Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 21, 2018 | Jul. 02, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | --12-31 | ||
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 | 21,271,821 | ||
Entity Public Float | $ 176,236,713 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Current assets: | ||
Cash | $ 7,170 | $ 7,895 |
Accounts receivable, net of allowances of $79 and $42, respectively | 10,886 | 12,200 |
Merchandise inventories, net | 313,905 | 294,319 |
Prepaid expenses | 18,930 | 10,085 |
Total current assets | 350,891 | 324,499 |
Property and equipment, net | 77,265 | 78,420 |
Deferred income taxes | 14,172 | 23,699 |
Other assets, net of accumulated amortization of $1,575 and $1,420, respectively | 2,732 | 2,528 |
Goodwill | 4,433 | |
Total assets | 445,060 | 433,579 |
Current liabilities: | ||
Accounts payable | 113,740 | 109,314 |
Accrued expenses | 68,226 | 76,887 |
Current portion of capital lease obligations | 1,754 | 1,326 |
Total current liabilities | 183,720 | 187,527 |
Deferred rent, less current portion | 15,948 | 17,028 |
Capital lease obligations, less current portion | 2,800 | 1,999 |
Long-term debt | 45,000 | 10,000 |
Other long-term liabilities | 10,523 | 11,988 |
Total liabilities | 257,991 | 228,542 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.01 par value, authorized 50,000,000 shares; issued 24,919,624 and 24,784,367 shares, respectively; outstanding 21,345,159 and 22,012,651 shares, respectively | 249 | 248 |
Additional paid-in capital | 116,495 | 114,797 |
Retained earnings | 112,424 | 124,363 |
Less: Treasury stock, at cost; 3,574,465 and 2,771,716 shares, respectively | (42,099) | (34,371) |
Total stockholders' equity | 187,069 | 205,037 |
Total liabilities and stockholders' equity | $ 445,060 | $ 433,579 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 79 | $ 42 |
Accumulated amortization on other assets | $ 1,575 | $ 1,420 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 24,919,624 | 24,784,367 |
Common stock, shares outstanding | 21,345,159 | 22,012,651 |
Treasury stock, shares | 3,574,465 | 2,771,716 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 1,009,635 | $ 1,021,235 | $ 1,029,098 |
Cost of sales | 686,303 | 696,777 | 704,134 |
Gross profit | 323,332 | 324,458 | 324,964 |
Selling and administrative expense | 306,990 | 294,971 | 298,425 |
Operating income | 16,342 | 29,487 | 26,539 |
Interest expense | 1,644 | 1,551 | 1,791 |
Income before income taxes | 14,698 | 27,936 | 24,748 |
Income taxes | 13,594 | 11,050 | 9,451 |
Net income | $ 1,104 | $ 16,886 | $ 15,297 |
Earnings per share: | |||
Basic | $ 0.05 | $ 0.78 | $ 0.70 |
Diluted | 0.05 | 0.77 | 0.70 |
Dividends per share | $ 0.60 | $ 0.525 | $ 0.40 |
Weighted-average shares of common stock outstanding: | |||
Basic | 21,439 | 21,607 | 21,741 |
Diluted | 21,585 | 21,816 | 21,927 |
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. 28, 2014 | $ 195,004 | $ 245 | $ 110,707 | $ 112,521 | $ (28,469) | |
Beginning Balance, Shares at Dec. 28, 2014 | 22,180,458 | |||||
Net income | 15,297 | 15,297 | ||||
Dividends on common stock | (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 | |||||
Share-based compensation | 2,235 | 2,235 | ||||
Tax 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) | |||||
Purchases of treasury stock | (4,180) | (4,180) | ||||
Purchases of treasury stock, Shares | (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 | |||||
Net income | 16,886 | 16,886 | ||||
Dividends on common stock | (11,521) | (11,521) | ||||
Issuance of nonvested share awards | 2 | (2) | ||||
Issuance of nonvested share awards, Shares | 166,980 | |||||
Exercise of share option awards | 1,079 | 1 | 1,078 | |||
Exercise of share option awards, Shares | 137,161 | |||||
Share-based compensation | 2,319 | 2,319 | ||||
Tax deficiency from share-based awards activity | (222) | (222) | ||||
Forfeiture of nonvested share awards, Shares | (21,860) | |||||
Retirement of common stock for payment of withholding tax | (613) | (1) | (612) | |||
Retirement of common stock for payment of withholding tax, Shares | (53,682) | |||||
Shares withheld for exercise of share option awards | (112) | (112) | ||||
Shares withheld for exercise of share option awards, Shares | (7,031) | |||||
Purchases of treasury stock | (1,610) | (1,610) | ||||
Purchases of treasury stock, Shares | (126,899) | |||||
Ending Balance at Jan. 01, 2017 | 205,037 | 248 | 114,797 | 124,363 | (34,371) | |
Ending Balance, shares at Jan. 01, 2017 | 22,012,651 | |||||
Net income | 1,104 | 1,104 | ||||
Dividends on common stock | (13,043) | (13,043) | ||||
Issuance of nonvested share awards | 2 | (2) | ||||
Issuance of nonvested share awards, Shares | 203,112 | |||||
Exercise of share option awards | $ 67 | 67 | ||||
Exercise of share option awards, Shares | 11,086 | 11,086 | ||||
Share-based compensation | $ 2,301 | 2,301 | ||||
Forfeiture of nonvested share awards, Shares | (31,960) | |||||
Retirement of common stock for payment of withholding tax | $ (805) | (1) | (804) | |||
Retirement of common stock for payment of withholding tax, Shares | (54,012) | (54,012) | ||||
Net disgorgement of stockholder's short-swing profits | $ 136 | 136 | ||||
Purchases of treasury stock | (7,728) | (7,728) | ||||
Purchases of treasury stock, Shares | (795,718) | |||||
Ending Balance at Dec. 31, 2017 | $ 187,069 | $ 249 | $ 116,495 | $ 112,424 | $ (42,099) | |
Ending Balance, shares at Dec. 31, 2017 | 21,345,159 |
Consolidated Statements of Sto6
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Dividends per share | $ 0.60 | $ 0.525 | $ 0.40 |
Retained Earnings [Member] | |||
Dividends per share | $ 0.60 | $ 0.525 | $ 0.40 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 1,104,000 | $ 16,886,000 | $ 15,297,000 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 19,222,000 | 19,130,000 | 21,410,000 |
Impairment of store assets | 602,000 | 0 | 192,000 |
Impairment of goodwill | 4,433,000 | 0 | 0 |
Share-based compensation | 2,301,000 | 2,319,000 | 2,235,000 |
Excess tax benefit related to share-based awards | (429,000) | (137,000) | |
Amortization of debt issuance costs | 154,000 | 176,000 | 177,000 |
Deferred income taxes | 9,527,000 | (297,000) | 415,000 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 1,314,000 | 1,980,000 | 1,500,000 |
Merchandise inventories, net | (19,586,000) | 5,127,000 | 10,642,000 |
Prepaid expenses and other assets | (8,955,000) | 1,624,000 | (3,142,000) |
Accounts payable | (3,903,000) | 18,995,000 | (7,368,000) |
Accrued expenses and other long-term liabilities | (10,597,000) | 8,160,000 | (1,576,000) |
Net cash (used in) provided by operating activities | (4,384,000) | 73,671,000 | 39,645,000 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (16,462,000) | (14,109,000) | (24,567,000) |
Net cash used in investing activities | (16,462,000) | (14,109,000) | (24,567,000) |
Cash flows from financing activities: | |||
Principal borrowings under revolving credit facility | 252,459,000 | 207,303,000 | 202,218,000 |
Principal payments under revolving credit facility | (217,459,000) | (252,149,000) | (213,684,000) |
Changes in book overdraft | 8,367,000 | (119,000) | 6,992,000 |
Debt issuance costs | (248,000) | ||
Principal payments under capital lease obligations | (1,683,000) | (1,516,000) | (1,599,000) |
Proceeds from exercise of share option awards | 67,000 | 967,000 | 147,000 |
Proceeds from net disgorgement of stockholder's short-swing profits | 136,000 | ||
Excess tax benefit related to share-based awards | 429,000 | 137,000 | |
Purchases of treasury stock | (7,728,000) | (1,610,000) | (4,180,000) |
Tax withholding payments for share-based compensation | (805,000) | (613,000) | (685,000) |
Dividends paid | (12,985,000) | (11,478,000) | (8,808,000) |
Net cash provided by (used in) financing activities | 20,121,000 | (58,786,000) | (19,462,000) |
Net (decrease) increase in cash | (725,000) | 776,000 | (4,384,000) |
Cash at beginning of year | 7,895,000 | 7,119,000 | 11,503,000 |
Cash at end of year | 7,170,000 | 7,895,000 | 7,119,000 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Property and equipment acquired under capital leases | 2,912,000 | 1,014,000 | 3,074,000 |
Property and equipment additions unpaid | 1,471,000 | 2,176,000 | 2,663,000 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 1,193,000 | 1,333,000 | 1,691,000 |
Income taxes paid | $ 14,288,000 | $ 4,157,000 | $ 8,331,000 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business | (1) Description of Business The accompanying consolidated financial statements as of December 31, 2017 and January 1, 2017 and for the years ended December 31, 2017 (“fiscal 2017”), January 1, 2017 (“fiscal 2016”) and January 3, 2016 (“fiscal 2015”) 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 435 stores and an e-commerce platform as of December 31, 2017. 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 |
Dec. 31, 2017 | |
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 2016 and 2017 each included 52 weeks and fiscal 2015 included 53 weeks. Recently Adopted Accounting Updates In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting • Excess tax benefits or deficiencies are applied prospectively and recorded as a component of the income tax provision in the fiscal 2017 consolidated statement of operations. Such amounts were previously recognized in additional paid-in capital, to the extent that there was a sufficient additional paid-in capital pool related to previously-recognized tax benefits, on the Company’s consolidated balance sheets. No prior periods have been adjusted. • The Company had no unrecognized tax benefits related to its share-based payment awards at the adoption date. Therefore, no cumulative-effect adjustment to retained earnings was required as of the adoption date. • Earnings per share amounts presented in the fiscal 2017 consolidated statement of operations have been adjusted prospectively, and exclude the impact of assumed proceeds from tax benefits under the treasury stock method, since such amounts are now included as a component of the income tax provision and are no longer recognized in additional paid-in capital on the Company’s consolidated balance sheet. No prior periods have been adjusted. • Excess tax benefits no longer represent financing activities since they are recognized in the fiscal 2017 consolidated statement of operations; therefore, excess tax benefits have been classified as operating activities in the fiscal 2017 consolidated statement of cash flows. The ASU eliminated the requirement to reclassify excess tax benefits from operating activities to financing activities. The Company elected to apply the change in presentation prospectively, and no prior periods have been adjusted. • The Company elected to continue to estimate the total number of awards for which the service period will not be rendered, which resulted in no change to the Company’s consolidated financial statements. • The Company currently presents cash payments to taxing authorities in connection with shares withheld to meet statutory tax withholding requirements as a financing activity, which resulted in no change to the Company’s consolidated financial statements. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment Recently Issued Accounting Updates In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) 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 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 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 2017 2016 2015 (In thousands) Hard goods $ 509,618 $ 529,869 $ 534,864 Athletic and sport apparel 206,816 200,476 199,109 Athletic and sport footwear 288,536 287,399 291,325 Other sales 4,665 3,491 3,800 Net sales $ 1,009,635 $ 1,021,235 $ 1,029,098 The Company launched its e-commerce platform in the fourth quarter of fiscal 2014 and e-commerce net sales for fiscal 2017, 2016 and 2015 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 and the related shipping and handling costs are included in cost of sales. Sublease income is recognized ratably into revenue over the remaining lease term. Allowances for sales returns are estimated based upon historical experience and recorded as a reduction in sales in the relevant period, and are included in accrued expenses in the accompanying consolidated balance sheets. 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 2017). The Company recognized approximately $0.4 million of gift card breakage revenue in each fiscal year presented. The Company had outstanding gift card liabilities of $5.7 million and $5.3 million 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 (including e-commerce shipping and handling costs), 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 $37.9 million, $38.2 million and $39.8 million for fiscal 2017, 2016 and 2015, 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 certain product vendors in order to subsidize qualifying advertising and similar promotional expenditures made relating to vendors’ products. These advertising allowances are recognized as a reduction to selling and administrative expense when the Company incurs the advertising expense eligible for the credit. Co-operative advertising allowances recognized as a reduction to selling and administrative expense amounted to $5.6 million, $5.9 million and $6.0 million for fiscal 2017, 2016 and 2015, 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 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 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. 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. The Company incurs costs to purchase and develop software for internal use. 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. 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 2017, 2016 and 2015, and determined that goodwill was impaired in fiscal 2017. See Note 4 to the Notes to Consolidated Financial Statements for a further discussion on goodwill. 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 2017 and 2015, the Company recognized non-cash impairment charges of $0.6 million and $0.2 million, respectively, related to certain underperforming stores. These impairment charges are included in selling and administrative expense in the consolidated statements of operations. In fiscal 2016, the Company did not recognize any impairment charges. 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 systems 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 begins on the possession date and extends through 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. The Company evaluates its leases relative to asset retirement obligations, and determined these amounts to be immaterial. 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 $11.6 million and $11.6 million as of December 31, 2017 and January 1, 2017, respectively, of which $4.6 million and $4.7 million were recorded as a component of accrued expenses as of December 31, 2017 and January 1, 2017, respectively, and $7 .0 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 selling and administrative expense. As of December 31, 2017 and January 1, 2017, 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 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, fires, droughts, earthquakes, power outages 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 40.9% of total purchases in fiscal 2017. One vendor represented greater than 5% of total purchases, at 11.0%, in fiscal 2017. A significant portion of the Company’s inventory is manufactured abroad in China and other countries. Foreign imports subject us to the risks of changes in, or the imposition of new, import tariffs, duties or quotas, new restrictions on imports, loss of “most favored nation” status with the United States for a particular foreign country, antidumping or countervailing duty orders, retaliatory actions in response to illegal trade practices, work stoppages, delays in shipment, freight expense increases, product cost increases due to foreign currency fluctuations or revaluations and economic uncertainties. 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 could bring additional potential risks to the Company, including higher costs of credit, potential lender defaults, and potential commercial bank failures. The Company has received no indication that any such events will negatively impact the lenders under its current revolving credit facility; however, the possibility does exist. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | (3) Property and Equipment, Net Property and equipment, net, consist of the following: December 31, 2017 January 1, 2017 (In thousands) Furniture and equipment $ 136,858 $ 130,429 Leasehold improvements 160,945 154,487 Internal-use software 34,215 33,701 332,018 318,617 Accumulated depreciation and amortization (1) (256,005 ) (240,926 ) 76,013 77,691 Assets not placed into service 1,252 729 Property and equipment, net $ 77,265 $ 78,420 (1) Includes accumulated amortization for internal-use software development costs of $24.2 million and $21.6 million as of December 31, 2017 and January 1, 2017, respectively. Depreciation expense associated with property and equipment, including assets leased under capital leases, was $7.1 million, $7.8 million and $8.3 million for fiscal 2017, 2016 and 2015, respectively. Amortization expense for leasehold improvements was $9.6 million, $10.2 million and $11.6 million for fiscal 2017, 2016 and 2015, respectively. Amortization expense for internal-use software was $2.5 million, $1.1 million and $1.5 million for fiscal 2017, 2016 and 2015, respectively. The gross cost of equipment under capital leases, included above, was $11.9 million and $9.9 million as of December 31, 2017 and January 1, 2017, respectively. The accumulated depreciation related to these capital leases was $7.5 million and $6.6 million as of December 31, 2017 and January 1, 2017, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | (4) Goodwill Goodwill represents the excess of purchase price over fair value of net assets acquired. Under ASC 350, goodwill is not amortized but evaluated for impairment annually or whenever events or changes in circumstances indicate that the value may not be recoverable. The Company performs its annual impairment testing as of the end of each fiscal year. The Company has one reporting unit for goodwill impairment testing purposes. As described in Note 2 to the Notes to Consolidated Financial Statements, in the fourth quarter of fiscal 2017 the Company early-adopted ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The Company performed a quarterly qualitative assessment of factors related to goodwill impairment testing, which included consideration of general economic conditions, industry and market conditions such as general product demand, weather-related impacts and increasing labor costs in Company-specific markets, overall financial performance, financial projections and changes in share price and market capitalization. Based on these evaluations at the end of each of the first three quarters of fiscal 2017, given the information available at the time of those assessments, the Company determined that there were no events or circumstances that indicated any impairment of goodwill. During the fourth quarter of fiscal 2017, the Company experienced a significant decline in fourth quarter revenues due to unseasonably dry and warm weather conditions in most of our major markets that had a significant negative effect on sales of cold-weather and snow-related products, which resulted in a decrease in market capitalization and financial projections. Based upon this fourth quarter evaluation, the Company determined that the carrying value of its reporting unit more likely than not exceeded its estimated fair value. As a result, the Company performed a quantitative assessment of goodwill impairment testing, and estimated the fair value of its reporting unit using both a market and income approach. Using the market approach, the Company estimated the fair value of its reporting unit based upon an evaluation of control premiums of publicly-traded companies in similar lines of business, on the assumption that an acquiring entity would generally pay more for equity securities that give it a controlling interest than an investor would pay for an amount of equity securities representing less than a controlling interest. Using the income approach, the Company employed a discounted cash flow model, which required the estimation of cash flows and an appropriate discount rate. The Company projected cash flows expected to be generated by the reporting unit inclusive of an estimated terminal value and reflective of the conditions considered in the qualitative assessment discussed above. The cash flows contemplated projections of revenue growth, operating expenses including depreciation, capital expenditures and income taxes, which are considered Level 3 fair value measurements. The discount rate assumption contemplated a weighted-average cost of capital based on both market-observable and Company-specific factors. The discount rate was risk-adjusted to include any premiums related to equity price volatility, size, and projected capital structure of publicly-traded companies in similar lines of business. The Company believes these assumptions to be representative of assumptions that a market participant would use in valuing a reporting unit, but recognizes that these assumptions are inherently uncertain. After performing its annual impairment test as of December 31, 2017, the Company determined that the carrying value of its reporting unit exceeded its estimated fair value using the market and income approaches, as described above, by an amount that indicated a full impairment of the carrying value of goodwill. Consequently, the Company recorded a non-cash goodwill impairment charge of $4.4 million in selling and administrative expense in the accompanying consolidated statement of operations in the fourth quarter of fiscal 2017. The Company did not record goodwill impairment in fiscal 2016 or 2015. |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets | 12 Months Ended |
Dec. 31, 2017 | |
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 2016, the Company did not recognize any impairment charges. In fiscal 2017 and 2015, the Company recognized non-cash impairment charges of $0.6 million and $0.2 million, respectively, related to certain underperforming stores. The lower-than-expected 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 margin 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 2017 and 2015 in the accompanying consolidated statements of operations. |
Store Closing Costs
Store Closing Costs | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Store Closing Costs | (6) Store Closing Costs There were no closures of underperforming stores that resulted in material store closing costs during fiscal 2017 and 2015. The Company closed five underperforming stores in fiscal 2016 which were not relocated. The store closing costs primarily included lease termination costs for leases that were set to expire in fiscal years 2017 through 2019, and the net reduction to s tore closing costs in fiscal 2017 reflects the early termination of two store leases that resulted in settlement of their lease obligations for less than the amounts originally recorded. The following table summarizes the activity for the Company’s store closing reserves: Lease Termination Costs (In thousands) Balance at January 1, 2017 $ 788 Store closing costs (137 ) Payments (631 ) Balance at December 31, 2017 $ 20 The Company has incurred since initially recording store closing costs in the third quarter of fiscal 2016 Accrued store closing costs is recorded in accrued expenses in the accompanying consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (7) Fair Value Measurements The carrying values of cash, accounts receivable, accounts payable and accrued expenses approximate the fair values of these instruments due to their short-term nature. The carrying amount for borrowings under the revolving credit facility approximates fair value because of the variable market interest rate charged to the Company for these borrowings. When the Company recognizes impairment on certain of its underperforming stores, the carrying values of these stores are reduced to their estimated fair values. As of December 31, 2017 and January 1, 2017, 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 5 to the Notes to 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 As discussed in Note 4 of the Notes to Consolidated Financial Statements, the Company recorded a goodwill impairment charge of $4.4 million in the fourth quarter of fiscal 2017. The fair value of the Company’s reporting unit was determined using level 3 inputs and valuation techniques discussed in Note 4. There were no goodwill impairment charges recorded in fiscal 2016 or 2015. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | (8) Accrued Expenses The major components of accrued expenses are as follows: December 31, 2017 January 1, 2017 (In thousands) Payroll and related expense $ 23,670 $ 24,224 Occupancy expense 10,005 10,981 Sales tax 9,674 11,376 Other 24,877 30,306 Accrued expenses $ 68,226 $ 76,887 |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Lease Commitments | (9) Lease Commitments The Company currently leases stores, distribution and headquarters facilities under non-cancelable operating leases. The Company’s leases generally contain multiple renewal options for periods ranging from five to ten years and require the Company to pay all executory costs such as maintenance and insurance. Certain of the Company’s store leases provide for the payment of contingent rent based on a percentage of sales. Rent expense for operating leases consisted of the following: Year Ended December 31, 2017 January 1, 2017 January 3, 2016 (In thousands) Rent expense $ 75,250 $ 72,631 $ 71,541 Contingent rent 393 513 654 Total rent expense $ 75,643 $ 73,144 $ 72,195 Future minimum lease payments under non-cancelable leases as of December 31, 2017 are as follows: Year Ending: Capital Leases Operating Leases Total (In thousands) 2018 $ 1,933 $ 80,889 $ 82,822 2019 1,526 71,192 72,718 2020 1,045 57,131 58,176 2021 361 41,143 41,504 2022 26 29,061 29,087 Thereafter — 58,019 58,019 Total minimum lease payments (1) 4,891 $ 337,435 $ 342,326 Imputed interest (337 ) Present value of minimum lease payments $ 4,554 (1) Minimum lease payments have not been reduced by sublease rentals of $0.7 million due in the future under non-cancelable subleases. In the fourth quarter of fiscal 2016, the Company entered into an assignment agreement for a certain store lease. In consideration for the assignment, the Company received an assignment fee of $4.3 million. The assignment is accounted for as a sublease arrangement and the assignment fee has been deferred into accrued expenses and other long-term liabilities in the accompanying consolidated balance sheets. The remaining balance of the deferred lease revenue as of the end of fiscal 2017 was $2.9 million, and $0.9 million per year will be recognized ratably into revenue over the remaining lease term of approximately three years. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (10) Long-Term Debt On October 18, 2010, the Company, Big 5 Corp. and Big 5 Services Corp. 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 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 Third Amendment includes a provision which permits the Company to elect to reduce the aggregate committed availability under the Credit Agreement to $100.0 million for a three-month period each calendar year. Prior to the Third Amendment, the Credit Facility included a $50.0 million sublimit for issuances of letters of credit. The Third Amendment reduced the letter of credit sublimit to $25.0 million. The Credit Facility includes 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 Availability”). Prior to the Third Amendment, those loans designated as LIBO rate loans bore interest at a rate equal to the then applicable LIBO rate plus an applicable margin as shown in the table below. Those loans designated as base rate loans bore interest at a rate equal to the applicable margin for base rate loans (as shown below) plus the highest of (a) the Federal funds rate, as in effect from time to time, plus one-half of one percent (0.50%), (b) the LIBO rate, as adjusted to account for statutory reserves, plus one percent (1.00%), or (c) the rate of interest in effect for such day as publicly announced from time to time by Wells Fargo as its “prime rate.” Prior to the Third Amendment, the applicable margin for all loans under the existing Credit Agreement was as set forth below as a function of Average Daily Availability for the preceding fiscal quarter. Level Average Daily 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% Prior to the Third Amendment, the commitment fee assessed on the unused portion of the Credit Facility was 0.25% per annum. After giving effect to the Third Amendment, those loans designated as LIBO rate loans will bear interest at a rate equal to the then applicable adjusted 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, plus one percentage point (1.00%), or (c) the rate of interest in effect for such day as announced from time to time within Wells Fargo as its “prime rate.” The applicable margin for all loans will be a function of Average Daily Availability for the preceding fiscal quarter as set forth below. Level Average Daily Availability LIBO Rate Applicable Margin Base Rate Applicable Margin I Greater than or equal to $70,000,000 1.25% 0.25% II Less than $70,000,000 1.375% 0.50% After giving effect to the Third Amendment, the commitment fee assessed on the unused portion of the Credit Facility is 0.20% 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 December 31, 2017 and January 1, 2017, the one-month LIBO rate was 1.6% and 0.8%, respectively, and the Wells Fargo Bank prime lending rate was 4.50% and 3.75%, respectively. The average interest rate on the Company’s revolving credit borrowings during fiscal 2017 and 2016 was 2.60% and 2.20%, respectively. As of December 31, 2017 and January 1, 2017, the Company had long-term revolving credit borrowings outstanding bearing interest at either LIBO or the prime lending rates as follows: December 31, 2017 January 1, 2017 (In thousands) LIBO rate $ 45,000 $ 10,000 Prime rate — — Total borrowings $ 45,000 $ 10,000 The Third Amendment extended the maturity date of the Credit Agreement from December 19, 2018 to September 29, 2022. Total remaining borrowing availability, after subtracting letters of credit, was $94.5 million and $129.5 million as of December 31, 2017 and January 1, 2017, respectively, and letter of credit commitments were $0.5 million and $0.5 million as of December 31, 2017 and January 1, 2017, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (11) Income Taxes Total income tax expense (benefit) consists of the following: Current Deferred Total (In thousands) Fiscal 2017: Federal $ 3,231 $ 8,092 $ 11,323 State 836 1,435 2,271 $ 4,067 $ 9,527 $ 13,594 Fiscal 2016: Federal $ 9,635 $ (652 ) $ 8,983 State 1,712 355 2,067 $ 11,347 $ (297 ) $ 11,050 Fiscal 2015: Federal $ 7,478 $ 378 $ 7,856 State 1,558 37 1,595 $ 9,036 $ 415 $ 9,451 The provision for income taxes differs from the amounts computed by applying the federal statutory tax rate of 35% to earnings before income taxes, as follows: Year Ended December 31, 2017 January 1, 2017 January 3, 2016 (In thousands) Tax expense at statutory rate $ 5,144 $ 9,778 $ 8,662 State taxes, net of federal benefit 658 1,244 1,118 Federal rate change and other 7,792 28 (329 ) $ 13,594 $ 11,050 $ 9,451 The provision for income taxes for fiscal 2017 reflects a charge of $5.5 million to revalue existing net deferred tax assets as a result of the enactment of the Tax Cuts and Jobs Act (“TCJA”) in December 2017, which will reduce the federal corporate income tax rate from 35.0% to 21.0%. Additionally, the provision for income taxes for fiscal 2017 includes a charge of $0.9 million, excluding the federal income tax benefit, to establish a valuation allowance related to unused California Enterprise Zone Tax Credits, as well as a provision of $1.7 million related to non-deductible goodwill impairment. See Note 4 to the Notes to Consolidated Financial Statements for a further discussion of goodwill. The provision for income taxes for fiscal 2016 reflects the write-off of deferred tax assets related to share-based compensation of $0.5 million, partially offset by an increase in Work Opportunity Tax Credits. Deferred tax assets and liabilities as of December 31, 2017 are tax-effected based on the 21.0% federal corporate income tax rate under the recently-enacted TCJA, while deferred tax assets and liabilities as of January 1, 2017 are tax-effected based on the previous 35.0% federal corporate income tax rate. Deferred tax assets and liabilities consist of the following tax-effected temporary differences: December 3 2017 January 2017 (In thousands) Deferred tax assets: Deferred rent $ 5,076 $ 8,389 Insurance liabilities 2,762 4,365 Employee benefit-related liabilities 2,726 4,044 Inventory 1,635 3,174 California Enterprise Zone Tax Credits 1,451 1,542 Gift card liability 1,033 1,420 Share-based compensation 891 1,512 Deferred lease revenue 803 1,595 Allowance for sales returns 294 558 Other 491 1,572 Gross deferred tax assets 17,162 28,171 Less: Valuation allowance (876 ) — Deferred tax assets, net of valuation allowance 16,286 28,171 Federal liability on state deferred tax assets (1,234 ) (2,559 ) Basis difference in fixed assets (476 ) (1,913 ) Prepaid expense (404 ) — Deferred tax liabilities (2,114 ) (4,472 ) Net deferred tax assets $ 14,172 $ 23,699 In fiscal 2017, the Company established a valuation allowance of $0.9 million related to unused California Enterprise Zone Tax Credits, which the Company will no longer be able to carry forward beyond 2024 as a result of California’s termination of this program. The Company had no valuation allowance as of January 1, 2017. 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, except as noted above, 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 2014 and after, and state and local income tax returns are open for fiscal years 2013 and after. As of December 31, 2017 and January 1, 2017, 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 December 31, 2017 and January 1, 2017, the Company had no accrued interest or penalties. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (12) 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 December 31, 2017 January 1, 2017 January 3, 2016 (In thousands, except per share data) Net income $ 1,104 $ 16,886 $ 15,297 Weighted-average shares of common stock outstanding: Basic 21,439 21,607 21,741 Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards 146 209 186 Diluted 21,585 21,816 21,927 Basic earnings per share $ 0.05 $ 0.78 $ 0.70 Diluted earnings per share $ 0.05 $ 0.77 $ 0.70 Antidilutive share option awards excluded from diluted calculation 83 200 481 Antidilutive nonvested share and nonvested share unit awards excluded from diluted calculation 145 — 2 The computation of diluted earnings per share for fiscal 2017, 2016 and 2015 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 2017 and 2015 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. No nonvested share awards or nonvested share unit awards were antidilutive for fiscal 2016. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | (13) Employee Benefit Plans The Company has a 401(k) plan covering eligible employees. Employee contributions are supplemented by Company contributions subject to 401(k) plan terms. The Company recognized employer matching and profit-sharing contributions of $1.8 million, $1.8 million and $2.0 million for fiscal 2017, 2016 and 2015, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (14) 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 in fiscal 2015. In the third quarter of fiscal 2017, the Company recorded approximately $0.1 million related to the net recovery of short-swing profits under Section 16(b) of the Securities Exchange Act of 1934, as amended. The Company recognized these related party proceeds, net of $0.2 million of related legal fees and taxes, as an increase to additional paid-in capital in the accompanying consolidated balance sheet as of December 31, 2017 and as cash provided by financing activities in the accompanying consolidated statement of cash flows for fiscal 2017. 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 2017, 2016 and 2015, the Company made a payment of $350,000 to Mr. Miller’s wife. The Company recognized expense of $0.2 million, $0.2 million and $0.3 million in fiscal 2017, 2016 and 2015, 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 $1.2 million and $1.3 million as of December 31, 2017 and January 1, 2017, 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 of the accompanying consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (15) Commitments and Contingencies In February 2008, the Company entered into a lease for a parcel of land with an existing building adjacent to its corporate headquarters location, including a parking lot currently used by the Company (the “premises”). The lease term commenced in 2009 and the primary term was originally scheduled to expire on February 28, 2019, subject to renewal 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, regardless of whether or not any renewal options are exercised. In May 2017, the Company entered into an amendment to the lease to, among other things, extend the primary lease term, and consequently the construction deadline, to a date between February 29, 2020 and June 30, 2020. Such extension required a non-refundable payment of $40,000, which the Company made concurrently with execution of the amendment. In November 2017, the Company entered into an additional amendment to the lease concurrently with entering into a purchase and sale agreement. Pursuant to the purchase and sale agreement, the Company has the right to purchase the premises for $4.5 million, subject to a due diligence period expiring March 2, 2018. If the Company does not terminate the purchase and sale agreement during the due diligence period, then the Company shall pay $300,000 as an escrow deposit to purchase the property. The closing of the sale is scheduled to occur on or before November 27, 2018, subject to seller’s right to elect an earlier closing date. Pursuant to the amended lease, if consummation of the sale fails to occur by November 27, 2018, then the Company’s lease would remain in full force and effect, including the construction deadline, which would be the later of (a) February 29, 2020, or (b) the earlier of (i) two (2) years after the date that the purchase and sale agreement is terminated, or (ii) November 27, 2020. The Company is currently in the process of conducting due diligence to determine whether to proceed with the purchase. 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 Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation Plans | (16) Share-Based Compensation Plans 2007 Equity and Performance Incentive Plan In June 2007, the Company adopted the 2007 Equity and Performance Incentive Plan (“2007 Plan”) and terminated a previous stock incentive plan (“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. Amendments and Restatements of 2007 Plan On June 14, 2011 and June 10, 2016, the Company’s shareholders approved amendments and restatements of the Company’s 2007 Equity and Performance Incentive Plan (the “2011 Amendment and Restatement” and the “2016 Amendment and Restatement,” respectively, and collectively as so amended and restated, the “Amended 2007 Plan”). Neither amendment and restatement resulted in modifications to the Company’s outstanding share-based payment awards. Generally, following these amendments and restatements, the Amended 2007 Plan reflected these revisions: • 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 3,250,000 from the number authorized by the 2007 Plan; • the term of the Amended 2007 Plan was extended through April 19, 2026; • approved the continuation of the terms of Article X of the Amended 2007 Plan for purposes of Section 162(m) of the Internal Revenue Code; and • implemented certain technical updates and enhancements. After giving effect to the 2016 Amendment and Restatement, the aggregate amount of shares authorized for issuance under the Amended 2007 Plan was 3,649,250 shares, 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). 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. Respective copies of the 2011 Amendment and Restatement and the 2016 Amendment and Restatement were filed in Current Reports on Form 8-K in the second quarter of fiscal 2011 and 2016. In fiscal 2017, the Company granted 191,000 nonvested share awards and 21,000 nonvested share unit 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 2017, 2016 and 2015 was $2.3 million, $2.3 million and $2.2 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 2017, 2016 and 2015, respectively, and compensation expense recognized in selling and administrative expense was $2.2 million, $2.2 million and $2.1 million in fiscal 2017, 2016 and 2015, respectively. The recognized tax benefit related to compensation expense for fiscal 2017, 2016 and 2015 was $0.9 million, $0.9 million and $0.8 million, respectively. Net income for fiscal 2017, 2016 and 2015 was reduced by $1.4 million, $1.4 million and $1.4 million, respectively, or $0.06, $0.06 and $0.06 per basic and diluted share, respectively. Share Option Awards The fair value of each share option award on the date of grant was estimated using the Black-Scholes method based on the following weighted-average assumptions: Year Ended December 31, 2017 January 1, 2017 January 3, 2016 Risk-free interest rate — — 1.8 % Expected term — — 5.8 years Expected volatility — — 57.0 % Expected dividend yield — — 2.8 % 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. No share option awards were granted in fiscal 2017 and 2016. The weighted-average grant-date fair value of share option awards granted for fiscal 2015 was $6.02 per share. 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 January 1, 2017 224,379 $ 14.13 Granted — — Exercised (11,086 ) 6.07 Forfeited or Expired (69,000 ) 23.82 Outstanding at December 31, 2017 144,293 $ 10.11 3.00 $ 159,083 Exercisable at December 31, 2017 130,543 $ 9.74 2.56 $ 159,083 Vested and Expected to Vest at December 31, 2017 144,256 $ 10.11 3.00 $ 159,083 The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based upon the Company’s closing stock price of $7.60 per share as of December 31, 2017, 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 2017, 2016 and 2015 was approximately $0.1 million, $1.3 million and $0.2 million, respectively. The total cash received from employees as a result of employee share option award exercises for fiscal 2017, 2016 and 2015 was approximately $0.1 million, $1.0 million and $0.1 million, respectively. The value of shares withheld in connection with the exercise of share option awards for fiscal 2016 was approximately $0.1 million. The actual tax benefit realized for the tax deduction from share option award exercises in fiscal 2017, 2016 and 2015 totaled $31,000, $0.5 million and $0.1 million, respectively. As of December 31, 2017, there was $0.1 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 1.2 years. Nonvested Share Awards and Nonvested Share Unit Awards Nonvested share awards and nonvested share unit awards granted by the Company vest for employees from the date of grant in four equal annual installments of 25% per year. Nonvested share awards and nonvested share unit awards granted by the Company to non-employee directors for their service as directors, as defined by ASC 718, vest 100% on the first anniversary of the grant date. 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 2017, 2016 and 2015 was $2.0 million, $1.6 million and $1.7 million, respectively. The total fair value of nonvested share unit awards which vested during fiscal 2017, 2016 and 2015 was $0.3 million, $0.5 million and $0.1 million, respectively. The following table details the Company’s nonvested share awards activity for fiscal 2017: Shares Weighted- Average Grant- Date Fair Value Balance at January 1, 2017 355,130 $ 12.86 Granted 191,000 14.88 Vested (137,135 ) 13.46 Forfeited (31,960 ) 13.51 Balance at December 31, 2017 377,035 $ 13.61 The following table details the Company’s nonvested share unit awards activity for fiscal 2017: Units Weighted- Average Grant- Date Fair Value Balance at January 1, 2017 27,750 $ 9.55 Granted 21,000 13.90 Vested (25,500 ) 10.15 Forfeited — — Balance at December 31, 2017 23,250 $ 12.82 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 2017, 2016 and 2015 was $14.88 per share, $11.35 per share and $13.06 per share, respectively. The weighted-average grant-date fair value per share of the Company’s nonvested share unit awards granted in fiscal 2017, 2016 and 2015 was $13.90 per share, $8.87 per share and $14.67 per share, respectively. As of December 31, 2017, there was $3.5 million and $0.1 million of total unrecognized compensation expense related to nonvested share awards and nonvested share unit awards, respectively. That expense is expected to be recognized over a weighted-average period of approximately 2.3 years and 0.4 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 2017, the Company withheld 54,012 common shares with a total value of $0.8 million. This amount is presented as a cash outflow from financing activities in the accompanying consolidated statements of cash flows. As of December 31, 2017, dividends accrued but not paid related to nonvested share awards were $0.2 million. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | (17) Selected Quarterly Financial Data (unaudited) Fiscal 2017 First Second Third Fourth Quarter Quarter Quarter Quarter (1)(2)(3)(4) (In thousands, except per share data) Net sales $ 252,604 $ 243,671 $ 270,471 $ 242,889 Gross profit $ 83,622 $ 79,308 $ 87,548 $ 72,854 Net income (loss) $ 5,326 $ 2,778 $ 5,950 $ (12,950 ) Basic earnings per share $ 0.25 $ 0.13 $ 0.28 $ (0.62 ) Diluted earnings per share $ 0.24 $ 0.13 $ 0.28 $ (0.62 ) Fiscal 2016 First Second Third Fourth Quarter (4)(5) Quarter (5)(6) Quarter (6) Quarter (5) (In thousands, except per share data) Net sales $ 234,528 $ 241,409 $ 279,015 $ 266,283 Gross profit $ 70,965 $ 76,257 $ 89,889 $ 87,347 Net (loss) income $ (1,119 ) $ 2,124 $ 8,187 $ 7,694 Basic earnings per share $ (0.05 ) $ 0.10 $ 0.38 $ 0.36 Diluted earnings per share $ (0.05 ) $ 0.10 $ 0.38 $ 0.35 (1) The Company recorded a charge of $5.5 million in the fourth quarter of fiscal 2017 to revalue existing net deferred tax assets resulting from the enactment of the Tax Cuts and Jobs Act in December 2017. This charge reduced net income by the same amount, or $0.26 per share. Additionally, in the fourth quarter of fiscal 2017, the Company recorded a charge of $0.6 million, net of the federal income tax benefit, to establish a valuation allowance related to unused California Enterprise Zone Tax Credits, which reduced net income in fiscal 2017 by the same amount, or $0.03 per share. (2) The Company recorded a pre-tax non-cash impairment charge of $0.6 million in the fourth quarter of fiscal 2017 related to certain underperforming stores. This charge reduced net income in the fourth quarter of fiscal 2017 by $0.4 million, or $0.02 per share. (3) The Company recorded a non-cash goodwill impairment charge of $4.4 million in the fourth quarter of fiscal 2017, which reduced net income in the fourth quarter of fiscal 2017 by the same amount, or $0.21 per share. (4) The Company excluded all potential share option awards, nonvested share awards and nonvested share unit awards from the computation of diluted earnings per share for the first quarter of fiscal 2016 and the fourth quarter of fiscal 2017, since the Company reported a net loss in each respective period and the effect of their inclusion would have been antidilutive. (5) The Company recorded write-offs (benefits) of $0.7 million, $0.2 million and $(0.4) million in the first quarter, second quarter and fourth quarter of fiscal 2016, respectively, related to share-based compensation. These amounts reduced (increased) net income by the same respective amounts, or $0.03, $0.01 and $(0.02) per diluted share, respectively. (6) The Company recorded pre-tax charges of $0.1 million and $1.1 million in the second quarter and third quarter of fiscal 2016, respectively, related to store closing costs. These charges were included in selling and administrative expense and reduced net income in the second quarter and third quarter of fiscal 2016 by $60,000, or $0.00 per diluted share, and $0.7 million, or $0.03 per diluted share, respectively. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | (18) Subsequent Event In the first quarter of fiscal 2018, the Company’s Board of Directors declared a quarterly cash dividend of $0.15 per share of outstanding common stock, which will be paid on March 23, 2018 to stockholders of record as of March 9, 2018. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
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 December 31, 2017 Allowance for doubtful receivables $ 42 $ 60 $ (23 ) $ 79 Allowance for sales returns $ 1,334 $ (278 ) (1) $ — $ 1,056 Inventory reserves $ 5,680 $ 4,819 $ (4,649 ) $ 5,850 January 1, 2017 Allowance for doubtful receivables $ 61 $ 28 $ (47 ) $ 42 Allowance for sales returns $ 1,325 $ 9 (1) $ — $ 1,334 Inventory reserves $ 6,254 $ 4,553 $ (5,127 ) $ 5,680 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 (1) Represents an increase (decrease) in the required reserve based upon the Company’s evaluation of anticipated merchandise returns. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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 2016 and 2017 each included 52 weeks and fiscal 2015 included 53 weeks. |
Recently Adopted Accounting Updates | Recently Adopted Accounting Updates In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting • Excess tax benefits or deficiencies are applied prospectively and recorded as a component of the income tax provision in the fiscal 2017 consolidated statement of operations. Such amounts were previously recognized in additional paid-in capital, to the extent that there was a sufficient additional paid-in capital pool related to previously-recognized tax benefits, on the Company’s consolidated balance sheets. No prior periods have been adjusted. • The Company had no unrecognized tax benefits related to its share-based payment awards at the adoption date. Therefore, no cumulative-effect adjustment to retained earnings was required as of the adoption date. • Earnings per share amounts presented in the fiscal 2017 consolidated statement of operations have been adjusted prospectively, and exclude the impact of assumed proceeds from tax benefits under the treasury stock method, since such amounts are now included as a component of the income tax provision and are no longer recognized in additional paid-in capital on the Company’s consolidated balance sheet. No prior periods have been adjusted. • Excess tax benefits no longer represent financing activities since they are recognized in the fiscal 2017 consolidated statement of operations; therefore, excess tax benefits have been classified as operating activities in the fiscal 2017 consolidated statement of cash flows. The ASU eliminated the requirement to reclassify excess tax benefits from operating activities to financing activities. The Company elected to apply the change in presentation prospectively, and no prior periods have been adjusted. • The Company elected to continue to estimate the total number of awards for which the service period will not be rendered, which resulted in no change to the Company’s consolidated financial statements. • The Company currently presents cash payments to taxing authorities in connection with shares withheld to meet statutory tax withholding requirements as a financing activity, which resulted in no change to the Company’s consolidated financial statements. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment |
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) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) 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 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 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 2017 2016 2015 (In thousands) Hard goods $ 509,618 $ 529,869 $ 534,864 Athletic and sport apparel 206,816 200,476 199,109 Athletic and sport footwear 288,536 287,399 291,325 Other sales 4,665 3,491 3,800 Net sales $ 1,009,635 $ 1,021,235 $ 1,029,098 The Company launched its e-commerce platform in the fourth quarter of fiscal 2014 and e-commerce net sales for fiscal 2017, 2016 and 2015 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 and the related shipping and handling costs are included in cost of sales. Sublease income is recognized ratably into revenue over the remaining lease term. Allowances for sales returns are estimated based upon historical experience and recorded as a reduction in sales in the relevant period, and are included in accrued expenses in the accompanying consolidated balance sheets. 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 2017). The Company recognized approximately $0.4 million of gift card breakage revenue in each fiscal year presented. The Company had outstanding gift card liabilities of $5.7 million and $5.3 million 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 (including e-commerce shipping and handling costs), 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 $37.9 million, $38.2 million and $39.8 million for fiscal 2017, 2016 and 2015, 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 certain product vendors in order to subsidize qualifying advertising and similar promotional expenditures made relating to vendors’ products. These advertising allowances are recognized as a reduction to selling and administrative expense when the Company incurs the advertising expense eligible for the credit. Co-operative advertising allowances recognized as a reduction to selling and administrative expense amounted to $5.6 million, $5.9 million and $6.0 million for fiscal 2017, 2016 and 2015, 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 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 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. |
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. The Company incurs costs to purchase and develop software for internal use. 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. |
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 2017, 2016 and 2015, and determined that goodwill was impaired in fiscal 2017. See Note 4 to the Notes to Consolidated Financial Statements for a further discussion on goodwill. |
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 2017 and 2015, the Company recognized non-cash impairment charges of $0.6 million and $0.2 million, respectively, related to certain underperforming stores. These impairment charges are included in selling and administrative expense in the consolidated statements of operations. In fiscal 2016, the Company did not recognize any impairment charges. |
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 systems 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 begins on the possession date and extends through 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. The Company evaluates its leases relative to asset retirement obligations, and determined these amounts to be immaterial. |
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 $11.6 million and $11.6 million as of December 31, 2017 and January 1, 2017, respectively, of which $4.6 million and $4.7 million were recorded as a component of accrued expenses as of December 31, 2017 and January 1, 2017, respectively, and $7 .0 |
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 selling and administrative expense. As of December 31, 2017 and January 1, 2017, 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 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, fires, droughts, earthquakes, power outages 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 40.9% of total purchases in fiscal 2017. One vendor represented greater than 5% of total purchases, at 11.0%, in fiscal 2017. A significant portion of the Company’s inventory is manufactured abroad in China and other countries. Foreign imports subject us to the risks of changes in, or the imposition of new, import tariffs, duties or quotas, new restrictions on imports, loss of “most favored nation” status with the United States for a particular foreign country, antidumping or countervailing duty orders, retaliatory actions in response to illegal trade practices, work stoppages, delays in shipment, freight expense increases, product cost increases due to foreign currency fluctuations or revaluations and economic uncertainties. 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 could bring 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 Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 2016 2015 (In thousands) Hard goods $ 509,618 $ 529,869 $ 534,864 Athletic and sport apparel 206,816 200,476 199,109 Athletic and sport footwear 288,536 287,399 291,325 Other sales 4,665 3,491 3,800 Net sales $ 1,009,635 $ 1,021,235 $ 1,029,098 |
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 |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net, consist of the following: December 31, 2017 January 1, 2017 (In thousands) Furniture and equipment $ 136,858 $ 130,429 Leasehold improvements 160,945 154,487 Internal-use software 34,215 33,701 332,018 318,617 Accumulated depreciation and amortization (1) (256,005 ) (240,926 ) 76,013 77,691 Assets not placed into service 1,252 729 Property and equipment, net $ 77,265 $ 78,420 (1) Includes accumulated amortization for internal-use software development costs of $24.2 million and $21.6 million as of December 31, 2017 and January 1, 2017, respectively. |
Store Closing Costs (Tables)
Store Closing Costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Activity for Company Store Closing Reserves | The following table summarizes the activity for the Company’s store closing reserves: Lease Termination Costs (In thousands) Balance at January 1, 2017 $ 788 Store closing costs (137 ) Payments (631 ) Balance at December 31, 2017 $ 20 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Expenses | The major components of accrued expenses are as follows: December 31, 2017 January 1, 2017 (In thousands) Payroll and related expense $ 23,670 $ 24,224 Occupancy expense 10,005 10,981 Sales tax 9,674 11,376 Other 24,877 30,306 Accrued expenses $ 68,226 $ 76,887 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of Rent Expense | Rent expense for operating leases consisted of the following: Year Ended December 31, 2017 January 1, 2017 January 3, 2016 (In thousands) Rent expense $ 75,250 $ 72,631 $ 71,541 Contingent rent 393 513 654 Total rent expense $ 75,643 $ 73,144 $ 72,195 |
Schedule of Future Minimum Lease Payments under Non-Cancelable Leases | Future minimum lease payments under non-cancelable leases as of December 31, 2017 are as follows: Year Ending: Capital Leases Operating Leases Total (In thousands) 2018 $ 1,933 $ 80,889 $ 82,822 2019 1,526 71,192 72,718 2020 1,045 57,131 58,176 2021 361 41,143 41,504 2022 26 29,061 29,087 Thereafter — 58,019 58,019 Total minimum lease payments (1) 4,891 $ 337,435 $ 342,326 Imputed interest (337 ) Present value of minimum lease payments $ 4,554 (1) Minimum lease payments have not been reduced by sublease rentals of $0.7 million due in the future under non-cancelable subleases. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Average Daily Excess Availability for Preceding Fiscal Quarter | Prior to the Third Amendment, the applicable margin for all loans under the existing Credit Agreement was as set forth below as a function of Average Daily Availability for the preceding fiscal quarter. Level Average Daily 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 December 31, 2017 and January 1, 2017, the Company had long-term revolving credit borrowings outstanding bearing interest at either LIBO or the prime lending rates as follows: December 31, 2017 January 1, 2017 (In thousands) LIBO rate $ 45,000 $ 10,000 Prime rate — — Total borrowings $ 45,000 $ 10,000 |
Third Amendment to Credit Agreement [Member] | |
Average Daily Excess Availability for Preceding Fiscal Quarter | The applicable margin for all loans will be a function of Average Daily Availability for the preceding fiscal quarter as set forth below. Level Average Daily Availability LIBO Rate Applicable Margin Base Rate Applicable Margin I Greater than or equal to $70,000,000 1.25% 0.25% II Less than $70,000,000 1.375% 0.50% |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2017: Federal $ 3,231 $ 8,092 $ 11,323 State 836 1,435 2,271 $ 4,067 $ 9,527 $ 13,594 Fiscal 2016: Federal $ 9,635 $ (652 ) $ 8,983 State 1,712 355 2,067 $ 11,347 $ (297 ) $ 11,050 Fiscal 2015: Federal $ 7,478 $ 378 $ 7,856 State 1,558 37 1,595 $ 9,036 $ 415 $ 9,451 |
Schedule of Federal Statutory Tax Rate Reconciliation | The provision for income taxes differs from the amounts computed by applying the federal statutory tax rate of 35% to earnings before income taxes, as follows: Year Ended December 31, 2017 January 1, 2017 January 3, 2016 (In thousands) Tax expense at statutory rate $ 5,144 $ 9,778 $ 8,662 State taxes, net of federal benefit 658 1,244 1,118 Federal rate change and other 7,792 28 (329 ) $ 13,594 $ 11,050 $ 9,451 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consist of the following tax-effected temporary differences: December 3 2017 January 2017 (In thousands) Deferred tax assets: Deferred rent $ 5,076 $ 8,389 Insurance liabilities 2,762 4,365 Employee benefit-related liabilities 2,726 4,044 Inventory 1,635 3,174 California Enterprise Zone Tax Credits 1,451 1,542 Gift card liability 1,033 1,420 Share-based compensation 891 1,512 Deferred lease revenue 803 1,595 Allowance for sales returns 294 558 Other 491 1,572 Gross deferred tax assets 17,162 28,171 Less: Valuation allowance (876 ) — Deferred tax assets, net of valuation allowance 16,286 28,171 Federal liability on state deferred tax assets (1,234 ) (2,559 ) Basis difference in fixed assets (476 ) (1,913 ) Prepaid expense (404 ) — Deferred tax liabilities (2,114 ) (4,472 ) Net deferred tax assets $ 14,172 $ 23,699 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share: Year Ended December 31, 2017 January 1, 2017 January 3, 2016 (In thousands, except per share data) Net income $ 1,104 $ 16,886 $ 15,297 Weighted-average shares of common stock outstanding: Basic 21,439 21,607 21,741 Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards 146 209 186 Diluted 21,585 21,816 21,927 Basic earnings per share $ 0.05 $ 0.78 $ 0.70 Diluted earnings per share $ 0.05 $ 0.77 $ 0.70 Antidilutive share option awards excluded from diluted calculation 83 200 481 Antidilutive nonvested share and nonvested share unit awards excluded from diluted calculation 145 — 2 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 December 31, 2017 January 1, 2017 January 3, 2016 Risk-free interest rate — — 1.8 % Expected term — — 5.8 years Expected volatility — — 57.0 % Expected dividend yield — — 2.8 % |
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 January 1, 2017 224,379 $ 14.13 Granted — — Exercised (11,086 ) 6.07 Forfeited or Expired (69,000 ) 23.82 Outstanding at December 31, 2017 144,293 $ 10.11 3.00 $ 159,083 Exercisable at December 31, 2017 130,543 $ 9.74 2.56 $ 159,083 Vested and Expected to Vest at December 31, 2017 144,256 $ 10.11 3.00 $ 159,083 |
Summary of Nonvested Share Awards Activity | The following table details the Company’s nonvested share awards activity for fiscal 2017: Shares Weighted- Average Grant- Date Fair Value Balance at January 1, 2017 355,130 $ 12.86 Granted 191,000 14.88 Vested (137,135 ) 13.46 Forfeited (31,960 ) 13.51 Balance at December 31, 2017 377,035 $ 13.61 The following table details the Company’s nonvested share unit awards activity for fiscal 2017: Units Weighted- Average Grant- Date Fair Value Balance at January 1, 2017 27,750 $ 9.55 Granted 21,000 13.90 Vested (25,500 ) 10.15 Forfeited — — Balance at December 31, 2017 23,250 $ 12.82 |
Selected Quarterly Financial 37
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Fiscal 2017 First Second Third Fourth Quarter Quarter Quarter Quarter (1)(2)(3)(4) (In thousands, except per share data) Net sales $ 252,604 $ 243,671 $ 270,471 $ 242,889 Gross profit $ 83,622 $ 79,308 $ 87,548 $ 72,854 Net income (loss) $ 5,326 $ 2,778 $ 5,950 $ (12,950 ) Basic earnings per share $ 0.25 $ 0.13 $ 0.28 $ (0.62 ) Diluted earnings per share $ 0.24 $ 0.13 $ 0.28 $ (0.62 ) Fiscal 2016 First Second Third Fourth Quarter (4)(5) Quarter (5)(6) Quarter (6) Quarter (5) (In thousands, except per share data) Net sales $ 234,528 $ 241,409 $ 279,015 $ 266,283 Gross profit $ 70,965 $ 76,257 $ 89,889 $ 87,347 Net (loss) income $ (1,119 ) $ 2,124 $ 8,187 $ 7,694 Basic earnings per share $ (0.05 ) $ 0.10 $ 0.38 $ 0.36 Diluted earnings per share $ (0.05 ) $ 0.10 $ 0.38 $ 0.35 (1) The Company recorded a charge of $5.5 million in the fourth quarter of fiscal 2017 to revalue existing net deferred tax assets resulting from the enactment of the Tax Cuts and Jobs Act in December 2017. This charge reduced net income by the same amount, or $0.26 per share. Additionally, in the fourth quarter of fiscal 2017, the Company recorded a charge of $0.6 million, net of the federal income tax benefit, to establish a valuation allowance related to unused California Enterprise Zone Tax Credits, which reduced net income in fiscal 2017 by the same amount, or $0.03 per share. (2) The Company recorded a pre-tax non-cash impairment charge of $0.6 million in the fourth quarter of fiscal 2017 related to certain underperforming stores. This charge reduced net income in the fourth quarter of fiscal 2017 by $0.4 million, or $0.02 per share. (3) The Company recorded a non-cash goodwill impairment charge of $4.4 million in the fourth quarter of fiscal 2017, which reduced net income in the fourth quarter of fiscal 2017 by the same amount, or $0.21 per share. (4) The Company excluded all potential share option awards, nonvested share awards and nonvested share unit awards from the computation of diluted earnings per share for the first quarter of fiscal 2016 and the fourth quarter of fiscal 2017, since the Company reported a net loss in each respective period and the effect of their inclusion would have been antidilutive. (5) The Company recorded write-offs (benefits) of $0.7 million, $0.2 million and $(0.4) million in the first quarter, second quarter and fourth quarter of fiscal 2016, respectively, related to share-based compensation. These amounts reduced (increased) net income by the same respective amounts, or $0.03, $0.01 and $(0.02) per diluted share, respectively. (6) The Company recorded pre-tax charges of $0.1 million and $1.1 million in the second quarter and third quarter of fiscal 2016, respectively, related to store closing costs. These charges were included in selling and administrative expense and reduced net income in the second quarter and third quarter of fiscal 2016 by $60,000, or $0.00 per diluted share, and $0.7 million, or $0.03 per diluted share, respectively. |
Description of Business - Addit
Description of Business - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017ft²StoreSegment | |
Description Of Business [Line Items] | |
Number of operating stores | Store | 435 |
Area of traditional sporting goods store | ft² | 11,000 |
Number of reportable segment | Segment | 1 |
Big 5 Corp [Member] | |
Description Of Business [Line Items] | |
Subsidiary interest ownership percentage | 100.00% |
Big 5 Service Corp [Member] | |
Description Of Business [Line Items] | |
Subsidiary interest ownership percentage | 100.00% |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||||
Apr. 01, 2018USD ($) | Dec. 31, 2017USD ($)Supplier | Apr. 02, 2017USD ($) | Dec. 31, 2017USD ($)Supplier | Jan. 01, 2017USD ($) | Jan. 03, 2016USD ($) | |
Accounting Policies [Line Items] | ||||||
Reporting period, minimum | 364 days | |||||
Reporting period, maximum | 371 days | |||||
Unrecognized tax benefits | $ 0 | |||||
Cumulative effect adjustment to retained earnings | $ 0 | |||||
Retained earnings | $ 112,424,000 | $ 112,424,000 | $ 124,363,000 | |||
Estimated gift card redemption period | 20 quarters | |||||
Outstanding gift card liabilities | 5,700,000 | $ 5,700,000 | 5,300,000 | |||
Advertising expense, net of co-operative advertising allowances | 37,900,000 | 38,200,000 | $ 39,800,000 | |||
Co-operative advertising allowances | 5,600,000 | 5,900,000 | 6,000,000 | |||
Cash equivalents | 0 | 0 | ||||
Long-lived assets to be held and used | 500,000 | 500,000 | ||||
Impairment of store assets | 600,000 | 602,000 | 0 | 192,000 | ||
Self-insurance liabilities | 11,600,000 | 11,600,000 | 11,600,000 | |||
Accrued interest or penalties | 0 | 0 | 0 | |||
Cash deposits insured by the Federal Deposit Insurance Corporation | $ 250,000 | $ 250,000 | ||||
Concentration risk, suppliers | Supplier | 700 | |||||
Concentration risk, largest supplier | Supplier | 20 | |||||
Suppliers accounted for total purchases | 40.90% | 40.90% | ||||
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 | 11.00% | 11.00% | ||||
Accrued expenses [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Self-insurance liabilities | $ 4,600,000 | $ 4,600,000 | 4,700,000 | |||
Other long-term liabilities [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Self-insurance liabilities | $ 7,000,000 | 7,000,000 | 6,900,000 | |||
Gift Card Breakage Revenue [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Recognized gift card breakage revenue | $ 400,000 | $ 400,000 | $ 400,000 | |||
ASU No. 2014-09 [Member] | Scenario Forecast [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Retained earnings | $ 700,000 | |||||
Inventory cost | $ 1,300,000 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Summary of Net Sales Attributable to Various Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Operating Segment Information [Line Items] | |||||||||||
Net sales | $ 242,889 | $ 270,471 | $ 243,671 | $ 252,604 | $ 266,283 | $ 279,015 | $ 241,409 | $ 234,528 | $ 1,009,635 | $ 1,021,235 | $ 1,029,098 |
Hard goods [Member] | |||||||||||
Operating Segment Information [Line Items] | |||||||||||
Net sales | 509,618 | 529,869 | 534,864 | ||||||||
Athletic and sport apparel [Member] | |||||||||||
Operating Segment Information [Line Items] | |||||||||||
Net sales | 206,816 | 200,476 | 199,109 | ||||||||
Athletic and sport footwear [Member] | |||||||||||
Operating Segment Information [Line Items] | |||||||||||
Net sales | 288,536 | 287,399 | 291,325 | ||||||||
Other sales [Member] | |||||||||||
Operating Segment Information [Line Items] | |||||||||||
Net sales | $ 4,665 | $ 3,491 | $ 3,800 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Schedule of Estimated Useful Life of Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
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 | Dec. 31, 2017 | Jan. 01, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 332,018 | $ 318,617 |
Accumulated depreciation and amortization | (256,005) | (240,926) |
Property and equipment, net excluding assets not placed into service | 76,013 | 77,691 |
Assets not placed into service | 1,252 | 729 |
Property and equipment, net | 77,265 | 78,420 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 136,858 | 130,429 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 160,945 | 154,487 |
Internal-use software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 34,215 | $ 33,701 |
Property and Equipment, Net -43
Property and Equipment, Net - Schedule of Property and Equipment (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Jan. 01, 2017 |
Internal-use software development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated amortization for internal-use software development costs | $ 24.2 | $ 21.6 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 7.1 | $ 7.8 | $ 8.3 |
Amortization expense | 9.6 | 10.2 | 11.6 |
Capital leases, gross | 11.9 | 9.9 | |
Accumulated depreciation of capital leases | 7.5 | 6.6 | |
Internal-use software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Amortization expense | $ 2.5 | $ 1.1 | $ 1.5 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($)ReportingUnit | Jan. 01, 2017USD ($) | Jan. 03, 2016USD ($) | |
Goodwill [Line Items] | ||||
Number of reporting unit for goodwill impairment testing purpose | ReportingUnit | 1 | |||
Non-cash goodwill impairment charge | $ 4,400,000 | $ 4,433,000 | $ 0 | $ 0 |
Selling and administrative expense [Member] | ||||
Goodwill [Line Items] | ||||
Non-cash goodwill impairment charge | $ 4,400,000 |
Impairment of Long-Lived Asse46
Impairment of Long-Lived Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Impairment Or Disposal Of Tangible Assets Disclosure [Abstract] | ||||
Impairment of store assets | $ 600 | $ 602 | $ 0 | $ 192 |
Store Closing Costs - Additiona
Store Closing Costs - Additional Information (Detail) $ in Millions | 12 Months Ended | 18 Months Ended | ||
Dec. 31, 2017Store | Jan. 01, 2017Store | Jan. 03, 2016Store | Dec. 31, 2017USD ($) | |
Restructuring Cost And Reserve [Line Items] | ||||
Number of underperforming stores closed | 0 | 5 | 0 | |
Net expense incurred to date related to store closing costs | $ | $ 1.1 | |||
Early Termination [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number of underperforming stores closed | 2 |
Store Closing Costs - Schedule
Store Closing Costs - Schedule of Activity for Company Store Closing Reserves (Detail) - USD ($) $ in Thousands | 12 Months Ended | 18 Months Ended |
Dec. 31, 2017 | Dec. 31, 2017 | |
Restructuring Cost And Reserve [Line Items] | ||
Store closing costs | $ (1,100) | |
Lease Termination Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Balance at January 1, 2017 | $ 788 | |
Store closing costs | (137) | |
Payments | (631) | |
Balance at December 31, 2017 | $ 20 | $ 20 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Fair Value Disclosures [Abstract] | ||||
Goodwill impairment charges | $ 4,400,000 | $ 4,433,000 | $ 0 | $ 0 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Payables And Accruals [Abstract] | ||
Payroll and related expense | $ 23,670 | $ 24,224 |
Occupancy expense | 10,005 | 10,981 |
Sales tax | 9,674 | 11,376 |
Other | 24,877 | 30,306 |
Accrued expenses | $ 68,226 | $ 76,887 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jan. 01, 2017 | Dec. 31, 2017 | |
Leases Disclosure [Line Items] | ||
Assignment fee received | $ 4.3 | |
Remaining lease term | 3 years | |
Deferred lease revenue | $ 2.9 | |
Deferred lease revenue to be recognized in fiscal 2018 | 0.9 | |
Deferred lease revenue to be recognized in fiscal 2019 | 0.9 | |
Deferred lease revenue to be recognized in fiscal 2020 | $ 0.9 | |
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 | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Leases [Abstract] | |||
Rent expense | $ 75,250 | $ 72,631 | $ 71,541 |
Contingent rent | 393 | 513 | 654 |
Total rent expense | $ 75,643 | $ 73,144 | $ 72,195 |
Lease Commitments - Schedule 53
Lease Commitments - Schedule of Future Minimum Lease Payments under Non-Cancelable Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Leases [Abstract] | |
2018, Capital Leases | $ 1,933 |
2019, Capital Leases | 1,526 |
2020, Capital Leases | 1,045 |
2021, Capital Leases | 361 |
2022, Capital Leases | 26 |
Total minimum lease payments, Capital Leases | 4,891 |
Imputed interest | (337) |
Present value of minimum lease payments | 4,554 |
2018, Operating Leases | 80,889 |
2019, Operating Leases | 71,192 |
2020, Operating Leases | 57,131 |
2021, Operating Leases | 41,143 |
2022, Operating Leases | 29,061 |
Thereafter, Operating Leases | 58,019 |
Total minimum lease payments, Operating Leases | 337,435 |
2018, Total | 82,822 |
2019, Total | 72,718 |
2020, Total | 58,176 |
2021, Total | 41,504 |
2022, Total | 29,087 |
Thereafter, Total | 58,019 |
Total minimum lease payments | $ 342,326 |
Lease Commitments - Schedule 54
Lease Commitments - Schedule of Future Minimum Lease Payments under Non-Cancelable Leases (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Leases [Abstract] | |
Minimum lease payments, sublease rentals under non-cancelable subleases | $ 700,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2017 | Jan. 01, 2017 | |
Debt Instrument [Line Items] | |||
Credit Agreement description | On October 18, 2010, the Company, Big 5 Corp. and Big 5 Services Corp. 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”). On September 29, 2017, the parties amended certain provisions of the Credit Agreement (such amendment, the “Third Amendment”), as further discussed below. The amendment represented a modification and resulted in the payment and capitalization of $0.2 million in deferred financing fees. | ||
Payment in deferred financing fees | $ 248,000 | ||
Revolving credit facility | $ 140,000,000 | 140,000,000 | |
First tier of increase to the borrowing capacity | 165,000,000 | 165,000,000 | |
Maximum limit of credit facility | 200,000,000 | 200,000,000 | |
Sublimit for issuances of letters of credit | 50,000,000 | 50,000,000 | |
Sublimit for swingline loans | $ 20,000,000 | $ 20,000,000 | |
Percentage of eligible credit card accounts receivables | 90.00% | 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 | $ 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 | $ 5,000,000 | |
Maturity date of Credit Agreement | Dec. 19, 2018 | ||
Letter of credit commitments | $ 500,000 | $ 500,000 | $ 500,000 |
Wells Fargo Bank [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit borrowings, interest rate | 4.50% | 3.75% | |
Revolving Credit Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit borrowings, interest rate | 2.60% | 2.20% | |
Third Amendment to Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of Credit Agreement | Sep. 29, 2022 | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Fixed charge coverage ratio | 100.00% | 100.00% | |
One-month LIBO rate [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit borrowings, interest rate | 1.60% | 0.80% | |
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% | ||
Third Amendment to Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Credit agreement amendment date | Sep. 29, 2017 | ||
Payment in deferred financing fees | $ 200,000 | ||
Capitalization in deferred financing fees | $ 200,000 | 200,000 | |
Revolving credit facility | 100,000,000 | 100,000,000 | |
Sublimit for issuances of letters of credit | $ 25,000,000 | $ 25,000,000 | |
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, plus one percentage point (1.00%), or (c) the rate of interest in effect for such day as announced from time to time within Wells Fargo as its “prime rate.” | ||
Commitment fee assessed | 0.20% | ||
Third Amendment to Credit Agreement [Member] | Federal Funds Rate [Member] | |||
Debt Instrument [Line Items] | |||
Applicable margin in addition to variable rate | 0.50% | ||
Third 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 | $ 94,500,000 | $ 94,500,000 | $ 129,500,000 |
Long-Term Debt - Average Daily
Long-Term Debt - Average Daily Excess Availability for Preceding Fiscal Quarter (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Second Amendment to Credit Agreement [Member] | Level I [Member] | |
Line Of Credit Facility [Line Items] | |
Average Daily Availability | Greater than or equal to $100,000,000 |
LIBO Rate Applicable Margin | 1.25% |
Base Rate Applicable Margin | 0.25% |
Second Amendment to Credit Agreement [Member] | Level II [Member] | |
Line Of Credit Facility [Line Items] | |
Average Daily Availability | Less than $100,000,000 but greater than or equal to $40,000,000 |
LIBO Rate Applicable Margin | 1.50% |
Base Rate Applicable Margin | 0.50% |
Second Amendment to Credit Agreement [Member] | Level III [Member] | |
Line Of Credit Facility [Line Items] | |
Average Daily Availability | Less than $40,000,000 |
LIBO Rate Applicable Margin | 1.75% |
Base Rate Applicable Margin | 0.75% |
Third Amendment to Credit Agreement [Member] | Level I [Member] | |
Line Of Credit Facility [Line Items] | |
Average Daily Availability | Greater than or equal to $70,000,000 |
LIBO Rate Applicable Margin | 1.25% |
Base Rate Applicable Margin | 0.25% |
Third Amendment to Credit Agreement [Member] | Level II [Member] | |
Line Of Credit Facility [Line Items] | |
Average Daily Availability | Less than $70,000,000 |
LIBO Rate Applicable Margin | 1.375% |
Base Rate Applicable Margin | 0.50% |
Long-Term Debt - Summary of Bor
Long-Term Debt - Summary of Borrowings Outstanding (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Line Of Credit Facility [Line Items] | ||
Total borrowings | $ 45,000 | $ 10,000 |
LIBO Rate [Member] | ||
Line Of Credit Facility [Line Items] | ||
Total borrowings | $ 45,000 | $ 10,000 |
Income Taxes - Summary of Total
Income Taxes - Summary of Total Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Income Tax Disclosure [Abstract] | |||
Current, Federal | $ 3,231 | $ 9,635 | $ 7,478 |
Current, State | 836 | 1,712 | 1,558 |
Current, Total | 4,067 | 11,347 | 9,036 |
Deferred, Federal | 8,092 | (652) | 378 |
Deferred, State | 1,435 | 355 | 37 |
Deferred, Total | 9,527 | (297) | 415 |
Total, Federal | 11,323 | 8,983 | 7,856 |
Total, State | 2,271 | 2,067 | 1,595 |
Total income tax expense (benefit) | $ 13,594 | $ 11,050 | $ 9,451 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | Jan. 01, 2017 |
Income Tax Contingency [Line Items] | ||||
Federal statutory tax rate | 35.00% | |||
Revaluation of net deferred tax assets | $ 5,500,000 | |||
Write-off of deferred tax assets related to share based compensation | $ 500,000 | |||
Valuation allowance | 876,000 | $ 876,000 | 0 | |
Unrecognized tax benefits | 0 | 0 | $ 0 | |
Unrecognized tax benefits, period | Over the next 12 months | |||
Accrued interest or penalties | 0 | $ 0 | $ 0 | |
Earliest Tax Year [Member] | Federal [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Income tax returns in period | 2,014 | |||
Earliest Tax Year [Member] | State and Local [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Income tax returns in period | 2,013 | |||
Goodwill [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Provision related to non-deductible goodwill impairment | $ 1,700,000 | |||
TCJA [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Revaluation of net deferred tax assets | 5,500,000 | |||
California Enterprise Zone Tax Credits [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Provision for incomes taxes, excluding federal income tax benefit | 600,000 | 900,000 | ||
Valuation allowance | $ 900,000 | $ 900,000 | ||
Tax credits carry forward latest expiration year | 2,024 | |||
Subsequent Event [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Federal statutory tax rate | 21.00% |
Income Taxes - Schedule of Fede
Income Taxes - Schedule of Federal Statutory Tax Rate Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Income Tax Disclosure [Abstract] | |||
Tax expense at statutory rate | $ 5,144 | $ 9,778 | $ 8,662 |
State taxes, net of federal benefit | 658 | 1,244 | 1,118 |
Federal rate change and other | 7,792 | 28 | (329) |
Total income tax expense (benefit) | $ 13,594 | $ 11,050 | $ 9,451 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) | Dec. 31, 2017 | Jan. 01, 2017 |
Deferred tax assets: | ||
Deferred rent | $ 5,076,000 | $ 8,389,000 |
Insurance liabilities | 2,762,000 | 4,365,000 |
Employee benefit-related liabilities | 2,726,000 | 4,044,000 |
Inventory | 1,635,000 | 3,174,000 |
California Enterprise Zone Tax Credits | 1,451,000 | 1,542,000 |
Gift card liability | 1,033,000 | 1,420,000 |
Share-based compensation | 891,000 | 1,512,000 |
Deferred lease revenue | 803,000 | 1,595,000 |
Allowance for sales returns | 294,000 | 558,000 |
Other | 491,000 | 1,572,000 |
Gross deferred tax assets | 17,162,000 | 28,171,000 |
Less: Valuation allowance | (876,000) | 0 |
Deferred tax assets, net of valuation allowance | 16,286,000 | 28,171,000 |
Federal liability on state deferred tax assets | (1,234,000) | (2,559,000) |
Basis difference in fixed assets | (476,000) | (1,913,000) |
Prepaid expense | (404,000) | |
Deferred tax liabilities | (2,114,000) | (4,472,000) |
Net deferred tax assets | $ 14,172,000 | $ 23,699,000 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Earnings Per Share Basic [Line Items] | |||||||||||
Net income | $ (12,950) | $ 5,950 | $ 2,778 | $ 5,326 | $ 7,694 | $ 8,187 | $ 2,124 | $ (1,119) | $ 1,104 | $ 16,886 | $ 15,297 |
Weighted-average shares of common stock outstanding: | |||||||||||
Basic | 21,439,000 | 21,607,000 | 21,741,000 | ||||||||
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards | 146,000 | 209,000 | 186,000 | ||||||||
Diluted | 21,585,000 | 21,816,000 | 21,927,000 | ||||||||
Basic earnings per share | $ (0.62) | $ 0.28 | $ 0.13 | $ 0.25 | $ 0.36 | $ 0.38 | $ 0.10 | $ (0.05) | $ 0.05 | $ 0.78 | $ 0.70 |
Diluted earnings per share | $ (0.62) | $ 0.28 | $ 0.13 | $ 0.24 | $ 0.35 | $ 0.38 | $ 0.10 | $ (0.05) | $ 0.05 | $ 0.77 | $ 0.70 |
Share Option Awards [Member] | |||||||||||
Weighted-average shares of common stock outstanding: | |||||||||||
Antidilutive shares/unit awards excluded from diluted calculation | 83,000 | 200,000 | 481,000 | ||||||||
Nonvested Share Awards and Nonvested Share Unit Awards [Member] | |||||||||||
Weighted-average shares of common stock outstanding: | |||||||||||
Antidilutive shares/unit awards excluded from diluted calculation | 145,000 | 0 | 2,000 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Nonvested Share Awards and Nonvested Share Unit Awards [Member] | |||
Earnings Per Share Basic [Line Items] | |||
Antidilutive shares/unit awards excluded from diluted calculation | 145,000 | 0 | 2,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Abstract] | |||
Employer matching and profit-sharing contributions | $ 1.8 | $ 1.8 | $ 2 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Oct. 01, 2017 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Related Party Transaction [Line Items] | ||||
Net Recovery of short swing profits | $ 100,000 | $ 136,000 | ||
Related legal fees and taxes | 200,000 | |||
Musick Peeler & Garrett LLP [Member] | ||||
Related Party Transaction [Line Items] | ||||
Services received by Company from related party | $ 700,000 | |||
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 | 200,000 | 200,000 | $ 300,000 | |
Liability of future obligations | $ 1,200,000 | $ 1,300,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Feb. 29, 2008Time | Dec. 31, 2017USD ($) |
Commitments And Contingencies [Line Items] | ||
Lease expiration date | Feb. 28, 2019 | |
Number of times lease can be renewed | Time | 6 | |
Lease renewal period | 5 years | |
Lease amendment description | In May 2017, the Company entered into an amendment to the lease to, among other things, extend the primary lease term, and consequently the construction deadline, to a date between February 29, 2020 and June 30, 2020 | |
Non refundable payment | $ 40,000 | |
Purchase the premises | $ 4,500,000 | |
Due diligence expiration date | Mar. 2, 2018 | |
Escrow deposit to purchase the property | $ 300,000 | |
Sale agreement termination, date | November 27, 2020 | |
Additional Amendment Lease Agreement [Member] | ||
Commitments And Contingencies [Line Items] | ||
Lease amendment description | In November 2017, the Company entered into an additional amendment to the lease concurrently with entering into a purchase and sale agreement. |
Share-Based Compensation Plan67
Share-Based Compensation Plans - Additional Information (Detail) - USD ($) | Jun. 14, 2011 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares outstanding | 144,293 | 224,379 | ||
Compensation expense | $ 2,300,000 | $ 2,300,000 | $ 2,200,000 | |
Recognized tax benefit relating to compensation expense | 900,000 | 900,000 | 800,000 | |
Net income reduced | $ 1,400,000 | $ 1,400,000 | $ 1,400,000 | |
Reduction in basic and diluted income per share | $ 0.06 | $ 0.06 | $ 0.06 | |
Employee share option award exercised | $ 67,000 | $ 967,000 | $ 147,000 | |
Value of shares withheld for exercise of share option awards | 112,000 | |||
Shares withheld for tax requirements | 54,012 | |||
Tax withholding payments for share-based compensation | $ 805,000 | 613,000 | 685,000 | |
Common Stock [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Closing stock price per share | $ 7.60 | |||
Tax withholding payments for share-based compensation | $ 1,000 | 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 | $ 2,200,000 | $ 2,200,000 | 2,100,000 | |
Nonvested Share Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted, shares | 191,000 | |||
Nonvested shares outstanding | 377,035 | 355,130 | ||
Weighted-average period of recognition | 2 years 3 months 18 days | |||
Fair value of nonvested share awards | $ 2,000,000 | $ 1,600,000 | $ 1,700,000 | |
Weighted-average grant-date fair value per share, granted | $ 14.88 | $ 11.35 | $ 13.06 | |
Unrecognized compensation expenses | $ 3,500,000 | |||
Dividends accrued but not paid | $ 200,000 | |||
Nonvested Share Unit Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted, shares | 21,000 | |||
Nonvested shares outstanding | 23,250 | 27,750 | ||
Weighted-average period of recognition | 4 months 24 days | |||
Fair value of nonvested share awards | $ 300,000 | $ 500,000 | $ 100,000 | |
Weighted-average grant-date fair value per share, granted | $ 13.90 | $ 8.87 | $ 14.67 | |
Unrecognized compensation expenses | $ 100,000 | |||
Share Option Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted, shares | 0 | 0 | ||
Weighted-average grant-date fair value per share | $ 6.02 | |||
Intrinsic value of share option awards exercised | $ 100,000 | $ 1,300,000 | $ 200,000 | |
Employee share option award exercised | 100,000 | 1,000,000 | 100,000 | |
Value of shares withheld for exercise of share option awards | 100,000 | |||
Tax benefit realized for the expected tax deduction from share option award exercises | 31,000 | $ 500,000 | $ 100,000 | |
Unrecognized compensation expense | $ 100,000 | |||
Weighted-average period of recognition | 1 year 2 months 12 days | |||
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% | |||
2016 Amendment and Restatement of 2007 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Aggregate amount of shares authorized for issuance | 3,649,250 | |||
Maximum number of shares increased | 3,250,000 | |||
Expiration date of plan | Apr. 19, 2026 | |||
Amendments and Restatements of 2007 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares available for future grant | 2,090,250 | |||
Amendments and Restatements of 2007 Plan [Member] | Nonvested Share Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted, shares | 191,000 | |||
Nonvested shares outstanding | 377,035 | |||
Amendments and Restatements of 2007 Plan [Member] | Nonvested Share Unit Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted, shares | 21,000 | |||
Nonvested shares outstanding | 23,250 | |||
Amendments and Restatements of 2007 Plan [Member] | Share Option Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted, shares | 0 | |||
Shares outstanding | 144,293 | |||
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% | |||
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 Plan68
Share-Based Compensation Plans - Fair Value of Share Option Award Based on Weighted-Average Assumptions (Detail) | 12 Months Ended |
Jan. 03, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Risk-free interest rate | 1.80% |
Expected term | 5 years 9 months 18 days |
Expected volatility | 57.00% |
Expected dividend yield | 2.80% |
Share-Based Compensation Plan69
Share-Based Compensation Plans - Summary of Share Option Awards (Detail) | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shares, Outstanding at January 1, 2017 | shares | 224,379 |
Shares, Exercised | shares | (11,086) |
Shares, Forfeited or Expired | shares | (69,000) |
Shares, Outstanding at December 31, 2017 | shares | 144,293 |
Shares, Exercisable at December 31, 2017 | shares | 130,543 |
Shares, Vested and Expected to Vest at December 31, 2017 | shares | 144,256 |
Weighted-Average Exercise Price, Outstanding at January 1, 2017 | $ / shares | $ 14.13 |
Weighted-Average Exercise Price, Exercised | $ / shares | 6.07 |
Weighted-Average Exercise Price, Forfeited or Expired | $ / shares | 23.82 |
Weighted-Average Exercise Price, Outstanding at December 31, 2017 | $ / shares | 10.11 |
Weighted-Average Exercise Price, Exercisable at December 31, 2017 | $ / shares | 9.74 |
Weighted-Average Exercise Price, Vested and Expected to Vest at December 31, 2017 | $ / shares | $ 10.11 |
Weighted-Average Remaining Contractual Life (In Years), Outstanding at December 31, 2017 | 3 years |
Weighted-Average Remaining Contractual Life (In Years), Exercisable at December 31, 2017 | 2 years 6 months 21 days |
Weighted-Average Remaining Contractual Life (In Years), Vested and Expected to Vest at December 31, 2017 | 3 years |
Aggregate Intrinsic Value, Outstanding at December 31, 2017 | $ | $ 159,083 |
Aggregate Intrinsic Value, Exercisable at December 31, 2017 | $ | 159,083 |
Aggregate Intrinsic Value, Vested and Expected to Vest at December 31, 2017 | $ | $ 159,083 |
Share-Based Compensation Plan70
Share-Based Compensation Plans - Summary of Nonvested Share Awards Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Nonvested Share Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested shares/share units, beginning balance | 355,130 | ||
Granted, shares/share units | 191,000 | ||
Vested, shares/share units | (137,135) | ||
Forfeited, shares/share units | (31,960) | ||
Nonvested shares/share units, ending balance | 377,035 | 355,130 | |
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 | $ 12.86 | ||
Weighted-Average Grant-Date Fair Value, Granted | 14.88 | $ 11.35 | $ 13.06 |
Weighted-Average Grant-Date Fair Value, Vested | 13.46 | ||
Weighted-Average Grant-Date Fair Value, Forfeited | 13.51 | ||
Weighted-Average Grant-Date Fair Value, Ending Balance | $ 13.61 | $ 12.86 | |
Nonvested Share Unit Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested shares/share units, beginning balance | 27,750 | ||
Granted, shares/share units | 21,000 | ||
Vested, shares/share units | (25,500) | ||
Nonvested shares/share units, ending balance | 23,250 | 27,750 | |
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 | $ 9.55 | ||
Weighted-Average Grant-Date Fair Value, Granted | 13.90 | $ 8.87 | $ 14.67 |
Weighted-Average Grant-Date Fair Value, Vested | 10.15 | ||
Weighted-Average Grant-Date Fair Value, Ending Balance | $ 12.82 | $ 9.55 |
Selected Quarterly Financial 71
Selected Quarterly Financial Data - Schedule of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 242,889 | $ 270,471 | $ 243,671 | $ 252,604 | $ 266,283 | $ 279,015 | $ 241,409 | $ 234,528 | $ 1,009,635 | $ 1,021,235 | $ 1,029,098 |
Gross profit | 72,854 | 87,548 | 79,308 | 83,622 | 87,347 | 89,889 | 76,257 | 70,965 | 323,332 | 324,458 | 324,964 |
Net income (loss) | $ (12,950) | $ 5,950 | $ 2,778 | $ 5,326 | $ 7,694 | $ 8,187 | $ 2,124 | $ (1,119) | $ 1,104 | $ 16,886 | $ 15,297 |
Basic earnings per share | $ (0.62) | $ 0.28 | $ 0.13 | $ 0.25 | $ 0.36 | $ 0.38 | $ 0.10 | $ (0.05) | $ 0.05 | $ 0.78 | $ 0.70 |
Diluted earnings per share | $ (0.62) | $ 0.28 | $ 0.13 | $ 0.24 | $ 0.35 | $ 0.38 | $ 0.10 | $ (0.05) | $ 0.05 | $ 0.77 | $ 0.70 |
Selected Quarterly Financial 72
Selected Quarterly Financial Data - Schedule of Quarterly Financial Information (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2017 | Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Quarterly Financial Information [Line Items] | ||||||||
Revaluation of net deferred tax assets | $ 5,500,000 | |||||||
Pre-tax non-cash impairment charge | 600,000 | $ 602,000 | $ 0 | $ 192,000 | ||||
Non-cash goodwill impairment charge | 4,400,000 | 4,433,000 | $ 0 | $ 0 | ||||
Write-offs (benefits) related to share based compensation | $ (400,000) | $ 200,000 | $ 700,000 | |||||
Pretax charges of store closing costs | $ 1,100,000 | $ 100,000 | ||||||
California Enterprise Zone Tax Credits [Member] | ||||||||
Quarterly Financial Information [Line Items] | ||||||||
Provision for incomes taxes, excluding federal income tax benefit | $ 600,000 | $ 900,000 | ||||||
Net deferred tax asset related to enactment of tax cuts and jobs act [Member] | ||||||||
Quarterly Financial Information [Line Items] | ||||||||
Increase (decrease) in net income (loss) per share | $ (0.26) | |||||||
Valuation allowance related to unused California Enterprise Zone Tax Credits [Member] | ||||||||
Quarterly Financial Information [Line Items] | ||||||||
Increase (decrease) in net income (loss) per share | $ (0.03) | |||||||
Impairment charge [Member] | ||||||||
Quarterly Financial Information [Line Items] | ||||||||
Increase (decrease) in net income (loss) per share | $ (0.02) | |||||||
Increase (decrease) in net income (loss) | $ (400,000) | |||||||
Goodwill Impairment [Member] | ||||||||
Quarterly Financial Information [Line Items] | ||||||||
Increase (decrease) in net income (loss) per share | $ (0.21) | |||||||
Share based compensation [Member] | ||||||||
Quarterly Financial Information [Line Items] | ||||||||
Increase (decrease) in net income (loss) per diluted share | $ (0.02) | $ 0.01 | $ 0.03 | |||||
Store closing costs [Member] | ||||||||
Quarterly Financial Information [Line Items] | ||||||||
Increase (decrease) in net income (loss) | $ (700,000) | $ (60,000) | ||||||
Increase (decrease) in net income (loss) per diluted share | $ (0.03) | $ 0 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Scenario Forecast [Member] | 3 Months Ended |
Apr. 01, 2018$ / shares | |
Subsequent Event [Line Items] | |
Dividend per share | $ 0.15 |
Dividend declared per share, payable date | Mar. 23, 2018 |
Dividend declared per share, record date | Mar. 9, 2018 |
Schedule II - Valuation and Q74
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Allowance for doubtful receivables [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 42 | $ 61 | $ 110 |
Charged to Costs and Expenses | 60 | 28 | 50 |
Deductions | (23) | (47) | (99) |
Balance at End of Period | 79 | 42 | 61 |
Allowance for sales returns [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 1,334 | 1,325 | 1,320 |
Charged to Costs and Expenses | (278) | 9 | 5 |
Balance at End of Period | 1,056 | 1,334 | 1,325 |
Inventory reserves [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 5,680 | 6,254 | 5,349 |
Charged to Costs and Expenses | 4,819 | 4,553 | 6,556 |
Deductions | (4,649) | (5,127) | (5,651) |
Balance at End of Period | $ 5,850 | $ 5,680 | $ 6,254 |