax 11,307 10,432 Occupancy expense 10,693 9,412 Other 23,434 27,987 Accrued expenses $ 69,524 $ 70,399 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Leases [Abstract] | |
Schedule of Rent Expense | Rent expense for operating leases consisted of the following: Year Ended January 3, 2016 December 28, 2014 December 29, 2013 (In thousands) Rent expense $ 71,541 $ 66,276 $ 62,777 Contingent rent 654 858 1,081 Total rent expense $ 72,195 $ 67,134 $ 63,858 |
Schedule of Future Minimum Lease Payments under Non-Cancelable Leases | Future minimum lease payments under non-cancelable leases as of January 3, 2016 are as follows: Year Ending: Capital Leases Operating Leases Total (In thousands) 2016 $ 1,533 $ 78,426 $ 79,959 2017 1,138 70,385 71,523 2018 845 61,611 62,456 2019 437 50,145 50,582 2020 64 36,461 36,525 Thereafter — 71,985 71,985 Total minimum lease payments 4,017 $ 369,013 $ 373,030 Imputed interest (190 ) Present value of minimum lease payments $ 3,827 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Debt Disclosure [Abstract] | |
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 Applicable Margin Base Rate 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% |
Summary of Borrowings Outstanding | As of January 3, 2016 and December 28, 2014, the Company had long-term revolving credit borrowings outstanding bearing interest at both LIBO and the prime lending rates as follows: January 3, 2016 December 28, 2014 (In thousands) LIBO rate $ 53,000 $ 62,000 Prime rate 1,846 4,312 Total borrowings $ 54,846 $ 66,312 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
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 2015: Federal $ 7,478 $ 378 $ 7,856 State 1,558 37 1,595 $ 9,036 $ 415 $ 9,451 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 |
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 January 2016 December 28, 2014 December 29, 2013 (In thousands) Tax expense at statutory rate $ 8,662 $ 8,228 $ 15,989 State taxes, net of federal benefit 1,118 1,062 2,110 Tax credits and other (329 ) (658 ) (363 ) $ 9,451 $ 8,632 $ 17,736 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consist of the following tax-effected temporary differences: January 2016 December 28, 2014 (In thousands) Deferred tax assets: Deferred rent $ 9,530 $ 9,978 Insurance liabilities 4,391 4,219 Employee benefit-related liabilities 4,077 3,927 Share-based compensation 2,569 2,662 Inventory 1,941 1,320 Gift card liability 1,300 1,211 Accrued legal fees 192 1,129 Other 3,337 3,514 Deferred tax assets 27,337 27,960 Basis difference in fixed assets (1,252 ) (1,447 ) Federal liability on state deferred tax assets (2,683 ) (2,696 ) Deferred tax liabilities (3,935 ) (4,143 ) Net deferred tax assets $ 23,402 $ 23,817 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
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 January 3, 2016 December 28, 2014 December 29, 2013 (In thousands, except per share data) Net income $ 15,297 $ 14,876 $ 27,946 Weighted-average shares of common stock outstanding: Basic 21,741 21,933 21,765 Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards 186 200 318 Diluted 21,927 22,133 22,083 Basic earnings per share $ 0.70 $ 0.68 $ 1.28 Diluted earnings per share $ 0.70 $ 0.67 $ 1.27 Antidilutive share option awards excluded from diluted calculation 480,599 513,885 763,688 Antidilutive nonvested share and nonvested share unit awards excluded from diluted calculation 165 1,208 10,236 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Weighted-Average Assumptions Used to Estimate the Fair Value of Each Share Option Award | 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 January 3, 2016 December 28, 2014 December 29, 2013 Risk-free interest rate 1.8 % 1.8 % 1.4 % Expected term 5.8 years 5.8 years 6.9 years Expected volatility 57.0 % 57.0 % 57.5 % Expected dividend yield 2.8 % 3.3 % 2.3 % |
Summary of Share Option Awards | A summary of the status of the Company’s share option awards is presented below: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at December 28, 2014 729,905 $ 15.73 Granted 20,000 14.31 Exercised (25,875 ) 5.70 Forfeited or Expired (69,400 ) 24.36 Outstanding at January 3, 2016 654,630 $ 15.16 2.35 $ 723,150 Exercisable at January 3, 2016 602,130 $ 15.25 1.83 $ 708,163 Vested and Expected to Vest at January 3, 2016 654,088 $ 15.17 2.35 $ 723,133 |
Summary of Nonvested Share Awards Activity | The following table details the Company’s nonvested share awards activity for fiscal 2015: Shares Weighted- Average Grant- Date Fair Value Balance at December 28, 2014 336,765 $ 13.47 Granted 152,140 13.06 Vested (132,475 ) 12.57 Forfeited (7,940 ) 13.84 Balance at January 3, 2016 348,490 $ 13.63 The following table details the Company’s nonvested share unit awards activity for fiscal 2015: Units Weighted- Average Grant- Date Fair Value Balance at December 28, 2014 29,250 $ 13.07 Granted 25,200 14.67 Vested (11,250 ) 11.93 Forfeited — — Balance at January 3, 2016 43,200 $ 14.30 |
Selected Quarterly Financial 34
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Fiscal 2015 First Second Third Fourth Quarter (1)(2) Quarter (2) Quarter Quarter (3)(4) (In thousands, except per share data) Net sales $ 243,555 $ 240,407 $ 270,130 $ 275,006 Gross profit $ 76,684 $ 77,276 $ 85,165 $ 85,839 Net income $ 2,314 $ 2,578 $ 6,130 $ 4,275 Basic earnings per share $ 0.11 $ 0.12 $ 0.28 $ 0.20 Diluted earnings per share $ 0.11 $ 0.12 $ 0.28 $ 0.20 Fiscal 2014 First Second Third Fourth Quarter Quarter (4) Quarter Quarter (1)(4) (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 (1) The Company recorded pre-tax charges in the first quarter of fiscal 2015 and the fourth quarter of fiscal 2014 of $0.4 million and $1.4 million, respectively, related to legal accruals. These charges were included in selling and administrative expense and reduced net income in the first quarter of fiscal 2015 and fourth quarter of fiscal 2014 by $0.2 million, or $0.01 per diluted share, and $0.9 million, or $0.04 per diluted share, respectively. (2) The Company recorded pre-tax charges of $0.5 million and $1.1 million in the first quarter and second quarter of fiscal 2015, respectively, related to a publicly-disclosed proxy contest. These charges were included in selling and administrative expense, and reduced net income in the first quarter and second quarter of fiscal 2015 by $0.3 million, or $0.01 per diluted share, and $0.7 million, or $0.03 per diluted share, respectively. (3) The Company recorded pre-tax charges of $0.4 million in the fourth quarter of fiscal 2015 related to the evaluation of store growth strategies and potential profit improvement opportunities. These charges were included in selling and administrative expense, and reduced net income in the fourth quarter of fiscal 2015 by $0.2 million, or $0.01 per diluted share. (4) The Company recorded pre-tax non-cash impairment charges of $0.2 million, $0.8 million and $0.4 million in the fourth quarter of fiscal 2015 and 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 by $0.1 million, or $0.00 per diluted share, and $0.5 million, or $0.02 per diluted share, and $0.3 million, or $0.01 per diluted share, in the fourth quarter of fiscal 2015 and the second quarter and fourth quarter of fiscal 2014, respectively. |
Description of Business - Addit
Description of Business - Additional Information (Detail) | 12 Months Ended |
Jan. 03, 2016ft²StoreSegment | |
Description Of Business [Line Items] | |
Number of operating stores | Store | 438 |
Area of traditional sporting goods store | ft² | 11,000 |
Number of reportable segment | Segment | 1 |
Big 5 Corp [Member] | |
Description Of Business [Line Items] | |
Subsidiary interest ownership percentage | 100.00% |
Big 5 Service Corp [Member] | |
Description Of Business [Line Items] | |
Subsidiary interest ownership percentage | 100.00% |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||||
Jan. 03, 2016USD ($)Supplier | Dec. 28, 2014USD ($) | Jun. 29, 2014USD ($) | Jan. 03, 2016USD ($)Supplier | Dec. 28, 2014USD ($) | Dec. 29, 2013USD ($) | |
Accounting Policies [Line Items] | ||||||
Reporting period, minimum | 364 days | |||||
Reporting period, maximum | 371 days | |||||
Estimated gift card redemption period | 20 quarters | |||||
Recognized gift card breakage revenue | $ 400,000 | $ 400,000 | $ 400,000 | |||
Outstanding gift card liabilities | $ 4,900,000 | $ 5,200,000 | 4,900,000 | 5,200,000 | ||
Advertising expense, net of co-operative advertising allowances | 39,800,000 | 42,600,000 | 44,500,000 | |||
Co-operative advertising allowances | 6,000,000 | 5,900,000 | 6,200,000 | |||
Cash equivalents | 0 | 0 | ||||
Accumulated impairment losses | 0 | 0 | ||||
Long-lived assets to be held and used | 500,000 | 500,000 | ||||
Impairment of store assets | 200,000 | 400,000 | $ 800,000 | 192,000 | 1,164,000 | $ 72,000 |
ARO liability | 800,000 | 700,000 | 800,000 | 700,000 | ||
Self-insurance liabilities | 11,200,000 | 10,700,000 | 11,200,000 | 10,700,000 | ||
Accrued interest or penalties | 0 | 0 | 0 | 0 | ||
Cash deposits insured by the Federal Deposit Insurance Corporation | $ 250,000 | $ 250,000 | ||||
Concentration risk, suppliers | Supplier | 700 | |||||
Concentration risk, largest supplier | Supplier | 20 | |||||
Suppliers accounted for total purchases | 41.50% | 41.50% | ||||
Percentage of vendors represented greater than of total purchases | 5.00% | |||||
Vendor represented greater than of total purchases | Supplier | 1 | 1 | ||||
One vendor [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Suppliers accounted for total purchases | 10.80% | 10.80% | ||||
Accrued expenses [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Self-insurance liabilities | $ 4,800,000 | 4,400,000 | $ 4,800,000 | 4,400,000 | ||
Other long-term liabilities [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Self-insurance liabilities | $ 6,400,000 | $ 6,300,000 | $ 6,400,000 | $ 6,300,000 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Summary of Net Sales Attributable to Various Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 03, 2016 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Operating Segment Information [Line Items] | |||||||||||
Net sales | $ 275,006 | $ 270,130 | $ 240,407 | $ 243,555 | $ 250,332 | $ 265,115 | $ 231,150 | $ 231,263 | $ 1,029,098 | $ 977,860 | $ 993,323 |
Hard goods [Member] | |||||||||||
Operating Segment Information [Line Items] | |||||||||||
Net sales | 534,864 | 517,968 | 540,698 | ||||||||
Athletic and sport apparel [Member] | |||||||||||
Operating Segment Information [Line Items] | |||||||||||
Net sales | 199,109 | 181,722 | 174,021 | ||||||||
Athletic and sport footwear [Member] | |||||||||||
Operating Segment Information [Line Items] | |||||||||||
Net sales | 291,325 | 274,355 | 275,744 | ||||||||
Other sales [Member] | |||||||||||
Operating Segment Information [Line Items] | |||||||||||
Net sales | $ 3,800 | $ 3,815 | $ 2,860 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Schedule of Estimated Useful Life of Property and Equipment (Detail) | 12 Months Ended |
Jan. 03, 2016 | |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Shorter of estimated useful life or term of lease |
Furniture, and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture, and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Internal-use software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Internal-use software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Jan. 03, 2016 | Dec. 28, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 304,613 | $ 285,617 |
Accumulated depreciation and amortization (1) | (228,701) | (211,422) |
Property and equipment, net excluding assets not placed into service | 75,912 | 74,195 |
Assets not placed into service | 6,124 | 4,245 |
Property and equipment, net | 82,036 | 78,440 |
Furniture, and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 128,781 | 118,297 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 150,617 | 143,056 |
Internal-use software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 25,215 | $ 24,264 |
Property and Equipment, Net -40
Property and Equipment, Net - Schedule of Property and Equipment (Parenthetical) (Detail) - Internal-use software development [Member] - USD ($) $ in Millions | Jan. 03, 2016 | Dec. 28, 2014 |
Property, Plant and Equipment [Line Items] | ||
Accumulated amortization for internal-use software development costs | $ 20.5 | $ 19 |
Internal-use software development costs | $ 5.2 | $ 2.7 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 8.3 | $ 8.8 | $ 9 |
Amortization expense | 11.6 | 11.5 | 10.2 |
Capital leases, gross | 9.4 | 8.5 | |
Accumulated amortization of capital leases | 5.6 | 5.9 | |
Internal-use software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Amortization expense | $ 1.5 | $ 1.2 | $ 1 |
Impairment of Long-Lived Asse42
Impairment of Long-Lived Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jan. 03, 2016 | Dec. 28, 2014 | Jun. 29, 2014 | Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Impairment Or Disposal Of Tangible Assets Disclosure [Abstract] | ||||||
Impairment of store assets | $ 200 | $ 400 | $ 800 | $ 192 | $ 1,164 | $ 72 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Jan. 03, 2016 | Dec. 28, 2014 |
Payables And Accruals [Abstract] | ||
Payroll and related expense | $ 24,090 | $ 22,568 |
Sales tax | 11,307 | 10,432 |
Occupancy expense | 10,693 | 9,412 |
Other | 23,434 | 27,987 |
Accrued expenses | $ 69,524 | $ 70,399 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2015ft²Time | Feb. 29, 2008Time | Jan. 03, 2016USD ($) | Dec. 28, 2014USD ($) | Dec. 29, 2013USD ($) | |
Leases Disclosure [Line Items] | |||||
Sublease rent income | $ | $ 0.1 | $ 0.1 | $ 0.1 | ||
Lease expiration date | Aug. 31, 2020 | Feb. 28, 2019 | |||
Number of times lease can be renewed | Time | 4 | 6 | |||
Lease renewal period | 5 years | 5 years | |||
Company executed lease | ft² | 171,000 | ||||
Operations commencement period | November 2,015 | ||||
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 ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Leases [Abstract] | |||
Rent expense | $ 71,541 | $ 66,276 | $ 62,777 |
Contingent rent | 654 | 858 | 1,081 |
Total rent expense | $ 72,195 | $ 67,134 | $ 63,858 |
Lease Commitments - Schedule 46
Lease Commitments - Schedule of Future Minimum Lease Payments under Non-Cancelable Leases (Detail) $ in Thousands | Jan. 03, 2016USD ($) |
Leases [Abstract] | |
2016, Capital Leases | $ 1,533 |
2017, Capital Leases | 1,138 |
2018, Capital Leases | 845 |
2019, Capital Leases | 437 |
2020, Capital Leases | 64 |
Total minimum lease payments, Capital Leases | 4,017 |
Imputed interest | (190) |
Present value of minimum lease payments | 3,827 |
2016, Operating Leases | 78,426 |
2017, Operating Leases | 70,385 |
2018, Operating Leases | 61,611 |
2019, Operating Leases | 50,145 |
2020, Operating Leases | 36,461 |
Thereafter, Operating Leases | 71,985 |
Total minimum lease payments, Operating Leases | 369,013 |
2016, Total | 79,959 |
2017, Total | 71,523 |
2018, Total | 62,456 |
2019, Total | 50,582 |
2020, Total | 36,525 |
Thereafter, Total | 71,985 |
Total minimum lease payments | $ 373,030 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jan. 03, 2016 | Dec. 28, 2014 | |
Debt Instrument [Line Items] | ||
Credit Agreement description | 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”). The maturity date of the Credit Agreement is December 19, 2018. | |
Maturity date of Credit Agreement | Dec. 19, 2018 | |
Revolving credit facility | $ 140,000,000 | |
First tier of increase to the borrowing capacity | 165,000,000 | |
Maximum limit of credit facility | 200,000,000 | |
Sublimit for issuances of letters of credit | 50,000,000 | |
Sublimit for swingline loans | $ 20,000,000 | |
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 | $ 10,000,000 | |
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 1.0:1.0 in certain circumstances, and limit the ability | |
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 | $ 5,000,000 | |
Letter of credit commitments | $ 500,000 | $ 500,000 |
Wells Fargo Bank [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit borrowings, interest rate | 3.50% | 3.25% |
Revolving Credit Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit borrowings, interest rate | 1.90% | 1.90% |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Fixed charge coverage ratio | 100.00% | |
One-month LIBO rate [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit borrowings, interest rate | 0.50% | 0.20% |
First Amendment to Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Credit agreement amendment date | Oct. 31, 2011 | |
Second Amendment to Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Credit agreement amendment date | Dec. 19, 2013 | |
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 | 0.25% | |
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% | |
Wells Fargo Bank National Association [Member] | ||
Debt Instrument [Line Items] | ||
Remaining borrowing availability | $ 84,700,000 | $ 73,200,000 |
Long-Term Debt - Average Daily
Long-Term Debt - Average Daily Excess Availability for Preceding Fiscal Quarter (Detail) - Second Amendment to Credit Agreement [Member] | 12 Months Ended |
Jan. 03, 2016 | |
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% |
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% |
Level III [Member] | |
Line of Credit Facility [Line Items] | |
Average Daily Excess Availability | Less than $40,000,000 |
LIBO Rate Applicable Margin | 1.75% |
Base Rate Applicable Margin | 0.75% |
Long-Term Debt - Summary of Bor
Long-Term Debt - Summary of Borrowings Outstanding (Detail) - USD ($) $ in Thousands | Jan. 03, 2016 | Dec. 28, 2014 |
Line of Credit Facility [Line Items] | ||
Total borrowings | $ 54,846 | $ 66,312 |
LIBO Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Total borrowings | 53,000 | 62,000 |
Prime rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Total borrowings | $ 1,846 | $ 4,312 |
Income Taxes - Summary of Total
Income Taxes - Summary of Total Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Income Tax Disclosure [Abstract] | |||
Current, Federal | $ 7,478 | $ 5,582 | $ 15,307 |
Current, State | 1,558 | 1,303 | 3,293 |
Current, Total | 9,036 | 6,885 | 18,600 |
Deferred, Federal | 378 | 1,687 | (777) |
Deferred, State | 37 | 60 | (87) |
Deferred, Total | 415 | 1,747 | (864) |
Total, Federal | 7,856 | 7,269 | 14,530 |
Total, State | 1,595 | 1,363 | 3,206 |
Total income tax expense (benefit) | $ 9,451 | $ 8,632 | $ 17,736 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jan. 03, 2016 | Dec. 28, 2014 | |
Income Tax Contingency [Line Items] | ||
Federal statutory tax rate | 35.00% | |
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 | 2,012 | |
Earliest Tax Year [Member] | State and Local [Member] | ||
Income Tax Contingency [Line Items] | ||
Income tax returns in period | 2,011 |
Income Taxes - Schedule of Fede
Income Taxes - Schedule of Federal Statutory Tax Rate Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Income Tax Disclosure [Abstract] | |||
Tax expense at statutory rate | $ 8,662 | $ 8,228 | $ 15,989 |
State taxes, net of federal benefit | 1,118 | 1,062 | 2,110 |
Tax credits and other | (329) | (658) | (363) |
Total income tax expense (benefit) | $ 9,451 | $ 8,632 | $ 17,736 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jan. 03, 2016 | Dec. 28, 2014 |
Deferred tax assets: | ||
Deferred rent | $ 9,530 | $ 9,978 |
Insurance liabilities | 4,391 | 4,219 |
Employee benefit-related liabilities | 4,077 | 3,927 |
Share-based compensation | 2,569 | 2,662 |
Inventory | 1,941 | 1,320 |
Gift card liability | 1,300 | 1,211 |
Accrued legal fees | 192 | 1,129 |
Other | 3,337 | 3,514 |
Deferred tax assets | 27,337 | 27,960 |
Basis difference in fixed assets | (1,252) | (1,447) |
Federal liability on state deferred tax assets | (2,683) | (2,696) |
Deferred tax liabilities | (3,935) | (4,143) |
Net deferred tax assets | $ 23,402 | $ 23,817 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 03, 2016 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Earnings Per Share Basic [Line Items] | |||||||||||
Net income | $ 4,275 | $ 6,130 | $ 2,578 | $ 2,314 | $ 2,815 | $ 7,466 | $ 2,535 | $ 2,060 | $ 15,297 | $ 14,876 | $ 27,946 |
Weighted-average shares of common stock outstanding: | |||||||||||
Basic | 21,741 | 21,933 | 21,765 | ||||||||
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards | 186 | 200 | 318 | ||||||||
Diluted | 21,927 | 22,133 | 22,083 | ||||||||
Basic earnings per share | $ 0.20 | $ 0.28 | $ 0.12 | $ 0.11 | $ 0.13 | $ 0.34 | $ 0.12 | $ 0.09 | $ 0.70 | $ 0.68 | $ 1.28 |
Diluted earnings per share | $ 0.20 | $ 0.28 | $ 0.12 | $ 0.11 | $ 0.13 | $ 0.34 | $ 0.11 | $ 0.09 | $ 0.70 | $ 0.67 | $ 1.27 |
Share Option Awards [Member] | |||||||||||
Weighted-average shares of common stock outstanding: | |||||||||||
Antidilutive shares/unit awards excluded from diluted calculation | 480,599 | 513,885 | 763,688 | ||||||||
Nonvested Share Awards and Nonvested Share Unit Awards [Member] | |||||||||||
Weighted-average shares of common stock outstanding: | |||||||||||
Antidilutive shares/unit awards excluded from diluted calculation | 165 | 1,208 | 10,236 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Earnings Per Share [Abstract] | |||
Repurchase of common stock, shares | 379,930 | 223,051 | 0 |
Repurchase of common stock, amount | $ 4,180 | $ 2,529 | |
Total stock repurchased, shares | 2,530,607 | ||
Total stock repurchased, amount | $ 32,100 | ||
Shares available for repurchases | $ 2,900 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Abstract] | |||
Employer matching and profit-sharing contributions | $ 2 | $ 1.8 | $ 2.3 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Musick Peeler & Garrett LLP [Member] | |||
Related Party Transaction [Line Items] | |||
Services received by Company from related party | $ 700,000 | $ 700,000 | $ 700,000 |
Amount due to related party for services received | 41,000 | 60,000 | |
Co-founder [Member] | |||
Related Party Transaction [Line Items] | |||
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 | 300,000 | 400,000 | $ 300,000 |
Liability of future obligations | $ 1,500,000 | $ 1,500,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Apr. 01, 2015 | Mar. 29, 2015 | Dec. 28, 2014 |
Loss Contingencies [Line Items] | |||
Settlement amount | $ 0.4 | $ 1.4 | |
Settled Litigation [Member] | |||
Loss Contingencies [Line Items] | |||
Settlement amount | $ 1.4 |
Share-Based Compensation Plan59
Share-Based Compensation Plans - Additional Information (Detail) - USD ($) | Jul. 24, 2014 | Jun. 14, 2011 | Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares outstanding | 654,630 | 729,905 | |||
Granted, shares | 20,000 | ||||
Compensation expense | $ 2,200,000 | $ 1,900,000 | $ 1,900,000 | ||
Recognized tax benefit relating to compensation expense | 800,000 | 700,000 | 700,000 | ||
Net income reduced | $ 1,400,000 | $ 1,200,000 | $ 1,200,000 | ||
Reduction in basic and diluted income per share | $ 0.06 | $ 0.05 | $ 0.05 | ||
Employee share option award exercised | $ 147,000 | $ 121,000 | $ 4,586,000 | ||
Shares withheld for tax requirements | 52,621 | ||||
Tax withholding payments for share-based compensation | $ 685,000 | 809,000 | 641,000 | ||
Common Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Closing stock price per share | $ 9.99 | ||||
Tax withholding payments for share-based compensation | $ 1,000 | 1,000 | |||
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 | $ 2,100,000 | $ 1,800,000 | 1,800,000 | ||
Nonvested Share Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Nonvested shares outstanding | 348,490 | 336,765 | |||
Weighted-average period of recognition | 2 years 2 months 12 days | ||||
Fair value of nonvested share awards | $ 1,700,000 | $ 2,100,000 | $ 1,800,000 | ||
Weighted-average grant-date fair value per share, granted | $ 13.06 | $ 15.14 | $ 15.56 | ||
Unrecognized compensation expenses | $ 3,200,000 | ||||
Nonvested Share Unit Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Nonvested shares outstanding | 43,200 | 29,250 | |||
Weighted-average period of recognition | 1 year | ||||
Fair value of nonvested share awards | $ 100,000 | $ 100,000 | $ 38,000 | ||
Weighted-average grant-date fair value per share, granted | $ 14.67 | $ 11.93 | $ 20.29 | ||
Unrecognized compensation expenses | $ 300,000 | ||||
Share Option Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Weighted-average grant-date fair value per share | $ 6.02 | $ 4.80 | $ 8.37 | ||
Intrinsic value of share option awards exercised | $ 200,000 | $ 200,000 | $ 5,100,000 | ||
Employee share option award exercised | 100,000 | 100,000 | 4,600,000 | ||
Tax benefit realized for the expected tax deduction from share option award exercises | 100,000 | $ 100,000 | $ 2,000,000 | ||
Unrecognized compensation expense | $ 200,000 | ||||
Weighted-average period of recognition | 2 years 4 months 24 days | ||||
2002 Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Maximum expiration period of share based payment awards granted | 10 years | ||||
Shares outstanding | 323,790 | ||||
Shares available for future grant | 0 | ||||
2007 Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
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 | 250.00% | ||||
Amendment and Restatement 2007 Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares available for future grant | 597,202 | ||||
Maximum number of shares increased | 1,250,000 | ||||
Expiration date of plan | Apr. 26, 2021 | ||||
Expiration period | 4 years | ||||
Amendment and Restatement 2007 Plan [Member] | Nonvested Share Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Granted, shares | 152,140 | ||||
Nonvested shares outstanding | 348,490 | ||||
Amendment and Restatement 2007 Plan [Member] | Nonvested Share Unit Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Granted, share units | 25,200 | ||||
Nonvested shares outstanding | 43,200 | ||||
Amendment and Restatement 2007 Plan [Member] | Share Option Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares outstanding | 330,840 | ||||
Granted, shares | 20,000 | ||||
Amendment and Restatement 2007 Plan [Member] | Maximum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of shares authorized | 10.00% | ||||
Share-based Compensation Award, Tranche One [Member] | Performance Shares [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting rights (as percentage) | 25.00% | ||||
Share-based Compensation Award, Tranche One [Member] | Performance Shares [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 | ||||
Share-based Compensation Award, Tranche One [Member] | 2002 Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting rights (as percentage) | 25.00% | ||||
Share-based Compensation Award, Tranche One [Member] | 2007 Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting rights (as percentage) | 25.00% |
Share-Based Compensation Plan60
Share-Based Compensation Plans - Fair Value of Share Option Award Based on Weighted-Average Assumptions (Detail) | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Risk-free interest rate | 1.80% | 1.80% | 1.40% |
Expected term | 5 years 9 months 18 days | 5 years 9 months 18 days | 6 years 10 months 24 days |
Expected volatility | 57.00% | 57.00% | 57.50% |
Expected dividend yield | 2.80% | 3.30% | 2.30% |
Share-Based Compensation Plan61
Share-Based Compensation Plans - Summary of Share Option Awards (Detail) | 12 Months Ended |
Jan. 03, 2016USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shares, Outstanding at December 28, 2014 | shares | 729,905 |
Shares, Granted | shares | 20,000 |
Shares, Exercised | shares | (25,875) |
Shares, Forfeited or Expired | shares | (69,400) |
Shares, Outstanding at January 3, 2016 | shares | 654,630 |
Shares, Exercisable at January 3, 2016 | shares | 602,130 |
Shares, Vested and Expected to Vest at January 3, 2016 | shares | 654,088 |
Weighted-Average Exercise Price, Outstanding at December 28, 2014 | $ / shares | $ 15.73 |
Weighted-Average Exercise Price, Granted | $ / shares | 14.31 |
Weighted-Average Exercise Price, Exercised | $ / shares | 5.70 |
Weighted-Average Exercise Price, Forfeited or Expired | $ / shares | 24.36 |
Weighted-Average Exercise Price, Outstanding at January 3, 2016 | $ / shares | 15.16 |
Weighted-Average Exercise Price, Exercisable at January 3, 2016 | $ / shares | 15.25 |
Weighted-Average Exercise Price, Vested and Expected to Vest at January 3, 2016 | $ / shares | $ 15.17 |
Weighted-Average Remaining Contractual Life (In Years), Outstanding at January 3, 2016 | 2 years 4 months 6 days |
Weighted-Average Remaining Contractual Life (In Years), Exercisable at January 3, 2016 | 1 year 9 months 29 days |
Weighted-Average Remaining Contractual Life (In Years), 2015Vested and Expected to Vest at January 3, 2016 | 2 years 4 months 6 days |
Aggregate Intrinsic Value, Outstanding at January 3, 2016 | $ | $ 723,150 |
Aggregate Intrinsic Value, Exercisable at January 3, 2016 | $ | 708,163 |
Aggregate Intrinsic Value, Vested and Expected to Vest at January 3, 2016 | $ | $ 723,133 |
Share-Based Compensation Plan62
Share-Based Compensation Plans - Summary of Nonvested Share Awards Activity (Detail) - $ / shares | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Nonvested Share Awards [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Nonvested shares/share units, beginning balance | 336,765 | ||
Granted, shares/share units | 152,140 | ||
Vested, shares/share units | (132,475) | ||
Forfeited, shares/share units | (7,940) | ||
Nonvested shares/share units, ending balance | 348,490 | 336,765 | |
Weighted-Average Grant-Date Fair Value, Beginning Balance | $ 13.47 | ||
Weighted-Average Grant-Date Fair Value, Granted | 13.06 | $ 15.14 | $ 15.56 |
Weighted-Average Grant-Date Fair Value, Vested | 12.57 | ||
Weighted-Average Grant-Date Fair Value, Forfeited | 13.84 | ||
Weighted-Average Grant-Date Fair Value, Ending Balance | $ 13.63 | $ 13.47 | |
Nonvested Share Unit Awards [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Nonvested shares/share units, beginning balance | 29,250 | ||
Granted, shares/share units | 25,200 | ||
Vested, shares/share units | (11,250) | ||
Nonvested shares/share units, ending balance | 43,200 | 29,250 | |
Weighted-Average Grant-Date Fair Value, Beginning Balance | $ 13.07 | ||
Weighted-Average Grant-Date Fair Value, Granted | 14.67 | $ 11.93 | $ 20.29 |
Weighted-Average Grant-Date Fair Value, Vested | 11.93 | ||
Weighted-Average Grant-Date Fair Value, Ending Balance | $ 14.30 | $ 13.07 |
Selected Quarterly Financial 63
Selected Quarterly Financial Data - Schedule of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 03, 2016 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 275,006 | $ 270,130 | $ 240,407 | $ 243,555 | $ 250,332 | $ 265,115 | $ 231,150 | $ 231,263 | $ 1,029,098 | $ 977,860 | $ 993,323 |
Gross profit | 85,839 | 85,165 | 77,276 | 76,684 | 79,139 | 86,060 | 75,573 | 72,678 | 324,964 | 313,449 | 328,740 |
Net income | $ 4,275 | $ 6,130 | $ 2,578 | $ 2,314 | $ 2,815 | $ 7,466 | $ 2,535 | $ 2,060 | $ 15,297 | $ 14,876 | $ 27,946 |
Basic earnings per share | $ 0.20 | $ 0.28 | $ 0.12 | $ 0.11 | $ 0.13 | $ 0.34 | $ 0.12 | $ 0.09 | $ 0.70 | $ 0.68 | $ 1.28 |
Diluted earnings per share | $ 0.20 | $ 0.28 | $ 0.12 | $ 0.11 | $ 0.13 | $ 0.34 | $ 0.11 | $ 0.09 | $ 0.70 | $ 0.67 | $ 1.27 |
Selected Quarterly Financial 64
Selected Quarterly Financial Data - Schedule of Quarterly Financial Information (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Jan. 03, 2016 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 28, 2014 | Jun. 29, 2014 | Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Quarterly Financial Information [Line Items] | ||||||||
Pre-tax charge for legal settlements | $ 400 | $ 1,400 | ||||||
Increase (decrease) in net income (loss) | $ (200) | $ (900) | ||||||
Increase (decrease) in net income (loss) per diluted share | $ (0.01) | $ (0.04) | ||||||
Pretax charges of publicly disclosed proxy contest | $ 1,100 | $ 500 | ||||||
Pretax charges of evaluation of store growth strategies and potential profit improvement opportunities | $ 400 | |||||||
Pre-tax non-cash impairment charge | 200 | $ 400 | $ 800 | $ 192 | $ 1,164 | $ 72 | ||
Publicly-disclosed proxy contest [Member] | ||||||||
Quarterly Financial Information [Line Items] | ||||||||
Increase (decrease) in net income (loss) | $ (700) | $ (300) | ||||||
Increase (decrease) in net income (loss) per diluted share | $ (0.03) | $ (0.01) | ||||||
Store growth strategies and potential profit improvement opportunities [Member] | ||||||||
Quarterly Financial Information [Line Items] | ||||||||
Increase (decrease) in net income (loss) | $ (200) | |||||||
Increase (decrease) in net income (loss) per diluted share | $ (0.01) | |||||||
Impairment charge [Member] | ||||||||
Quarterly Financial Information [Line Items] | ||||||||
Increase (decrease) in net income (loss) | $ (100) | $ (300) | $ (500) | |||||
Increase (decrease) in net income (loss) per diluted share | $ 0 | $ (0.01) | $ (0.02) |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - $ / shares | 12 Months Ended | |
Jan. 03, 2016 | Apr. 03, 2016 | |
Subsequent Event [Line Items] | ||
Dividend declared per share, payable date | Mar. 22, 2016 | |
Dividend declared per share, record date | Mar. 8, 2016 | |
Scenario, Forecast [Member] | ||
Subsequent Event [Line Items] | ||
Dividend per share | $ 0.125 |
Schedule II - Valuation and Q66
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Allowance for doubtful receivables [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 110 | $ 105 | $ 99 |
Charged to Costs and Expenses | 50 | 24 | 59 |
Deductions | (99) | (19) | (53) |
Balance at End of Period | 61 | 110 | 105 |
Allowance for sales returns [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 1,320 | 1,436 | 1,475 |
Charged to Costs and Expenses | 5 | (116) | (39) |
Balance at End of Period | 1,325 | 1,320 | 1,436 |
Inventory reserves [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 5,349 | 5,282 | 5,151 |
Charged to Costs and Expenses | 6,556 | 5,139 | 5,444 |
Deductions | (5,651) | (5,072) | (5,313) |
Balance at End of Period | $ 6,254 | $ 5,349 | $ 5,282 |