Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 03, 2016 | Jul. 27, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 3, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | BGFV | |
Entity Registrant Name | BIG 5 SPORTING GOODS CORP | |
Entity Central Index Key | 1,156,388 | |
Current Fiscal Year End Date | --01-01 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 22,024,360 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 03, 2016 | Jan. 03, 2016 |
Current assets: | ||
Cash | $ 8,145 | $ 7,119 |
Accounts receivable, net of allowances of $37 and $61, respectively | 13,314 | 14,180 |
Merchandise inventories, net | 304,535 | 299,446 |
Prepaid expenses | 13,967 | 12,185 |
Total current assets | 339,961 | 332,930 |
Property and equipment, net | 79,180 | 82,036 |
Deferred income taxes | 21,551 | 23,402 |
Other assets, net of accumulated amortization of $1,332 and $1,244, respectively | 2,186 | 2,228 |
Goodwill | 4,433 | 4,433 |
Total assets | 447,311 | 445,029 |
Current liabilities: | ||
Accounts payable | 104,730 | 89,961 |
Accrued expenses | 59,989 | 69,524 |
Current portion of capital lease obligations | 1,239 | 1,435 |
Total current liabilities | 165,958 | 160,920 |
Deferred rent, less current portion | 18,137 | 19,516 |
Capital lease obligations, less current portion | 1,826 | 2,392 |
Long-term debt | 57,387 | 54,846 |
Other long-term liabilities | 9,259 | 8,524 |
Total liabilities | 252,567 | 246,198 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, 0.01 par value, authorized 50,000,000 shares; issued 24,673,077 and 24,562,799 shares, respectively; outstanding 22,024,360 and 21,917,982 shares, respectively | 247 | 246 |
Additional paid-in capital | 112,670 | 112,236 |
Retained earnings | 114,513 | 118,998 |
Less: Treasury stock, at cost; 2,648,717 and 2,644,817 shares, respectively | (32,686) | (32,649) |
Total stockholders’ equity | 194,744 | 198,831 |
Total liabilities and stockholders’ equity | $ 447,311 | $ 445,029 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 03, 2016 | Jan. 03, 2016 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 37 | $ 61 |
Accumulated amortization on other assets | $ 1,332 | $ 1,244 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 24,673,077 | 24,562,799 |
Common stock, shares outstanding | 22,024,360 | 21,917,982 |
Treasury stock, shares | 2,648,717 | 2,644,817 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 241,409 | $ 240,407 | $ 475,937 | $ 483,962 |
Cost of sales | 165,152 | 163,131 | 328,715 | 330,002 |
Gross profit | 76,257 | 77,276 | 147,222 | 153,960 |
Selling and administrative expense | 72,259 | 72,653 | 143,478 | 145,115 |
Operating income | 3,998 | 4,623 | 3,744 | 8,845 |
Interest expense | 429 | 412 | 881 | 815 |
Income before income taxes | 3,569 | 4,211 | 2,863 | 8,030 |
Income taxes | 1,445 | 1,633 | 1,858 | 3,138 |
Net income | $ 2,124 | $ 2,578 | $ 1,005 | $ 4,892 |
Earnings per share: | ||||
Basic | $ 0.10 | $ 0.12 | $ 0.05 | $ 0.22 |
Diluted | 0.10 | 0.12 | 0.05 | 0.22 |
Dividends per share | $ 0.125 | $ 0.10 | $ 0.25 | $ 0.20 |
Weighted-average shares of common stock outstanding: | ||||
Basic | 21,646 | 21,835 | 21,614 | 21,822 |
Diluted | 21,740 | 21,965 | 21,784 | 22,012 |
Unaudited Condensed Consolidat5
Unaudited Condensed 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. 28, 2014 | $ 195,004 | $ 245 | $ 110,707 | $ 112,521 | $ (28,469) | |
Beginning Balance, Shares at Dec. 28, 2014 | 22,180,458 | |||||
Net income | 4,892 | 4,892 | ||||
Dividends on common stock | (4,428) | (4,428) | ||||
Issuance of nonvested share awards | 2 | (2) | ||||
Issuance of nonvested share awards, Shares | 152,140 | |||||
Exercise of share option awards | 49 | 49 | ||||
Exercise of share option awards, Shares | 7,925 | |||||
Share-based compensation | 1,010 | 1,010 | ||||
Tax benefit (deficiency) from share-based awards activity | 83 | 83 | ||||
Forfeiture of nonvested share awards, Shares | (3,965) | |||||
Retirement of common stock for payment of withholding tax | (685) | (1) | (684) | |||
Retirement of common stock for payment of withholding tax, Shares | (52,621) | |||||
Purchases of treasury stock | (1,193) | (1,193) | ||||
Purchases of treasury stock, Shares | (96,273) | |||||
Ending Balance at Jun. 28, 2015 | 194,732 | 246 | 111,163 | 112,985 | (29,662) | |
Ending Balance, shares at Jun. 28, 2015 | 22,187,664 | |||||
Beginning Balance at Jan. 03, 2016 | 198,831 | 246 | 112,236 | 118,998 | (32,649) | |
Beginning Balance, Shares at Jan. 03, 2016 | 21,917,982 | |||||
Net income | 1,005 | 1,005 | ||||
Dividends on common stock | (5,490) | (5,490) | ||||
Issuance of nonvested share awards | 2 | (2) | ||||
Issuance of nonvested share awards, Shares | 166,980 | |||||
Exercise of share option awards | 7 | 7 | ||||
Exercise of share option awards, Shares | 1,075 | |||||
Share-based compensation | 1,263 | 1,263 | ||||
Tax benefit (deficiency) from share-based awards activity | (222) | (222) | ||||
Forfeiture of nonvested share awards, Shares | (4,095) | |||||
Retirement of common stock for payment of withholding tax | $ (613) | (1) | (612) | |||
Retirement of common stock for payment of withholding tax, Shares | (53,682) | (53,682) | ||||
Purchases of treasury stock | $ (37) | (37) | ||||
Purchases of treasury stock, Shares | (3,900) | |||||
Ending Balance at Jul. 03, 2016 | $ 194,744 | $ 247 | $ 112,670 | $ 114,513 | $ (32,686) | |
Ending Balance, shares at Jul. 03, 2016 | 22,024,360 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 6 Months Ended | |
Jul. 03, 2016 | Jun. 28, 2015 | |
Dividends per share | $ 0.25 | $ 0.20 |
Retained Earnings [Member] | ||
Dividends per share | $ 0.25 | $ 0.20 |
Unaudited Condensed Consolidat7
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 03, 2016 | Jun. 28, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 1,005 | $ 4,892 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,322 | 10,937 |
Share-based compensation | 1,263 | 1,010 |
Excess tax benefit related to share-based awards | (52) | (104) |
Amortization of debt issuance costs | 88 | 88 |
Deferred income taxes | 1,851 | (670) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 866 | 3,842 |
Merchandise inventories, net | (5,089) | (26,479) |
Prepaid expenses and other assets | (2,050) | 3,394 |
Accounts payable | 18,500 | 23,142 |
Accrued expenses and other long-term liabilities | (9,302) | (11,520) |
Net cash provided by operating activities | 16,402 | 8,532 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (6,813) | (12,873) |
Net cash used in investing activities | (6,813) | (12,873) |
Cash flows from financing activities: | ||
Principal borrowings under revolving credit facility | 107,252 | 89,600 |
Principal payments under revolving credit facility | (104,711) | (85,447) |
Changes in book overdraft | (4,252) | 2,389 |
Principal payments under capital lease obligations | (726) | (705) |
Proceeds from exercise of share option awards | 7 | 49 |
Excess tax benefit related to share-based awards | 52 | 104 |
Purchases of treasury stock | (37) | (1,193) |
Tax withholding payments for share-based compensation | (613) | (685) |
Dividends paid | (5,535) | (4,484) |
Net cash used in financing activities | (8,563) | (372) |
Net increase (decrease) in cash | 1,026 | (4,713) |
Cash at beginning of period | 7,119 | 11,503 |
Cash at end of period | 8,145 | 6,790 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Property and equipment acquired under capital leases | 2,960 | |
Property and equipment additions unpaid | 1,438 | 3,450 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 833 | 730 |
Income taxes paid | $ 555 | $ 514 |
Description of Business
Description of Business | 6 Months Ended |
Jul. 03, 2016 | |
Accounting Policies [Abstract] | |
Description of Business | (1) Description of Business Big 5 Sporting Goods Corporation (the “Company”) is a leading sporting goods retailer in the western United States, operating 435 stores and an e-commerce platform as of July 3, 2016. The Company 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. The Company is a holding company that operates as one reportable segment through Big 5 Corp., its 100% owned subsidiary, and Big 5 Services Corp., which is a 100% owned subsidiary of Big 5 Corp. Big 5 Services Corp. provides a centralized operation for the issuance and administration of gift cards. The accompanying interim unaudited condensed consolidated financial statements (“Interim Financial Statements”) of the Company and its 100% owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and are presented in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these Interim Financial Statements do not include all of the information and notes required by GAAP for complete financial statements. These Interim Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended January 3, 2016 included in the Company’s Annual Report on Form 10-K. In the opinion of management, the Interim Financial Statements included herein contain all adjustments, including normal recurring adjustments, considered necessary to present fairly the Company’s financial position, the results of operations and cash flows for the periods presented. The operating results and cash flows of the interim periods presented herein are not necessarily indicative of the results to be expected for any other interim period or the full year. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 03, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Consolidation The accompanying Interim 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 year 2016 is comprised of 52 weeks and ends on January 1, 2017. Fiscal year 2015 was comprised of 53 weeks and ended on January 3, 2016. The four quarters of fiscal 2016 are each comprised of 13 weeks. The first three quarters in fiscal 2015 were each comprised of 13 weeks, and the fourth quarter of fiscal 2015 was comprised of 14 weeks. Recently Adopted Accounting Updates In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 The Company elected to early-adopt ASU No. 2015-17 during the first quarter of fiscal 2016 and retrospectively apply the presentation. Accordingly, deferred tax assets in the amount of $11.1 million, which were previously classified as current assets as of January 3, 2016, were reclassified to non-current deferred income tax assets on the Company's consolidated balance sheet to conform to current year presentation. Recently Issued Accounting Updates In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition Revenue Recognition—Construction-Type and Production-Type Contracts Other Assets and Deferred Costs—Contracts with Customers In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Other recently issued accounting updates are not expected to have 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 as of the date of the Interim Financial Statements and reported amounts of revenue and expense during the reporting period to prepare these Interim 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. 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 and the related shipping and handling costs are included in cost of 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 does not sell gift cards that carry expiration dates. 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 the second quarter of fiscal 2016). The Company recognized approximately $112,000 and $225,000 in gift card breakage revenue for the 13 and 26 weeks ended July 3, 2016, respectively, compared to approximately $112,000 and $223,000 in gift card breakage revenue for the 13 and 26 weeks ended June 28, 2015, respectively. The Company had outstanding gift card liabilities of $4.1 million and $4.9 million 2016 The Company records sales tax collected from its customers on a net basis, and therefore excludes it from revenue as defined in Accounting Standards Codification (“ASC”) 605, Revenue Recognition Share-Based Compensation The Company accounts for share-based compensation in accordance with ASC 718, Compensation—Stock Compensation 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 net realizable value 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 net realizable 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. 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. The Company recognized no impairment charges in the first half of fiscal 2015 or 2016. 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, corporate office, information technology hardware and distribution center delivery tractors. Capital lease obligations consist principally of leases for some of the Company’s information technology hardware. 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. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 03, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (3) 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’ assets are reduced to their estimated fair values. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jul. 03, 2016 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | (4) Accrued Expenses The major components of accrued expenses are as follows: July 3, 2016 January 3, 2016 (In thousands) Payroll and related expense $ 21,403 $ 24,090 Occupancy expense 10,141 10,693 Sales tax 7,383 11,307 Other 21,062 23,434 Accrued expenses $ 59,989 $ 69,524 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jul. 03, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (5) 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 is 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 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 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 is as 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 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 July 3, 2016, the Company had long-term revolving credit borrowings of $57.4 million and letter of credit commitments of $0.5 million outstanding, compared with borrowings of $54.8 million and letter of credit commitments of $0.5 million as of January 3, 2016. Total remaining borrowing availability, after subtracting letters of credit, was $82.1 million and $84.7 million as of July 3, 2016 and January 3, 2016, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 03, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (6) Income Taxes Under the asset and liability method prescribed under ASC 740, Income Taxes The Company files a consolidated federal income tax return and files tax returns in various state and local jurisdictions. The statutes of limitations for 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. The provision for income taxes for the 13 and 26 weeks ended July 3, 2016 reflects the write-off of deferred tax assets related to share-based compensation of $0.2 million and $0.8 million, respectively, partially offset by an increase in Work Opportunity Tax Credits (“WOTC”). As of July 3, 2016 and January 3, 2016, the Company had no unrecognized tax benefits including those 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 July 3, 2016 and January 3, 2016, the Company had no accrued interest or penalties. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jul. 03, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (7) 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: 13 Weeks Ended 26 Weeks Ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 (In thousands, except per share data) Net income $ 2,124 $ 2,578 $ 1,005 $ 4,892 Weighted-average shares of common stock outstanding: Basic 21,646 21,835 21,614 21,822 Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards 94 130 170 190 Diluted 21,740 21,965 21,784 22,012 Basic earnings per share $ 0.10 $ 0.12 $ 0.05 $ 0.22 Diluted earnings per share $ 0.10 $ 0.12 $ 0.05 $ 0.22 The computation of diluted earnings per share for the 13 weeks ended July 3, 2016, the 26 weeks ended July 3, 2016, the 13 weeks ended June 28, 2015 and the 26 weeks ended June 28, 2015 excludes share option awards in the amounts of 182,109, 281,927, 467,947 and 468,233, respectively, that were outstanding and antidilutive (i.e., including such share option awards would result in higher earnings per share), since the exercise prices of these share option awards exceeded the average market price of the Company’s common shares. Additionally, the computation of diluted earnings per share for the 13 weeks ended July 3, 2016, the 26 weeks ended July 3, 2016, the 13 weeks ended June 28, 2015 and the 26 weeks ended June 28, 2015 excludes nonvested share awards and nonvested share unit awards in the amounts of 365,173, 325, 110,037 and 2,354 shares, respectively, that were outstanding and antidilutive, since the grant date fair values of these nonvested share awards and nonvested share unit awards exceeded the average market price of the Company’s common shares. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 03, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (8) Commitments and Contingencies The Company is involved in various 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
Share-based Compensation | 6 Months Ended |
Jul. 03, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Compensation | (9) Share-based Compensation At its discretion, the Company grants share option awards, nonvested share awards and nonvested share unit awards to certain employees, as defined by ASC 718, Compensation—Stock Compensation Share Option Awards Share option awards granted by the Company generally vest and become exercisable in four equal annual installments of 25% per year with a maximum life of ten years. The exercise price of share option awards is equal to the quoted market price of the Company’s common stock on the date of grant. No share option awards were granted in the first half of fiscal 2016. In the first half of fiscal 2015, the Company granted 10,000 share option awards, and the weighted-average grant-date fair value for such share option awards was $6.22. The fair value of each share option award on the date of grant is estimated using the Black-Scholes method based on the following weighted-average assumptions: 13 Weeks Ended 26 Weeks Ended July 3, June 28, July 3, June 28, Risk-free interest rate — 1.9% — 1.9% Expected term — 5.8 years — 5.8 years Expected volatility — 57.0% — 57.0% Expected dividend yield — 2.7% — 2.7% 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 share option award; the expected term represents the weighted-average period of time that share 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. As of July 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 2.2 years. Nonvested Share Awards and Nonvested Share Unit Awards Nonvested share awards and nonvested share unit awards granted by the Company have historically vested from the date of grant in four equal annual installments of 25% per year. 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 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 the first half of fiscal 2016 and 2015 was $1.6 million and $1.7 million, respectively. The total fair value of nonvested share unit awards vested during the first half of fiscal 2016 and 2015 was $0.5 million and $0.1 million, respectively. The Company granted 166,980 and 152,140 nonvested share awards in the first half of fiscal 2016 and 2015, respectively. The weighted-average grant-date fair value per share of the Company’s nonvested share awards granted in the first half of fiscal 2016 and 2015 was $11.35 and $12.65, respectively. The Company granted 25,200 and 21,000 nonvested share unit awards in the first half of fiscal 2016 and 2015, respectively. The weighted-average grant-date fair value per share of the Company’s nonvested share unit awards granted in the first half of fiscal 2016 and 2015 was $8.87 and $14.66, respectively. 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. The following table details the Company’s nonvested share awards activity for the 26 weeks ended July 3, 2016: Shares Weighted- Average Grant-Date Fair Value Balance as of January 3, 2016 348,490 $ 13.63 Granted 166,980 11.35 Vested (138,480 ) 12.91 Forfeited (4,095 ) 13.40 Balance as of July 3, 2016 372,895 $ 12.87 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 the first half of fiscal 2016, the Company withheld 53,682 common shares with a total value of $0.6 million. This amount is presented as a cash outflow from financing activities in the accompanying interim unaudited condensed consolidated statement of cash flows. As of July 3, 2016, there was $4.1 million and $0.3 million of total unrecognized compensation expense related to nonvested share awards and nonvested share unit awards, respectively. That expense is expected to be recognized over a weighted-average period of 2.8 years and 1.1 years for nonvested share awards and nonvested share unit awards, respectively. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jul. 03, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | (10) Subsequent Event In the third 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 September 15, 2016 to stockholders of record as of September 1, 2016. Subsequent to the second quarter ended July 3, 2016, the Company’s Board of Directors authorized a new share repurchase program for the purchase of up to $25.0 million of the Company’s common stock. This program replaces the Company’s previous share repurchase program, under which $2.9 million remained available for repurchases. Under the current authorization, the Company may purchase shares from time to time in the open market or in privately negotiated transactions in compliance with the applicable rules and regulations of the Securities and Exchange Commission. However, the timing and amount of such purchases, if any, would be at the discretion of the Company’s management and Board of Directors, and would depend on market conditions and other considerations. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 03, 2016 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation The accompanying Interim 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 year 2016 is comprised of 52 weeks and ends on January 1, 2017. Fiscal year 2015 was comprised of 53 weeks and ended on January 3, 2016. The four quarters of fiscal 2016 are each comprised of 13 weeks. The first three quarters in fiscal 2015 were each comprised of 13 weeks, and the fourth quarter of fiscal 2015 was comprised of 14 weeks. |
Recently Adopted Accounting Updates | Recently Adopted Accounting Updates In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 The Company elected to early-adopt ASU No. 2015-17 during the first quarter of fiscal 2016 and retrospectively apply the presentation. Accordingly, deferred tax assets in the amount of $11.1 million, which were previously classified as current assets as of January 3, 2016, were reclassified to non-current deferred income tax assets on the Company's consolidated balance sheet to conform to current year presentation. |
Recently Issued Accounting Updates | Recently Issued Accounting Updates In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition Revenue Recognition—Construction-Type and Production-Type Contracts Other Assets and Deferred Costs—Contracts with Customers In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Other recently issued accounting updates are not expected to have 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 as of the date of the Interim Financial Statements and reported amounts of revenue and expense during the reporting period to prepare these Interim 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. |
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 and the related shipping and handling costs are included in cost of 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 does not sell gift cards that carry expiration dates. 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 the second quarter of fiscal 2016). The Company recognized approximately $112,000 and $225,000 in gift card breakage revenue for the 13 and 26 weeks ended July 3, 2016, respectively, compared to approximately $112,000 and $223,000 in gift card breakage revenue for the 13 and 26 weeks ended June 28, 2015, respectively. The Company had outstanding gift card liabilities of $4.1 million and $4.9 million 2016 The Company records sales tax collected from its customers on a net basis, and therefore excludes it from revenue as defined in Accounting Standards Codification (“ASC”) 605, Revenue Recognition |
Share-Based Compensation | Share-Based Compensation The Company accounts for share-based compensation in accordance with ASC 718, Compensation—Stock Compensation |
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 net realizable value 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 net realizable 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. |
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. The Company recognized no impairment charges in the first half of fiscal 2015 or 2016. |
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, corporate office, information technology hardware and distribution center delivery tractors. Capital lease obligations consist principally of leases for some of the Company’s information technology hardware. 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. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Expenses | The major components of accrued expenses are as follows: July 3, 2016 January 3, 2016 (In thousands) Payroll and related expense $ 21,403 $ 24,090 Occupancy expense 10,141 10,693 Sales tax 7,383 11,307 Other 21,062 23,434 Accrued expenses $ 59,989 $ 69,524 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
Debt Disclosure [Abstract] | |
Average Daily Excess Availability for Preceding Fiscal Quarter | The applicable margin for all loans is as 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 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% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jul. 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: 13 Weeks Ended 26 Weeks Ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 (In thousands, except per share data) Net income $ 2,124 $ 2,578 $ 1,005 $ 4,892 Weighted-average shares of common stock outstanding: Basic 21,646 21,835 21,614 21,822 Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards 94 130 170 190 Diluted 21,740 21,965 21,784 22,012 Basic earnings per share $ 0.10 $ 0.12 $ 0.05 $ 0.22 Diluted earnings per share $ 0.10 $ 0.12 $ 0.05 $ 0.22 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 6 Months Ended |
Jul. 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 is estimated using the Black-Scholes method based on the following weighted-average assumptions: 13 Weeks Ended 26 Weeks Ended July 3, June 28, July 3, June 28, Risk-free interest rate — 1.9% — 1.9% Expected term — 5.8 years — 5.8 years Expected volatility — 57.0% — 57.0% Expected dividend yield — 2.7% — 2.7% |
Summary of Nonvested Share Awards Activity | The following table details the Company’s nonvested share awards activity for the 26 weeks ended July 3, 2016: Shares Weighted- Average Grant-Date Fair Value Balance as of January 3, 2016 348,490 $ 13.63 Granted 166,980 11.35 Vested (138,480 ) 12.91 Forfeited (4,095 ) 13.40 Balance as of July 3, 2016 372,895 $ 12.87 |
Description of Business - Addit
Description of Business - Additional Information (Detail) | 6 Months Ended |
Jul. 03, 2016ft²StoreSegment | |
Description Of Business [Line Items] | |
Number of operating stores | Store | 435 |
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 Accoun24
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | Jan. 03, 2016 | Apr. 03, 2016 | |
Accounting Policies [Line Items] | ||||||
Reporting period, minimum | 364 days | |||||
Reporting period, maximum | 371 days | |||||
Non-current deferred income taxes assets | $ 21,551,000 | $ 21,551,000 | $ 23,402,000 | |||
Estimated gift card redemption period | 20 quarters | |||||
Recognized gift card breakage revenue | 112,000 | $ 112,000 | $ 225,000 | $ 223,000 | ||
Outstanding gift card liabilities | 4,100,000 | 4,100,000 | $ 4,900,000 | |||
Long-lived assets to be held and used | $ 500,000 | 500,000 | ||||
Impairment charges | $ 0 | $ 0 | ||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Non-current deferred income taxes assets | $ 11,100,000 | |||||
First Quarter [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Interim reporting periods | 91 days | 91 days | ||||
Second Quarter [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Interim reporting periods | 91 days | 91 days | ||||
Third Quarter [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Interim reporting periods | 91 days | 91 days | ||||
Fourth Quarter [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Interim reporting periods | 91 days | 98 days |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Jul. 03, 2016 | Jan. 03, 2016 |
Payables And Accruals [Abstract] | ||
Payroll and related expense | $ 21,403 | $ 24,090 |
Occupancy expense | 10,141 | 10,693 |
Sales tax | 7,383 | 11,307 |
Other | 21,062 | 23,434 |
Accrued expenses | $ 59,989 | $ 69,524 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jul. 03, 2016 | Jan. 03, 2016 | |
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 | |
Long-term borrowings | 57,387,000 | $ 54,846,000 |
Letter of credit commitments | 500,000 | 500,000 |
Revolving Credit Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 57,400,000 | 54,800,000 |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Fixed charge coverage ratio | 100.00% | |
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 | $ 82,100,000 | $ 84,700,000 |
Long-Term Debt - Average Daily
Long-Term Debt - Average Daily Excess Availability for Preceding Fiscal Quarter (Detail) - Second Amendment to Credit Agreement [Member] | 6 Months Ended |
Jul. 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 $40,000,000 |
LIBO Rate Applicable Margin | 1.75% |
Base Rate Applicable Margin | 0.75% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jul. 03, 2016 | Jul. 03, 2016 | Jan. 03, 2016 | |
Income Tax Contingency [Line Items] | |||
Deferred tax assets valuation allowance | $ 0 | $ 0 | $ 0 |
Unrecognized tax benefits | 0 | $ 0 | 0 |
Unrecognized tax benefits, period | Over the next 12 months | ||
Accrued interest or penalties | 0 | $ 0 | $ 0 |
Write-off of deferred tax assets related to share based compensation | $ 200,000 | $ 800,000 | |
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 |
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 | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 2,124 | $ 2,578 | $ 1,005 | $ 4,892 |
Weighted-average shares of common stock outstanding: | ||||
Basic | 21,646 | 21,835 | 21,614 | 21,822 |
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards | 94 | 130 | 170 | 190 |
Diluted | 21,740 | 21,965 | 21,784 | 22,012 |
Basic earnings per share | $ 0.10 | $ 0.12 | $ 0.05 | $ 0.22 |
Diluted earnings per share | $ 0.10 | $ 0.12 | $ 0.05 | $ 0.22 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Nonvested Share Awards and Nonvested Share Unit Awards [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Outstanding and antidilutive awards | 365,173 | 110,037 | 325 | 2,354 |
Share Option Awards [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Outstanding and antidilutive awards | 182,109 | 467,947 | 281,927 | 468,233 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jul. 24, 2014 | Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Compensation expense | $ 600 | $ 500 | $ 1,300 | $ 1,000 | |
Shares withheld for tax requirements | 53,682 | ||||
Tax withholding payments for share-based compensation | $ 613 | $ 685 | |||
Share Option Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Maximum expiration period of share based payment awards granted | 10 years | ||||
Granted, shares | 0 | 10,000 | |||
Weighted-average grant-date fair value | $ 6.22 | ||||
Unrecognized compensation expense | 200 | $ 200 | |||
Weighted-average period of recognition | 2 years 2 months 12 days | ||||
Share Option Awards [Member] | Share-based Compensation Award, Tranche One [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting rights (as percentage) | 25.00% | ||||
Performance Shares [Member] | Share-based Compensation Award, Tranche One [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting rights (as percentage) | 25.00% | ||||
Performance Shares [Member] | Share-based Compensation Award, Tranche One [Member] | Non-Employee Directors [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting rights (as percentage) | 100.00% | ||||
Vesting period | 1 year | ||||
Nonvested Share Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Weighted-average period of recognition | 2 years 9 months 18 days | ||||
Fair value of nonvested share awards | $ 1,600 | $ 1,700 | |||
Issuance of nonvested share awards, Shares | 166,980 | 152,140 | |||
Weighted-average grant-date fair value per share, granted | $ 11.35 | $ 12.65 | |||
Unrecognized compensation expenses | 4,100 | $ 4,100 | |||
Nonvested Share Unit Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Weighted-average period of recognition | 1 year 1 month 6 days | ||||
Fair value of nonvested share awards | $ 500 | $ 100 | |||
Issuance of nonvested share awards, Shares | 25,200 | 21,000 | |||
Weighted-average grant-date fair value per share, granted | $ 8.87 | $ 14.66 | |||
Unrecognized compensation expenses | $ 300 | $ 300 |
Share-Based Compensation - Fair
Share-Based Compensation - Fair Value of Share Option Award Based on Weighted-Average Assumptions (Detail) | 3 Months Ended | 6 Months Ended |
Jun. 28, 2015 | Jun. 28, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Risk-free interest rate | 1.90% | 1.90% |
Expected term | 5 years 9 months 18 days | 5 years 9 months 18 days |
Expected volatility | 57.00% | 57.00% |
Expected dividend yield | 2.70% | 2.70% |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Nonvested Share Awards Activity (Detail) - Nonvested Share Awards [Member] - $ / shares | 6 Months Ended | |
Jul. 03, 2016 | Jun. 28, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested Shares, Beginning Balance | 348,490 | |
Granted, Shares | 166,980 | 152,140 |
Vested, Shares | (138,480) | |
Forfeited, Shares | (4,095) | |
Nonvested Shares, Ending Balance | 372,895 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted-Average Grant-Date Fair Value, Beginning Balance | $ 13.63 | |
Weighted-Average Grant-Date Fair Value, Granted | 11.35 | $ 12.65 |
Weighted-Average Grant-Date Fair Value, Vested | 12.91 | |
Weighted-Average Grant-Date Fair Value, Forfeited | 13.40 | |
Weighted-Average Grant-Date Fair Value, Ending Balance | $ 12.87 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | ||
Jul. 03, 2016 | Oct. 03, 2016 | Aug. 03, 2016 | |
Subsequent Event [Line Items] | |||
Dividend declared per share, payable date | Sep. 15, 2016 | ||
Dividend declared per share, record date | Sep. 1, 2016 | ||
Subsequent Event Member [Member] | |||
Subsequent Event [Line Items] | |||
New shares amount authorized for repurchase program | $ 25 | ||
Shares amount remains available for repurchase under previous share repurchase program | $ 2.9 | ||
Scenario Forecast [Member] | |||
Subsequent Event [Line Items] | |||
Dividend per share | $ 0.125 |