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BGFV Big 5 Sporting Goods

Document and Entity Information

Document and Entity Information - shares6 Months Ended
Jun. 28, 2020Jul. 21, 2020
Cover [Abstract]
Document Type10-Q
Amendment Flagfalse
Document Period End DateJun. 28,
2020
Document Fiscal Year Focus2020
Document Fiscal Period FocusQ2
Trading SymbolBGFV
Entity Registrant NameBIG 5 SPORTING GOODS Corp
Entity Central Index Key0001156388
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Current Fiscal Year End Date--01-03
Entity Filer CategoryNon-accelerated Filer
Entity Shell Companyfalse
Entity Small Businesstrue
Entity Emerging Growth Companyfalse
Title of 12(b) SecurityCommon Stock, $0.01 par value
Security Exchange NameNASDAQ
Entity Address, State or ProvinceCA
Entity File Number000-49850
Entity Incorporation, State or Country CodeDE
Entity Tax Identification Number95-4388794
Entity Address, Address Line One2525 East El Segundo Boulevard
Entity Address, City or TownEl Segundo
Entity Address, Postal Zip Code90245
City Area Code310
Local Phone Number536-0611
Document Quarterly Reporttrue
Document Transition Reportfalse
Entity Common Stock, Shares Outstanding21,901,208

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in ThousandsJun. 28, 2020Dec. 29, 2019
Current assets:
Cash $ 16,735 $ 8,223
Accounts receivable, net of allowances of $61 and $58, respectively14,900 13,646
Merchandise inventories, net270,924 309,315
Prepaid expenses8,513 9,680
Total current assets311,072 340,864
Operating lease right-of-use assets, net270,999 262,588
Property and equipment, net62,483 68,414
Deferred income taxes12,782 13,619
Other assets, net of accumulated amortization of $2,216 and $2,043, respectively3,123 3,315
Total assets660,459 688,800
Current liabilities:
Accounts payable74,218 83,655
Accrued expenses61,986 64,935
Current portion of operating lease liabilities70,998 71,542
Current portion of finance lease liabilities2,602 2,678
Total current liabilities209,804 222,810
Operating lease liabilities, less current portion215,668 206,806
Finance lease liabilities, less current portion3,440 4,787
Long-term debt35,000 66,559
Other long-term liabilities9,943 7,466
Total liabilities473,855 508,428
Commitments and contingencies
Stockholders' equity:
Common stock, $0.01 par value, authorized 50,000,000 shares; issued 25,551,421 and 25,314,289 shares, respectively; outstanding 21,901,208 and 21,664,076 shares, respectively255 252
Additional paid-in capital120,835 120,054
Retained earnings108,041 102,593
Less: Treasury stock, at cost; 3,650,213 shares(42,527)(42,527)
Total stockholders' equity186,604 180,372
Total liabilities and stockholders' equity $ 660,459 $ 688,800

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in ThousandsJun. 28, 2020Dec. 29, 2019
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts receivable, current $ 61 $ 58
Accumulated amortization on other assets $ 2,216 $ 2,043
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized50,000,000 50,000,000
Common stock, shares issued25,551,421 25,314,289
Common stock, shares outstanding21,901,208 21,664,076
Treasury stock, shares3,650,213 3,650,213

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands3 Months Ended6 Months Ended
Jun. 28, 2020Jun. 30, 2019Jun. 28, 2020Jun. 30, 2019
Income Statement [Abstract]
Net sales $ 227,935 $ 240,965 $ 445,671 $ 486,251
Cost of sales155,742 167,848 308,923 337,258
Gross profit72,193 73,117 136,748 148,993
Selling and administrative expense58,333 72,179 129,703 144,790
Other income(2,500)(2,500)
Operating income16,360 938 9,545 4,203
Interest expense749 738 1,484 1,514
Income before taxes15,611 200 8,061 2,689
Income tax expense4,475 172 1,536 997
Net income $ 11,136 $ 28 $ 6,525 $ 1,692
Earnings per share:
Basic $ 0.52 $ 0 $ 0.31 $ 0.08
Diluted $ 0.52 $ 0 $ 0.31 $ 0.08
Weighted-average shares of common stock outstanding:
Basic21,252 21,118 21,200 21,074
Diluted21,358 21,143 21,356 21,100

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in ThousandsTotalCumulative Effect, Period of Adoption, Adjustment [Member]Common Stock Outstanding [Member]Common Stock [Member]Additional Paid-In Capital [Member]Retained Earnings [Member]Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member]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, 201821,424,094
Net income (loss)1,692 1,692
Dividends, Common Stock, Cash(2,144)(2,144)
Issuance of nonvested share awards4 (4)
Issuance of nonvested share awards, Shares338,256
Share-based compensation1,018 1,018
Forfeiture of nonvested share awards, Shares(18,655)
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 Jun. 30, 2019174,867 $ (339)253 119,145 97,996 $ (339)(42,527)
Ending Balance, shares at Jun. 30, 201921,684,601
Beginning Balance at Mar. 31, 2019175,435 252 118,666 99,044 (42,527)
Beginning Balance, Shares at Mar. 31, 201921,624,472
Net income (loss)28 28
Dividends, Common Stock, Cash(1,076)(1,076)
Issuance of nonvested share awards1 (1)
Issuance of nonvested share awards, Shares72,464
Share-based compensation480 480
Forfeiture of nonvested share awards, Shares(12,335)
Ending Balance at Jun. 30, 2019174,867 $ (339)253 119,145 97,996 $ (339)(42,527)
Ending Balance, shares at Jun. 30, 201921,684,601
Beginning Balance at Dec. 29, 2019180,372 252 120,054 102,593 (42,527)
Beginning Balance, Shares at Dec. 29, 201921,664,076
Net income (loss)6,525 6,525
Dividends, Common Stock, Cash(1,077)(1,077)
Issuance of nonvested share awards3 (3)
Issuance of nonvested share awards, Shares321,600
Share-based compensation881 881
Forfeiture of nonvested share awards, Shares(19,895)
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 Jun. 28, 2020 $ 186,604 255 120,835 108,041 (42,527)
Ending Balance, shares at Jun. 28, 202021,901,208
Beginning Balance at Mar. 29, 2020175,058 254 120,430 96,901 (42,527)
Beginning Balance, Shares at Mar. 29, 202021,837,348
Net income (loss)11,136 11,136
Forfeitures of dividends payable on common stock4 4
Issuance of nonvested share awards1 (1)
Issuance of nonvested share awards, Shares80,000
Share-based compensation406 406
Forfeiture of nonvested share awards, Shares(16,140)
Ending Balance at Jun. 28, 2020 $ 186,604 $ 255 $ 120,835 $ 108,041 $ (42,527)
Ending Balance, shares at Jun. 28, 202021,901,208

Unaudited Condensed Consolida_5

Unaudited Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 28, 2020Jun. 30, 2019
Dividends per share $ 0.05 $ 0.05 $ 0.10
Retained Earnings [Member]
Dividends per share $ 0.05 $ 0.05 $ 0.10

Unaudited Condensed Consolida_6

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands6 Months Ended
Jun. 28, 2020Jun. 30, 2019
Cash flows from operating activities:
Net income $ 6,525 $ 1,692
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization9,137 9,822
Share-based compensation881 1,018
Amortization of other assets172 131
ROU asset gain on disposal(110)
Noncash lease expense31,449 29,658
Gain on eminent domain condemnation(2,500)
Proceeds from eminent domain condemnation - lost profit margin2,263
Deferred income taxes837 824
Changes in operating assets and liabilities:
Accounts receivable, net(1,254)606
Merchandise inventories, net38,391 (23,704)
Prepaid expenses and other assets2,158 (890)
Accounts payable2,612 29,431
Operating lease liabilities(32,408)(34,248)
Accrued expenses and other long-term liabilities(33)(8,604)
Net cash provided by operating activities58,230 5,626
Cash flows from investing activities:
Purchases of property and equipment(3,444)(3,956)
Proceeds from eminent domain condemnation - property and equipment237
Net cash used in investing activities(3,207)(3,956)
Cash flows from financing activities:
Borrowings under revolving credit facility137,296 98,048
Payments under revolving credit facility(168,855)(100,611)
Changes in book overdraft(12,136)4,738
Debt issuance costs paid(105)
Principal payments under finance lease liabilities(1,409)(1,510)
Tax withholding payments for share-based compensation(97)(221)
Dividends paid(1,205)(2,285)
Net cash used in financing activities(46,511)(1,841)
Net increase (decrease) in cash8,512 (171)
Cash at beginning of period8,223 6,765
Cash at end of period16,735 6,594
Supplemental disclosures of non-cash investing and financing activities:
Property and equipment acquired under finance leases864
Property and equipment additions unpaid496 1,267
Supplemental disclosures of cash flow information:
Interest paid $ 1,570 1,478
Income taxes paid $ 47

Description of Business

Description of Business6 Months Ended
Jun. 28, 2020
Accounting Policies [Abstract]
Description of Business(1)
Big 5 Sporting Goods Corporation (the “Company”) is a leading sporting goods retailer in the western United States, operating 431 stores and an e-commerce platform as of June 28, 2020. The Company provides a full-line product offering in a traditional sporting goods store format that averages approximately 11,000 square feet. The Company’s product mix includes athletic shoes, apparel and accessories, as well as a broad selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, winter and summer recreation and roller sports. The Company is a holding company that operates as one reportable segment through Big 5 Corp., its 100%-owned subsidiary, and Big 5 Services Corp., which is a 100%-owned subsidiary of Big 5 Corp. Big 5 Services Corp. provides a centralized operation for the issuance and administration of gift cards and returned merchandise credits (collectively, “stored-value cards”). The accompanying interim unaudited condensed consolidated financial statements (“Interim Financial Statements”) of the Company and its 100%-owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and are presented in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these Interim Financial Statements do not include all of the information and notes required by GAAP for complete financial statements. These Interim Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 29, 2019 included in the Company’s Annual Report on Form 10-K. In the opinion of management, the Interim Financial Statements included herein contain all adjustments, including normal recurring adjustments, considered necessary to present fairly the Company’s financial position, the results of operations and cash flows for the periods presented. The operating results and cash flows of the interim periods presented herein are not necessarily indicative of the results to be expected for any other interim period or the full year.

Summary of Significant Accounti

Summary of Significant Accounting Policies6 Months Ended
Jun. 28, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies(2)
Summary of Significant Accounting Policies Consolidation The accompanying Interim Financial Statements include the accounts of Big 5 Sporting Goods Corporation, Big 5 Corp. and Big 5 Services Corp. Intercompany balances and transactions have been eliminated in consolidation. Reporting Period The Company follows the concept of a 52-53 week fiscal year, which ends on the Sunday nearest December 31. Fiscal year 2020 is comprised of 53 weeks and ends on January 3, 2021. Fiscal year 2019 was comprised of 52 weeks and ended on December 29, 2019. The first three quarters in fiscal 2020 are each comprised of 13 weeks, and the fourth quarter of fiscal 2020 is comprised of 14 weeks. The four quarters of fiscal 2019 were each comprised of 13 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. This standard removes, modifies, and adds certain disclosure requirements for fair value measurements, and is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company adopted ASU No. 2018-13 in the first quarter of fiscal 2020, coinciding with the standard’s effective date, and the impact from this standard was immaterial. 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 . This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company’s accounting for the service element of a hosting arrangement that is a service contract is not affected by the proposed amendments and will continue to be expensed as incurred in accordance with existing guidance. This standard does not expand on existing disclosure requirements except to require a description of the nature of hosting arrangements that are service contracts. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, and can be adopted either prospectively or retrospectively. Accordingly, the Company adopted the updated disclosure requirements of ASU No. 2018-15 prospectively in the first quarter of fiscal 2020, coinciding with the standard’s effective date, and the impact from this standard was immaterial. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes. This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740, Income Taxes , while also clarifying and amending existing guidance, including interim-period accounting for enacted changes in tax law. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company adopted ASU No. 2019-12 in the first quarter of fiscal 2020 and expects the impact from this standard to be immaterial. 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. This standard provides optional guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this standard apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The amendments in this standard are elective and are effective upon issuance for all entities. The Company is evaluating the expedients and exceptions provided by the amendments in this standard to determine their impact. Other recently issued accounting updates are not expected to have a material impact on the Company’s Interim 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 of its retail store locations in response to state and local shelter orders related to the COVID-19 outbreak. 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. 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 Interim Financial Statements and reported amounts of revenue and expense during the reporting period to prepare these Interim Financial Statements in conformity with GAAP. Certain items subject to such estimates and assumptions include the carrying amount of merchandise inventories, property and equipment, 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 June 28, 2020, 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. 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. Collectibility is reasonably assured since the Company only extends immaterial credit purchases to certain municipalities and local school districts. In accordance with ASC 606, Revenue from Contracts with Customers
13 Weeks Ended
26 Weeks Ended
June 28, 2020
June 30, 2019
June 28, 2020
June 30, 2019
(In thousands)
Hardgoods
$
150,270
$
133,779
$
259,044
$
237,217
Athletic and sport footwear
47,533
64,412
105,032
135,625
Athletic and sport apparel
29,883
41,913
79,011
110,465
Other sales
249
861
2,584
2,944
Net sales
$
227,935
$
240,965
$
445,671
$
486,251
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 Company accounts for shipping and handling relative to e-commerce sales 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 was not material for the 13 and 26 weeks ended June 28, 2020 and June 30, 2019. The Company recognized $0.8 million and $2.6 million in stored-value card redemption revenue for the 13 and 26 weeks ended June 28, 2020, respectively, compared to $1.5 million and $3.7 million in stored-value card redemption revenue for the 13 and 26 weeks ended June 30, 2019, respectively. The Company also recognized $40,000 and $0.1 million in stored-value card breakage revenue for the 13 and 26 weeks ended June 28, 2020, respectively, compared to $0.1 million and $0.2 million for the 13 and 26 weeks ended June 30, 2019, respectively. The Company had outstanding stored-value card liabilities of $6.5 million and $7.2 million The Company recorded, as prepaid expense, estimated right-of-return merchandise cost of $1.0 million and $1.4 million related to estimated sales returns as of June 28, 2020 and December 29, 2019, respectively, and recorded, in accrued expenses in the accompanying interim unaudited condensed consolidated balance sheets, an allowance for sales returns reserve of $2.0 million and $2.7 million as of June 28, 2020 and December 29, 2019, respectively. Share-Based Compensation The Company accounts for its share-based compensation in accordance with ASC 718, Compensation—Stock Compensation Valuation of Merchandise Inventories, Net The Company’s merchandise inventories are made up of finished goods and are valued at the lower of cost or net realizable value using the weighted-average cost method that approximates the first-in, first-out (“FIFO”) method. Average cost includes the direct purchase price of merchandise inventory, net of vendor allowances and cash discounts, in-bound freight-related expense and allocated overhead expense associated with the Company’s distribution center. Management regularly reviews inventories and records valuation reserves for damaged and defective merchandise, merchandise items with slow-moving or obsolescence exposure and merchandise that has a carrying value that exceeds net realizable value. Because of its merchandise mix, the Company has not historically experienced significant occurrences of obsolescence. Inventory shrinkage is accrued as a percentage of merchandise sales based on historical inventory shrinkage trends. The Company performs physical inventories of its stores at least once per year and cycle counts inventories at its distribution center throughout the year. The reserve for inventory shrinkage primarily represents an estimate for inventory shrinkage for each store since the last physical inventory date through the reporting date. These reserves are estimates, which could vary significantly, either favorably or unfavorably, from actual results if future economic conditions, consumer demand and competitive environments differ from expectations. Valuation of Long-Lived Assets 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, leasehold improvements and operating lease right-of-use (“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. When stores are identified as having an indicator of impairment, the Company forecasts undiscounted cash flows over the store asset group’s remaining lease term and compares the undiscounted cash flows to the carrying amount of the store asset group. If the store asset group is determined not to be recoverable, then an impairment charge will be recognized in the amount by which the carrying amount of the store asset group exceeds its fair value, determined using discounted cash flow valuation techniques, as contemplated in ASC 820, 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, 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. The Company did not recognize any impairment charges in the first half of fiscal 2020 or 2019. Leases In accordance with ASC 842, Leases leases for the Company’s retail store facilities, distribution center, corporate offices, information technology hardware, and distribution center delivery tractors and equipment 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 $3.0 million as reductions to variable lease expense and accounted for lease deferrals of $1.2 million 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. There were no lease concessions recorded in the first quarter of fiscal 2020. See Note 5 to the Interim Financial Statements for a further discussion on leases.

Fair Value Measurements

Fair Value Measurements6 Months Ended
Jun. 28, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements(3)
Fair Value Measurements The carrying values of cash, accounts receivable, accounts payable and accrued expenses approximate the fair values of these instruments due to their short-term nature. The carrying amount for borrowings under the revolving credit facility (the “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 June 28, 2020 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. The Company estimated the fair values of these long-lived assets based on the Company’s own judgments about the assumptions that market participants would use in pricing the asset and on observable market data of underperforming stores’ specific comparable markets, when available.

Accrued Expenses

Accrued Expenses6 Months Ended
Jun. 28, 2020
Payables And Accruals [Abstract]
Accrued Expenses(4)
Accrued Expenses The major components of accrued expenses are as follows:
June 28, 2020
December 29, 2019
(In thousands)
Payroll and related expense
$
22,401
$
23,433
Occupancy expense
10,472
9,503
Sales tax
7,186
9,607
Other
21,927
22,392
Accrued expenses
$
61,986
$
64,935

Lease Commitments

Lease Commitments6 Months Ended
Jun. 28, 2020
Leases [Abstract]
Lease Commitments(5)
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 interim unaudited condensed 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. 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, as well as certain equipment sales taxes, licenses, fees, repairs, and 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:
13 Weeks Ended
26 Weeks Ended
June 28, 2020
June 30, 2019
June 28, 2020
June 30, 2019
(In thousands)
(In thousands)
Lease expense:
Amortization of right-of-use assets
$
689
$
706
$
1,411
$
1,386
Interest on lease liabilities
78
95
167
195
Finance lease expense
767
801
1,578
1,581
Operating lease expense
20,318
20,003
40,604
39,825
Variable lease expense (1)
1,465
4,539
5,981
9,222
Sublease income
(293
)
(329
)
(586
)
(645
)
Total lease expense
$
22,257
$
25,014
$
47,577
$
49,983
(1)
Variable lease expense for the 13 and 26 weeks ended June 28, 2020 was reduced by $3.0 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 Interim Financial Statements for a further discussion on lease concessions.
Additionally, subsequent to the issuance of the Company’s Interim Financial Statements as of June 30, 2019, management identified an immaterial correction related to the disclosure of certain variable lease payments. Variable lease expense for the 13 and 26 weeks ended June 30, 2019 did not previously include $4.5 million and $9.0 million, respectively, of variable lease payments for property taxes, insurance, and common area maintenance related to triple net leases, as well as certain equipment sales taxes, licenses, fees and repairs. Management corrected the disclosure related to variable lease expense in the table above for the 13 and 26 weeks ended June 30, 2019 and, except for this change in disclosure, the correction had no impact upon the Company’s Interim Financial Statements. In accordance with ASC 842, other information related to leases was as follows:
26 Weeks Ended
June 28, 2020
June 30, 2019
(In thousands)
Operating cash flows from operating leases
$
37,354
$
45,435
Operating cash flows from finance leases
167
218
Financing cash flows from finance leases
1,409
1,510
Cash paid for amounts included in the measurement of lease liabilities
$
38,930
$
47,163
Right-of-use assets obtained in exchange for new finance lease liabilities
$

$
864
Right-of-use assets obtained in exchange for new operating lease liabilities
$
39,986
$
28,691
Weighted-average remaining lease term—finance leases
2.8 years
3.3 years
Weighted-average remaining lease term—operating leases
5.2 years
5.3 years
Weighted-average discount rate—finance leases
4.7
%
4.9
%
Weighted-average discount rate—operating leases
6.4
%
6.5
% In accordance with ASC 842, maturities of finance and operating lease liabilities as of June 28, 2020 were as follows:
Year Ending:
Finance Leases
Operating Leases
(In thousands)
2020 (remaining six months)
$
1,600
$
46,965
2021
2,188
74,733
2022
1,740
64,066
2023
920
49,934
2024

40,952
Thereafter

61,466
Undiscounted cash flows
$
6,448
$
338,116
Reconciliation of lease liabilities:
Weighted-average remaining lease term
2.8 years
5.2 years
Weighted-average discount rate
4.7
%
6.4
%
Present values
$
6,042
$
286,666
Lease liabilities - current
2,602
70,998
Lease liabilities - long-term
3,440
215,668
Lease liabilities - total
$
6,042
$
286,666
Difference between undiscounted and discounted cash flows
$
406
$
51,450

Long-Term Debt

Long-Term Debt6 Months Ended
Jun. 28, 2020
Debt Disclosure [Abstract]
Long-Term Debt(6)
Long-Term Debt On October 18, 2010, the Company, Big 5 Corp. and Big 5 Services Corp. entered into a credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, and a syndicate of other lenders, which was amended on October 31, 2011, December 19, 2013 and September 29, 2017 (as so amended, the “Credit Agreement”) , and has a maturity date of September 29, 2022 The Credit Agreement provides for a Credit Facility with an aggregate committed availability of up to $140.0 million, which amount may be increased (“accordion feature”) at the Company’s option up to a maximum of $165.0 million. On March 30, 2020 the Company exercised the accordion feature of the Credit Agreement and increased the aggregate committed availability under the Credit Facility to $165.0 million to support its liquidity initiatives during the COVID-19 pandemic. The Company may also request additional increases in aggregate availability, up to a maximum of $200.0 million, in which case the existing lenders under the Credit Agreement will have the option to increase their commitments to accommodate the requested increase. If such existing lenders do not exercise that option, the Company may (with the consent of Wells Fargo, not to be unreasonably withheld) seek other lenders willing to provide such commitments. The Credit Agreement includes a provision which permits the Company to elect to reduce the aggregate committed availability under the Credit Agreement to $100.0 million for a three-month period each calendar year. The Company may borrow under the Credit Facility from time to time, provided the amounts outstanding will not exceed the lesser of the then aggregate availability (as discussed above) and the Borrowing Base (such lesser amount being referred to as the “Loan Cap”). The “Borrowing Base” generally is comprised of the sum, at the time of calculation, of (a) 90.00% of eligible credit card receivables; plus (b) the cost of eligible inventory (other than eligible in-transit inventory), net of inventory reserves, multiplied by 90.00% of the appraised net orderly liquidation value of eligible inventory (expressed as a percentage of the cost of eligible inventory); plus (c) the lesser of (i) the cost of eligible in-transit inventory, net of inventory reserves, multiplied by 90.00% of the appraised net orderly liquidation value of eligible in-transit inventory (expressed as a percentage of the cost of eligible in-transit inventory), or (ii) $10.0 million, minus (d) certain reserves established by Wells Fargo in its role as the Administrative Agent in its reasonable discretion. Generally, the Company may designate specific borrowings under the Credit Facility as either base rate loans or LIBO rate loans. The applicable interest rate on the Company’s borrowings is a function of the daily average, over the preceding fiscal quarter, of the excess of the Loan Cap over amounts borrowed (such amount being referred to as the “Average Daily Availability”). Those loans designated as LIBO rate loans bear interest at a rate equal to the applicable adjusted LIBO rate plus an applicable margin as shown in the table below. Those loans designated as base rate loans bear interest at a rate equal to the applicable margin for base rate loans (as shown below) plus the highest of (a) the Federal funds rate, as in effect from time to time, plus one-half of one percent (0.50%), (b) the LIBO rate, plus one percentage point (1.00%), or (c) the rate of interest in effect for such day as announced from time to time within Wells Fargo as its “prime rate.” The applicable margin for all loans 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
1.25%
0.25%
II
Less than $70,000,000
1.375%
0.50%
T he commitment fee assessed on the unused portion of the Credit Facility is 0.20% per annum. Obligations under the Credit Facility are secured by a general lien and perfected security interest in substantially all of the Company’s assets. The Credit Agreement contains covenants that require the Company to maintain a fixed charge coverage ratio of not less than 1.0:1.0 in certain circumstances, and limit the ability to, among other things, incur liens, incur additional indebtedness, transfer or dispose of assets, change the nature of the business, guarantee obligations, pay dividends or make other distributions or repurchase stock, and make advances, loans or investments. The Company may declare or pay cash dividends or repurchase stock only if, among other things, no default or event of default then exists or would arise from such dividend or repurchase of stock and, after giving effect to such dividend or repurchase, certain availability and/or fixed charge coverage ratio requirements are satisfied. The Credit Agreement contains customary events of default, including, without limitation, failure to pay when due principal amounts with respect to the Credit Facility, failure to pay any interest or other amounts under the Credit Facility for five days after becoming due, failure to comply with certain agreements or covenants contained in the Credit Agreement, failure to satisfy certain judgments against the Company, failure to pay when due (or any other default which does or may lead to the acceleration of) certain other material indebtedness in principal amount in excess of $5.0 million, and certain insolvency and bankruptcy events. As of June 28, 2020, the Company had long-term revolving credit borrowings of $35.0 million and letter of credit commitments of $4.7 million outstanding, compared with borrowings of $124.3 million and letter of credit commitments of $0.7 million outstanding as of March 29, 2020 and borrowings of $66.6 million and letter of credit commitments of $0.7 million as of December 29, 2019. Total remaining borrowing availability, after subtracting letters of credit, was $125.3 million and $72.7 million as of June 28, 2020 and December 29, 2019, respectively.

Income Taxes

Income Taxes6 Months Ended
Jun. 28, 2020
Income Tax Disclosure [Abstract]
Income Taxes(7)
Income Taxes Under the asset and liability method prescribed under ASC 740, Income Taxes The Company files a consolidated federal income tax return and files tax returns in various state and local jurisdictions. The statutes of limitations for consolidated federal income tax returns are open for fiscal years 2016 and after, and state and local income tax returns are open for fiscal years 2015 and after. The provision for income taxes for the 26 weeks ended June 28, 2020 and June 30, 2019 reflects the write-off of deferred tax assets of $0.3 million and $0.4 million, respectively, related to share-based compensation. On March 27, 2020, the Federal government enacted the U.S. Coronavirus Aid, Relief and Economic Security (“CARES”) Act to provide relief from the impact of COVID-19. Among other relief, the CARES Act allows companies with a net operating loss (“NOL”) in either 2018, 2019 or 2020 to carry back those losses five years. As a result, the Company amended its 2018 income tax return to carry back its 2018 NOL to a period with a higher statutory tax rate in effect at that time, and received a related income tax refund of $2.1 million in the second quarter of fiscal 2020. As of June 28, 2020 and December 29, 2019, the Company had no unrecognized tax benefits including those that, if recognized, would affect the Company’s effective income tax rate over the next 12 months. The Company’s policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expense. As of June 28, 2020 and December 29, 2019, the Company had no accrued interest or penalties.

Earnings Per Share

Earnings Per Share6 Months Ended
Jun. 28, 2020
Earnings Per Share [Abstract]
Earnings Per Share(8)
Earnings Per Share The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share The following table sets forth the computation of basic and diluted earnings per common share:
13 Weeks Ended
26 Weeks Ended
June 28, 2020
June 30, 2019
June 28, 2020
June 30, 2019
(In thousands, except per share data)
Net income
$
11,136
$
28
$
6,525
$
1,692
Weighted-average shares of common stock outstanding:
Basic
21,252
21,118
21,200
21,074
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards
106
25
156
26
Diluted
21,358
21,143
21,356
21,100
Basic earnings per share
$
0.52
$
0.00
$
0.31
$
0.08
Diluted earnings per share
$
0.52
$
0.00
$
0.31
$
0.08
Antidilutive share option awards excluded from diluted calculation
778
542
694
482
Antidilutive nonvested share and nonvested share unit awards excluded from diluted calculation
315
489
359
448
The computation of diluted earnings per share for all periods presented excludes all potential share option awards since the exercise prices of all 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 all 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

Commitments and Contingencies

Commitments and Contingencies6 Months Ended
Jun. 28, 2020
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies(9)
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 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 interim unaudited condensed consolidated statement of operations The Company is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters is not expected to have a material adverse effect on the Company’s results of operations or financial condition.

Share-based Compensation

Share-based Compensation6 Months Ended
Jun. 28, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-based Compensation(10)
Share-based Compensation In April 2019, the Company adopted the 2019 Equity Incentive Plan (the “2019 Plan”) and stopped making grants under its 2007 Equity and Performance Incentive Plan, as amended and restated in April 2011 and April 2016 (the “2007 Plan”). As of June 28, 2020, 2,463,795 shares remained available for future grant under the 2019 Plan. At its discretion, the Company grants share option awards, nonvested share awards and nonvested share unit awards to certain employees, as defined by ASC 718, Compensation—Stock Compensation Share Option Awards Share option awards granted by the Company generally vest and become exercisable in four equal annual installments of 25% per year with a maximum life of ten years. The exercise price of share option awards is equal to the quoted market price of the Company’s common stock on the date of grant. In the first half of fiscal 2020, the Company granted 257,000 share option awards with a weighted-average grant-date fair value of $1.25 per option. In the first half of fiscal 2019, the Company granted 243,800 share option awards with a weighted-average grant-date fair value of $1.36 per option. A summary of the status of the Company’s share option awards is presented below:
Shares
Weighted- Average Exercise Price
Weighted- Average Remaining Contractual Life (In Years)
Aggregate Intrinsic Value
Outstanding at December 29, 2019
523,150
$
5.91
Granted
257,000
2.23
Forfeited or Expired
(5,750
)
11.52
Outstanding at June 28, 2020
774,400
$
4.65
8.45
$

Exercisable at June 28, 2020
216,015
$
7.36
7.17
$

Vested and Expected to Vest at June 28, 2020
760,262
$
4.68
8.43
$

The aggregate intrinsic value represents the total pretax intrinsic value, based upon the Company’s most recent closing stock price of $1.85 as of June 28, 2020, which would have been received by the option holders had all option holders exercised their option awards as of that date. The fair value of each share option award on the date of grant is estimated using the Black-Scholes method based on the following weighted-average assumptions:
13 Weeks Ended
26 Weeks Ended
June 28, 2020
June 30, 2019
June 28, 2020
June 30, 2019
Risk-free interest rate


0.9
%
2.6
%
Expected term


5.7 years
5.7 years
Expected volatility


63.0
%
53.0
%
Expected dividend yield



4.9
% The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected term of the option award; the expected term represents the weighted-average period of time that option awards granted are expected to be outstanding giving consideration to vesting schedules and historical participant exercise behavior; the expected volatility is based upon historical volatility of the Company’s common stock; and the expected dividend yield is based upon the Company’s current dividend rate. In order to support its liquidity initiatives throughout the organization as a result of the COVID-19 outbreak, early in the second quarter of fiscal 2020 the Company’s Board of Directors suspended its quarterly cash dividend. Due to the uncertainty of future dividend payments when share option awards were granted in the first quarter of fiscal 2020, the Company did not estimate an expected dividend yield assumption for share option awards granted at that time. As of June 28, 2020, there was $0.6 million of total unrecognized compensation expense related to share option awards granted. That expense is expected to be recognized over a weighted-average period of 2.9 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. Shares issuable related to 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. The total fair value of nonvested share awards which vested during the first half of fiscal 2020 and 2019 was $0.4 million and $0.6 million, respectively. The total fair value of nonvested share unit awards which vested in each of the first half of fiscal 2020 and 2019 was $0.2 million. The Company granted 321,600 and 308,584 nonvested share awards in the first half of fiscal 2020 and 2019, respectively. The weighted-average grant-date fair value per share of the Company’s nonvested share awards granted in the first half of fiscal 2020 and 2019 was $1.69 and $3.34, respectively. A summary of the status of the Company’s nonvested share awards is presented below:
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
(19,895
)
4.47
Balance at June 28, 2020
593,805
$
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 the first half of 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 interim unaudited condensed consolidated statement of cash flows. The Company granted 40,000 and 72,464 nonvested share unit awards in the first half of fiscal 2020 and 2019, respectively. The weighted-average grant-date fair value per share of the Company’s nonvested share unit awards granted in the first half of fiscal 2020 and 2019 was $2.28 and $2.07, respectively. A summary of the status of the Company’s nonvested share unit awards is presented below:
Units
Weighted- Average Grant- Date Fair Value
Balance at December 29, 2019
75,413
$
1.81
Granted
40,000
$
2.28
Dividend reinvestments
10,940
3.23
Vested
(72,464
)
2.07
Dividend reinvestments vested
(6,703
)
3.23
Balance at June 28, 2020
47,186
$
1.94
As of June 28, 2020, there was $1.9 million and $0.1 million of total unrecognized compensation expense related to nonvested share awards and nonvested share unit awards, respectively. That expense is expected to be recognized over a weighted-average period of 2.6 and 0.9 years for nonvested share awards and nonvested share unit awards, respectively.

Subsequent Event

Subsequent Event6 Months Ended
Jun. 28, 2020
Subsequent Events [Abstract]
Subsequent Event(11)
Subsequent Event In response to the current strength of the Company’s balance sheet, operations and cash flow generation, the Company’s Board of Directors reinstated the Company’s quarterly cash dividend at the previous rate of $0.05 per share of outstanding common stock. The Company has declared a cash dividend of $0.10 per share of outstanding common stock, which will be paid on September 15, 2020 to stockholders of record as of September 1, 2020. The cash dividend reflects the Company’s reinstated quarterly cash dividend of $0.05 per share of outstanding common stock for the third quarter of fiscal 2020, and also includes an additional $0.05 per share of outstanding common stock in recognition that the Company did not pay a dividend in the second quarter of fiscal 2020 as it engaged in various efforts to conserve cash in response to the uncertainties of COVID-19.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)6 Months Ended
Jun. 28, 2020
Accounting Policies [Abstract]
ConsolidationConsolidation The accompanying Interim Financial Statements include the accounts of Big 5 Sporting Goods Corporation, Big 5 Corp. and Big 5 Services Corp. Intercompany balances and transactions have been eliminated in consolidation.
Reporting PeriodReporting Period The Company follows the concept of a 52-53 week fiscal year, which ends on the Sunday nearest December 31. Fiscal year 2020 is comprised of 53 weeks and ends on January 3, 2021. Fiscal year 2019 was comprised of 52 weeks and ended on December 29, 2019. The first three quarters in fiscal 2020 are each comprised of 13 weeks, and the fourth quarter of fiscal 2020 is comprised of 14 weeks. The four quarters of fiscal 2019 were each comprised of 13 weeks.
Recently Adopted Accounting UpdatesRecently 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. This standard removes, modifies, and adds certain disclosure requirements for fair value measurements, and is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company adopted ASU No. 2018-13 in the first quarter of fiscal 2020, coinciding with the standard’s effective date, and the impact from this standard was immaterial. 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 . This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company’s accounting for the service element of a hosting arrangement that is a service contract is not affected by the proposed amendments and will continue to be expensed as incurred in accordance with existing guidance. This standard does not expand on existing disclosure requirements except to require a description of the nature of hosting arrangements that are service contracts. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, and can be adopted either prospectively or retrospectively. Accordingly, the Company adopted the updated disclosure requirements of ASU No. 2018-15 prospectively in the first quarter of fiscal 2020, coinciding with the standard’s effective date, and the impact from this standard was immaterial. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes. This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740, Income Taxes , while also clarifying and amending existing guidance, including interim-period accounting for enacted changes in tax law. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company adopted ASU No. 2019-12 in the first quarter of fiscal 2020 and expects the impact from this standard to be immaterial.
Recently Issued Accounting UpdatesRecently 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. This standard provides optional guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this standard apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The amendments in this standard are elective and are effective upon issuance for all entities. The Company is evaluating the expedients and exceptions provided by the amendments in this standard to determine their impact. Other recently issued accounting updates are not expected to have a material impact on the Company’s Interim Financial Statements.
COVID-19 Impact on Concentration of RiskCOVID-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 of its retail store locations in response to state and local shelter orders related to the COVID-19 outbreak. 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.
Use of EstimatesUse 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 Interim Financial Statements and reported amounts of revenue and expense during the reporting period to prepare these Interim Financial Statements in conformity with GAAP. Certain items subject to such estimates and assumptions include the carrying amount of merchandise inventories, property and equipment, 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 June 28, 2020, 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.
Revenue RecognitionRevenue 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. Collectibility is reasonably assured since the Company only extends immaterial credit purchases to certain municipalities and local school districts. In accordance with ASC 606, Revenue from Contracts with Customers
13 Weeks Ended
26 Weeks Ended
June 28, 2020
June 30, 2019
June 28, 2020
June 30, 2019
(In thousands)
Hardgoods
$
150,270
$
133,779
$
259,044
$
237,217
Athletic and sport footwear
47,533
64,412
105,032
135,625
Athletic and sport apparel
29,883
41,913
79,011
110,465
Other sales
249
861
2,584
2,944
Net sales
$
227,935
$
240,965
$
445,671
$
486,251
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 Company accounts for shipping and handling relative to e-commerce sales 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 was not material for the 13 and 26 weeks ended June 28, 2020 and June 30, 2019. The Company recognized $0.8 million and $2.6 million in stored-value card redemption revenue for the 13 and 26 weeks ended June 28, 2020, respectively, compared to $1.5 million and $3.7 million in stored-value card redemption revenue for the 13 and 26 weeks ended June 30, 2019, respectively. The Company also recognized $40,000 and $0.1 million in stored-value card breakage revenue for the 13 and 26 weeks ended June 28, 2020, respectively, compared to $0.1 million and $0.2 million for the 13 and 26 weeks ended June 30, 2019, respectively. The Company had outstanding stored-value card liabilities of $6.5 million and $7.2 million The Company recorded, as prepaid expense, estimated right-of-return merchandise cost of $1.0 million and $1.4 million related to estimated sales returns as of June 28, 2020 and December 29, 2019, respectively, and recorded, in accrued expenses in the accompanying interim unaudited condensed consolidated balance sheets, an allowance for sales returns reserve of $2.0 million and $2.7 million as of June 28, 2020 and December 29, 2019, respectively.
Share-Based CompensationShare-Based Compensation The Company accounts for its share-based compensation in accordance with ASC 718, Compensation—Stock Compensation
Valuation of Merchandise Inventories, NetValuation 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.
Valuation of Long-Lived AssetsValuation 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, leasehold improvements and operating lease right-of-use (“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. When stores are identified as having an indicator of impairment, the Company forecasts undiscounted cash flows over the store asset group’s remaining lease term and compares the undiscounted cash flows to the carrying amount of the store asset group. If the store asset group is determined not to be recoverable, then an impairment charge will be recognized in the amount by which the carrying amount of the store asset group exceeds its fair value, determined using discounted cash flow valuation techniques, as contemplated in ASC 820, 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, 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. The Company did not recognize any impairment charges in the first half of fiscal 2020 or 2019.
LeasesLeases In accordance with ASC 842, Leases leases for the Company’s retail store facilities, distribution center, corporate offices, information technology hardware, and distribution center delivery tractors and equipment 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 $3.0 million as reductions to variable lease expense and accounted for lease deferrals of $1.2 million 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. There were no lease concessions recorded in the first quarter of fiscal 2020. See Note 5 to the Interim Financial Statements for a further discussion on leases.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)6 Months Ended
Jun. 28, 2020
Accounting Policies [Abstract]
Summary of Disaggregates Net Sales into Major Merchandise Categories to Depict Nature and Amount of Revenue and Related Cash FlowsIn accordance with ASC 606, Revenue from Contracts with Customers
13 Weeks Ended
26 Weeks Ended
June 28, 2020
June 30, 2019
June 28, 2020
June 30, 2019
(In thousands)
Hardgoods
$
150,270
$
133,779
$
259,044
$
237,217
Athletic and sport footwear
47,533
64,412
105,032
135,625
Athletic and sport apparel
29,883
41,913
79,011
110,465
Other sales
249
861
2,584
2,944
Net sales
$
227,935
$
240,965
$
445,671
$
486,251

Accrued Expenses (Tables)

Accrued Expenses (Tables)6 Months Ended
Jun. 28, 2020
Payables And Accruals [Abstract]
Summary of Accrued ExpensesThe major components of accrued expenses are as follows:
June 28, 2020
December 29, 2019
(In thousands)
Payroll and related expense
$
22,401
$
23,433
Occupancy expense
10,472
9,503
Sales tax
7,186
9,607
Other
21,927
22,392
Accrued expenses
$
61,986
$
64,935

Lease Commitments (Tables)

Lease Commitments (Tables)6 Months Ended
Jun. 28, 2020
Leases [Abstract]
Summary of Components of Lease ExpenseIn accordance with ASC 842, the components of lease expense were as follows:
13 Weeks Ended
26 Weeks Ended
June 28, 2020
June 30, 2019
June 28, 2020
June 30, 2019
(In thousands)
(In thousands)
Lease expense:
Amortization of right-of-use assets
$
689
$
706
$
1,411
$
1,386
Interest on lease liabilities
78
95
167
195
Finance lease expense
767
801
1,578
1,581
Operating lease expense
20,318
20,003
40,604
39,825
Variable lease expense (1)
1,465
4,539
5,981
9,222
Sublease income
(293
)
(329
)
(586
)
(645
)
Total lease expense
$
22,257
$
25,014
$
47,577
$
49,983
(1)
Variable lease expense for the 13 and 26 weeks ended June 28, 2020 was reduced by $3.0 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 Interim Financial Statements for a further discussion on lease concessions.
Additionally, subsequent to the issuance of the Company’s Interim Financial Statements as of June 30, 2019, management identified an immaterial correction related to the disclosure of certain variable lease payments. Variable lease expense for the 13 and 26 weeks ended June 30, 2019 did not previously include $4.5 million and $9.0 million, respectively, of variable lease payments for property taxes, insurance, and common area maintenance related to triple net leases, as well as certain equipment sales taxes, licenses, fees and repairs. Management corrected the disclosure related to variable lease expense in the table above for the 13 and 26 weeks ended June 30, 2019 and, except for this change in disclosure, the correction had no impact upon the Company’s Interim Financial Statements.
Schedule of Other Information Related To LeasesIn accordance with ASC 842, other information related to leases was as follows:
26 Weeks Ended
June 28, 2020
June 30, 2019
(In thousands)
Operating cash flows from operating leases
$
37,354
$
45,435
Operating cash flows from finance leases
167
218
Financing cash flows from finance leases
1,409
1,510
Cash paid for amounts included in the measurement of lease liabilities
$
38,930
$
47,163
Right-of-use assets obtained in exchange for new finance lease liabilities
$

$
864
Right-of-use assets obtained in exchange for new operating lease liabilities
$
39,986
$
28,691
Weighted-average remaining lease term—finance leases
2.8 years
3.3 years
Weighted-average remaining lease term—operating leases
5.2 years
5.3 years
Weighted-average discount rate—finance leases
4.7
%
4.9
%
Weighted-average discount rate—operating leases
6.4
%
6.5
%
Schedule of Maturities For Finance And Operating LeasesIn accordance with ASC 842, maturities of finance and operating lease liabilities as of June 28, 2020 were as follows:
Year Ending:
Finance Leases
Operating Leases
(In thousands)
2020 (remaining six months)
$
1,600
$
46,965
2021
2,188
74,733
2022
1,740
64,066
2023
920
49,934
2024

40,952
Thereafter

61,466
Undiscounted cash flows
$
6,448
$
338,116
Reconciliation of lease liabilities:
Weighted-average remaining lease term
2.8 years
5.2 years
Weighted-average discount rate
4.7
%
6.4
%
Present values
$
6,042
$
286,666
Lease liabilities - current
2,602
70,998
Lease liabilities - long-term
3,440
215,668
Lease liabilities - total
$
6,042
$
286,666
Difference between undiscounted and discounted cash flows
$
406
$
51,450

Long-Term Debt (Tables)

Long-Term Debt (Tables)6 Months Ended
Jun. 28, 2020
Debt Disclosure [Abstract]
Average Daily Excess Availability for Preceding Fiscal QuarterThe 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
1.25%
0.25%
II
Less than $70,000,000
1.375%
0.50%

Earnings Per Share (Tables)

Earnings Per Share (Tables)6 Months Ended
Jun. 28, 2020
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings Per Common ShareThe following table sets forth the computation of basic and diluted earnings per common share:
13 Weeks Ended
26 Weeks Ended
June 28, 2020
June 30, 2019
June 28, 2020
June 30, 2019
(In thousands, except per share data)
Net income
$
11,136
$
28
$
6,525
$
1,692
Weighted-average shares of common stock outstanding:
Basic
21,252
21,118
21,200
21,074
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards
106
25
156
26
Diluted
21,358
21,143
21,356
21,100
Basic earnings per share
$
0.52
$
0.00
$
0.31
$
0.08
Diluted earnings per share
$
0.52
$
0.00
$
0.31
$
0.08
Antidilutive share option awards excluded from diluted calculation
778
542
694
482
Antidilutive nonvested share and nonvested share unit awards excluded from diluted calculation
315
489
359
448

Share-based Compensation (Table

Share-based Compensation (Tables)6 Months Ended
Jun. 28, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Share Option AwardsA summary of the status of the Company’s share option awards is presented below:
Shares
Weighted- Average Exercise Price
Weighted- Average Remaining Contractual Life (In Years)
Aggregate Intrinsic Value
Outstanding at December 29, 2019
523,150
$
5.91
Granted
257,000
2.23
Forfeited or Expired
(5,750
)
11.52
Outstanding at June 28, 2020
774,400
$
4.65
8.45
$

Exercisable at June 28, 2020
216,015
$
7.36
7.17
$

Vested and Expected to Vest at June 28, 2020
760,262
$
4.68
8.43
$
Weighted-Average Assumptions Used to Estimate the Fair Value of Each Share Option AwardThe fair value of each share option award on the date of grant is estimated using the Black-Scholes method based on the following weighted-average assumptions:
13 Weeks Ended
26 Weeks Ended
June 28, 2020
June 30, 2019
June 28, 2020
June 30, 2019
Risk-free interest rate


0.9
%
2.6
%
Expected term


5.7 years
5.7 years
Expected volatility


63.0
%
53.0
%
Expected dividend yield



4.9
%
Summary of Nonvested Share Awards ActivityA summary of the status of the Company’s nonvested share awards is presented below:
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
(19,895
)
4.47
Balance at June 28, 2020
593,805
$
3.79
A summary of the status of the Company’s nonvested share unit awards is presented below:
Units
Weighted- Average Grant- Date Fair Value
Balance at December 29, 2019
75,413
$
1.81
Granted
40,000
$
2.28
Dividend reinvestments
10,940
3.23
Vested
(72,464
)
2.07
Dividend reinvestments vested
(6,703
)
3.23
Balance at June 28, 2020
47,186
$
1.94

Description of Business - Addit

Description of Business - Additional Information (Detail)6 Months Ended
Jun. 28, 2020ft²StoreSegment
Description Of Business [Line Items]
Number of operating stores | Store431
Area of traditional sporting goods store | ft²11,000
Number of reportable segment | Segment1
Big 5 Corp [Member]
Description Of Business [Line Items]
Subsidiary interest ownership percentage100.00%
Big 5 Service Corp [Member] | Big 5 Corp [Member]
Description Of Business [Line Items]
Subsidiary interest ownership percentage100.00%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Detail)Mar. 20, 2020Jun. 28, 2020USD ($)Mar. 29, 2020USD ($)Jun. 30, 2019USD ($)Jun. 28, 2020USD ($)ObligationJun. 30, 2019USD ($)Dec. 29, 2019USD ($)
Accounting Policies [Line Items]
Reporting period, minimum364 days
Reporting period, maximum371 days
Number of performance obligation | Obligation1
Stored value card redemption revenue recognized $ 800,000 $ 1,500,000 $ 2,600,000 $ 3,700,000
Outstanding stored value card liabilities6,500,000 $ 6,500,000 $ 7,200,000
Stored value cards redeemed period2 years
Impairment charges $ 0 0
Lease concessions $ 0
Stored Value Card Breakage Revenue [Member]
Accounting Policies [Line Items]
Recognized stored value card breakage revenue40,000 $ 100,000 100,000 $ 200,000
COVID-19 [Member]
Accounting Policies [Line Items]
Percentage of minimum number of retail store locations closed50.00%
Lease abatements, to decrease on variable lease expense $ 3,000,000
Deferred, lease liability $ 1,200,000
COVID-19 [Member] | California [Member]
Accounting Policies [Line Items]
Percentage of stores52.00%
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 $ 1,000,000 1,400,000
Allowance for sales returns reserve $ 2,000,000 $ 2,000,000 $ 2,700,000
First Quarter [Member]
Accounting Policies [Line Items]
Interim reporting periods91 days
Second Quarter [Member]
Accounting Policies [Line Items]
Interim reporting periods91 days
Third Quarter [Member]
Accounting Policies [Line Items]
Interim reporting periods91 days
Fourth Quarter [Member]
Accounting Policies [Line Items]
Interim reporting periods98 days91 days

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 Thousands3 Months Ended6 Months Ended
Jun. 28, 2020Jun. 30, 2019Jun. 28, 2020Jun. 30, 2019
Accounting Policies [Line Items]
Net sales $ 227,935 $ 240,965 $ 445,671 $ 486,251
Hardgoods [Member]
Accounting Policies [Line Items]
Net sales150,270 133,779 259,044 237,217
Athletic and sport footwear [Member]
Accounting Policies [Line Items]
Net sales47,533 64,412 105,032 135,625
Athletic and sport apparel [Member]
Accounting Policies [Line Items]
Net sales29,883 41,913 79,011 110,465
Other sales [Member]
Accounting Policies [Line Items]
Net sales $ 249 $ 861 $ 2,584 $ 2,944

Accrued Expenses - Summary of A

Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in ThousandsJun. 28, 2020Dec. 29, 2019
Payables And Accruals [Abstract]
Payroll and related expense $ 22,401 $ 23,433
Occupancy expense10,472 9,503
Sales tax7,186 9,607
Other21,927 22,392
Accrued expenses $ 61,986 $ 64,935

Lease Commitments - Additional

Lease Commitments - Additional Information (Detail) - USD ($) $ in ThousandsJun. 28, 2020Dec. 29, 2019Dec. 31, 2018
Lessee Lease Description [Line Items]
Operating Lease, ROU assets $ 270,999 $ 262,588
Operating lease, liabilities $ 286,666
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 Expenses (Detail) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 28, 2020Jun. 30, 2019Jun. 28, 2020Jun. 30, 2019
Lease expense:
Amortization of right-of-use assets $ 689 $ 706 $ 1,411 $ 1,386
Interest on lease liabilities78 95 167 195
Finance lease expense767 801 1,578 1,581
Operating lease expense20,318 20,003 40,604 39,825
Variable lease expense (1)1,465 4,539 5,981 9,222
Sublease income(293)(329)(586)(645)
Total lease expense $ 22,257 $ 25,014 $ 47,577 $ 49,983

Lease Commitments - Summary o_2

Lease Commitments - Summary of Components of Lease Expenses (Parenthetical) (Detail) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 28, 2020Jun. 30, 2019Jun. 28, 2020Jun. 30, 2019
Lessee Lease Description [Line Items]
Variable lease expense $ 1,465 $ 4,539 $ 5,981 $ 9,222
COVID-19 [Member]
Lessee Lease Description [Line Items]
Lease abatements, to decrease on variable lease expense3,000
Property Taxes, Insurance and Common Area Maintenance Related to Triple Net Leases [Member]
Lessee Lease Description [Line Items]
Variable lease expense $ 4,500 $ 9,000
Property Taxes, Insurance and Common Area Maintenance Related to Triple Net Leases [Member] | COVID-19 [Member]
Lessee Lease Description [Line Items]
Lease abatements, to decrease on variable lease expense $ 3,000 $ 3,000

Lease Commitments - Schedule of

Lease Commitments - Schedule of Other Information Related to Leases (Detail) - USD ($) $ in Thousands6 Months Ended
Jun. 28, 2020Jun. 30, 2019
Leases [Abstract]
Operating cash flows from operating leases $ 37,354 $ 45,435
Operating cash flows from finance leases167 218
Financing cash flows from finance leases1,409 1,510
Cash paid for amounts included in the measurement of lease liabilities38,930 47,163
Right-of-use assets obtained in exchange for new finance lease liabilities864
Right-of-use assets obtained in exchange for new operating lease liabilities $ 39,986 $ 28,691
Weighted-average remaining lease term—finance leases2 years 9 months 18 days3 years 3 months 18 days
Weighted-average remaining lease term—operating leases5 years 2 months 12 days5 years 3 months 18 days
Weighted-average discount rate—finance leases4.70%4.90%
Weighted-average discount rate—operating leases6.40%6.50%

Lease Commitments - Schedule _2

Lease Commitments - Schedule of Finance and Operating Lease Liabilities (Detail) - USD ($) $ in ThousandsJun. 28, 2020Dec. 29, 2019Jun. 30, 2019
Finance Lease Liabilities, Payments, Due [Abstract]
Finance leases, 2020 $ 1,600
Finance leases, 20212,188
Finance leases, 20221,740
Finance leases, 2023920
Finance leases, total lease payments $ 6,448
Weighted-average remaining lease term2 years 9 months 18 days3 years 3 months 18 days
Weighted-average discount rate4.70%4.90%
Present values $ 6,042
Lease liabilities - current2,602 $ 2,678
Lease liabilities - long-term3,440 4,787
Lease liabilities - total6,042
Difference between undiscounted and discounted cash flows406
Operating Lease Liabilities, Payments Due [Abstract]
Operating leases, 202046,965
Operating leases, 202174,733
Operating leases, 202264,066
Operating leases, 202349,934
Operating leases, 202440,952
Operating leases, thereafter61,466
Operating leases, total lease payments $ 338,116
Weighted-average remaining lease term5 years 2 months 12 days5 years 3 months 18 days
Weighted-average discount rate6.40%6.50%
Operating lease, liabilities $ 286,666
Lease liabilities - current70,998 71,542
Lease liabilities - long-term215,668 $ 206,806
Lease liabilities - total286,666
Difference between undiscounted and discounted cash flows $ 51,450

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Detail) - USD ($)6 Months Ended
Jun. 28, 2020Mar. 30, 2020Mar. 29, 2020Dec. 29, 2019
Debt Instrument [Line Items]
Credit Agreement descriptionOn October 18, 2010, the Company, Big 5 Corp. and Big 5 Services Corp. entered into a credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, and a syndicate of other lenders, which was amended on October 31, 2011, December 19, 2013 and September 29, 2017 (as so amended, the “Credit Agreement”), and has a maturity date of September 29, 2022.
Maturity date of Credit AgreementSep. 29,
2022
Revolving credit facility $ 165,000,000
First tier of increase to the borrowing capacity $ 165,000,000
Maximum limit of credit facility200,000,000
Sublimit for issuances of letters of credit25,000,000
Sublimit for swingline loans $ 20,000,000
Percentage of eligible credit card accounts receivables90.00%
Percentage of the value of eligible inventory90.00%
Percentage of the value of eligible in-transit inventory90.00%
Eligible in-transit inventory threshold $ 10,000,000
Interest rate, descriptionthe applicable margin for base rate loans (as shown below) plus the highest of (a) the Federal funds rate, as in effect from time to time, plus one-half of one percent (0.50%), (b) the LIBO rate, plus one percentage point (1.00%), or (c) the rate of interest in effect for such day as announced from time to time within Wells Fargo as its “prime rate.”
Commitment fee assessed0.20%
Debt instrument, covenant descriptionObligations under the Credit Facility are secured by a general lien and perfected security interest in substantially all of the Company’s assets. The Credit Agreement contains covenants that require the Company to maintain a fixed charge coverage ratio of not less than 1.0:1.0 in certain circumstances, and limit the ability
Events of default, descriptionThe Credit Agreement contains customary events of default, including, without limitation, failure to pay when due principal amounts with respect to the Credit Facility, failure to pay any interest or other amounts under the Credit Facility for five days after becoming due, failure to comply with certain agreements or covenants contained in the Credit Agreement, failure to satisfy certain judgments against the Company, failure to pay when due (or any other default which does or may lead to the acceleration of) certain other material indebtedness in principal amount in excess of $5.0 million, and certain insolvency and bankruptcy events.
Line of Credit Facility default debt minimum amount $ 5,000,000
Long-term borrowings35,000,000 $ 66,559,000
Letter of credit commitments4,700,000 $ 700,000 700,000
Revolving Credit Borrowings [Member]
Debt Instrument [Line Items]
Long-term borrowings $ 35,000,000 $ 124,300,000 66,600,000
Minimum [Member]
Debt Instrument [Line Items]
Fixed charge coverage ratio100.00%
Federal Funds Rate [Member]
Debt Instrument [Line Items]
Applicable margin in addition to variable rate0.50%
LIBO Rate [Member]
Debt Instrument [Line Items]
Applicable margin in addition to variable rate1.00%
Permits to Reduce Aggregate Committed Availability [Member]
Debt Instrument [Line Items]
Revolving credit facility $ 100,000,000
First Amendment to Credit Agreement [Member]
Debt Instrument [Line Items]
Credit agreement amendment dateOct. 31,
2011
Second Amendment to Credit Agreement [Member]
Debt Instrument [Line Items]
Credit agreement amendment dateDec. 19,
2013
Third Amendment to Credit Agreement [Member]
Debt Instrument [Line Items]
Credit agreement amendment dateSep. 29,
2017
Revolving credit facility $ 140,000,000
Wells Fargo Bank National Association [Member]
Debt Instrument [Line Items]
Remaining borrowing availability $ 125,300,000 $ 72,700,000

Long-Term Debt - Average Daily

Long-Term Debt - Average Daily Excess Availability for Preceding Fiscal Quarter (Detail)6 Months Ended
Jun. 28, 2020
Level I [Member]
Line Of Credit Facility [Line Items]
Average Daily AvailabilityGreater than or equal to $70,000,000
LIBO Rate Applicable Margin1.25%
Base Rate Applicable Margin0.25%
Level II [Member]
Line Of Credit Facility [Line Items]
Average Daily AvailabilityLess than $70,000,000
LIBO Rate Applicable Margin1.375%
Base Rate Applicable Margin0.50%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)6 Months Ended
Jun. 28, 2020Jun. 30, 2019Dec. 29, 2019
Income Tax Contingency [Line Items]
Write-off of deferred tax assets related to share based compensation $ 300,000 $ 400,000
CARES act of 2020, net operating loss (NOL) carryback descriptionThe CARES Act allows companies with a net operating loss (“NOL”) in either 2018, 2019 or 2020 to carry back those losses five years.
CARES act of 2020, net operating loss carryback period5 years
Income tax refund received $ 2,100,000
Unrecognized tax benefits $ 0 $ 0
Unrecognized tax benefits, periodOver 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 period2016
Earliest Tax Year [Member] | State and Local [Member]
Income Tax Contingency [Line Items]
Income tax returns in period2015
California Enterprise Zone Tax Credits [Member]
Income Tax Contingency [Line Items]
Deferred tax assets valuation allowance $ 1,200,000 $ 1,200,000
Tax credits carry forward latest expiration year2024

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 Thousands3 Months Ended6 Months Ended
Jun. 28, 2020Jun. 30, 2019Jun. 28, 2020Jun. 30, 2019
Earnings Per Share Basic [Line Items]
Net income $ 11,136 $ 28 $ 6,525 $ 1,692
Weighted-average shares of common stock outstanding:
Basic21,252 21,118 21,200 21,074
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards106 25 156 26
Diluted21,358 21,143 21,356 21,100
Basic earnings per share $ 0.52 $ 0 $ 0.31 $ 0.08
Diluted earnings per share $ 0.52 $ 0 $ 0.31 $ 0.08
Share Option Awards [Member]
Weighted-average shares of common stock outstanding:
Antidilutive shares/unit awards excluded from diluted calculation778 542 694 482
Nonvested Share Awards and Nonvested Share Unit Awards [Member]
Weighted-average shares of common stock outstanding:
Antidilutive shares/unit awards excluded from diluted calculation315 489 359 448

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in ThousandsMay 21, 2020Jun. 28, 2020Jun. 28, 2020Dec. 29, 2019
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
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 - Addi

Share-based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended6 Months Ended
Jun. 28, 2020Jun. 30, 2019Jun. 28, 2020Jun. 30, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Compensation expense $ 400 $ 500 $ 900 $ 1,000
Granted, shares257,000
Shares withheld for tax requirements64,573
Tax withholding payments for share-based compensation $ 97 221
Common Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Closing stock price per share $ 1.85 $ 1.85
Tax withholding payments for share-based compensation $ 1
Share Option Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum expiration period of share based payment awards granted10 years
Granted, shares257,000 243,800
Weighted-average grant-date fair value per share $ 1.25 $ 1.36
Unrecognized compensation expense $ 600 $ 600
Weighted-average period of recognition2 years 10 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%
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%
Nonvested Share Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average period of recognition2 years 7 months 6 days
Fair value of nonvested share awards $ 400 $ 600
Issuance of nonvested share awards, Shares321,600 308,584
Weighted-average grant-date fair value per share, granted $ 1.69 $ 3.34
Unrecognized compensation expenses1,900 $ 1,900
Nonvested Share Unit Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average period of recognition10 months 24 days
Fair value of nonvested share awards $ 200 $ 200
Issuance of nonvested share awards, Shares40,000 72,464
Weighted-average grant-date fair value per share, granted $ 2.28 $ 2.07
Unrecognized compensation expenses $ 100 $ 100
2019 Equity Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for future grant2,463,795 2,463,795

Share-based Compensation - Summ

Share-based Compensation - Summary of Share Option Awards (Detail)6 Months Ended
Jun. 28, 2020$ / sharesshares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Shares, Outstanding at December 29, 2019 | shares523,150
Shares, Granted | shares257,000
Shares, Forfeited or Expired | shares(5,750)
Shares, Outstanding at June 28, 2020 | shares774,400
Shares, Exercisable at June 28, 2020 | shares216,015
Shares, Vested and Expected to Vest at June 28, 2020 | shares760,262
Weighted-Average Exercise Price, Outstanding at December 29, 2019 | $ / shares $ 5.91
Weighted-Average Exercise Price, Granted | $ / shares2.23
Weighted-Average Exercise Price, Forfeited or Expired | $ / shares11.52
Weighted-Average Exercise Price, Outstanding at June 28, 2020 | $ / shares4.65
Weighted-Average Exercise Price, Exercisable at June 28, 2020 | $ / shares7.36
Weighted-Average Exercise Price, Vested and Expected to Vest at June 28, 2020 | $ / shares $ 4.68
Weighted-Average Remaining Contractual Life (In Years), Outstanding at June 28, 20208 years 5 months 12 days
Weighted-Average Remaining Contractual Life (In Years), Exercisable at June 28, 20207 years 2 months 1 day
Weighted-Average Remaining Contractual Life (In Years), Vested and Expected to Vest at June 28, 20208 years 5 months 4 days

Share-based Compensation - Fair

Share-based Compensation - Fair Value of Share Option Award Based on Weighted-Average Assumptions (Detail)6 Months Ended
Jun. 28, 2020Jun. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Risk-free interest rate0.90%2.60%
Expected term5 years 8 months 12 days5 years 8 months 12 days
Expected volatility63.00%53.00%
Expected dividend yield4.90%

Share-based Compensation - Su_2

Share-based Compensation - Summary of Nonvested Share Awards Activity (Detail) - $ / shares6 Months Ended
Jun. 28, 2020Jun. 30, 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 balance532,524
Granted, shares/share units321,600 308,584
Vested, shares/share units(240,424)
Forfeited, shares/share units(19,895)
Nonvested shares/share units, ending balance593,805
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, Granted1.69 $ 3.34
Weighted-Average Grant-Date Fair Value, Vested6.57
Weighted-Average Grant-Date Fair Value, Forfeited4.47
Weighted-Average Grant-Date Fair Value, Ending Balance $ 3.79
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 balance75,413
Granted, shares/share units40,000 72,464
Dividend reinvestments, shares/share units10,940
Vested, shares/share units(72,464)
Dividend reinvestments vested, shares/share units(6,703)
Nonvested shares/share units, ending balance47,186
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, Granted2.28 $ 2.07
Weighted-Average Grant-Date Fair Value, Dividend Reinvestments3.23
Weighted-Average Grant-Date Fair Value, Vested2.07
Weighted-Average Grant-Date Fair Value, Dividend Reinvestments Vested3.23
Weighted-Average Grant-Date Fair Value, Ending Balance $ 1.94

Subsequent Event - Additional I

Subsequent Event - Additional Information (Detail) - $ / shares3 Months Ended
Sep. 27, 2020Mar. 29, 2020
Subsequent Event [Line Items]
Dividend per share $ 0.05
Scenario Forecast [Member]
Subsequent Event [Line Items]
Dividend per share $ 0.10
Dividend declared per share, payable dateSep. 15,
2020
Dividend declared per share, record dateSep. 1,
2020
Reinstated cash dividend per share $ 0.05
Additional cash dividend per share $ 0.05