Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 03, 2021 | Feb. 23, 2021 | Jun. 28, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 3, 2021 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BGFV | ||
Entity Registrant Name | BIG 5 SPORTING GOODS Corp | ||
Entity Central Index Key | 0001156388 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --01-03 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Security Exchange Name | NASDAQ | ||
Entity Address, State or Province | CA | ||
Entity File Number | 000-49850 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 95-4388794 | ||
Entity Address, Address Line One | 2525 East El Segundo Boulevard | ||
Entity Address, City or Town | El Segundo | ||
Entity Address, Postal Zip Code | 90245 | ||
City Area Code | 310 | ||
Local Phone Number | 536-0611 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Common Stock, Shares Outstanding | 21,934,334 | ||
Entity Public Float | $ 32,282,404 | ||
Documents Incorporated by Reference | Part III of this Form 10-K incorporates by reference certain information from the registrant’s 2021 definitive proxy statement (the “Proxy Statement”) to be filed with the Securities and Exchange Commission no later than 120 days after the end of the registrant’s fiscal year. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 64,654 | $ 8,223 |
Accounts receivable, net of allowances of $58 and $58, respectively | 19,879 | 13,646 |
Merchandise inventories, net | 251,180 | 309,315 |
Prepaid expenses | 11,684 | 9,680 |
Total current assets | 347,397 | 340,864 |
Operating lease right-of-use assets, net | 278,607 | 262,588 |
Property and equipment, net | 57,245 | 68,414 |
Deferred income taxes | 13,831 | 13,619 |
Other assets, net of accumulated amortization of $2,407 and $2,043, respectively | 2,914 | 3,315 |
Total assets | 699,994 | 688,800 |
Current liabilities: | ||
Accounts payable | 80,882 | 83,655 |
Accrued expenses | 82,877 | 64,935 |
Current portion of operating lease liabilities | 73,737 | 71,542 |
Current portion of finance lease liabilities | 2,089 | 2,678 |
Total current liabilities | 239,585 | 222,810 |
Operating lease liabilities, less current portion | 217,788 | 206,806 |
Finance lease liabilities, less current portion | 2,504 | 4,787 |
Long-term debt | 0 | 66,559 |
Other long-term liabilities | 7,479 | 7,466 |
Total liabilities | 467,356 | 508,428 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.01 par value, authorized 50,000,000 shares; issued 25,580,541 and 25,314,289 shares, respectively; outstanding 21,930,328 and 21,664,076 shares, respectively | 255 | 252 |
Additional paid-in capital | 121,837 | 120,054 |
Retained earnings | 153,073 | 102,593 |
Less: Treasury stock, at cost; 3,650,213 shares | (42,527) | (42,527) |
Total stockholders' equity | 232,638 | 180,372 |
Total liabilities and stockholders' equity | $ 699,994 | $ 688,800 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 58 | $ 58 |
Accumulated amortization on other assets | $ 2,407 | $ 2,043 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 25,580,541 | 25,314,289 |
Common stock, shares outstanding | 21,930,328 | 21,664,076 |
Treasury stock, shares | 3,650,213 | 3,650,213 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 1,041,212 | $ 996,495 |
Cost of sales | 692,041 | 684,473 |
Gross profit | 349,171 | 312,022 |
Selling and administrative expense | 275,406 | 297,193 |
Other income | (2,500) | |
Operating income | 76,265 | 14,829 |
Interest expense | 1,880 | 3,046 |
Income before income taxes | 74,385 | 11,783 |
Income tax expense | 18,445 | 3,338 |
Net income | $ 55,940 | $ 8,445 |
Earnings per share: | ||
Basic | $ 2.63 | $ 0.40 |
Diluted | $ 2.58 | $ 0.40 |
Weighted-average shares of common stock outstanding: | ||
Basic | 21,260 | 21,103 |
Diluted | 21,663 | 21,149 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock Outstanding [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock, At Cost [Member] |
Beginning Balance at Dec. 30, 2018 | $ 174,861 | $ 250 | $ 118,351 | $ 98,787 | $ (42,527) | |||
Beginning Balance, Shares at Dec. 30, 2018 | 21,424,094 | |||||||
Cumulative adjustment from change in accounting principle, net of tax | $ (339) | $ (339) | ||||||
Net income | 8,445 | 8,445 | ||||||
Dividends on common stock | $ (4,300) | (4,300) | ||||||
Issuance of nonvested share awards | 3 | (3) | ||||||
Issuance of nonvested share awards, Shares | 308,584 | |||||||
Conversion of vested share units | 29,672 | |||||||
Exercise of share option awards, Shares | 0 | |||||||
Share-based compensation | $ 1,926 | 1,926 | ||||||
Forfeiture of nonvested share awards, Shares | (39,180) | |||||||
Retirement of common stock for payment of withholding tax | (221) | (1) | (220) | |||||
Retirement of common stock for payment of withholding tax, Shares | (59,094) | |||||||
Ending Balance at Dec. 29, 2019 | 180,372 | 252 | 120,054 | 102,593 | (42,527) | |||
Ending Balance, shares at Dec. 29, 2019 | 21,664,076 | |||||||
Net income | 55,940 | 55,940 | ||||||
Dividends on common stock | (5,460) | (5,460) | ||||||
Issuance of nonvested share awards | 3 | (3) | ||||||
Issuance of nonvested share awards, Shares | 321,600 | |||||||
Exercise of share option awards | $ 169 | 169 | ||||||
Exercise of share option awards, Shares | 31,600 | 31,600 | ||||||
Share-based compensation | $ 1,714 | 1,714 | ||||||
Forfeiture of nonvested share awards, Shares | (22,375) | |||||||
Retirement of common stock for payment of withholding tax | $ (97) | (97) | ||||||
Retirement of common stock for payment of withholding tax, Shares | (64,573) | (64,573) | ||||||
Ending Balance at Jan. 03, 2021 | $ 232,638 | $ 255 | $ 121,837 | $ 153,073 | $ (42,527) | |||
Ending Balance, shares at Jan. 03, 2021 | 21,930,328 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Dividends per share | $ 0.25 | $ 0.20 |
Retained Earnings [Member] | ||
Dividends per share | $ 0.25 | $ 0.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 55,940 | $ 8,445 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 18,450 | 19,537 |
Impairment of assets | 520 | |
Share-based compensation | 1,714 | 1,926 |
Amortization of other assets | 364 | 271 |
Right-of-use asset gain on disposal | (110) | |
Noncash lease expense | 64,316 | 61,244 |
Proceeds from insurance recovery - lost profit margin and expenses | 1,077 | 711 |
Gain on recovery of insurance proceeds - lost profit margin and expenses | (1,077) | (231) |
Gain on recovery of insurance proceeds - property and equipment | (1,750) | (56) |
Gain on eminent domain condemnation | (2,500) | |
Proceeds from eminent domain condemnation - lost profit margin | 2,263 | |
Deferred income taxes | (212) | 1,046 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (6,193) | 1,334 |
Merchandise inventories, net | 58,135 | (15,202) |
Prepaid expenses and other assets | (1,861) | (833) |
Accounts payable | 9,243 | 1,050 |
Operating lease liabilities | (67,198) | (62,966) |
Accrued expenses and other long-term liabilities | 18,032 | (2,406) |
Net cash provided by operating activities | 148,743 | 14,280 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (7,347) | (9,363) |
Proceeds from insurance recovery - property and equipment | 1,750 | 167 |
Proceeds from eminent domain condemnation - property and equipment | 237 | |
Net cash used in investing activities | (5,360) | (9,196) |
Cash flows from financing activities: | ||
Borrowings under revolving credit facility | 137,296 | 205,088 |
Payments under revolving credit facility | (203,855) | (203,529) |
Changes in book overdraft | (12,031) | 1,981 |
Debt issuance costs paid | (106) | |
Principal payments under finance lease obligations | (2,858) | (2,547) |
Proceeds from exercise of share option awards | 169 | |
Tax withholding payments for share-based compensation | (97) | (221) |
Dividends paid | (5,470) | (4,398) |
Net cash used in financing activities | (86,952) | (3,626) |
Net increase in cash and cash equivalents | 56,431 | 1,458 |
Cash and cash equivalents at beginning of year | 8,223 | 6,765 |
Cash and cash equivalents at end of year | 64,654 | 8,223 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Property and equipment acquired under finance leases | 2,988 | |
Property and equipment additions unpaid | 668 | 918 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 1,856 | 2,911 |
Income taxes paid | $ 19,625 | $ 2,315 |
Description of Business
Description of Business | 12 Months Ended |
Jan. 03, 2021 | |
Accounting Policies [Abstract] | |
Description of Business | (1) Description of Business Big 5 Sporting Goods Corporation (the “Company”) is a leading sporting goods retailer in the western United States, operating 430 stores and an e-commerce platform as of January 3, 2021. The Company provides a full-line product offering in a traditional sporting goods store format that averages approximately 11,000 square feet. The Company’s product mix includes athletic shoes, apparel and accessories, as well as a broad selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, home recreation, tennis, golf and winter and summer recreation. The Company is a holding company that operates as one reportable segment under the “Big 5 Sporting Goods” name through Big 5 Corp., its 100%-owned subsidiary, and Big 5 Services Corp., which is a 100%-owned subsidiary of Big 5 Corp. Big 5 Services Corp. provides a centralized operation for the issuance and administration of gift cards and returned merchandise credits (collectively, “stored-value cards”). The accompanying consolidated financial statements as of January 3, 2021 and December 29, 2019 and for the years ended January 3, 2021 (“fiscal 2020”) and December 29, 2019 (“fiscal 2019”) represent the financial position, results of operations and cash flows of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 03, 2021 | |
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 2020 included 53 weeks and fiscal 2019 included 52 weeks. Recently Adopted Accounting Updates In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurements (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes Recently Issued Accounting Updates In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting Other recently issued accounting updates are not expected to have a material impact on the Company’s consolidated financial statements. COVID-19 Impact on Concentration of Risk The novel coronavirus (“COVID-19”) pandemic has significantly impacted health and economic conditions throughout the United States and globally, as public concern about becoming ill with the virus has led to the issuance of recommendations and/or mandates from federal, state and local authorities to practice social distancing or self-quarantine. The Company primarily operates traditional sporting goods retail stores located in the western United States, with approximately 52% of its stores, along with its corporate offices and distribution center, located in California. Because of this, the Company is subject to regional risks, including the impact of the COVID-19 outbreak. Beginning on March 20, 2020, the Company temporarily closed more than one-half of its retail store locations in response to state and local shelter orders related to the COVID-19 outbreak. The Company was subsequently able to gradually reopen its store locations based on initially qualifying as an “essential” business under applicable regulations and later as a result of the easing of regulatory restrictions on retail operations in the Company’s market areas. As of the end of the second quarter of fiscal 2020, all of the Company’s stores that were temporarily closed due to COVID-19 had reopened for in-store shopping, subject to appropriate social distancing restrictions and with reduced operating hours. These restrictions and reduced operating hours continued into the third and fourth quarters of fiscal 2020. New temporary closures of stores may be required if additional orders are issued in response to changing health conditions. Additionally, during fiscal 2020, the pandemic and the shelter orders that were in place in the Company’s market areas negatively impacted customer traffic into the Company’s stores. In an effort to promote social distancing protocols, the Company has implemented reduced store hours, limited the number of customers in its stores at any one time and has generally implemented social-distancing guidelines throughout the store operating space. Due to the reduced customer traffic, and in an effort to preserve capital, the Company implemented temporary and permanent workforce reductions throughout the organization, temporarily reduced merchandise inventory orders and reduced advertising and capital spending in fiscal 2020. The Company may further restrict its store operations and operations in its distribution facility if deemed necessary or if recommended or mandated by authorities. A substantial amount of the Company’s inventory is manufactured abroad. COVID-19 has also impacted the Company’s supply chain for products sold, particularly those products that are sourced from China. To the extent one or more vendors is negatively impacted by COVID-19, including due to the closure of those vendors’ distribution centers or manufacturing facilities, the Company may be unable to maintain delivery schedules or adequate inventory in its stores. General 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. Cash equivalents represent investments of excess cash on hand of $50.0 million into U.S. Treasury bills. Because of the Company’s geographic concentration in the western United States, 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 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 680 suppliers, and the Company’s 20 largest suppliers accounted for 36.4% of total purchases in fiscal 2020. One vendor represented greater than 5% of total purchases, at 8.5%, in fiscal 2020. A significant portion of the Company’s inventory is manufactured abroad in China and other countries. Foreign imports subject the Company 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, public health issues that could lead to temporary closures of facilities or shipping ports, such as the recent outbreak of COVID-19, and other 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 any lender under its credit facility; however, the possibility does exist. Use of Estimates Management makes 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, lease assets and lease liabilities; valuation allowances for receivables, sales returns and deferred income tax assets; estimates related to stored-value cards and the valuation of share-based compensation awards; and obligations related to litigation, self-insurance liabilities and employee benefits. Due to the inherent uncertainty involved in making assumptions and estimates, events and changes in circumstances arising after January 3, 2021, including those resulting from the impacts of the COVID-19 pandemic, may result in actual outcomes that differ from those contemplated by management’s assumptions and estimates. 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 ASC 280, Segment Reporting Earnings Per Share The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share Revenue Recognition 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. Generally, all revenue is recognized when control of the promised goods is transferred to customers, in an amount that reflects the consideration in exchange for those goods. Accordingly, the Company implicitly enters into a contract with customers to deliver merchandise inventory at the point of sale. Collectability is reasonably assured since the Company only extends immaterial credit purchases to certain municipalities and local school districts. As noted in the segment information elsewhere in this Note 2 to the Notes to Consolidated Financial Statements, the Company’s business consists of one reportable segment. In accordance with ASC 606, Revenue from Contracts with Customers Year Ended January 3, 2021 December 29, 2019 (In thousands) Hardgoods $ 623,728 $ 493,749 Athletic and sport footwear 228,311 279,733 Athletic and sport apparel 184,538 219,066 Other sales 4,635 3,947 Net sales $ 1,041,212 $ 996,495 Substantially all of the Company’s revenue is for single performance obligations for the following distinct items: • Retail store sales • E-commerce sales • Stored-value cards For performance obligations related to retail store and e-commerce sales contracts, the Company typically transfers control, for retail stores, upon consummation of the sale when the product is paid for and taken by the customer and, for e-commerce sales, when the product is tendered for delivery to the common carrier. For performance obligations related to stored-value cards, the Company typically transfers control upon redemption of the stored-value card through consummation of a future sales transaction. The transaction price for each contract is the stated price on the product, reduced by any stated discounts at that point in time. The Company does not engage in sales of products that attach a future material right which could result in a separate performance obligation for the purchase of goods in the future at a material discount. The implicit point-of-sale contract with the customer, as reflected in the transaction receipt, states the final terms of the sale, including the description, quantity, and price of each product purchased. Payment for the Company’s contracts is due in full upon delivery. The customer agrees to a stated price implicit in the contract. The transaction price relative to sales subject to a right of return reflects the amount of estimated consideration to which the Company expects to be entitled. This amount of variable consideration included in the transaction price, and measurement of net sales, is included in net sales only to the extent that it is probable that there will be no significant reversal in a future period. Actual amounts of consideration ultimately received may differ from the Company’s estimates. There were no material adjustments to the Company’s previous estimates. The allowance for sales returns is estimated based upon historical experience and a provision for estimated returns is recorded as a reduction in sales in the relevant period. The estimated right-of-return merchandise cost related to the sales returns is recorded as prepaid expense in the Company’s consolidated balance sheet as of January 3, 2021. If actual results in the future vary from the Company’s estimates, the Company adjusts these estimates, which would affect net sales and earnings in the period such variances become known. The Company has elected to apply the practical expedient, relative to e-commerce sales, which allows an entity to account for shipping and handling as fulfillment activities, and not a separate performance obligation. Accordingly, the Company recognizes revenue for only one performance obligation, the sale of the product, at shipping point (when the customer gains control). Revenue associated with e-commerce sales is not material. Contract liabilities are recognized primarily for stored-value card sales. Cash received from the sale of stored-value cards is recorded as a contract liability in accrued expenses, and the Company recognizes revenue upon the customer’s redemption of the stored-value card. Stored-value card breakage is recognized as revenue in proportion to the pattern of customer redemptions by applying a historical breakage rate of five percent. The Company does not sell or provide stored-value cards that carry expiration dates. The Company recognized $5.4 million and $6.6 million in stored-value card redemption revenue for fiscal 2020 and 2019, respectively. The Company also recognized $0.3 million and $0.4 million in stored-value card breakage revenue for fiscal 2020 and 2019, respectively. The Company had outstanding stored-value card liabilities of $7.5 million and $7.2 million The Company recorded, as prepaid expense, estimated right-of-return merchandise cost of $1.2 million and $1.4 million related to estimated sales returns as of January 3, 2021 and December 29, 2019, respectively, and recorded, as accrued expense, an allowance for sales returns reserve of $2.4 million and $2.7 million as of January 3, 2021 and December 29, 2019, respectively. 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 amortization, 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. 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. Advertising Expense Advertising is expensed when the advertising first occurs. Advertising expense, net of co-operative advertising allowances, amounted to $10.6 million and $27.8 million for fiscal 2020 and 2019, respectively. The Company reduced advertising significantly in fiscal 2020 in response to the COVID-19 pandemic. 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 $1.1 million and $5.1 million for fiscal 2020 and 2019, 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 and Cash Equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments of excess cash into U.S. Treasury bills, which have maturities of 90 days or less. 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 and Other Assets Prepaid expenses include the prepayment of various operating expenses such as insurance, income and property taxes, software maintenance and supplies, which are expensed when the operating cost is realized. Other assets include the long-term portion of certain prepaid expenses, capitalized deferred financing fees related to the Company’s credit facility and capitalized implementation costs related to hosting arrangements that are service contracts. While deferred financing fees and implementation costs are capitalized and amortized over the respective terms of their arrangements, costs related to the service element of a hosting arrangement that is a service contract are expensed as incurred. 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: Land Indefinite Buildings 20 years 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. See Note 3 to the Notes to Consolidated Financial Statements for a further discussion on property and equipment. Valuation of Long-Lived Assets In accordance with ASC 360, Property, Plant, and Equipment 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. The carrying amount of a store asset group includes stores’ property and equipment, primarily leasehold improvements, and operating lease ROU assets. The carrying amount of a store 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 store asset group. Factors that could trigger an impairment review include a current-period operating or cash flow loss combined with a history of operating or cash flow losses, and a projection that demonstrates continuing losses or insufficient income over the remaining reasonably certain lease term associated with the use of a store asset group. Other factors may include an adverse change in the business climate or an adverse action or assessment by a regulator in the market of a store asset group. Fair Value Measurements The Company determines the cash flows expected to result from the store asset group by projecting future revenue, gross margin and operating expense for each store asset group 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 the Company’s future expectations, competitive factors in its various markets, inflation, sales trends and other relevant environmental factors that may impact the store under evaluation. The actual cash flows could differ from management’s estimates due to changes in business conditions, operating performance and economic conditions. 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. The resulting impairment charge, if any, is allocated to the property and equipment, primarily leasehold improvements, and operating lease ROU assets on a pro rata basis using the relative carrying amounts of those assets. The allocated impairment charge to a long-lived asset is limited to the extent that the impairment charge does not reduce the carrying amount of the long-lived asset below its individual fair value. The estimation of the fair value of an ROU asset involves the evaluation of current market value rental amounts for leases associated with ROU assets. The estimates of current market value rental amounts are primarily based on recent observable market rental data of other comparable retail store locations. The fair value of an ROU asset is measured using a discounted cash flow valuation technique by discounting the estimated current and future market rental values using a property-specific discount rate. In fiscal 2020, the Company recognized no non-cash impairment charges and in fiscal 2019, the Company recognized non-cash impairment charges of $0.5 million related to certain underperforming stores. These impairment charges represented property and equipment, primarily leasehold improvements, and are included in selling and administrative expense in the consolidated statements of operations. The individual fair values of the property and equipment, primarily leasehold improvements, of the impaired store asset group were not material for fiscal 2019. See Note 4 to the Notes to Consolidated Financial Statements for a further discussion on impairment of assets. Leases In accordance with ASC 842, Leases ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the reasonably certain lease term. As the Company’s leases generally do not provide an implicit rate, the Company uses a collateralized incremental borrowing rate (“IBR”) to determine the present value of lease payments. The collateralized IBR is based on a synthetic credit rating that is externally prepared on an annual basis. This analysis considers qualitative and quantitative factors based on guidance provided by a rating agency for the consumer durables industry. The Company adjusts the selected IBR quarterly with a company-specific unsecured yield curve that approximates the Company’s market risk profile. The collateralized IBR is also based upon the estimated impact that the collateral has on the IBR. To account for the collateralized nature of the IBR, the Company utilized a notching method based on notching guidance provided by a rating agency whereby the Company’s base credit rating is notched upward as the yield curve on a secured loan is expected to be lower versus an unsecured loan. The operating lease ROU asset also includes any prepaid lease payments made and is reduced by lease incentives such as tenant improvement allowances. The operating lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. 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. Under ASC 842, these contingent rents are expensed as they accrue . In response to the large volume of anticipated lease concessions to be granted related to the effects of the COVID-19 pandemic, and the resultant expected cost and complexity of applying the lease modification requirements in ASC 842, the FASB issued Staff Q&A—Topic 842 and Topic 840: Accounting For Lease Concessions Related to the Effects of the COVID-19 Pandemic In accordance with this interpretive guidance, the Company elected to account for lease concessions related to the effects of the COVID-19 pandemic that resulted in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract consistent with how they would be accounted for as though enforceable rights and obligations for those concessions existed in the original contract. Consequently, for such lease concessions, the Company did not reassess each existing contract to determine whether enforceable rights and obligations for concessions existed and elected not to apply the lease modification guidance in ASC 842 to those contracts. The Company accounted for COVID-19 lease abatements of $3.1 million in fiscal 2020 as reductions to variable lease expense and accounted for lease deferrals of $0.6 million as of January 3, 2021 as if no changes to the lease contract were made while continuing to recognize expense during the deferral period and deferring the payment obligation as a liability. See Note 7 to the Notes to Consolidated Financial Statements for a further discussion on leases. Self-Insurance Liabilities The Company is self-insured for its various insurance risks including its estimated workers’ compensation liability risk in certain states. 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 actuarially-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 $11.0 million and $10.8 million as of January 3, 2021 and December 29, 2019, respectively, of which $4.8 million and $4.7 million were recorded as a component of accrued expenses as of January 3, 2021 and December 29, 2019, respectively, and $6 .2 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 January 3, 2021 and December 29, 2019, the Company had no accrued interest or penalties. See Note 9 to the Notes to Consolidated Financial Statements for a further discussion on income taxes. Treasury Stock Purchases The Company repurchases its common stock in the open market pursuant to programs approved by its Board of Directors. The Board of Directors authorized a share repurchase program for the purchase of up to $25.0 million of the Company’s common stock. Under the authorization, the Company may purchase shares from time to time in the open market or in privately negotiated transactions in compliance with the applicable rules and regulations of the Securities and Exchange Commission. The Company may repurchase its common stock for a variety of reasons, including, among other things, its alternative cash requirements, existing business conditions and the current market price of its stock. However, the timing and amount of such pu |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 03, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | (3) Property and Equipment, Net Property and equipment, net, consist of the following: January 3, 2021 December 29, 2019 (In thousands) Furniture and equipment $ 134,623 $ 138,241 Leasehold improvements 170,701 167,965 Internal-use software 37,147 36,332 Land 2,750 2,750 Building 1,775 1,775 346,996 347,063 Accumulated depreciation and amortization (1) (290,638 ) (279,796 ) 56,358 67,267 Assets not placed into service 887 1,147 Property and equipment, net $ 57,245 $ 68,414 (1) Includes accumulated amortization for internal-use software development costs of $30.8 million and $28.9 million as of January 3, 2021 and December 29, 2019, respectively. Depreciation expense associated with property and equipment, including assets leased under finance leases, was $6.7 million and $6.8 million for fiscal 2020 and 2019, respectively. Amortization expense for leasehold improvements was $8.9 million and $9.7 million for fiscal 2020 and 2019, respectively. Amortization expense for internal-use software was $2.9 million and $3.0 million for fiscal 2020 and 2019, respectively. The gross cost of equipment under finance leases, included above, was $10.1 million and $12.1 million as of January 3, 2021 and December 29, 2019, respectively. The accumulated depreciation related to these finance leases was $5.5 million and $4.8 million as of January 3, 2021 and December 29, 2019, respectively. |
Impairment of Assets
Impairment of Assets | 12 Months Ended |
Jan. 03, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Impairment of Assets | (4) Impairment of 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. Assets subject to the Company’s evaluation totaled $57.2 million and $68.4 million for property and equipment as of January 3, 2021 and December 29, 2019, respectively, and totaled $278.6 million and $262.6 million for ROU assets as of January 3, 2021 and December 29, 2019, respectively. In fiscal 2020, the Company recognized no non-cash impairment charges, and in fiscal 2019, the Company recognized non-cash impairment charges of $0.5 million related to certain underperforming stores. These impairment charges represented property and equipment and leasehold improvements and are included in selling and administrative expense in the consolidated statements of operations. In fiscal 2019, 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. An impairment charge was not allocated to the ROU assets because the fair value of the ROU assets exceeded their carrying value. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 03, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (5) Fair Value Measurements The carrying values of cash and cash equivalents, 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 Company’s credit facility approximates fair value because of the variable market interest rate charged to the Company for these borrowings. When the Company recognizes impairment on certain of its underperforming stores, the carrying values of these stores are reduced to their estimated fair values. As of January 3, 2021 and December 29, 2019, the Company’s only significant assets or liabilities measured at fair value on a nonrecurring basis subsequent to their initial recognition were assets subject to long-lived asset impairment related to certain underperforming stores. As discussed in Note 4 to the 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 real estate market data of underperforming stores’ specific comparable markets, 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. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jan. 03, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | (6) Accrued Expenses The major components of accrued expenses are as follows: January 3, 2021 December 29, 2019 (In thousands) Payroll and related expense $ 37,826 $ 23,433 Sales tax 11,609 9,607 Occupancy expense 10,215 9,503 Other 23,227 22,392 Accrued expenses $ 82,877 $ 64,935 Payroll and related expense as of January 3, 2021 reflected a deferral of the employer portion of Social Security tax provided by the U.S. Coronavirus Aid, Relief and Economic Security Act, which allowed employers to defer their portion of the social security payroll tax otherwise due with respect to wages earned from March 27, 2020 through December 31, 2020, as well as an increase in company performance-based incentive accruals. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Jan. 03, 2021 | |
Leases [Abstract] | |
Lease Commitments | (7) Lease Commitments The Company adopted ASC 842 as of December 31, 2018, using the modified retrospective approach and applying transitional relief allowing entities to initially apply the requirements at the adoption date by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, results and disclosures for the reporting periods beginning on December 31, 2018 are reported and presented under ASC 842. Adoption of the standard resulted in the initial recognition of operating lease ROU assets of $ million and operating lease liabilities of $279.7 million as of December 31, 2018. The adoption of this standard did not have a material impact on the Company’s consolidated statements of operations, shareholders’ equity or cash flows, and had no material impact on beginning retained earnings in fiscal 2019. Additionally, t he Company elected the transition package of practical expedients permitted within the new standard which, among other things, allowed it to carry forward the historical lease classification. The Company did not elect the practical expedient to use hindsight in determining the lease term and in assessing impairment of ROU assets. The Company has operating and finance leases for the Company’s retail store facilities, distribution center, corporate offices, information technology hardware and distribution center delivery tractors and equipment, and accounts for these leases in accordance with ASC 842. The Company’s operating leases have remaining reasonably certain lease terms of up to 13 years, which typically include options to extend the leases for up to 5 years. The Company’s finance leases have remaining reasonably certain lease terms of up to 3 years. Certain of the leases for the Company’s retail store facilities provide for variable payments for property taxes, insurance, common area maintenance payments related to triple net leases, rental payments based on future sales volumes at the leased location, as well as certain equipment sales taxes, licenses, fees and repairs, or rental payments that are adjusted periodically for inflation. The Company recognizes variable lease expense for these leases in the period incurred which, for contingent rent, begins in the period in which it becomes probable that the specified target that triggers the variable lease payments will be achieved. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. In accordance with ASC 842, the components of lease expense were as follows: Year Ended January 3, 2021 December 29, 2019 (In thousands) Lease expense: Amortization of right-of-use assets $ 2,721 $ 2,673 Interest on lease liabilities 297 378 Finance lease expense 3,018 3,051 Operating lease expense 83,030 80,470 Variable lease expense (1) 15,238 15,515 Sublease income (1,192 ) (1,158 ) Total lease expense $ 100,094 $ 97,878 (1) Variable lease expense for fiscal 2020 was reduced by $3.1 million for lease abatements related to the effects of the COVID-19 pandemic that resulted in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract. See Note 2 to the Notes to Consolidated Financial Statements for a further discussion on lease concessions In accordance with ASC 842, other information related to leases was as follows: Year Ended January 3, 2021 December 29, 2019 (In thousands) Operating cash flows from operating leases $ 83,028 $ 82,200 Operating cash flows from finance leases 313 377 Financing cash flows from finance leases 2,858 2,547 Cash paid for amounts included in the measurement of lease liabilities $ 86,199 $ 85,124 Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ 3,123 Right-of-use assets obtained in exchange for new operating lease liabilities $ 80,452 $ 60,548 Weighted-average remaining lease term—finance leases 2.4 years 3.1 years Weighted-average remaining lease term—operating leases 5.0 years 5.2 years Weighted-average discount rate—finance leases 4.8 % 4.7 % Weighted-average discount rate—operating leases 6.1 % 6.3 % In accordance with ASC 842, maturities of finance and operating lease liabilities as of January 3, 2021 were as follows: Year Ending: Finance Leases Operating Leases (In thousands) 2021 $ 2,209 $ 84,759 2022 1,740 73,890 2023 920 58,099 2024 — 49,287 2025 — 33,178 Thereafter — 40,335 Undiscounted cash flows $ 4,869 $ 339,548 Reconciliation of lease liabilities: Weighted-average remaining lease term 2.4 years 5.0 years Weighted-average discount rate 4.8 % 6.1 % Present values $ 4,593 $ 291,525 Lease liabilities - current 2,089 73,737 Lease liabilities - long-term 2,504 217,788 Lease liabilities - total $ 4,593 $ 291,525 Difference between undiscounted and discounted cash flows $ 276 $ 48,023 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 03, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (8) Long-Term Debt The Company, Big 5 Corp. and Big 5 Services Corp. were parties to a credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, and a syndicate of other lenders, as amended (the “Prior Credit Agreement”), which was terminated and replaced on February 24, 2021, as discussed below. On February 24, 2021, the Company entered into a Loan, Guaranty and Security Agreement with Bank of America, N.A. (“BofA”), as agent and lender (the “Loan Agreement”), at which time the Prior Credit Agreement was terminated. The Loan Agreement has a maturity date of February 24, 2026 and provides for a revolving credit facility with an aggregate committed availability of up to $150.0 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 Loan Agreement will have the option to increase the commitment to accommodate the requested increase. If such existing lenders do not exercise that option, the Company may (with the consent of BofA in its role as the administrative agent, not to be unreasonably withheld) seek other lenders willing to provide such commitments. The credit facility includes a $50.0 million sublimit for issuances of letters of credit. Similar to the Prior Credit Agreement, the Company may borrow under the Loan Agreement from time to time, provided the amounts outstanding will not exceed the lesser of the then aggregate committed availability (as discussed above) and the Borrowing Base (such lesser amount being referred to as the “Line Cap”). As defined in the Loan Agreement, 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 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), minus (d) certain agreed-upon reserves as well as other reserves established by BofA in its role as the administrative agent in its reasonable discretion. Generally, the Company may designate specific borrowings under the Loan Agreement 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 Line Cap over amounts borrowed (such amount being referred to as the “Average Daily Availability”). Those loans designated as LIBO rate loans 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 BofA as its “prime rate.” The applicable margin for all loans is 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 1.375% 0.375% II Less than $70,000,000 1.500% 0.500% The commitment fee assessed on the unused portion of the credit facility is 0.20% per annum. Obligations under the Loan Agreement are secured by a general lien on and security interest in substantially all of the Company’s assets. The Loan 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 limits 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 generally 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, although the Company is permitted to make up to $5 million of dividend payments or stock repurchases per year without satisfaction of the availability or fixed charge coverage ratio requirements, but dividends or stock repurchases made without satisfying the availability and/or fixed charge coverage ratio requirements will require the establishment of an additional reserve that will reduce borrowing availability under the Loan Agreement for 75 days. The Loan 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, failure to comply with certain agreements or covenants contained in the Loan Agreement, failure to satisfy certain judgments against the Company, failure to pay when due (or any other default which permits the acceleration of) certain other material indebtedness in principal amount in excess of $5.0 million, and certain insolvency and bankruptcy events. As previously disclosed, the Prior Credit Agreement had a maturity date of September 29, 2022 and, as amended, provided for a line of credit up to $140.0 million, which amount could be increased at the Company’s option up to a maximum of $165.0 million. The Company could also request additional increases in aggregate availability, on an uncommitted basis up to a maximum of $200.0 million. O Level Average Daily Availability LIBO Rate Applicable Margin Base Rate Applicable Margin I Greater than or equal to $70,000,000 1.250% 0.250% II Less than $70,000,000 1.375% 0.500% The commitment fee assessed on the unused portion of the credit facility under the Prior Credit Agreement was 0.20% per annum. As of January 3, 2021, the Company had no long-term revolving credit borrowings outstanding. As of December 29, 2019, the Company had long-term revolving credit borrowings outstanding bearing interest at either LIBO or the prime lending rates as follows: January 3, 2021 December 29, 2019 (Dollars in thousands) LIBO rate $ — $ 60,000 Prime rate — 6,559 Total borrowings $ — $ 66,559 LIBO rate — 1.8 % Prime rate — 4.8 % Average interest rate 2.7 % 3.8 % Year-end interest rate — 3.6 % |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (9) Income Taxes Income tax (benefit) expense consists of the following: Current Deferred Total (In thousands) Fiscal 2020: Federal $ 13,786 $ 86 $ 13,872 State 4,871 (298 ) 4,573 $ 18,657 $ (212 ) $ 18,445 Fiscal 2019: Federal $ 1,746 $ 541 $ 2,287 State 546 505 1,051 $ 2,292 $ 1,046 $ 3,338 The provision for income taxes differs from the amounts computed by applying the federal statutory tax rate of 21% to earnings before income taxes, as follows: Year Ended January 3, 2021 December 29, 2019 (In thousands) Tax expense at statutory rate $ 15,621 $ 2,474 State tax expense, net of federal tax effect 3,975 626 CARES Act net operating loss carryback (822 ) — Change in valuation allowance (418 ) — Write-offs related to nonvested share awards 260 393 Tax credits (246 ) (323 ) Nondeductible expenses 86 102 Change in apportionment and other rate adjustments (11 ) 104 Other — (38 ) $ 18,445 $ 3,338 Deferred tax assets and liabilities as of January 3, 2021 and December 29, 2019 are tax-effected based on the federal and state corporate income tax rates. Deferred tax assets and liabilities consist of the following tax-effected temporary differences: January 3, 2021 December 29, 2019 (In thousands) Deferred tax assets: Deferred rent $ 3,509 $ 4,322 Employee benefit-related liabilities 2,986 2,621 Insurance liabilities 2,581 2,495 Merchandise inventory 2,253 1,624 Gift card liability 1,324 1,125 State taxes 1,014 118 California Enterprise Zone Tax Credits 975 1,395 Share-based compensation 815 797 Other deferred tax assets 1,396 2,428 Gross deferred tax assets 16,853 16,925 Less: Valuation allowance (683 ) (1,212 ) Deferred tax assets, net of valuation allowance 16,170 15,713 Deferred tax liabilities: Federal liability on state deferred tax assets (1,125 ) (1,063 ) Prepaid expense (989 ) (759 ) Other deferred tax liabilities (225 ) (272 ) Deferred tax liabilities (2,339 ) (2,094 ) Net deferred tax assets $ 13,831 $ 13,619 As of fiscal 2020 and 2019, the Company maintained a valuation allowance of $0.7 million and $1.2 million, respectively, related to unused California Enterprise Zone Tax Credits, which the Company will not be able to carry forward beyond 2024 as a result of California’s termination of this program. 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. Certain prior period amounts were reclassified to conform with current period presentation requirements. 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 2017 and after, and state and local income tax returns are open for fiscal years 2016 and after. As of January 3, 2021 and December 29, 2019, the Company had no unrecognized tax benefits that, if recognized, would affect the Company’s effective income tax rate over the next 12 months. The Company’s policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expense. As of January 3, 2021 and December 29, 2019, the Company had no accrued interest or penalties. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 03, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (10) Earnings Per Share The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share The following table sets forth the computation of basic and diluted earnings per common share: Year Ended January 3, 2021 December 29, 2019 (In thousands, except per share data) Net income $ 55,940 $ 8,445 Weighted-average shares of common stock outstanding: Basic 21,260 21,103 Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards 403 46 Diluted 21,663 21,149 Basic earnings per share $ 2.63 $ 0.40 Diluted earnings per share $ 2.58 $ 0.40 Antidilutive share option awards excluded from diluted calculation 494 499 Antidilutive nonvested share and nonvested share unit awards excluded from diluted calculation 46 457 The computation of diluted earnings per share for the periods presented excludes certain share option awards since the exercise prices of these share option awards exceeded the average market price of the Company’s common shares, and the effect of their inclusion would have been antidilutive (i.e., including such share option awards would result in higher earnings per share). Additionally, the computation of diluted earnings per share for the periods presented excludes certain 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. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 03, 2021 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | (11) Employee Benefit Plans The Company has a 401(k) plan covering eligible employees. Employee contributions are supplemented by Company contributions subject to 401(k) plan terms. The Company recognized employer matching and profit-sharing contributions of $3.7 million and $2.2 million for fiscal 2020 and 2019, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 03, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (12) Related Party Transactions 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 2020 and 2019, the Company made a payment of $350,000 to Mr. Miller’s wife. The Company recognized expense of $0.3 million in fiscal 2020 and 2019, 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 $1.0 million as of January 3, 2021 and December 29, 2019. The short-term portion of this liability is recorded in accrued expenses and the long-term portion is recorded in other long-term liabilities in the accompanying consolidated balance sheets. In January 2021, Mrs. Miller passed away and, accordingly, the Company will eliminate the liability of $1.0 million and reduce selling and administrative expense by the same amount in the first quarter of fiscal 2021. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 03, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (13) Commitments and Contingencies Eminent Domain Matter On approximately March 13, 2018, the Orange County Transportation Authority (“OCTA”) filed an eminent domain action against the Company and its Westminster, California, store location to acquire the Company’s leased interest in the property for public purposes related to a transportation project. The Company surrendered possession of this location on approximately January 31, 2019. On March 31, 2020, the Company and representatives of the OCTA agreed to a preliminary settlement of the proceedings, which was formally approved by the OCTA’s Board on approximately April 27, 2020. Pursuant to the terms of the settlement, on May 21, 2020, the Company received a cash condemnation settlement from the OCTA in the amount of $2.5 million for lost profit and property. The Company recorded a pre-tax gain for the $2.5 million in the second quarter of fiscal 2020 related to the settlement, of which $0.2 million represented lost property and equipment, which was included as other income in the consolidated statement of operations. Attorneys’ fees related to this settlement totaled $0.1 million in each of fiscal 2020 and 2019 and were included in selling and administrative expense in the consolidated statement of operations. Recovery of Insurance Proceeds In July 2019, one of the Company’s stores was damaged as a result of a fire and, in the fourth quarter of fiscal 2019, the Company disposed of assets of approximately $0.8 million related to lost inventory and property and equipment. In the fourth quarter of fiscal 2020, the Company reached an agreement with its insurance carrier and, after application of a previous advance of $0.5 million and deductible of $0.2 million, the Company received a cash insurance recovery and recorded a gain of $2.8 million in total, of which $1.7 million related to the reimbursement of property and equipment, $0.8 million related to the reimbursement of lost profit margin, and $0.3 million related to a reimbursement for business interruption. The reimbursement of lost property and equipment is included in the accompanying consolidated statements of operations as a reduction to selling and administrative expense, and the reimbursement of lost profit margin and business interruption is included in the accompanying consolidated statements of operations as a reduction to cost of goods sold for fiscal 2020. In November 2018, one of the Company’s stores was destroyed as a result of a fire and, in the fourth quarter of fiscal 2018, the Company disposed of assets of $0.6 million in total, of which $0.5 million related to lost inventory and $0.1 million related to lost property and equipment. In fiscal 2019, the Company received a cash insurance recovery of $0.9 million in total, net of the insurance deductible, of which $0.7 million related to the reimbursement of lost profit margin, inventory and expense and $0.2 million related to the reimbursement of lost property and equipment. Accordingly, the Company recognized gains of $0.2 million related to the recovery of lost profit margin and expense and $0.1 million related to the recovery of property and equipment. The reimbursement of lost profit margin, inventory and expense is included in the accompanying consolidated statements of operations as a reduction of cost of goods sold for fiscal 2019, and the reimbursement of lost property and equipment is included in the accompanying consolidated statements of operations as a reduction of selling and administrative expense for fiscal 2019. 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 |
Jan. 03, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation Plans | (14) Share-Based Compensation Plans 2019 Equity Incentive Plan In April 2019, the Company adopted the 2019 Equity Incentive Plan (“2019 Plan”), which replaced the Company’s Amended and Restated 2007 Equity and Performance Incentive Plan (the “Prior Plan”). Awards under the 2019 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 or dividend equivalents. In the past, share option awards issued by the Company have typically been non-qualified share option awards, while nonvested share awards and nonvested share unit awards issued by the Company have typically been based on the attainment of service-only conditions. Upon the adoption of the 2019 Plan, the Company stopped issuing awards under the Prior Plan, although the Company will continue to honor any outstanding awards under the Prior Plan. The 2019 Plan (i) permits the Company to issue a maximum of 3,848,803 shares of the Company’s common stock (representing an increase of 3,300,000 over the 548,803 shares of the Company’s common stock available for issuance under the Prior Plan as of April 11, 2019) plus the number of any additional shares that may thereafter become available as a result of the forfeiture, expiration or other cancellation of awards under any prior plans; and (ii) expires on April 11, 2029. Any share option awards or stock appreciation rights shall be counted against this limit as one share for every one share granted. 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 as 2.5 shares for every one share granted. The aggregate number of shares available under the 2019 Plan and the number of 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. At its discretion, the Company grants share option awards, nonvested share awards and nonvested share unit awards to certain employees, as defined by ASC 718, Compensation—Stock Compensation 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 2020 and 2019 was $1.7 million and $1.9 million, respectively, which reduced operating income and income before income taxes by the same amount. Compensation expense recognized in cost of sales was $0.1 million in fiscal 2020 and 2019 and compensation expense recognized in selling and administrative expense was $1.6 million and $1.8 million in fiscal 2020 and 2019, respectively. The recognized tax benefit related to compensation expense for fiscal 2020 and 2019 was $0.4 million and $0.5 million, respectively. Net income for fiscal 2020 and 2019 reflects the net-of-tax charge of $1.3 million and $1.4 million, respectively, or $0.06 and $0.07 per basic and diluted share, respectively. Share Option Awards Share option awards granted by the Company generally vest and become exercisable in four equal installments of 25% per year with a maximum life of ten years. The exercise price of share option awards is equal to the quoted market price of the Company’s common stock on the date of grant. The Company granted 257,000 share option awards with a weighted-average grant-date fair value of $1.25 per share option award in fiscal 2020, and granted 263,800 share option awards with a weighted-average grant-date fair value of $1.30 per share option award in fiscal 2019. The following table details the Company’s share option awards activity for the current fiscal year: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at December 29, 2019 523,150 $ 5.91 Granted 257,000 2.23 Exercised (31,600 ) 5.32 Forfeited or Expired (5,750 ) 11.52 Outstanding at January 3, 2021 742,800 $ 4.62 7.95 $ 4,380,526 Exercisable at January 3, 2021 200,770 $ 7.38 6.64 $ 797,370 Vested and Expected to Vest at January 3, 2021 732,580 $ 4.65 7.94 $ 4,305,763 The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based upon the Company’s closing stock price of $10.21 per share as of January 3, 2021, 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, the total cash received from employees as a result of employee share option award exercises and the actual tax benefit realized for the tax deduction from share option award exercises in fiscal 2020 was approximately $0.1 million, $0.2 million and $25,000, respectively. No share option awards were exercised in fiscal 2019. The fair value of each share option award on the date of grant was estimated using the Black-Scholes method based on the following weighted-average assumptions: Year Ended January 3, 2021 December 29, 2019 Risk-free interest rate 0.9 % 2.5 % Expected term 5.7 years 5.7 years Expected volatility 63.0 % 53.0 % Expected dividend yield — 5.2 % 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 dividend rate at the time fair value is measured and future expectations. As of January 3, 2021, there was $0.5 million of total unrecognized compensation expense related to nonvested share option awards granted. That expense is expected to be recognized over a weighted-average period of 2.4 years. Nonvested Share Awards and Nonvested Share Unit Awards Nonvested share awards and nonvested share unit awards granted by the Company 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 earlier of (a) the date of the Company’s next annual stockholders meeting following the grant date, or (b) the first anniversary of the grant date. Nonvested share awards become outstanding when granted and are delivered to the recipient upon their vesting. Nonvested share unit awards, including any dividend reinvestments, are 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, at which time the units convert to shares and become outstanding. In January 2019, the Company delivered 29,672 vested shares, which included dividend reinvestments, for two Board members whose service terminated in fiscal 2018. Outstanding nonvested share awards and nonvested share unit awards accrue dividends at the same rate as dividends paid to the Company’s shareholders. Accrued dividends on nonvested share awards are paid upon vesting of the underlying shares and forfeited if a recipient’s service to the Company is terminated prior to vesting. Accrued dividends on nonvested share unit awards are reinvested into additional nonvested share unit awards and are settled at the same time as the underlying share unit awards. The total fair value of nonvested share awards which vested during fiscal 2020 and 2019 was $0.4 million and $0.6 million, respectively. The total fair value of nonvested share unit awards which vested during fiscal 2020 and 2019 was $0.2 million and $0.2 million, respectively. The Company granted 321,600 nonvested share awards with a weighted-average grant-date fair value of $1.69 per share award in fiscal 2020 and granted 308,584 nonvested share awards with a weighted-average grant-date fair value of $3.34 per share award in fiscal 2019. The following table details the Company’s nonvested share awards activity for the current fiscal year: Shares Weighted- Average Grant- Date Fair Value Balance at December 29, 2019 532,524 $ 6.33 Granted 321,600 1.69 Vested (240,424 ) 6.57 Forfeited (22,375 ) 4.32 Balance at January 3, 2021 591,325 $ 3.79 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 2020, the Company withheld 64,573 common shares with a total value of $0.1 million. This amount is presented as a cash outflow from financing activities in the accompanying consolidated statement of cash flows. As of January 3, 2021, dividends accrued but not paid related to nonvested share awards were $0.2 million. The Company granted 40,000 nonvested share unit awards with a weighted-average grant-date fair value of $2.28 per share unit award in fiscal 2020 and granted 72,464 nonvested share unit awards with a weighted-average grant-date fair value of $2.07 per share unit award in fiscal 2019. The weighted-average grant-date fair value of nonvested share awards and nonvested share unit awards is the quoted market price of the Company’s common stock on the date of grant. The following table details the Company’s nonvested share unit awards activity for the current fiscal year: Units Weighted- Average Grant- Date Fair Value Balance at December 29, 2019 75,413 $ 1.81 Granted 40,000 2.28 Dividend reinvestments 18,064 3.28 Vested (72,464 ) 2.07 Dividend reinvestments vested (19,853 ) 2.95 Balance at January 3, 2021 41,160 $ 1.91 As of January 3, 2021, there were 211,635 cumulative nonvested share unit awards remaining that previously vested and are no longer outstanding, of which 47,929 of these awards represented cumulative dividend reinvestments. These cumulative nonvested share unit awards are deliverable to the holders upon termination of their service. As of January 3, 2021, there was $1.2 million and $38,000 of total unrecognized compensation expense related to nonvested share awards and nonvested share unit awards, respectively. That expense is expected to be recognized over a weighted-average period of 2.1 years and 0.4 years for nonvested share awards and nonvested share unit awards, respectively. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Jan. 03, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | ( 15) Subsequent Event In the first quarter of fiscal 2021, 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 26, 2021 to stockholders of record as of March 12, 2020. In January 2021, the wife of 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, passed away and, accordingly, the Company will eliminate an employment agreement-related liability of $1.0 million and reduce selling and administrative expense by the same amount in the first quarter of fiscal 2021, as described more fully in Note 12 of these consolidated financial statements. On February 24, 2021, the Company entered into a Loan Agreement, as described more fully in Note 8 of these consolidated financial statements. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 03, 2021 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | BIG 5 SPORTING GOODS CORPORATION (In thousands) Balance at Beginning of Period Charged to Costs and Expenses Deductions Balance at End of Period January 3, 2021 Allowance for doubtful receivables $ 58 $ 44 $ (44 ) $ 58 Allowance for sales returns $ 2,702 $ (258 ) (1) $ — $ 2,444 Inventory reserves $ 6,796 $ 2,954 $ (3,612 ) $ 6,138 December 29, 2019 Allowance for doubtful receivables $ 28 $ 48 $ (18 ) $ 58 Allowance for sales returns $ 2,576 $ 126 (1) $ — $ 2,702 Inventory reserves $ 6,432 $ 5,019 $ (4,655 ) $ 6,796 (1) Represents an increase (decrease) in the required reserve based upon the Company’s evaluation of anticipated merchandise returns. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 03, 2021 | |
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 2020 included 53 weeks and fiscal 2019 included 52 weeks. |
Recently Adopted Accounting Updates | Recently Adopted Accounting Updates In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurements (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes |
Recently Issued Accounting Updates | Recently Issued Accounting Updates In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting Other recently issued accounting updates are not expected to have a material impact on the Company’s consolidated financial statements. |
Concentration of Risk | COVID-19 Impact on Concentration of Risk The novel coronavirus (“COVID-19”) pandemic has significantly impacted health and economic conditions throughout the United States and globally, as public concern about becoming ill with the virus has led to the issuance of recommendations and/or mandates from federal, state and local authorities to practice social distancing or self-quarantine. The Company primarily operates traditional sporting goods retail stores located in the western United States, with approximately 52% of its stores, along with its corporate offices and distribution center, located in California. Because of this, the Company is subject to regional risks, including the impact of the COVID-19 outbreak. Beginning on March 20, 2020, the Company temporarily closed more than one-half of its retail store locations in response to state and local shelter orders related to the COVID-19 outbreak. The Company was subsequently able to gradually reopen its store locations based on initially qualifying as an “essential” business under applicable regulations and later as a result of the easing of regulatory restrictions on retail operations in the Company’s market areas. As of the end of the second quarter of fiscal 2020, all of the Company’s stores that were temporarily closed due to COVID-19 had reopened for in-store shopping, subject to appropriate social distancing restrictions and with reduced operating hours. These restrictions and reduced operating hours continued into the third and fourth quarters of fiscal 2020. New temporary closures of stores may be required if additional orders are issued in response to changing health conditions. Additionally, during fiscal 2020, the pandemic and the shelter orders that were in place in the Company’s market areas negatively impacted customer traffic into the Company’s stores. In an effort to promote social distancing protocols, the Company has implemented reduced store hours, limited the number of customers in its stores at any one time and has generally implemented social-distancing guidelines throughout the store operating space. Due to the reduced customer traffic, and in an effort to preserve capital, the Company implemented temporary and permanent workforce reductions throughout the organization, temporarily reduced merchandise inventory orders and reduced advertising and capital spending in fiscal 2020. The Company may further restrict its store operations and operations in its distribution facility if deemed necessary or if recommended or mandated by authorities. A substantial amount of the Company’s inventory is manufactured abroad. COVID-19 has also impacted the Company’s supply chain for products sold, particularly those products that are sourced from China. To the extent one or more vendors is negatively impacted by COVID-19, including due to the closure of those vendors’ distribution centers or manufacturing facilities, the Company may be unable to maintain delivery schedules or adequate inventory in its stores. General 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. Cash equivalents represent investments of excess cash on hand of $50.0 million into U.S. Treasury bills. Because of the Company’s geographic concentration in the western United States, 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 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 680 suppliers, and the Company’s 20 largest suppliers accounted for 36.4% of total purchases in fiscal 2020. One vendor represented greater than 5% of total purchases, at 8.5%, in fiscal 2020. A significant portion of the Company’s inventory is manufactured abroad in China and other countries. Foreign imports subject the Company 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, public health issues that could lead to temporary closures of facilities or shipping ports, such as the recent outbreak of COVID-19, and other 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 any lender under its credit facility; however, the possibility does exist. |
Use of Estimates | Use of Estimates Management makes 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, lease assets and lease liabilities; valuation allowances for receivables, sales returns and deferred income tax assets; estimates related to stored-value cards and the valuation of share-based compensation awards; and obligations related to litigation, self-insurance liabilities and employee benefits. Due to the inherent uncertainty involved in making assumptions and estimates, events and changes in circumstances arising after January 3, 2021, including those resulting from the impacts of the COVID-19 pandemic, may result in actual outcomes that differ from those contemplated by management’s assumptions and estimates. |
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 ASC 280, Segment Reporting |
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 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. Generally, all revenue is recognized when control of the promised goods is transferred to customers, in an amount that reflects the consideration in exchange for those goods. Accordingly, the Company implicitly enters into a contract with customers to deliver merchandise inventory at the point of sale. Collectability is reasonably assured since the Company only extends immaterial credit purchases to certain municipalities and local school districts. As noted in the segment information elsewhere in this Note 2 to the Notes to Consolidated Financial Statements, the Company’s business consists of one reportable segment. In accordance with ASC 606, Revenue from Contracts with Customers Year Ended January 3, 2021 December 29, 2019 (In thousands) Hardgoods $ 623,728 $ 493,749 Athletic and sport footwear 228,311 279,733 Athletic and sport apparel 184,538 219,066 Other sales 4,635 3,947 Net sales $ 1,041,212 $ 996,495 Substantially all of the Company’s revenue is for single performance obligations for the following distinct items: • Retail store sales • E-commerce sales • Stored-value cards For performance obligations related to retail store and e-commerce sales contracts, the Company typically transfers control, for retail stores, upon consummation of the sale when the product is paid for and taken by the customer and, for e-commerce sales, when the product is tendered for delivery to the common carrier. For performance obligations related to stored-value cards, the Company typically transfers control upon redemption of the stored-value card through consummation of a future sales transaction. The transaction price for each contract is the stated price on the product, reduced by any stated discounts at that point in time. The Company does not engage in sales of products that attach a future material right which could result in a separate performance obligation for the purchase of goods in the future at a material discount. The implicit point-of-sale contract with the customer, as reflected in the transaction receipt, states the final terms of the sale, including the description, quantity, and price of each product purchased. Payment for the Company’s contracts is due in full upon delivery. The customer agrees to a stated price implicit in the contract. The transaction price relative to sales subject to a right of return reflects the amount of estimated consideration to which the Company expects to be entitled. This amount of variable consideration included in the transaction price, and measurement of net sales, is included in net sales only to the extent that it is probable that there will be no significant reversal in a future period. Actual amounts of consideration ultimately received may differ from the Company’s estimates. There were no material adjustments to the Company’s previous estimates. The allowance for sales returns is estimated based upon historical experience and a provision for estimated returns is recorded as a reduction in sales in the relevant period. The estimated right-of-return merchandise cost related to the sales returns is recorded as prepaid expense in the Company’s consolidated balance sheet as of January 3, 2021. If actual results in the future vary from the Company’s estimates, the Company adjusts these estimates, which would affect net sales and earnings in the period such variances become known. The Company has elected to apply the practical expedient, relative to e-commerce sales, which allows an entity to account for shipping and handling as fulfillment activities, and not a separate performance obligation. Accordingly, the Company recognizes revenue for only one performance obligation, the sale of the product, at shipping point (when the customer gains control). Revenue associated with e-commerce sales is not material. Contract liabilities are recognized primarily for stored-value card sales. Cash received from the sale of stored-value cards is recorded as a contract liability in accrued expenses, and the Company recognizes revenue upon the customer’s redemption of the stored-value card. Stored-value card breakage is recognized as revenue in proportion to the pattern of customer redemptions by applying a historical breakage rate of five percent. The Company does not sell or provide stored-value cards that carry expiration dates. The Company recognized $5.4 million and $6.6 million in stored-value card redemption revenue for fiscal 2020 and 2019, respectively. The Company also recognized $0.3 million and $0.4 million in stored-value card breakage revenue for fiscal 2020 and 2019, respectively. The Company had outstanding stored-value card liabilities of $7.5 million and $7.2 million The Company recorded, as prepaid expense, estimated right-of-return merchandise cost of $1.2 million and $1.4 million related to estimated sales returns as of January 3, 2021 and December 29, 2019, respectively, and recorded, as accrued expense, an allowance for sales returns reserve of $2.4 million and $2.7 million as of January 3, 2021 and December 29, 2019, respectively. |
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 amortization, 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. 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. |
Advertising Expense | Advertising Expense Advertising is expensed when the advertising first occurs. Advertising expense, net of co-operative advertising allowances, amounted to $10.6 million and $27.8 million for fiscal 2020 and 2019, respectively. The Company reduced advertising significantly in fiscal 2020 in response to the COVID-19 pandemic. 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 $1.1 million and $5.1 million for fiscal 2020 and 2019, 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 and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments of excess cash into U.S. Treasury bills, which have maturities of 90 days or less. 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 And Other Assets | Prepaid Expenses and Other Assets Prepaid expenses include the prepayment of various operating expenses such as insurance, income and property taxes, software maintenance and supplies, which are expensed when the operating cost is realized. Other assets include the long-term portion of certain prepaid expenses, capitalized deferred financing fees related to the Company’s credit facility and capitalized implementation costs related to hosting arrangements that are service contracts. While deferred financing fees and implementation costs are capitalized and amortized over the respective terms of their arrangements, costs related to the service element of a hosting arrangement that is a service contract are expensed as incurred. |
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: Land Indefinite Buildings 20 years 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. See Note 3 to the Notes to Consolidated Financial Statements for a further discussion on property and equipment. |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets In accordance with ASC 360, Property, Plant, and Equipment 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. The carrying amount of a store asset group includes stores’ property and equipment, primarily leasehold improvements, and operating lease ROU assets. The carrying amount of a store 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 store asset group. Factors that could trigger an impairment review include a current-period operating or cash flow loss combined with a history of operating or cash flow losses, and a projection that demonstrates continuing losses or insufficient income over the remaining reasonably certain lease term associated with the use of a store asset group. Other factors may include an adverse change in the business climate or an adverse action or assessment by a regulator in the market of a store asset group. Fair Value Measurements The Company determines the cash flows expected to result from the store asset group by projecting future revenue, gross margin and operating expense for each store asset group 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 the Company’s future expectations, competitive factors in its various markets, inflation, sales trends and other relevant environmental factors that may impact the store under evaluation. The actual cash flows could differ from management’s estimates due to changes in business conditions, operating performance and economic conditions. 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. The resulting impairment charge, if any, is allocated to the property and equipment, primarily leasehold improvements, and operating lease ROU assets on a pro rata basis using the relative carrying amounts of those assets. The allocated impairment charge to a long-lived asset is limited to the extent that the impairment charge does not reduce the carrying amount of the long-lived asset below its individual fair value. The estimation of the fair value of an ROU asset involves the evaluation of current market value rental amounts for leases associated with ROU assets. The estimates of current market value rental amounts are primarily based on recent observable market rental data of other comparable retail store locations. The fair value of an ROU asset is measured using a discounted cash flow valuation technique by discounting the estimated current and future market rental values using a property-specific discount rate. In fiscal 2020, the Company recognized no non-cash impairment charges and in fiscal 2019, the Company recognized non-cash impairment charges of $0.5 million related to certain underperforming stores. These impairment charges represented property and equipment, primarily leasehold improvements, and are included in selling and administrative expense in the consolidated statements of operations. The individual fair values of the property and equipment, primarily leasehold improvements, of the impaired store asset group were not material for fiscal 2019. See Note 4 to the Notes to Consolidated Financial Statements for a further discussion on impairment of assets. |
Leases | Leases In accordance with ASC 842, Leases ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the reasonably certain lease term. As the Company’s leases generally do not provide an implicit rate, the Company uses a collateralized incremental borrowing rate (“IBR”) to determine the present value of lease payments. The collateralized IBR is based on a synthetic credit rating that is externally prepared on an annual basis. This analysis considers qualitative and quantitative factors based on guidance provided by a rating agency for the consumer durables industry. The Company adjusts the selected IBR quarterly with a company-specific unsecured yield curve that approximates the Company’s market risk profile. The collateralized IBR is also based upon the estimated impact that the collateral has on the IBR. To account for the collateralized nature of the IBR, the Company utilized a notching method based on notching guidance provided by a rating agency whereby the Company’s base credit rating is notched upward as the yield curve on a secured loan is expected to be lower versus an unsecured loan. The operating lease ROU asset also includes any prepaid lease payments made and is reduced by lease incentives such as tenant improvement allowances. The operating lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. 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. Under ASC 842, these contingent rents are expensed as they accrue . In response to the large volume of anticipated lease concessions to be granted related to the effects of the COVID-19 pandemic, and the resultant expected cost and complexity of applying the lease modification requirements in ASC 842, the FASB issued Staff Q&A—Topic 842 and Topic 840: Accounting For Lease Concessions Related to the Effects of the COVID-19 Pandemic In accordance with this interpretive guidance, the Company elected to account for lease concessions related to the effects of the COVID-19 pandemic that resulted in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract consistent with how they would be accounted for as though enforceable rights and obligations for those concessions existed in the original contract. Consequently, for such lease concessions, the Company did not reassess each existing contract to determine whether enforceable rights and obligations for concessions existed and elected not to apply the lease modification guidance in ASC 842 to those contracts. The Company accounted for COVID-19 lease abatements of $3.1 million in fiscal 2020 as reductions to variable lease expense and accounted for lease deferrals of $0.6 million as of January 3, 2021 as if no changes to the lease contract were made while continuing to recognize expense during the deferral period and deferring the payment obligation as a liability. See Note 7 to the Notes to Consolidated Financial Statements for a further discussion on leases. |
Self-Insurance Liabilities | Self-Insurance Liabilities The Company is self-insured for its various insurance risks including its estimated workers’ compensation liability risk in certain states. 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 actuarially-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 $11.0 million and $10.8 million as of January 3, 2021 and December 29, 2019, respectively, of which $4.8 million and $4.7 million were recorded as a component of accrued expenses as of January 3, 2021 and December 29, 2019, respectively, and $6 .2 |
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 January 3, 2021 and December 29, 2019, the Company had no accrued interest or penalties. See Note 9 to the Notes to Consolidated Financial Statements for a further discussion on income taxes. |
Treasury Stock Purchases | Treasury Stock Purchases The Company repurchases its common stock in the open market pursuant to programs approved by its Board of Directors. The Board of Directors authorized a share repurchase program for the purchase of up to $25.0 million of the Company’s common stock. Under the authorization, the Company may purchase shares from time to time in the open market or in privately negotiated transactions in compliance with the applicable rules and regulations of the Securities and Exchange Commission. The Company may repurchase its common stock for a variety of reasons, including, among other things, its alternative cash requirements, existing business conditions and the current market price of its stock. However, the timing and amount of such purchases, if any, would be at the discretion of management and the Board of Directors. The Company repurchased no shares of common stock in fiscal 2020 or 2019. As of January 3, 2021, a total of $15.3 million remained available for share repurchases under its current share repurchase program. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Accounting Policies [Abstract] | |
Summary of Disaggregates Net Sales into Major Merchandise Categories to Depict Nature and Amount of Revenue and Related Cash Flows | In accordance with ASC 606, Revenue from Contracts with Customers Year Ended January 3, 2021 December 29, 2019 (In thousands) Hardgoods $ 623,728 $ 493,749 Athletic and sport footwear 228,311 279,733 Athletic and sport apparel 184,538 219,066 Other sales 4,635 3,947 Net sales $ 1,041,212 $ 996,495 |
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: Land Indefinite Buildings 20 years Leasehold improvements Shorter of estimated useful life or term of lease Furniture and equipment 3 – 10 years Internal-use software 3 – 7 years |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net, consist of the following: January 3, 2021 December 29, 2019 (In thousands) Furniture and equipment $ 134,623 $ 138,241 Leasehold improvements 170,701 167,965 Internal-use software 37,147 36,332 Land 2,750 2,750 Building 1,775 1,775 346,996 347,063 Accumulated depreciation and amortization (1) (290,638 ) (279,796 ) 56,358 67,267 Assets not placed into service 887 1,147 Property and equipment, net $ 57,245 $ 68,414 (1) Includes accumulated amortization for internal-use software development costs of $30.8 million and $28.9 million as of January 3, 2021 and December 29, 2019, respectively. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Expenses | The major components of accrued expenses are as follows: January 3, 2021 December 29, 2019 (In thousands) Payroll and related expense $ 37,826 $ 23,433 Sales tax 11,609 9,607 Occupancy expense 10,215 9,503 Other 23,227 22,392 Accrued expenses $ 82,877 $ 64,935 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | In accordance with ASC 842, the components of lease expense were as follows: Year Ended January 3, 2021 December 29, 2019 (In thousands) Lease expense: Amortization of right-of-use assets $ 2,721 $ 2,673 Interest on lease liabilities 297 378 Finance lease expense 3,018 3,051 Operating lease expense 83,030 80,470 Variable lease expense (1) 15,238 15,515 Sublease income (1,192 ) (1,158 ) Total lease expense $ 100,094 $ 97,878 (1) Variable lease expense for fiscal 2020 was reduced by $3.1 million for lease abatements related to the effects of the COVID-19 pandemic that resulted in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract. See Note 2 to the Notes to Consolidated Financial Statements for a further discussion on lease concessions |
Schedule of Other Information Related To Leases | In accordance with ASC 842, other information related to leases was as follows: Year Ended January 3, 2021 December 29, 2019 (In thousands) Operating cash flows from operating leases $ 83,028 $ 82,200 Operating cash flows from finance leases 313 377 Financing cash flows from finance leases 2,858 2,547 Cash paid for amounts included in the measurement of lease liabilities $ 86,199 $ 85,124 Right-of-use assets obtained in exchange for new finance lease liabilities $ — $ 3,123 Right-of-use assets obtained in exchange for new operating lease liabilities $ 80,452 $ 60,548 Weighted-average remaining lease term—finance leases 2.4 years 3.1 years Weighted-average remaining lease term—operating leases 5.0 years 5.2 years Weighted-average discount rate—finance leases 4.8 % 4.7 % Weighted-average discount rate—operating leases 6.1 % 6.3 % |
Schedule of Maturities For Finance And Operating Leases | In accordance with ASC 842, maturities of finance and operating lease liabilities as of January 3, 2021 were as follows: Year Ending: Finance Leases Operating Leases (In thousands) 2021 $ 2,209 $ 84,759 2022 1,740 73,890 2023 920 58,099 2024 — 49,287 2025 — 33,178 Thereafter — 40,335 Undiscounted cash flows $ 4,869 $ 339,548 Reconciliation of lease liabilities: Weighted-average remaining lease term 2.4 years 5.0 years Weighted-average discount rate 4.8 % 6.1 % Present values $ 4,593 $ 291,525 Lease liabilities - current 2,089 73,737 Lease liabilities - long-term 2,504 217,788 Lease liabilities - total $ 4,593 $ 291,525 Difference between undiscounted and discounted cash flows $ 276 $ 48,023 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Summary of Long-Term Revolving Credit Borrowings Outstanding Bearing Interest Either LIBO or Prime Lending Rates | As of January 3, 2021, the Company had no long-term revolving credit borrowings outstanding. As of December 29, 2019, the Company had long-term revolving credit borrowings outstanding bearing interest at either LIBO or the prime lending rates as follows: January 3, 2021 December 29, 2019 (Dollars in thousands) LIBO rate $ — $ 60,000 Prime rate — 6,559 Total borrowings $ — $ 66,559 LIBO rate — 1.8 % Prime rate — 4.8 % Average interest rate 2.7 % 3.8 % Year-end interest rate — 3.6 % |
Loan, Guaranty and Security Agreement [Member] | |
Average Daily Excess Availability for Preceding Fiscal Quarter | The applicable margin for all loans is 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 1.375% 0.375% II Less than $70,000,000 1.500% 0.500% |
Prior Credit Agreement [Member] | |
Average Daily Excess Availability for Preceding Fiscal Quarter | Under the Prior Credit Agreement, the applicable margin for all loans was 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 1.250% 0.250% II Less than $70,000,000 1.375% 0.500% |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax (Benefit) Expense | Income tax (benefit) expense consists of the following: Current Deferred Total (In thousands) Fiscal 2020: Federal $ 13,786 $ 86 $ 13,872 State 4,871 (298 ) 4,573 $ 18,657 $ (212 ) $ 18,445 Fiscal 2019: Federal $ 1,746 $ 541 $ 2,287 State 546 505 1,051 $ 2,292 $ 1,046 $ 3,338 |
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 21% to earnings before income taxes, as follows: Year Ended January 3, 2021 December 29, 2019 (In thousands) Tax expense at statutory rate $ 15,621 $ 2,474 State tax expense, net of federal tax effect 3,975 626 CARES Act net operating loss carryback (822 ) — Change in valuation allowance (418 ) — Write-offs related to nonvested share awards 260 393 Tax credits (246 ) (323 ) Nondeductible expenses 86 102 Change in apportionment and other rate adjustments (11 ) 104 Other — (38 ) $ 18,445 $ 3,338 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consist of the following tax-effected temporary differences: January 3, 2021 December 29, 2019 (In thousands) Deferred tax assets: Deferred rent $ 3,509 $ 4,322 Employee benefit-related liabilities 2,986 2,621 Insurance liabilities 2,581 2,495 Merchandise inventory 2,253 1,624 Gift card liability 1,324 1,125 State taxes 1,014 118 California Enterprise Zone Tax Credits 975 1,395 Share-based compensation 815 797 Other deferred tax assets 1,396 2,428 Gross deferred tax assets 16,853 16,925 Less: Valuation allowance (683 ) (1,212 ) Deferred tax assets, net of valuation allowance 16,170 15,713 Deferred tax liabilities: Federal liability on state deferred tax assets (1,125 ) (1,063 ) Prepaid expense (989 ) (759 ) Other deferred tax liabilities (225 ) (272 ) Deferred tax liabilities (2,339 ) (2,094 ) Net deferred tax assets $ 13,831 $ 13,619 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share: Year Ended January 3, 2021 December 29, 2019 (In thousands, except per share data) Net income $ 55,940 $ 8,445 Weighted-average shares of common stock outstanding: Basic 21,260 21,103 Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards 403 46 Diluted 21,663 21,149 Basic earnings per share $ 2.63 $ 0.40 Diluted earnings per share $ 2.58 $ 0.40 Antidilutive share option awards excluded from diluted calculation 494 499 Antidilutive nonvested share and nonvested share unit awards excluded from diluted calculation 46 457 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Share Option Awards | The following table details the Company’s share option awards activity for the current fiscal year: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at December 29, 2019 523,150 $ 5.91 Granted 257,000 2.23 Exercised (31,600 ) 5.32 Forfeited or Expired (5,750 ) 11.52 Outstanding at January 3, 2021 742,800 $ 4.62 7.95 $ 4,380,526 Exercisable at January 3, 2021 200,770 $ 7.38 6.64 $ 797,370 Vested and Expected to Vest at January 3, 2021 732,580 $ 4.65 7.94 $ 4,305,763 |
Weighted-Average Assumptions Used to Estimate the Fair Value of Each Share Option Award | The fair value of each share option award on the date of grant was estimated using the Black-Scholes method based on the following weighted-average assumptions: Year Ended January 3, 2021 December 29, 2019 Risk-free interest rate 0.9 % 2.5 % Expected term 5.7 years 5.7 years Expected volatility 63.0 % 53.0 % Expected dividend yield — 5.2 % |
Summary of Nonvested Share Awards Activity | The following table details the Company’s nonvested share awards activity for the current fiscal year: Shares Weighted- Average Grant- Date Fair Value Balance at December 29, 2019 532,524 $ 6.33 Granted 321,600 1.69 Vested (240,424 ) 6.57 Forfeited (22,375 ) 4.32 Balance at January 3, 2021 591,325 $ 3.79 The following table details the Company’s nonvested share unit awards activity for the current fiscal year: Units Weighted- Average Grant- Date Fair Value Balance at December 29, 2019 75,413 $ 1.81 Granted 40,000 2.28 Dividend reinvestments 18,064 3.28 Vested (72,464 ) 2.07 Dividend reinvestments vested (19,853 ) 2.95 Balance at January 3, 2021 41,160 $ 1.91 |
Description of Business - Addit
Description of Business - Additional Information (Detail) | 12 Months Ended |
Jan. 03, 2021ft²StoreSegment | |
Description Of Business [Line Items] | |
Number of operating stores | Store | 430 |
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] | Big 5 Corp [Member] | |
Description Of Business [Line Items] | |
Subsidiary interest ownership percentage | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | Mar. 20, 2020 | Jan. 03, 2021USD ($)SegmentSuppliershares | Dec. 29, 2019USD ($)shares |
Accounting Policies [Line Items] | |||
Reporting period, minimum | 364 days | ||
Reporting period, maximum | 371 days | ||
Cash deposits insured by the Federal Deposit Insurance Corporation | $ 250,000 | ||
Cash and cash equivalents | $ 64,654,000 | $ 8,223,000 | |
Concentration risk, suppliers | Supplier | 680 | ||
Concentration risk, largest supplier | Supplier | 20 | ||
Suppliers accounted for total purchases | 36.40% | ||
Percentage of vendors represented greater than of total purchases | 5.00% | ||
Vendor represented greater than of total purchases | Supplier | 1 | ||
Number of reportable segment | Segment | 1 | ||
Number of performance obligation | one | ||
Percentage of gift card historical breakage rate | 5.00% | ||
Stored value card redemption revenue recognized | $ 5,400,000 | 6,600,000 | |
Outstanding stored value card liabilities | $ 7,500,000 | 7,200,000 | |
Stored value cards redeemed period | 2 years | ||
Advertising expense, net of co-operative advertising allowances | $ 10,600,000 | 27,800,000 | |
Co-operative advertising allowances | 1,100,000 | 5,100,000 | |
Impairment charges | 0 | 500,000 | |
Self-insurance liabilities | 11,000,000 | 10,800,000 | |
Accrued interest or penalties | 0 | $ 0 | |
Common Stock [Member] | |||
Accounting Policies [Line Items] | |||
Share repurchase program, authorized amount | $ 25,000,000 | ||
Number of shares repurchased during period | shares | 0 | 0 | |
Share repurchase program, remaining amount available for repurchase | $ 15,300,000 | ||
Accrued expenses [Member] | |||
Accounting Policies [Line Items] | |||
Self-insurance liabilities | 4,800,000 | $ 4,700,000 | |
Other long-term liabilities [Member] | |||
Accounting Policies [Line Items] | |||
Self-insurance liabilities | 6,200,000 | 6,100,000 | |
Stored Value Card Breakage Revenue [Member] | |||
Accounting Policies [Line Items] | |||
Recognized stored value card breakage revenue | $ 300,000 | 400,000 | |
One vendor [Member] | |||
Accounting Policies [Line Items] | |||
Suppliers accounted for total purchases | 8.50% | ||
U.S. Treasury Bills [Member] | |||
Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 50,000,000 | ||
COVID-19 [Member] | |||
Accounting Policies [Line Items] | |||
Percentage of minimum number of retail store locations closed | 50.00% | ||
Lease abatements, to decrease on variable lease expense | 3,100,000 | ||
Deferred, lease liability | $ 600,000 | ||
COVID-19 [Member] | California [Member] | |||
Accounting Policies [Line Items] | |||
Percentage of stores | 52.00% | ||
Accounting Standards Update 2018-13 | |||
Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||
Accounting Standards Update 2018-15 | |||
Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Transition Option Elected [Extensible List] | us-gaap:AccountingStandardsUpdate201815ProspectiveMember | ||
Accounting Standards Update 2019-12 | |||
Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Early Adoption [true false] | true | ||
Accounting Standards Update 2014-09 | Merchandise [Member] | ASC 606 [Member] | |||
Accounting Policies [Line Items] | |||
Estimated right of return related to estimated sales returns | $ 1,200,000 | 1,400,000 | |
Allowance for sales returns reserve | $ 2,400,000 | $ 2,700,000 |
Summary of Disaggregates Net Sa
Summary of Disaggregates Net Sales into Major Merchandise Categories to Depict Nature and Amount of Revenue and Related Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Accounting Policies [Line Items] | ||
Net sales | $ 1,041,212 | $ 996,495 |
Hardgoods [Member] | ||
Accounting Policies [Line Items] | ||
Net sales | 623,728 | 493,749 |
Athletic and sport footwear [Member] | ||
Accounting Policies [Line Items] | ||
Net sales | 228,311 | 279,733 |
Athletic and sport apparel [Member] | ||
Accounting Policies [Line Items] | ||
Net sales | 184,538 | 219,066 |
Other sales [Member] | ||
Accounting Policies [Line Items] | ||
Net sales | $ 4,635 | $ 3,947 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Life of Property and Equipment (Detail) | 12 Months Ended |
Jan. 03, 2021 | |
Land [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Indefinite |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Shorter of estimated useful life or term of lease |
Furniture and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Internal-use software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Internal-use software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 346,996 | $ 347,063 |
Accumulated depreciation and amortization | (290,638) | (279,796) |
Property and equipment, net excluding assets not placed into service | 56,358 | 67,267 |
Assets not placed into service | 887 | 1,147 |
Property and equipment, net | 57,245 | 68,414 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 134,623 | 138,241 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 170,701 | 167,965 |
Internal-use software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 37,147 | 36,332 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,750 | 2,750 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,775 | $ 1,775 |
Property and Equipment, Net -_2
Property and Equipment, Net - Schedule of Property and Equipment (Parenthetical) (Detail) - USD ($) $ in Millions | Jan. 03, 2021 | Dec. 29, 2019 |
Internal-use software development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated amortization for internal-use software development costs | $ 30.8 | $ 28.9 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $ 6.7 | $ 6.8 |
Amortization expense | 8.9 | 9.7 |
Finance leases, gross | 10.1 | 12.1 |
Accumulated depreciation of finance leases | 5.5 | 4.8 |
Internal-use software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Amortization expense | $ 2.9 | $ 3 |
Impairment of Assets - Addition
Impairment of Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Impairment Or Disposal Of Tangible Assets Disclosure [Abstract] | ||
Property and equipment | $ 57,245,000 | $ 68,414,000 |
ROU assets | 278,607,000 | 262,588,000 |
Impairment of store assets | $ 0 | $ 500,000 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Payables And Accruals [Abstract] | ||
Payroll and related expense | $ 37,826 | $ 23,433 |
Sales tax | 11,609 | 9,607 |
Occupancy expense | 10,215 | 9,503 |
Other | 23,227 | 22,392 |
Accrued expenses | $ 82,877 | $ 64,935 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 31, 2018 | |
Lessee Lease Description [Line Items] | |||
Operating Lease, ROU assets | $ 278,607 | $ 262,588 | |
Operating lease liabilities | $ 291,525 | ||
Operating lease, option to extend, description | options to extend the leases for up to 5 years | ||
Operating lease, option to extend | true | ||
Maximum [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease term | 13 years | ||
Operating lease, option to extend | 5 years | ||
Finance lease term | 3 years | ||
ASC 842 [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating Lease, ROU assets | $ 262,900 | ||
Operating lease liabilities | $ 279,700 |
Lease Commitments - Summary of
Lease Commitments - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Lease expense: | ||
Amortization of right-of-use assets | $ 2,721 | $ 2,673 |
Interest on lease liabilities | 297 | 378 |
Finance lease expense | 3,018 | 3,051 |
Operating lease expense | 83,030 | 80,470 |
Variable lease expense (1) | 15,238 | 15,515 |
Sublease income | (1,192) | (1,158) |
Total lease expense | $ 100,094 | $ 97,878 |
Lease Commitments - Summary o_2
Lease Commitments - Summary of Components of Lease Expenses (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Jan. 03, 2021USD ($) | |
COVID-19 [Member] | |
Lessee Lease Description [Line Items] | |
Lease abatements, to decrease on variable lease expense | $ 3.1 |
Lease Commitments - Schedule of
Lease Commitments - Schedule of Other Information Related to Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 83,028 | $ 82,200 |
Operating cash flows from finance leases | 313 | 377 |
Financing cash flows from finance leases | 2,858 | 2,547 |
Cash paid for amounts included in the measurement of lease liabilities | 86,199 | 85,124 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 3,123 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 80,452 | $ 60,548 |
Weighted-average remaining lease term—finance leases | 2 years 4 months 24 days | 3 years 1 month 6 days |
Weighted-average remaining lease term—operating leases | 5 years | 5 years 2 months 12 days |
Weighted-average discount rate—finance leases | 4.80% | 4.70% |
Weighted-average discount rate—operating leases | 6.10% | 6.30% |
Lease Commitments - Schedule _2
Lease Commitments - Schedule of Finance and Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Finance Lease Liabilities, Payments, Due [Abstract] | ||
Finance leases, 2021 | $ 2,209 | |
Finance leases, 2022 | 1,740 | |
Finance leases, 2023 | 920 | |
Finance leases, total lease payments | $ 4,869 | |
Weighted-average remaining lease term | 2 years 4 months 24 days | 3 years 1 month 6 days |
Weighted-average discount rate—finance leases | 4.80% | 4.70% |
Present values | $ 4,593 | |
Lease liabilities - current | 2,089 | $ 2,678 |
Lease liabilities - long-term | 2,504 | $ 4,787 |
Lease liabilities - total | 4,593 | |
Difference between undiscounted and discounted cash flows | 276 | |
Operating Lease Liabilities, Payments Due [Abstract] | ||
Operating leases, 2021 | 84,759 | |
Operating leases, 2022 | 73,890 | |
Operating leases, 2023 | 58,099 | |
Operating leases, 2024 | 49,287 | |
Operating leases, 2025 | 33,178 | |
Operating leases, thereafter | 40,335 | |
Operating leases, total lease payments | $ 339,548 | |
Weighted-average remaining lease term | 5 years | 5 years 2 months 12 days |
Weighted-average discount rate—operating leases | 6.10% | 6.30% |
Operating lease liabilities | $ 291,525 | |
Lease liabilities - current | 73,737 | $ 71,542 |
Lease liabilities - long-term | 217,788 | $ 206,806 |
Lease liabilities - total | 291,525 | |
Difference between undiscounted and discounted cash flows | $ 48,023 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Feb. 24, 2021 | Jan. 03, 2021 | Mar. 30, 2020 | Dec. 29, 2019 |
Debt Instrument [Line Items] | ||||
Credit Agreement description | The Company, Big 5 Corp. and Big 5 Services Corp. were parties to a credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, and a syndicate of other lenders, as amended (the “Prior Credit Agreement”), which was terminated and replaced on February 24, 2021, as discussed below. | |||
Long-term revolving credit borrowings outstanding | $ 0 | $ 66,559,000 | ||
LIBO Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term revolving credit borrowings outstanding | $ 60,000,000 | |||
Loan, Guaranty and Security Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
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 BofA as its “prime rate.” | |||
Debt instrument, covenant description | Obligations under the Loan Agreement are secured by a general lien on and security interest in substantially all of the Company’s assets. The Loan 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 limits the ability | |||
Events of default, description | The Loan 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, failure to comply with certain agreements or covenants contained in the Loan Agreement, failure to satisfy certain judgments against the Company, failure to pay when due (or any other default which permits the acceleration of) certain other material indebtedness in principal amount in excess of $5.0 million, and certain insolvency and bankruptcy events. | |||
Loan, Guaranty and Security Agreement [Member] | Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility | $ 150,000,000 | |||
Maximum limit of credit facility | 200,000,000 | |||
Sublimit for issuances of letters of credit | $ 50,000,000 | |||
Maturity date of Credit Agreement | Feb. 24, 2026 | |||
Percentage of eligible credit card accounts receivables | 90.00% | |||
Percentage of the value of eligible inventory | 90.00% | |||
Percentage of the value of eligible in-transit inventory | 90.00% | |||
Commitment fee assessed | 0.20% | |||
Maximum dividend payment or stock purchase amount | $ 5,000,000 | |||
Line of Credit Facility default debt minimum amount | $ 5,000,000 | |||
Loan, Guaranty and Security Agreement [Member] | Subsequent Event [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Fixed charge coverage ratio | 100.00% | |||
Loan, Guaranty and Security Agreement [Member] | Subsequent Event [Member] | Federal Funds Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin in addition to variable rate | 0.50% | |||
Loan, Guaranty and Security Agreement [Member] | Subsequent Event [Member] | LIBO Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin in addition to variable rate | 1.00% | |||
Prior Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility | $ 140,000,000 | $ 165,000,000 | ||
Maximum limit of credit facility | 200,000,000 | |||
Sublimit for issuances of letters of credit | $ 25,000,000 | |||
Maturity date of Credit Agreement | Sep. 29, 2022 | |||
Interest rate, description | The Prior Credit Agreement provided for LIBO rate loans to bear interest at a rate equal to the applicable adjusted LIBO rate plus an applicable margin, as shown in the table below. The 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 in effect plus one-half of one percent, (b) the LIBO rate, plus one percentage point, or (c) the prime interest rate. | |||
Commitment fee assessed | 0.20% | |||
First tier of increase to the borrowing capacity | $ 165,000,000 | |||
Sublimit for swingline loans | $ 20,000,000 | |||
Prior Credit Agreement [Member] | Federal Funds Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin in addition to variable rate | 1.50% | |||
Prior Credit Agreement [Member] | LIBO Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin in addition to variable rate | 1.00% |
Long-Term Debt - Average Daily
Long-Term Debt - Average Daily Excess Availability for Preceding Fiscal Quarter (Detail) | Feb. 24, 2021 | Jan. 03, 2021 |
Loan, Guaranty and Security Agreement [Member] | Level I [Member] | Subsequent Event [Member] | ||
Line Of Credit Facility [Line Items] | ||
Average Daily Availability | Greater than or equal to $70,000,000 | |
LIBO Rate Applicable Margin | 1.375% | |
Base Rate Applicable Margin | 0.375% | |
Loan, Guaranty and Security Agreement [Member] | Level II [Member] | Subsequent Event [Member] | ||
Line Of Credit Facility [Line Items] | ||
Average Daily Availability | Less than $70,000,000 | |
LIBO Rate Applicable Margin | 1.50% | |
Base Rate Applicable Margin | 0.50% | |
Prior 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% | |
Prior Credit Agreement [Member] | Level II [Member] | ||
Line Of Credit Facility [Line Items] | ||
Average Daily Availability | Less than $70,000,000 | |
LIBO Rate Applicable Margin | 1.375% | |
Base Rate Applicable Margin | 0.50% |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Revolving Credit Borrowings Outstanding Bearing Interest Either LIBO or Prime Lending Rates (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Debt Instrument [Line Items] | ||
Total borrowings | $ 0 | $ 66,559 |
Interest Rate | 3.60% | |
LIBO Rate [Member] | ||
Debt Instrument [Line Items] | ||
Total borrowings | $ 60,000 | |
Interest Rate | 1.80% | |
Prime Rate [Member] | ||
Debt Instrument [Line Items] | ||
Total borrowings | $ 6,559 | |
Interest Rate | 4.80% | |
Average Interest Rate [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.70% | 3.80% |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax (Benefit) Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | ||
Current, Federal | $ 13,786 | $ 1,746 |
Current, State | 4,871 | 546 |
Current, Total | 18,657 | 2,292 |
Deferred, Federal | 86 | 541 |
Deferred, State | (298) | 505 |
Deferred, Total | (212) | 1,046 |
Total, Federal | 13,872 | 2,287 |
Total, State | 4,573 | 1,051 |
Total income tax expense (benefit) | $ 18,445 | $ 3,338 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Income Tax Contingency [Line Items] | ||
Federal statutory tax rate | 21.00% | |
Valuation allowance | $ 683,000 | $ 1,212,000 |
Unrecognized tax benefits | $ 0 | 0 |
Unrecognized tax benefits, period | Over the next 12 months | |
Accrued interest or penalties | $ 0 | 0 |
Earliest Tax Year [Member] | Federal [Member] | ||
Income Tax Contingency [Line Items] | ||
Income tax returns in period | 2017 | |
Earliest Tax Year [Member] | State and Local [Member] | ||
Income Tax Contingency [Line Items] | ||
Income tax returns in period | 2016 | |
California Enterprise Zone Tax Credits [Member] | ||
Income Tax Contingency [Line Items] | ||
Valuation allowance | $ 700,000 | $ 1,200,000 |
Tax credits carry forward latest expiration year | 2024 |
Income Taxes - Schedule of Fede
Income Taxes - Schedule of Federal Statutory Tax Rate Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | ||
Tax expense at statutory rate | $ 15,621 | $ 2,474 |
State tax expense, net of federal tax effect | 3,975 | 626 |
CARES Act net operating loss carryback | (822) | |
Change in valuation allowance | (418) | |
Write-offs related to nonvested share awards | 260 | 393 |
Tax credits | (246) | (323) |
Nondeductible expenses | 86 | 102 |
Change in apportionment and other rate adjustments | (11) | 104 |
Other | (38) | |
Total income tax expense (benefit) | $ 18,445 | $ 3,338 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Deferred tax assets: | ||
Deferred rent | $ 3,509 | $ 4,322 |
Employee benefit-related liabilities | 2,986 | 2,621 |
Insurance liabilities | 2,581 | 2,495 |
Merchandise inventory | 2,253 | 1,624 |
Gift card liability | 1,324 | 1,125 |
State taxes | 1,014 | 118 |
California Enterprise Zone Tax Credits | 975 | 1,395 |
Share-based compensation | 815 | 797 |
Other deferred tax assets | 1,396 | 2,428 |
Gross deferred tax assets | 16,853 | 16,925 |
Less: Valuation allowance | (683) | (1,212) |
Deferred tax assets, net of valuation allowance | 16,170 | 15,713 |
Deferred tax liabilities: | ||
Federal liability on state deferred tax assets | (1,125) | (1,063) |
Prepaid expense | (989) | (759) |
Other deferred tax liabilities | (225) | (272) |
Deferred tax liabilities | (2,339) | (2,094) |
Net deferred tax assets | $ 13,831 | $ 13,619 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Earnings Per Share Basic [Line Items] | ||
Net income | $ 55,940 | $ 8,445 |
Weighted-average shares of common stock outstanding: | ||
Basic | 21,260 | 21,103 |
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards | 403 | 46 |
Diluted | 21,663 | 21,149 |
Basic earnings per share | $ 2.63 | $ 0.40 |
Diluted earnings per share | $ 2.58 | $ 0.40 |
Share Option Awards [Member] | ||
Weighted-average shares of common stock outstanding: | ||
Antidilutive shares/unit awards excluded from diluted calculation | 494 | 499 |
Nonvested Share Awards and Nonvested Share Unit Awards [Member] | ||
Weighted-average shares of common stock outstanding: | ||
Antidilutive shares/unit awards excluded from diluted calculation | 46 | 457 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Compensation And Retirement Disclosure [Abstract] | ||
Employer matching and profit-sharing contributions | $ 3.7 | $ 2.2 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Co-founder [Member] - USD ($) | 3 Months Ended | 12 Months Ended | ||
Apr. 04, 2021 | Jan. 03, 2021 | Dec. 29, 2019 | Jan. 31, 2021 | |
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 | ||
Expense recognized to provide future obligations under agreement | 300,000 | 300,000 | ||
Liability of future obligations | $ 1,000,000 | $ 1,000,000 | ||
Subsequent Event [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, liability eliminate | $ 1,000,000 | |||
Selling and Administrative Expenses [Member] | Scenario Forecast [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, reduce selling and administrative expense | $ 1,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | May 21, 2021USD ($) | Jul. 31, 2019Store | Nov. 30, 2018Store | Jan. 03, 2021USD ($) | Jun. 28, 2020USD ($) | Dec. 29, 2019USD ($) | Dec. 30, 2018USD ($) | Jan. 03, 2021USD ($) | Dec. 29, 2019USD ($) |
Commitments And Contingencies [Line Items] | |||||||||
Received cash condemnation settlement from Orange County Transport Authority pre-tax gain amount | $ 2,500 | ||||||||
Cash condemnation settlement from Orange Country Transport Authority | $ 2,500 | ||||||||
Loss on property and equipment | (237) | ||||||||
Number of stores destroyed in fire | Store | 1 | 1 | |||||||
Loss contingency, total loss | $ 800 | $ 600 | |||||||
Advance on settlement | $ 500 | ||||||||
Deduction on settlement | 200 | ||||||||
Proceeds related to property damage and business interruption | 2,800 | ||||||||
Proceeds from insurance recovery - lost property and equipment | 1,700 | 1,750 | $ 167 | ||||||
Gain on recovery of insurance proceeds - lost profit margin and expenses | 800 | 1,077 | 231 | ||||||
Gain on insurance associated with business interruption | $ 300 | ||||||||
Loss contingency, lost inventory | 500 | ||||||||
Loss contingency, lost property and equipment | $ 100 | ||||||||
Proceeds from cash insurance recovery total, net of insurance deductible | 900 | ||||||||
Proceeds from insurance recovery - lost profit margin and expenses | 1,077 | 711 | |||||||
Gain on recovery of insurance proceeds - property and equipment | 1,750 | 56 | |||||||
Other Income [Member] | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Received cash condemnation settlement from Orange County Transport Authority pre-tax gain amount | $ 2,500 | ||||||||
Loss on property and equipment | $ 200 | ||||||||
Selling, General and Administrative Expenses | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Attorneys' fees related to fees settlement | $ 100 | $ 100 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2019shares | Jan. 31, 2019shares | Jan. 03, 2021USD ($)$ / sharesshares | Dec. 29, 2019USD ($)$ / sharesshares | Dec. 30, 2018Member | Apr. 11, 2019shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares outstanding | 742,800 | 523,150 | ||||
Compensation expense | $ | $ 1,700,000 | $ 1,900,000 | ||||
Recognized tax benefit relating to compensation expense | $ | 400,000 | 500,000 | ||||
Net income (loss) reflects net of tax charge | $ | $ 1,300,000 | $ (1,400,000) | ||||
Basic and diluted income (loss) per share net of tax | $ / shares | $ 0.06 | $ (0.07) | ||||
Granted, shares | 257,000 | |||||
Proceeds from exercise of share option awards | $ | $ 169,000 | |||||
Share option awards exercised | 31,600 | 0 | ||||
Shares withheld for tax requirements | 64,573 | |||||
Tax withholding payments for share-based compensation | $ | $ 97,000 | $ 221,000 | ||||
Common Stock [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Closing stock price per share | $ / shares | $ 10.21 | |||||
Tax withholding payments for share-based compensation | $ | 1,000 | |||||
Cost of sales [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Compensation expense | $ | $ 100,000 | 100,000 | ||||
Selling, General and Administrative Expenses | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Compensation expense | $ | $ 1,600,000 | $ 1,800,000 | ||||
Share Option Awards [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Maximum expiration period of share based payment awards granted | 10 years | |||||
Granted, shares | 257,000 | 263,800 | ||||
Weighted-average grant-date fair value per share | $ / shares | $ 1.25 | $ 1.30 | ||||
Intrinsic value of share option awards exercised | $ | $ 100,000 | |||||
Proceeds from exercise of share option awards | $ | 200,000 | |||||
Tax benefit realized for the expected tax deduction from share option award exercises | $ | 25,000 | |||||
Unrecognized compensation expense | $ | $ 500,000 | |||||
Weighted-average period of recognition | 2 years 4 months 24 days | |||||
Share Option Awards [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting rights (as percentage) | 25.00% | |||||
Nonvested Share Awards [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Nonvested shares outstanding | 591,325 | 532,524 | ||||
Weighted-average period of recognition | 2 years 1 month 6 days | |||||
Fair value of nonvested share awards | $ | $ 400,000 | $ 600,000 | ||||
Issuance of nonvested share awards, Shares | 321,600 | 308,584 | ||||
Weighted-average grant-date fair value per share, granted | $ / shares | $ 1.69 | $ 3.34 | ||||
Dividends accrued but not paid | $ | $ 200,000 | |||||
Unrecognized compensation expenses | $ | $ 1,200,000 | |||||
Nonvested Share Unit Awards [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Nonvested shares outstanding | 41,160 | 75,413 | ||||
Weighted-average period of recognition | 4 months 24 days | |||||
Shares vested included in dividend reinvestments | 19,853 | |||||
Fair value of nonvested share awards | $ | $ 200,000 | $ 200,000 | ||||
Issuance of nonvested share awards, Shares | 40,000 | 72,464 | ||||
Weighted-average grant-date fair value per share, granted | $ / shares | $ 2.28 | $ 2.07 | ||||
Cumulative nonvested share unit awards | 211,635 | |||||
Cumulative dividend reinvestment awards | 47,929 | |||||
Unrecognized compensation expenses | $ | $ 38,000 | |||||
Nonvested Share Unit Awards [Member] | Board Members [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares vested included in dividend reinvestments | 29,672 | |||||
Number of persons terminated | Member | 2 | |||||
Performance Shares [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting rights (as percentage) | 25.00% | |||||
Performance Shares [Member] | Share-based Compensation Award, Tranche One [Member] | Non-Employee Directors [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting rights (as percentage) | 100.00% | |||||
2019 Equity Incentive Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Aggregate amount of shares authorized for issuance | 3,848,803 | |||||
Number of shares authorized increased | 3,300,000 | |||||
Shares available for future grant | 2,462,871 | |||||
Expiration date of plan | Apr. 11, 2029 | |||||
Shares limited for every one share granted | 250.00% | |||||
2019 Equity Incentive Plan [Member] | Share Option Awards [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares outstanding | 742,800 | |||||
2019 Equity Incentive Plan [Member] | Nonvested Share Awards [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Nonvested shares outstanding | 591,325 | |||||
2019 Equity Incentive Plan [Member] | Nonvested Share Unit Awards [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Nonvested shares outstanding | 41,160 | |||||
2007 Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares available for future grant | 548,803 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans - Summary of Share Option Awards (Detail) - USD ($) | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Shares, Outstanding at December 29, 2019 | 523,150 | |
Shares, Granted | 257,000 | |
Shares,Exercised | (31,600) | 0 |
Shares, Forfeited or Expired | (5,750) | |
Shares,Outstanding at January 3, 2021 | 742,800 | 523,150 |
Shares, Exercisable at January 3,2021 | 200,770 | |
Shares, Vested and Expected to Vest at January 3,2021 | 732,580 | |
Weighted-Average Exercise Price, Outstanding at December 29, 2019 | $ 5.91 | |
Weighted-Average Exercise Price, Granted | 2.23 | |
Weighted-Average Exercise Price,Exercised | 5.32 | |
Weighted-Average Exercise Price, Forfeited or Expired | 11.52 | |
Weighted-Average Exercise Price, Outstanding at January 3,2021 | 4.62 | $ 5.91 |
Weighted-Average Exercise Price, Exercisable at January 3,2021 | 7.38 | |
Weighted-Average Exercise Price, Vested and Expected to Vest at January 3,2021 | $ 4.65 | |
Weighted-Average Remaining Contractual Life (In Years), Outstanding at January 3,2021 | 7 years 11 months 12 days | |
Weighted-Average Remaining Contractual Life (In Years), Exercisable at January 3,2021 | 6 years 7 months 20 days | |
Weighted-Average Remaining Contractual Life (In Years), Vested and Expected to Vest at January 3,2021 | 7 years 11 months 8 days | |
Aggregate Intrinsic Value, Outstanding at January 3,2021 | $ 4,380,526 | |
Aggregate Intrinsic Value, Exercisable at January 3,2021 | 797,370 | |
Aggregate Intrinsic Value, Vested and Expected to Vest at January 3,2021 | $ 4,305,763 |
Share-Based Compensation Plan_4
Share-Based Compensation Plans - Fair Value of Share Option Award Based on Weighted-Average Assumptions (Detail) | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Risk-free interest rate | 0.90% | 2.50% |
Expected term | 5 years 8 months 12 days | 5 years 8 months 12 days |
Expected volatility | 63.00% | 53.00% |
Expected dividend yield | 5.20% |
Share-Based Compensation Plan_5
Share-Based Compensation Plans - Summary of Nonvested Share Awards Activity (Detail) - $ / shares | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
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 | 532,524 | |
Granted, shares/share units | 321,600 | 308,584 |
Vested, shares/share units | (240,424) | |
Forfeited, shares/share units | (22,375) | |
Nonvested shares/share units, ending balance | 591,325 | 532,524 |
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 | $ 6.33 | |
Weighted-Average Grant-Date Fair Value, Granted | 1.69 | $ 3.34 |
Weighted-Average Grant-Date Fair Value, Vested | 6.57 | |
Weighted-Average Grant-Date Fair Value, Forfeited | 4.32 | |
Weighted-Average Grant-Date Fair Value, Ending Balance | $ 3.79 | $ 6.33 |
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 | 75,413 | |
Granted, shares/share units | 40,000 | 72,464 |
Dividend reinvestments, shares/share units | 18,064 | |
Vested, shares/share units | (72,464) | |
Dividend reinvestments vested, shares/share units | (19,853) | |
Nonvested shares/share units, ending balance | 41,160 | 75,413 |
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 | $ 1.81 | |
Weighted-Average Grant-Date Fair Value, Granted | 2.28 | $ 2.07 |
Weighted-Average Grant-Date Fair Value, Dividend Reinvestments | 3.28 | |
Weighted-Average Grant-Date Fair Value, Vested | 2.07 | |
Weighted-Average Grant-Date Fair Value, Dividend Reinvestments Vested | 2.95 | |
Weighted-Average Grant-Date Fair Value, Ending Balance | $ 1.91 | $ 1.81 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Apr. 04, 2021 | Jan. 31, 2021 | |
Co-founder [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Related party transaction, liability eliminate | $ 1 | |
Scenario Forecast [Member] | ||
Subsequent Event [Line Items] | ||
Dividend per share | $ 0.15 | |
Dividend declared per share, payable date | Mar. 26, 2021 | |
Dividend declared per share, record date | Mar. 12, 2020 | |
Scenario Forecast [Member] | Selling, General and Administrative Expenses | Co-founder [Member] | ||
Subsequent Event [Line Items] | ||
Related party transaction, reduce selling and administrative expense | $ 1 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Allowance for doubtful receivables [Member] | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Period | $ 58 | $ 28 |
Charged to Costs and Expenses | 44 | 48 |
Deductions | (44) | (18) |
Balance at End of Period | 58 | 58 |
Allowance for sales returns [Member] | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Period | 2,702 | |
Charged to Costs and Expenses | (258) | 126 |
Balance at End of Period | 2,444 | 2,702 |
Allowance for sales returns [Member] | ASU No. 2014-09 [Member] | Before adoption of ASC 606 [Member] | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Period | 2,576 | |
Inventory reserves [Member] | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Period | 6,796 | 6,432 |
Charged to Costs and Expenses | 2,954 | 5,019 |
Deductions | (3,612) | (4,655) |
Balance at End of Period | $ 6,138 | $ 6,796 |