Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Mar. 31, 2015 | 12-May-15 | Sep. 30, 2014 | |
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Mar-15 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HGG | ||
Entity Registrant Name | HHGREGG, INC. | ||
Entity Central Index Key | 1396279 | ||
Current Fiscal Year End Date | -28 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 27,665,071 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $84,129,621 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Income Statement [Abstract] | |||||||||||
Net sales | $485,603 | $665,616 | $505,862 | $472,293 | $538,280 | $707,053 | $568,315 | $524,922 | $2,129,374 | $2,338,570 | $2,474,759 |
Cost of goods sold | 346,651 | 486,114 | 358,817 | 331,954 | 385,736 | 517,773 | 400,365 | 370,157 | 1,523,536 | 1,674,031 | 1,757,173 |
Gross profit | 138,952 | 179,502 | 147,045 | 140,339 | 152,544 | 189,280 | 167,950 | 154,765 | 605,838 | 664,539 | 717,586 |
Selling, general and administrative expenses | 120,127 | 132,563 | 119,112 | 116,589 | 121,892 | 132,360 | 120,389 | 119,309 | 488,391 | 493,950 | 507,755 |
Net advertising expense | 29,638 | 38,915 | 33,049 | 27,224 | 30,780 | 36,964 | 30,539 | 25,896 | 128,826 | 124,179 | 125,433 |
Depreciation and amortization expense | 8,840 | 10,062 | 10,823 | 10,475 | 10,891 | 10,785 | 10,406 | 11,038 | 40,200 | 43,120 | 40,135 |
Asset impairment charges | 4,882 | 42,987 | 0 | 0 | 303 | 310 | 0 | 0 | 47,869 | 613 | 504 |
(Loss) income from operations | -24,535 | -45,025 | -15,939 | -13,949 | -11,322 | 8,861 | 6,616 | -1,478 | -99,448 | 2,677 | 43,759 |
Other expense (income): | |||||||||||
Interest expense | 678 | 615 | 678 | 629 | 609 | 695 | 557 | 604 | 2,600 | 2,465 | 2,344 |
Interest income | -9 | -47 | -2 | -5 | -1 | -2 | -2 | -5 | -63 | -10 | -9 |
Total other expense | 669 | 568 | 676 | 624 | 608 | 693 | 555 | 599 | 2,537 | 2,455 | 2,335 |
(Loss) income before income taxes | -25,204 | -45,593 | -16,615 | -14,573 | -11,930 | 8,168 | 6,061 | -2,077 | -101,985 | 222 | 41,424 |
Income tax expense (benefit) | 24 | 41,272 | -6,231 | -4,304 | -4,691 | 3,120 | 2,382 | -817 | 30,761 | -6 | 16,055 |
Net (loss) income | ($25,228) | ($86,865) | ($10,384) | ($10,269) | ($7,239) | $5,048 | $3,679 | ($1,260) | ($132,746) | $228 | $25,369 |
Net (loss) income per share | |||||||||||
Basic (in dollars per share) | ($0.91) | ($3.10) | ($0.37) | ($0.36) | ($0.25) | $0.17 | $0.12 | ($0.04) | ($4.72) | $0.01 | $0.74 |
Diluted (in dollars per share) | ($0.91) | ($3.10) | ($0.37) | ($0.36) | ($0.25) | $0.17 | $0.12 | ($0.04) | ($4.72) | $0.01 | $0.74 |
Weighted average shares outstanding-basic | 28,129,596 | 30,209,928 | 34,430,641 | ||||||||
Weighted average shares outstanding-diluted | 28,129,596 | 30,683,989 | 34,496,788 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash | $30,401 | $48,164 |
Accounts receivable—trade, less allowances of $19 and $132, respectively | 11,901 | 15,121 |
Accounts receivable—other | 16,715 | 16,467 |
Merchandise inventories, net | 257,469 | 298,542 |
Prepaid expenses and other current assets | 6,581 | 6,694 |
Income tax receivable | 5,326 | 1,380 |
Deferred income taxes | 0 | 6,220 |
Total current assets | 328,393 | 392,588 |
Net property and equipment | 128,107 | 193,882 |
Deferred financing costs, net | 1,796 | 2,334 |
Deferred income taxes | 6,489 | 35,182 |
Other assets | 2,844 | 1,977 |
Total long-term assets | 139,236 | 233,375 |
Total assets | 467,629 | 625,963 |
Current liabilities: | ||
Accounts payable | 112,143 | 140,806 |
Customer deposits | 48,742 | 41,518 |
Accrued liabilities | 46,723 | 50,898 |
Deferred Tax Liabilities, Net, Current | 6,489 | 0 |
Income tax payable | 0 | 122 |
Total current liabilities | 214,097 | 233,344 |
Long-term liabilities: | ||
Deferred rent | 67,935 | 73,493 |
Other long-term liabilities | 12,009 | 11,992 |
Total long-term liabilities | 79,944 | 85,485 |
Total liabilities | 294,041 | 318,829 |
Stockholders’ equity: | ||
Preferred stock, par value $.0001; 10,000,000 shares authorized; no shares issued and outstanding as of March 31, 2015 and 2014, respectively | 0 | 0 |
Common stock, par value $.0001; 150,000,000 shares authorized; 41,161,753 and 41,121,390 shares issued; and 27,665,071 and 28,460,218 outstanding as of March 31, 2015 and March 31, 2014, respectively | 4 | 4 |
Additional paid-in capital | 301,680 | 297,199 |
Retained earnings | 22,132 | 154,878 |
Common stock held in treasury at cost, 13,496,682 and 12,661,172 shares as of March 31, 2015 and March 31, 2014, respectively | -150,228 | -144,947 |
Total stockholders’ equity | 173,588 | 307,134 |
Total liabilities and stockholders’ equity | $467,629 | $625,963 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable-trade, allowances | $19 | $132 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares issued | 41,161,753 | 41,121,390 |
Common stock, outstanding | 27,665,071 | 28,460,218 |
Common stock held in treasury at cost, shares | 13,496,682 | 12,661,172 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders’ Equity (USD $) | Total | Common Stock | Preferred Stock | Additional Paid-in Capital | Retained Earnings | Note Receivable For Common Stock | Common Stock Held in Treasury |
In Thousands, except Share data | |||||||
Beginning Balance at Mar. 31, 2012 | $359,520 | $4 | $0 | $277,846 | $129,281 | ($41) | ($47,570) |
Beginning Balance (in shares) at Mar. 31, 2012 | 36,351,716 | ||||||
Net income | 25,369 | 25,369 | |||||
Payments received on notes receivable for issuance of common stock | 41 | 41 | |||||
Exercise of stock options and vesting of RSUs (in shares) | 574,738 | ||||||
Exercise of stock options | 4,356 | 4,356 | |||||
Stock compensation expense | 5,150 | 5,150 | |||||
Excess tax benefit from stock-based compensation | 454 | 454 | |||||
Repurchase of common stock (in shares) | -5,458,001 | ||||||
Repurchase of common stock | -48,232 | -48,232 | |||||
Ending Balance at Mar. 31, 2013 | 346,658 | 4 | 0 | 287,806 | 154,650 | 0 | -95,802 |
Ending Balance (in shares) at Mar. 31, 2013 | 31,468,453 | ||||||
Net income | 228 | 228 | |||||
Exercise of stock options and vesting of RSUs (in shares) | 480,647 | ||||||
Exercise of stock options | 5,814 | 5,814 | |||||
Stock compensation expense | 4,428 | 4,428 | |||||
Excess tax benefit from stock-based compensation | -849 | -849 | |||||
Repurchase of common stock (in shares) | -3,488,882 | ||||||
Repurchase of common stock | -49,145 | -49,145 | |||||
Ending Balance at Mar. 31, 2014 | 307,134 | 4 | 0 | 297,199 | 154,878 | 0 | -144,947 |
Ending Balance (in shares) at Mar. 31, 2014 | 28,460,218 | ||||||
Net income | -132,746 | -132,746 | |||||
Exercise of stock options and vesting of RSUs (in shares) | 40,363 | ||||||
Exercise of stock options | -142 | -142 | |||||
Stock compensation expense | 4,623 | 4,623 | |||||
Repurchase of common stock (in shares) | -835,510 | ||||||
Repurchase of common stock | -5,281 | -5,281 | |||||
Ending Balance at Mar. 31, 2015 | $173,588 | $4 | $0 | $301,680 | $22,132 | $0 | ($150,228) |
Ending Balance (in shares) at Mar. 31, 2015 | 27,665,071 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | |||
Net (loss) income | ($132,746) | $228 | $25,369 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 40,200 | 43,120 | 40,135 |
Amortization of deferred financing costs | 538 | 604 | 664 |
Stock-based compensation | 4,623 | 4,428 | 5,150 |
Excess tax deficiency (benefits) from stock-based compensation | 0 | 849 | -586 |
Loss (gain) on sales of property and equipment | 252 | 1,646 | -216 |
Deferred income taxes | 41,402 | -392 | 7,599 |
Asset impairment charges | 47,869 | 613 | 504 |
Tenant allowances received from landlords | 986 | 2,705 | 11,608 |
Changes in operating assets and liabilities: | |||
Accounts receivable—trade | 3,220 | 9,150 | -4,804 |
Accounts receivable—other | 384 | 2,407 | 507 |
Merchandise inventories | 41,073 | 17,020 | -33,153 |
Income tax receivable | -3,946 | -815 | -960 |
Prepaid expenses and other assets | -108 | -1,066 | 575 |
Accounts payable | -26,882 | 6,125 | 6,932 |
Customer deposits | 7,224 | 3,476 | 9,049 |
Increase (Decrease) in Income Taxes Payable | -122 | -2,023 | -2,213 |
Accrued liabilities | -4,317 | 1,476 | 5,687 |
Deferred rent | -7,176 | -7,115 | -5,760 |
Other long-term liabilities | 289 | 215 | -34 |
Net cash provided by operating activities | 12,763 | 82,651 | 66,053 |
Cash flows from investing activities: | |||
Purchases of property and equipment | -22,522 | -22,257 | -54,020 |
Proceeds from sales of property and equipment | 45 | 217 | 34 |
Payments to Acquire Life Insurance Policies | -646 | -684 | 0 |
Net cash used in investing activities | -23,123 | -22,724 | -53,986 |
Cash flows from financing activities: | |||
Purchases of treasury stock | -5,281 | -49,145 | -48,232 |
Proceeds from exercise of stock options | 0 | 5,814 | 4,356 |
Excess tax (deficiency) benefits from stock-based compensation | 0 | -849 | 586 |
Net (decrease) increase in bank overdrafts | 0 | -11,506 | 11,506 |
Net (repayments) borrowings on inventory financing facility | -2,122 | -3,723 | 9,024 |
Payment of financing costs | 0 | -946 | 0 |
Other, net | 0 | 0 | 41 |
Net cash used in financing activities | -7,403 | -60,355 | -22,719 |
Net decrease in cash and cash equivalents | -17,763 | -428 | -10,652 |
Cash and cash equivalents | |||
Beginning of period | 48,164 | 48,592 | 59,244 |
End of period | 30,401 | 48,164 | 48,592 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 2,085 | 1,881 | 1,903 |
Income taxes (received) paid | -6,411 | 3,418 | 11,629 |
Capital expenditures included in accounts payable | $1,409 | $1,068 | $1,491 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |||||||||||
Description of Business | ||||||||||||
hhgregg, Inc. is an appliance, electronics and furniture retailer that is committed to providing customers with a truly differentiated purchase experience through superior customer service, knowledgeable sales associates and the highest quality product selections. Founded in 1955, hhgregg is a multi-regional retailer with 228 brick-and-mortar stores in 20 states that also offers market-leading global and local brands at value prices nationwide via hhgregg.com. The Company operates in one reportable segment. | ||||||||||||
(a) | Formation | |||||||||||
hhgregg, Inc. was formed in Delaware on April 12, 2007. As part of a corporate reorganization effected on July 19, 2007, the stockholders of Gregg Appliances Inc. (“Gregg Appliances”) contributed all of their shares of Gregg Appliances to hhgregg, Inc. in exchange for common stock of hhgregg, Inc. As a result, Gregg Appliances became a wholly-owned subsidiary of hhgregg, Inc. | ||||||||||||
(b) | Principles of Consolidation | |||||||||||
The consolidated financial statements include the accounts of hhgregg, Inc. and its wholly-owned subsidiary, Gregg Appliances (the “Company” or “hhgregg”). The financial statements of Gregg Appliances include its wholly-owned subsidiary HHG Distributing LLC (“HHG Distributing”), which has no assets or operations. All intercompany balances and transactions have been eliminated upon consolidation. | ||||||||||||
(c) | Estimates | |||||||||||
Management uses estimates and assumptions in preparing financial statements in conformity with accounting principles generally accepted in the United States. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates and assumptions. | ||||||||||||
(d) | Fiscal Year | |||||||||||
The Company’s fiscal year is the twelve-month period ended March 31. | ||||||||||||
(e) | Cash | |||||||||||
Cash primarily consists of cash on hand and bank deposits. The Company had no outstanding checks in excess of funds on deposit (book overdrafts) at March 31, 2015 and 2014. | ||||||||||||
(f) | Accounts Receivable | |||||||||||
Accounts receivable are recorded at the invoiced amount and are subject to finance charges. Accounts receivable-trade consists of credit card and trade receivables. Accounts receivable-other consists mainly of amounts due from vendors for advertising and volume rebates. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company reviews its allowance for doubtful accounts monthly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance sheet credit exposure related to its customers. | ||||||||||||
(g) | Merchandise Inventories | |||||||||||
Inventory is valued at the lower of the cost of the inventory or fair market value through the establishment of markdown and inventory loss reserves. The Company’s markdown reserve represents the excess of the carrying amount, typically average cost, over the amount it expects to realize from the ultimate sale or other disposal of the inventory. Subsequent changes in facts or circumstances do not result in the restoration of previously recorded markdowns or an increase in that newly established cost basis. | ||||||||||||
The Company purchases a significant portion of its merchandise from two vendors. For the year ended March 31, 2015, two vendors accounted for 32.4% and 16.3%, respectively, of merchandise purchases. For the year ended March 31, 2014, two vendors accounted for 29.2% and 17.1%, respectively, of merchandise purchases. For the year ended March 31, 2013, two vendors accounted for 27.5% and 17.0%, respectively, of merchandise purchases. | ||||||||||||
The Company included amounts due to a third party financing company for use under an inventory financing facility, entered into during fiscal 2013, within accounts payable in the accompanying consolidated balance sheet. Borrowings and payments on the inventory financing facility are classified as financing activities in the consolidated statements of cash flows. Originally the inventory financing facility was a $20 million unsecured credit line; however, during the fourth fiscal quarter of 2015 it was amended and is now a $10 million facility. The facility is non-interest bearing and is not collateralized with the inventory purchased. The facility includes customary covenants as well as customary events of default. The amounts borrowed on the credit line fluctuate on a daily basis. The amount of borrowings included within accounts payable as of March 31, 2015 and 2014 were $3.2 million and $5.3 million, respectively. As of March 31, 2015 and 2014, the Company had $6.8 million and $14.7 million available under the facility, respectively. The Company incurred no interest on these borrowings for the years ended March 31, 2015 and 2014. | ||||||||||||
(h) | Property and Equipment | |||||||||||
Property and equipment are recorded at cost and are depreciated over their expected useful lives on a straight-line basis. Leasehold improvements are depreciated over the shorter of the lease term or expected useful life. Repairs and maintenance costs are charged directly to expense as incurred. In certain lease arrangements, the Company is considered the owner of the building during the construction period. At the end of the construction period, the Company will sell and lease the location back applying provisions of lease accounting guidance. Any gains on sale and leaseback transactions are deferred and amortized over the life of the respective lease. The Company does not have any continuing involvement with the sale and leaseback locations, other than a normal leaseback, and the locations are accounted for as operating leases. In fiscal 2015 and 2014, the Company did not execute any sale and leaseback transactions. | ||||||||||||
Property and equipment consisted of the following at March 31, 2015 and 2014 (in thousands): | ||||||||||||
2015 | 2014 | |||||||||||
Machinery and equipment | $ | 25,956 | $ | 28,478 | ||||||||
Store fixtures and furniture | 162,737 | 180,799 | ||||||||||
Vehicles | 1,962 | 2,207 | ||||||||||
Signs | 15,070 | 19,545 | ||||||||||
Leasehold improvements | 130,887 | 178,888 | ||||||||||
Construction in progress | 3,862 | 8,167 | ||||||||||
340,474 | 418,084 | |||||||||||
Less accumulated depreciation and amortization | (212,367 | ) | (224,202 | ) | ||||||||
Net property and equipment | $ | 128,107 | $ | 193,882 | ||||||||
Estimated useful lives by major asset category are as follows: | ||||||||||||
Asset | Life | |||||||||||
(in years) | ||||||||||||
Machinery and equipment | 7-May | |||||||||||
Store fixtures and furniture | 7-Mar | |||||||||||
Vehicles | 5 | |||||||||||
Signs | 7 | |||||||||||
Leasehold improvements | 15-May | |||||||||||
Depreciation and amortization expense for the years ended March 31, 2015, 2014 and 2013 was $40.2 million, $43.1 million and $40.1 million, respectively. | ||||||||||||
(i) | Impairment of Long-Lived Assets | |||||||||||
Long-lived assets other than goodwill and indefinite-lived intangible assets, which are separately tested for impairment, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. When evaluating long-lived assets for potential impairment, the Company compares the carrying amount of the asset or asset group to the asset’s or asset group’s estimated undiscounted future cash flows. If the estimated future cash flows are less than the carrying amount of the asset or asset group, an impairment loss is calculated. The impairment loss calculation compares the carrying amount of the asset or asset group to the asset’s or asset group’s estimated fair value, which may be based on estimated discounted future cash flows. An impairment loss is recognized for the amount by which the asset’s or asset group’s carrying amount exceeds the asset’s or asset group’s estimated fair value. If an impairment loss is recognized, the adjusted carrying amount of the asset or asset group becomes its new cost basis. For a depreciable long-lived asset, the new cost basis will be depreciated (amortized) over the remaining useful life of that asset or asset group. | ||||||||||||
For the fiscal year ended March 31, 2015, the Company continued to experience declining sales and as a result had several stores whose profit contributions were significantly lower than the chain average. This decrease in profit triggered the need for an impairment analysis to be performed. The property and equipment at 56 locations with a net book value of $48.7 million were reduced to estimated aggregate fair value of $0.8 million based on their projected cash flows, discounted at 15%. For the fiscal year ended March 31, 2014, the Company recorded an asset impairment charge as a result of entering into a lease modification to downsize a store after determining that certain of the assets in use would be abandoned. In addition, the Company recorded an asset impairment charge during fiscal 2014 as a result of idling certain store fixtures associated with the Company’s changing product mix. During the fiscal year ended March 31, 2013, the Company had one store whose profit contributions were significantly lower than the chain average due to decreased sales. Based on the above reasons, the carrying amounts of the assets related to these stores were reduced to fair value, resulting in pre-tax charges of $47.9 million, $0.6 million and $0.5 million for the years ended March 31, 2015, 2014 and 2013, respectively. | ||||||||||||
(j) | Deferred Financing Costs | |||||||||||
Costs incurred related to debt financing are capitalized and amortized over the life of the related debt as a component of interest expense. Debt financing costs are related to the Company’s Amended Facility as discussed in Note 5 below. The Company recognized related amortization expense of deferred financing costs of $0.5 million, $0.6 million and $0.7 million for the years ended March 31, 2015, 2014 and 2013, respectively. | ||||||||||||
(k) | Self-Insured Liabilities | |||||||||||
The Company is self-insured for certain losses related to workers’ compensation, medical insurance, general liability and motor vehicle insurance claims. However, the Company obtains third-party insurance coverage to limit its exposure to these claims. The following table provides the Company’s stop loss coverage for the fiscal years ended March 31, 2015, 2014 and 2013 (in thousands): | ||||||||||||
Fiscal Year Ended | ||||||||||||
March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Workers’ Compensation — per occurrence | $ | 300 | $ | 300 | $ | 300 | ||||||
Workers’ Compensation — per occurrence (OH) | $ | 300 | $ | 500 | $ | 500 | ||||||
General Liability — per occurrence | $ | 250 | $ | 250 | $ | 250 | ||||||
Motor Vehicles — per occurrence | $ | 100 | $ | 100 | $ | 100 | ||||||
Medical Insurance — per participant, per year | $ | 300 | $ | 300 | $ | 300 | ||||||
When estimating self-insured liabilities, a number of factors are considered, including historical claims experience, demographic factors, severity factors and valuations provided by independent third-party actuaries. Quarterly, management reviews its assumptions and the valuations provided by independent third-party actuaries to determine the adequacy of the self-insured liabilities. | ||||||||||||
(l) | Accrued Straight-Line Rent | |||||||||||
Retail and distribution operations are conducted from leased locations. The leases generally require payment of real estate taxes, insurance and common area maintenance, in addition to rent. The terms of the lease agreements generally range from 10 to 15 years. Most of the leases contain renewal options and escalation clauses, and certain store leases require contingent rents based on factors such as specified percentages of revenue or the consumer price index. | ||||||||||||
For leases that contain predetermined fixed escalations of the minimum rent, the related rent expense is recognized on a straight-line basis from the date the Company takes possession of the property to the end of the lease term. Any difference between the straight-line rent amounts and amounts payable under the leases are recorded as part of deferred rent. Cash or lease incentives received upon entering into certain store leases (tenant allowances) are recognized on a straight-line basis as a reduction to rent from the date the Company takes possession of the property through the end of the lease term. The unamortized portion of tenant allowances is recorded as a part of deferred rent. For leases that require contingent rents, management makes an estimate of the contingent rent annually and recognizes the related rent expense on a straight-line basis over the year. As of March 31, 2015 and 2014, deferred rent included in long-term liabilities in the Company’s consolidated balance sheets was $67.9 million and $73.5 million, respectively. | ||||||||||||
Transaction costs associated with the sale and leaseback of properties and any related deferred gain or loss are recognized on a straight-line basis over the initial period of the lease agreements. The Company does not have any retained or contingent interests in the properties, nor does the Company provide any guarantees in connection with the sale and leaseback of properties, other than a corporate-level guarantee of lease payments. At March 31, 2015 and 2014, deferred gains of $1.5 million and $1.7 million, respectively, were recorded in other long term liabilities relating to sale and leaseback transactions. | ||||||||||||
(m) | Revenue Recognition | |||||||||||
The Company recognizes revenue from the sale of merchandise at the time the customer takes possession of the merchandise. The Company recognizes revenue related to the delivery of merchandise at the time the merchandise is delivered. The Company honors returns from customers within 30 days from the date of sale and provides allowances for returns based on historical experience. The Company recorded an allowance for sales returns in accrued liabilities of $0.5 million and $0.6 million at March 31, 2015 and 2014, respectively. The Company recognizes service revenue at the time that evidence of an agreement exists, the service is completed, the price is fixed or determinable and collectability is reasonably assured. | ||||||||||||
The Company sells gift cards to its customers in its retail stores. The Company does not charge administrative fees on unused gift cards and the Company’s gift cards (other than promotional rebate gift cards) do not have an expiration date. Revenue is recognized from gift cards when: (i) the gift card is redeemed by the customer or (ii) the likelihood of the gift card being redeemed by the customer is remote, referred to as gift card breakage, and the Company determines that it does not have a legal obligation to remit the value of unredeemed gift cards to the relevant jurisdictions. The Company determines its gift card breakage rate based on historical redemption patterns. Breakage recognized was not material to the Company’s results of operations during fiscal 2015, 2014 or 2013. | ||||||||||||
The Company sells premium service plans (“PSPs”) on appliance and electronic merchandise for periods ranging up to 10 years. For PSPs sold by the Company on behalf of a third party, the net commission revenue is recognized at the time of sale. The Company is not the primary obligor on PSPs sold on behalf of third parties. Funds received for PSPs in which the Company is the primary obligor are deferred in accrued liabilities and other long-term liabilities in the Company’s consolidated balance sheets, and the incremental direct costs of selling the PSPs are capitalized and amortized on a straight-line basis over the term of the service agreement. Costs of services performed pursuant to the PSPs are expensed as incurred. | ||||||||||||
The information below provides the changes in the Company’s deferred revenue on extended service agreements for the years ended March 31, 2015, 2014 and 2013 (in thousands): | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Deferred revenue on extended service agreements: | ||||||||||||
Balance at beginning of year | $ | 1,423 | $ | 1,048 | $ | 623 | ||||||
Revenue deferred on new agreements | 5,022 | 5,439 | 4,111 | |||||||||
Revenue recognized | (4,107 | ) | (5,064 | ) | (3,686 | ) | ||||||
Balance at end of year | $ | 2,338 | $ | 1,423 | $ | 1,048 | ||||||
For revenue transactions that involve multiple deliverables, we defer the revenue associated with any undelivered elements. The amount of revenue deferred in connection with the undelivered elements is determined using the relative fair value of each element, which is generally based on each element’s relative retail price. The Company frequently offers sales incentives that entitle customers to receive a reduction in the price of a product or service by submitting a claim for a refund or rebate. When certain purchase requirements are met, the customer is eligible to receive a hhgregg rebate gift card that may be redeemed on future purchases at hhgregg stores. Rebate gift cards expire six months from the date of issuance. The Company defers revenue at the time an eligible transaction occurs, based on the percentage of gift cards that are projected to be redeemed which includes an estimate of breakage and the relative fair value of the gift cards. The Company recognizes revenue when: (i) a gift card is redeemed by the customer, or (ii) a rebate gift card expires. Deferred revenue related to the rebate gift cards included within accrued liabilities within our Consolidated Balance Sheets was $3.8 million and $3.4 million at March 31, 2015 and 2014, respectively. | ||||||||||||
The Company offers a private-label credit card agreement through a lending institution for the issuance of promotional financing bearing the hhgregg brand name. Under the agreement, the lending institution manages and directly extends credit to the customers. Cardholders who choose a private-label credit card can receive zero-interest promotional financing on qualifying purchases. The bank is the sole owner of the accounts receivable generated under the program and absorbs losses associated with non-payment by the cardholders and fraudulent usage of the accounts. Accordingly, we do not hold any consumer receivables related to these programs. We pay financing fees to the lending institution and these fees are variable based on certain factors such as the London Interbank Offered Rate (“LIBOR”) and types of promotional financing offers. | ||||||||||||
The Company collects certain taxes from their customers at the time of sale and remits the collected taxes to government authorities. These taxes are excluded from net sales and cost of goods sold in the Company’s consolidated statements of income. | ||||||||||||
(n) | Cost of Goods Sold | |||||||||||
Cost of goods sold is defined as the cost of gross inventory sold, including any handling charges, in-bound freight expenses and physical inventory losses, less the recognized portion of certain vendor allowances. Because the Company does not include costs related to its store distribution facilities, including depreciation expense, in cost of goods sold, the Company’s gross profit may not be comparable to that of other retailers that include these costs in cost of goods sold and in the calculation of gross profit. | ||||||||||||
(o) | Selling, General and Administrative Expenses | |||||||||||
Selling, general and administrative expenses (“SG&A”) includes wages, rent, taxes (other than income taxes), insurance, utilities, delivery costs, distribution costs, service expense, repairs and maintenance of stores and equipment, store opening costs, stock-based compensation and other general administrative expenses. | ||||||||||||
Shipping and handling costs and expenses of $109.0 million, $111.3 million, and $105.9 million for fiscal 2015, 2014 and 2013, respectively, were included in SG&A expenses. Included in these costs were home delivery expenses of $56.7 million, $59.8 million, and $55.9 million for the years ended March 31, 2015, 2014, and 2013, respectively. | ||||||||||||
(p) | Vendor Allowances | |||||||||||
The Company receives funds from its vendors for various programs including volume purchase rebates, marketing support, markdowns, margin protection, training and sales incentives. Vendor allowances provided as a reimbursement of specific, incremental and identifiable costs incurred to promote a vendor’s products are included as an expense reduction when the cost is incurred. All other vendor allowances are initially deferred and recorded as a reduction of merchandise inventories. The deferred amounts are then included as a reduction of cost of goods sold when the related product is sold. | ||||||||||||
(q) | Advertising Costs | |||||||||||
Advertising costs are expensed as incurred, with the exception of television production costs which are expensed the first time the advertisement is aired. These amounts have been reduced by vendor allowances under cooperative advertising which totaled $32.4 million, $37.0 million, and $43.1 million for the years ended March 31, 2015, 2014 and 2013, respectively. | ||||||||||||
(r) | Store Opening Costs | |||||||||||
Store opening costs, other than capital expenditures, are expensed as incurred and recorded in selling, general and administrative expenses. | ||||||||||||
(s) | Income Taxes | |||||||||||
The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. | ||||||||||||
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||||||||||||
The Company is subject to U.S. federal and certain state and local income taxes. The Company’s income tax returns, like those of most companies, are periodically audited by federal and state tax authorities. These audits include questions regarding the Company’s tax filing positions, including the timing and amount of deductions and the allocation of income among various tax jurisdictions. At any one time, multiple tax years are subject to audit by the various tax authorities. In evaluating the exposures associated with the Company’s various tax filing positions, the Company records a liability for more likely than not exposures. A number of years may elapse before a particular matter, for which the Company has established a liability, is audited and fully resolved or clarified. The Company adjusts its liability for unrecognized tax benefits and income tax provision in the period in which an uncertain tax position is effectively settled, the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. | ||||||||||||
We evaluate our deferred income tax assets and liabilities quarterly to determine whether or not a valuation allowance is necessary. We are required to assess the available positive and negative evidence to estimate if sufficient income will be generated to utilize deferred tax assets. The establishment of valuation allowances requires significant judgment and is impacted by various estimates. A significant piece of negative evidence that we consider is cumulative losses in recent periods. Such evidence is a significant piece of objective negative evidence that is difficult to overcome. While management believes positive evidence exists with regard to the realizability of these deferred tax assets, it is not considered sufficient to outweigh the objectively verifiable negative evidence. The significant negative evidence of our losses generated before income taxes in recent periods and the unfavorable shift in our business could not be overcome by considering other sources of taxable income, which included tax planning strategies. The full valuation allowance will remain until there exists significant objective positive evidence, such as sustained achievement of cumulative profits. | ||||||||||||
(t) | Stock-Based Compensation | |||||||||||
The Company records all stock-based compensation, including grants of employee stock options and restricted stock units, using the fair value-based method. Refer to note 7 for additional information regarding the Company’s stock-based compensation. | ||||||||||||
(u) | Litigation | |||||||||||
Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. | ||||||||||||
(v) | Recently Issued Accounting Pronouncements | |||||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606), to clarify the principles used to recognize revenue for all entities. The new guidance is effective for annual and interim periods beginning after December 15, 2016, with no early adoption permitted. While the Company is still in the process of evaluating the impact, if any, the adoption of this guidance will have on its financial position, we do not currently expect a material impact on our results of operations, cash flows or financial position. | ||||||||||||
In April 2015, the FASB issued an accounting pronouncement (FASB ASU 2015-3) related to the presentation of debt | ||||||||||||
issuance costs (FASB ASC Subtopic 835-30). This standard will require debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability rather than as an asset. These costs will continue to be amortized to interest expense using the effective interest method. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, and retrospective adoption is required. We will adopt this pronouncement for our fiscal year beginning April 1, 2016. We do not expect this pronouncement to have a material effect on our consolidated financial statements. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||
The Company uses a three-tier valuation hierarchy for its fair value measurements based upon observable and non-observable inputs: | ||||||||||||
Level 1 — unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. | ||||||||||||
Level 2 — inputs other than quoted market prices included in Level 1 that are observable, either directly or indirectly, for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. | ||||||||||||
Level 3 — unobservable inputs for the asset or liability, as there is little, if any, market activity at the measurement date. | ||||||||||||
Assets and Liabilities that are Measured at Fair Value on a Recurring Basis | ||||||||||||
The fair value hierarchy requires the use of observable market data when available. In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The underlying investments within the Company’s deferred compensation plan for company-owned life insurance, recorded within Other long-term assets, totaled $1.4 million and $0.7 million as of March 31, 2015 and 2014, respectively, and consist of equity index funds and fixed income assets, which are considered Level 2 in the hierarchy described above. | ||||||||||||
Assets and Liabilities that are Measured at Fair Value on a Non-Recurring Basis | ||||||||||||
The Company has property and equipment that are measured at fair value on a non-recurring basis when impairment indicators are present. The assets are adjusted to fair value only when the carrying values exceed the fair values. The categorization of the framework used to value the assets is considered a Level 3, due to the subjective nature of the unobservable inputs used to determine the fair value. Property and equipment fair values are derived using a discounted cash flow model to estimate the present value of net cash flows that the asset group was expected to generate. The key inputs to the discounted cash flow model generally included our forecasts of net cash generated from revenue, expenses and other significant cash outflows, such as certain capital expenditures, as well as an appropriate discount rate. | ||||||||||||
The need for an impairment analysis to be performed was triggered by declining sales and overall profitability in recent periods. For the fiscal year ended March 31, 2015, the Company had several stores whose profit contributions were significantly lower than the chain average due to decreased sales. As a result of these analyses, the property and equipment at 56 locations with a net book value of $48.7 million were reduced to estimated aggregate fair value of $0.8 million based on their projected cash flows, discounted at 15%. During fiscal 2014, the Company recorded an asset impairment charge as a result of entering into a lease modification to downsize a store. In conjunction with the downsize, the Company determined that certain of the assets in use would be abandoned at the time construction to downsize begins, and as a result, determined this to be a triggering event for an impairment analysis to be performed in accordance with guidance on impairment of long-lived assets. The estimated undiscounted future cash flows generated by the store was less than its carrying amount, therefore the carrying amount of the assets related to this store were reduced to fair value. In addition, the Company recorded an asset impairment charge during fiscal 2014 as a result of idling certain store fixtures. The Company determined this to be a triggering event for an impairment analysis to be performed, and the carrying amount of the assets were reduced to fair value. During fiscal 2013, the Company had one store whose profit contributions were significantly lower than the chain average due to decreased sales. This decrease in profit triggered the need for an impairment analysis to be performed in accordance with guidance on impairment of long-lived assets. The estimated undiscounted future cash flows generated by the store was less than its carrying amount, therefore the carrying amount of the assets related to this store were reduced to fair value. | ||||||||||||
The following table summarizes the fair value remeasurements recorded during the years ended March 31, 2015, 2014, and 2013 (in millions): | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Carrying value (pre-asset impairment) | $ | 48.7 | $ | 1 | $ | 0.9 | ||||||
Asset impairment loss (included in income from operations) | 47.9 | 0.6 | 0.5 | |||||||||
Remaining net carrying value | $ | 0.8 | $ | 0.4 | $ | 0.4 | ||||||
Fair Value of Financial Instruments | ||||||||||||
The carrying amounts of cash, accounts receivable — trade, accounts receivable — other, accounts payable and customer deposits approximate fair value because of the short maturity of these instruments. |
Net_Income_per_Share
Net Income per Share | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Net Income per Share | Net (Loss) Income per Share | |||||||||||
Net (loss) income per basic share is calculated based on the weighted-average number of outstanding common shares. Net (loss)income per diluted share is calculated based on the weighted-average number of outstanding common shares plus the effect of potential dilutive common shares. When the Company reports net income, the calculation of net income per diluted share excludes shares underlying outstanding stock options and restricted stock units with exercise prices that exceed the average market price of the Company’s common stock for the period and certain options and restricted stock units with unrecognized compensation cost, as the effect would be antidilutive. Potential dilutive common shares are composed of shares of common stock issuable upon the exercise of stock options and restricted stock units. For the year ended March 31, 2015, the diluted loss per common share calculation represents the weighted average common shares outstanding with no additional dilutive shares as the Company incurred a net loss for the period and such shares would be antidilutive. | ||||||||||||
The following table presents net (loss) income per basic and diluted share for the years ended March 31, 2015, 2014 and 2013 (in thousands, except share and per share amounts): | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Net (loss) income (A) | $ | (132,746 | ) | $ | 228 | $ | 25,369 | |||||
Weighted average outstanding shares of common stock (B) | 28,129,596 | 30,209,928 | 34,430,641 | |||||||||
Dilutive effect of employee stock options and restricted stock units | — | 474,061 | 66,147 | |||||||||
Common stock and potential dilutive common shares (C) | 28,129,596 | 30,683,989 | 34,496,788 | |||||||||
Net (loss) income per share: | ||||||||||||
Basic (A/B) | $ | (4.72 | ) | $ | 0.01 | $ | 0.74 | |||||
Diluted (A/C) | $ | (4.72 | ) | $ | 0.01 | $ | 0.74 | |||||
Antidilutive shares not included in the net (loss) income per diluted share calculation for the years ended March 31, 2015, 2014 and 2013 were 3,746,721, 1,225,819 and 3,529,249, respectively. |
Inventories
Inventories | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Net merchandise inventories consisted of the following at March 31, 2015 and 2014 (in thousands): | ||||||||
2015 | 2014 | |||||||
Appliances | $ | 119,396 | $ | 134,053 | ||||
Consumer electronics | 94,441 | 108,193 | ||||||
Computers and tablets | 24,697 | 36,039 | ||||||
Home products | 18,935 | 20,257 | ||||||
Net merchandise inventory | $ | 257,469 | $ | 298,542 | ||||
Debt
Debt | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt | Debt | |||||||
A summary of debt at March 31, 2015 and 2014 is as follows (in thousands): | ||||||||
2015 | 2014 | |||||||
Line of credit | $ | — | $ | — | ||||
Amended Facility | ||||||||
On July 29, 2013, Gregg Appliances entered into Amendment No. 1 to the Amended and Restated Loan and Security Agreement (the “Amended Facility”) to increase the maximum credit available to $400 million from $300 million, subject to borrowing base availability, and extend the term of the facility to expire on July 29, 2018. | ||||||||
Interest on borrowings (other than Eurodollar rate borrowings) is payable monthly at a fluctuating rate based on the bank’s prime rate or LIBOR plus an applicable margin based on the average quarterly excess availability. Interest on Eurodollar rate borrowings is payable on the last day of each “interest period” applicable to such borrowing or on the three month anniversary of the beginning of such “interest period” for interest periods greater than three months. The unused line rate is determined based on the amount of the daily average of the outstanding borrowings for the immediately preceding calendar quarter period (the “Daily Average”). For a Daily Average greater than or equal to 50% of the defined borrowing base, the unused line rate is 0.25%. For a Daily Average less than 50% of the defined borrowing base, the unused line rate is 0.375%. The Amended Facility is guaranteed by Gregg Appliances’ wholly-owned subsidiary, HHG Distributing, which has no assets or operations. The guarantee is full and unconditional and Gregg Appliances has no other subsidiaries. | ||||||||
Pursuant to the Amended Facility, the borrowing base is equal to the sum of (i) 90% of the amount of the eligible commercial accounts, (ii) 90% of the amount of eligible credit card receivables of Gregg Appliances and (iii) 90% of the net recovery percentage multiplied by the value of eligible inventory consistent with the most recent appraisal of such eligible inventory. | ||||||||
Under the Amended Facility, Gregg Appliances is not required to comply with any financial maintenance covenant unless “excess availability” is less than the greater of (i) 10.0% of the lesser of (A) the defined borrowing base or (B) the defined maximum credit or (ii) $20.0 million during the continuance of which event Gregg Appliances is subject to compliance with a fixed charge coverage ratio of 1.0 to 1.0. | ||||||||
Pursuant to the Amended Facility, if Gregg Appliances has “excess availability” of less than 12.5% of the lesser of (A) the defined borrowing base or (B) the defined maximum credit, it may, in certain circumstances more specifically described in the Amended Facility, become subject to cash dominion control. | ||||||||
The Amended Facility places limitations on the ability of Gregg Appliances to, among other things, incur debt, create other liens on its assets, make investments, sell assets, pay dividends, undertake transactions with affiliates, enter into merger transactions, enter into unrelated businesses, open collateral locations outside of the United States, or enter into consignment assignments or floor plan financing arrangements. The Amended Facility also contains various customary representations and warranties, financial and collateral reporting requirements and other affirmative and negative covenants. Gregg Appliances was in compliance with the restrictions and covenants of the Amended Facility at March 31, 2015. | ||||||||
As of March 31, 2015 and 2014, Gregg Appliances had no borrowings outstanding under the Amended Facility. As of March 31, 2015, Gregg Appliances had $6.5 million of letters of credit outstanding, which expire through December 31, 2015. As of March 31, 2014, Gregg Appliances had $5.3 million of letters of credit outstanding which expired by December 31, 2014. The total borrowing availability under the Amended Facility was $134.6 million and $169.5 million as of March 31, 2015 and 2014, respectively. The interest rate based on the bank’s prime rate was 3.75% as of March 31, 2015 and 2014. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
Income tax expense (benefit) for the years ended March 31, 2015, 2014 and 2013 consisted of the following (in thousands): | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Current: | ||||||||||||
Federal | $ | (9,949 | ) | $ | 1,528 | $ | 6,448 | |||||
State | (692 | ) | (246 | ) | 2,008 | |||||||
Total current | (10,641 | ) | 1,282 | 8,456 | ||||||||
Deferred: | ||||||||||||
Federal | 33,815 | (1,618 | ) | 7,163 | ||||||||
State | 7,587 | 330 | 436 | |||||||||
Total deferred | 41,402 | (1,288 | ) | 7,599 | ||||||||
Total expense (benefit) | $ | 30,761 | $ | (6 | ) | $ | 16,055 | |||||
Deferred income taxes at March 31, 2015 and 2014 consisted of the following (in thousands): | ||||||||||||
2015 | 2014 | |||||||||||
Deferred tax assets: | ||||||||||||
Goodwill for tax purposes | $ | 31,534 | $ | 38,447 | ||||||||
Accrued expenses | 12,341 | 11,618 | ||||||||||
Long-term deferred compensation | 2,281 | 2,344 | ||||||||||
Inventories | — | 3,083 | ||||||||||
Stock-compensation expense | 7,239 | 7,960 | ||||||||||
Other | 2,303 | 3,856 | ||||||||||
Credit carryforwards | 6,509 | 239 | ||||||||||
Net operating loss carryforward | 13,979 | 193 | ||||||||||
Valuation allowance | (66,122 | ) | — | |||||||||
Total deferred tax assets | 10,064 | 67,740 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property and equipment | (2,986 | ) | 25,180 | |||||||||
Inventories | (5,903 | ) | — | |||||||||
Other | (1,175 | ) | 1,158 | |||||||||
Total deferred tax liabilities | (10,064 | ) | 26,338 | |||||||||
Net deferred tax assets | $ | — | $ | 41,402 | ||||||||
As of March 31, 2015, we had federal and state income tax credit carryforwards of approximately $6.5 million, comprised primarily of an Alternative Minimum Tax (“AMT”) credit of $5.5 million. The AMT credit does not expire and will be carried forward indefinitely. We also have federal net operating loss carryforwards of approximately $31.7 million and state net operating loss carryforwards of approximately $65.5 million. The federal net operating loss will expire in fiscal 2035 if unused prior to that time. The state net operating loss will begin to expire in fiscal 2026 through fiscal 2035 if unused prior to that time as states have varying carryforward periods. | ||||||||||||
We evaluate our deferred income tax assets and liabilities quarterly to determine whether or not a valuation allowance is necessary. We are required to assess the available positive and negative evidence to estimate if sufficient income will be generated to utilize deferred tax assets. The establishment of valuation allowances requires significant judgment and is impacted by various estimates. A significant piece of negative evidence that we consider is cumulative losses in recent periods. Such evidence is a significant piece of objective negative evidence that is difficult to overcome. While management believes positive evidence exists with regard to the realizability of these deferred tax assets, it is not considered sufficient to outweigh the objectively verifiable negative evidence. The significant negative evidence of our losses generated before income taxes in recent periods and the unfavorable shift in our business could not be overcome by considering other sources of taxable income, which included tax planning strategies. Therefore, we recorded a valuation allowance of $56.9 million during the third quarter of fiscal 2015. As of March 31, 2015, the valuation allowance was increased to $66.1 million. The full valuation allowance will remain until there exists significant objective positive evidence, such as sustained achievement of cumulative profits. | ||||||||||||
The Company recognizes interest and penalties in income tax expense in its consolidated statements of income. At March 31, 2015 and 2014, the Company had no accrued interest and penalties. | ||||||||||||
The Company files a consolidated U.S. federal income tax return, as well as income tax returns in various states. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years before fiscal 2012. | ||||||||||||
The expense (benefit) for income taxes differs from the amount of income tax determined by applying the U.S. federal income tax rate of 35% to income before income taxes due to the following (in thousands): | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Computed “expected” tax (benefit) expense | $ | (35,695 | ) | $ | 78 | $ | 14,498 | |||||
State income tax (benefit) expense, net of federal income tax impact | (4,295 | ) | 49 | 1,516 | ||||||||
Valuation allowance | 66,122 | — | ||||||||||
Stock compensation | 2,254 | 26 | — | |||||||||
Other | 2,375 | (159 | ) | 41 | ||||||||
$ | 30,761 | $ | (6 | ) | $ | 16,055 | ||||||
Stockbased_Compensation
Stock-based Compensation | 12 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stock-based Compensation | Stock-based Compensation | ||||||||||||
Stock Options | |||||||||||||
The Company maintains stock-based compensation plans which allow for the issuance of non-qualified stock options and restricted stock to officers, other key employees and members of the Board of Directors. On April 12, 2007, the Company’s Board of Directors approved the adoption of the hhgregg, Inc. 2007 Equity Incentive Plan (“Equity Incentive Plan”). The Equity Incentive Plan provides for the grant of nonqualified stock options, incentive stock options, stock appreciation rights, awards of restricted stock, awards of restricted stock units, awards of performance units, and stock grants. Effective June 20, 2014, the Company adopted an Amendment to the hhgregg, Inc. 2007 Equity Incentive Plan which increased the number of shares of common stock reserved for issuance under the Equity Incentive Plan to 9,000,000. If an option expires, is terminated or canceled without having been exercised or repurchased by the Company, or common stock is used to exercise an option, the terminated portion of the option or the common stock used to exercise the option will become available for future grants under the Equity Incentive Plan unless the Equity Incentive Plan is terminated. The term of the Company’s Equity Incentive Plan commenced on the date of approval by the Company’s Board of Directors and continues until the tenth anniversary of the approval by the Company’s Board of Directors. The Equity Incentive Plan is administered by the Company’s Compensation Committee. | |||||||||||||
On April 2, 2013, the Company’s Board of Directors approved a one-time voluntary stock option exchange program (the “Offer”), as amended on April 17, 2013. On April 2, 2013, the Company commenced the Offer, which allowed employees to surrender all outstanding and unexercised stock options, whether vested or unvested, that were granted subsequent to July 18, 2007 (the “Eligible Options”), in a one-for-one exchange for new options (the “New Options”). Under the Offer, employees who chose to participate would receive New Options with an exercise price per share equal to the greater of (a) $10.00 or (b) the closing price of the Company’s common stock as reported on the NYSE on the New Option grant date. Additionally, the Offer did not allow partial tenders of any one particular option grant, however employees could choose to exchange some but not all Eligible Option grants held by any optionee. Options granted prior to July 19, 2007 were not eligible for exchange. | |||||||||||||
The Offer expired on April 30, 2013. Pursuant to the Offer, a total of 58 eligible participants tendered, and the Company accepted for cancellation, options to purchase an aggregate of 898,665 shares of the Company’s common stock. The eligible stock options that were accepted for cancellation represented approximately 31% of the options eligible for participation in the Exchange Offer. Pursuant to the terms and conditions of the Amended Exchange Offer, on May 1, 2013, the Company issued 898,665 New Options in exchange for the tendered stock options. The Company will recognize the incremental expense resulting from this exchange, aggregating $1.4 million, over the three-year vesting period, in accordance with the Offer. | |||||||||||||
During the years ended March 31, 2015, 2014 and 2013 the Company granted options for 1,133,640, 1,820,805, and 795,000 shares of common stock under the Equity Incentive Plan to certain employees and directors of the Company. The options vest in equal amounts over a three-year period beginning on the first anniversary of the date of grant and expire 7 years from the date of the grant. The fair value of each option grant is estimated on the date of grant and is amortized on a straight-line basis over the vesting period. | |||||||||||||
The weighted-average estimated fair value of options granted to employees and directors under the 2007 Equity Incentive Plan was $4.06, $7.08, and $5.34 during the 12 months ended March 31, 2015, 2014 and 2013, respectively, as determined using the Black-Scholes model with the following weighted average assumptions: | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Risk-free interest rate | 1.22% - 1.6 | 0.06% - 1.53 | 0.56% - 0.69 | ||||||||||
Dividend yield | — | — | — | ||||||||||
Expected volatility | 57 | % | 63 | % | 61.9 | % | |||||||
Expected life of the options (years) | 4.5 | 4.5 | 4.5 | ||||||||||
The following table summarizes the activity under the Company’s Stock Option Plans for the fiscal year ended March 31, 2015: | |||||||||||||
Number of Options | Weighted | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value (in thousands) | ||||||||||
Outstanding | Average | ||||||||||||
Exercise | |||||||||||||
Price | |||||||||||||
Outstanding at March 31, 2014 | 3,232,208 | $ | 13.61 | ||||||||||
Granted | 1,133,640 | 8.61 | |||||||||||
Exercised | — | — | |||||||||||
Canceled | (504,785 | ) | 11.02 | ||||||||||
Expired | (363,141 | ) | 13.1 | ||||||||||
Outstanding at March 31, 2015 | 3,497,922 | $ | 12.41 | 4.21 | $ | 26 | |||||||
Vested or expected to vest at March 31, 2015 | 3,363,180 | $ | 12.5 | 4.15 | $ | 22 | |||||||
Exercisable at March 31, 2015 | 1,702,763 | $ | 13.87 | 2.73 | $ | — | |||||||
During fiscal 2015, 2014 and 2013, $4.2 million, $4.2 million ($2.5 million net of tax) and $5.2 million ($3.1 million net of tax), respectively, was charged to expense related to the stock option plans. The total intrinsic value of options exercised during the years ended March 31, 2014 and 2013 was $2.6 million and $1.6 million, respectively; there were no options exercised during the year ended March 31, 2015. Total unrecognized stock option compensation cost (adjusted for forfeitures) at March 31, 2015 was $5.3 million and is expected to be recognized over a weighted average period of 1.7 years. Net cash proceeds from the exercise of stock options were $5.8 million and $4.4 million in fiscal 2014 and 2013, respectively; there were no proceeds from the exercise of stock options in fiscal 2015. The total grant date fair value of stock options vested during the years ended March 31, 2015, 2014 and 2013 was $4.1 million, $2.6 million and $5.3 million, respectively. | |||||||||||||
Time Vested Restricted Stock Units | |||||||||||||
During the years ended March 31, 2015, 2014 and 2013 the Company granted 45,150, 30,595 and 93,900 time vested restricted stock units (“RSUs”) under the Equity Incentive Plan to certain employees and directors of the Company. The time vested RSUs vest three years from the date of grant. Upon vesting, the outstanding number of time vested RSUs will be converted into shares of common stock. Time vested RSUs are forfeited if they have not vested before the employment of the participant terminates for any reason other than death or total permanent disability or certain other circumstances as described in such participant’s RSU agreement. Upon death or disability, the participant is entitled to receive a portion of the award based upon the period of time lapsed between the date of grant of the time vested RSU and the termination of employment. The fair value of time vested RSU awards is based on the Company’s stock price at the close of the market on the date of grant. The weighted average grant date fair value for the time vested RSUs issued during the fiscal year ended March 31, 2015 was $9.17. Total unrecognized compensation cost for the time vested RSUs (adjusted for forfeitures) at March 31, 2015 was $0.7 million and is expected to be recognized over a weighted average period of 1.35 years. | |||||||||||||
The following table summarizes time vested RSU vesting activity for the fiscal year ended March 31, 2015: | |||||||||||||
Nonvested RSU’s | Shares | Weighted | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value (in thousands) | |||||||||
Average | |||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Nonvested at March 31, 2014 | 143,503 | $ | 12.72 | ||||||||||
Granted | 45,150 | 9.17 | |||||||||||
Vested | (56,100 | ) | 14.16 | ||||||||||
Forfeited | (5,600 | ) | 10.86 | ||||||||||
Nonvested at March 31, 2015 | 126,953 | $ | 11.07 | 1.35 | $ | — | |||||||
Leases
Leases | 12 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Leases [Abstract] | |||||||||||||
Leases | Leases | ||||||||||||
The composition of net rent expense for all operating leases, including leases of property and equipment, was as follows for the years ended March 31, 2015, 2014 and 2013 (in thousands): | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Minimum rentals | $ | 90,773 | $ | 91,174 | $ | 89,407 | |||||||
Contingent rentals | 13 | 52 | 74 | ||||||||||
Total rent expense | $ | 90,786 | $ | 91,226 | $ | 89,481 | |||||||
Future minimum required rental payments for noncancelable operating leases, with terms of one year or more, consist of the following as of March 31, 2015 (in thousands): | |||||||||||||
Rental Payments | |||||||||||||
Payable in fiscal year: | |||||||||||||
2016 | $ | 90,797 | |||||||||||
2017 | 89,429 | ||||||||||||
2018 | 84,606 | ||||||||||||
2019 | 79,941 | ||||||||||||
2020 | 71,298 | ||||||||||||
Thereafter | 112,635 | ||||||||||||
Total required payments | $ | 528,706 | |||||||||||
Total minimum rental lease payments have not been reduced by minimum sublease rent income of approximately $0.6 million due under future noncancelable subleases. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Mar. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans |
The Company sponsors a 401(k) retirement savings plan (the “Plan”) covering all employees who have attained the age of 21 and have worked at least 1000 hours within a 12-month period. Plan participants may elect to contribute 1% to 12% of their compensation to the Plan, subject to IRS limitations. The Company provides a discretionary matching contribution up to 7% of each participant’s compensation, with total Company expense, including payment of administrative fees, aggregating approximately $0.7 million, $0.6 million, and $0.9 million for the years ended March 31, 2015, 2014, and 2013, respectively. | |
During the fiscal year ended March 31, 2014, the Company established a non-qualified deferred compensation plan for highly compensated employees whose contributions are limited under the qualified defined contribution plan. Amounts contributed and deferred under the deferred compensation plans are credited or charged with the performance of investment options offered under the plans and elected by the participants. In the event of bankruptcy, the assets of these plans are available to satisfy the claims of general creditors. The liability for compensation deferred under the the plan was $1.4 million and $0.7 million at March 31, 2015 and 2014, respectively and is included in “Other long-term liabilities”. Total expense recorded under the plan was $0.2 million and $0.1 million for fiscal years ended March 31, 2015 and 2014, respectively. | |
The Company has another unfunded, non-qualified deferred compensation plan for members of executive management which was frozen during the fiscal year ended March 31, 2014. Benefits accrue to individual participants annually based on a predetermined formula, as defined, which considers operating results of the Company and the participant’s base salary. Vesting of benefits is attained upon reaching 55 years of age or 10 years of continuous service, measurement of which is retroactive to the participant’s most recent start date. Annual interest is credited to participant accounts at an interest rate determined at the sole discretion of the Company. Benefits will be paid to individual participants upon the later of terminating employment with the Company or the participant attaining the age of 55. Amounts accrued in other long-term liabilities at March 31, 2015 and 2014 were $4.5 million and $5.3 million. The Company made distributions of $0.6 million and $0.2 million for the years ended March 31, 2015 and 2014, respectively. The Company recorded forfeitures of $0.2 million for the year ended March 31, 2015. The Company recorded $0.2 million in expense related to this plan for the years ended March 31, 2014 and 2013 representing interest earned, but did not contribute additional amounts as the Company did not achieve the predetermined operating results target prior to the date which the plan was frozen. |
Legal_Proceedings
Legal Proceedings | 12 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings |
The Company is engaged in various legal proceedings in the ordinary course of business and has certain unresolved claims pending. The ultimate liability or range of loss, if any, for the aggregate amounts claimed cannot be determined at this time. However, management believes, based on the examination of these matters and experiences to date, that the ultimate liability, if any, in excess of amounts already provided for in the consolidated financial statements is not likely to have a material effect on the Company’s consolidated financial position, results of operations or cash flows. |
Interim_Financial_Results_Unau
Interim Financial Results (Unaudited) | 12 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Interim Financial Results (Unaudited) | Interim Financial Results (Unaudited) | ||||||||||||||||
The following table sets forth certain unaudited quarterly information for each of the eight fiscal quarters for the years ended March 31, 2015 and 2014 (in thousands, except net (loss) income per share data). In management’s opinion, this unaudited quarterly information has been prepared on a consistent basis with the audited financial statements and includes all necessary adjustments, consisting only of normal recurring adjustments that management considers necessary for a fair presentation of the unaudited quarterly results when read in conjunction with the consolidated financial statements. | |||||||||||||||||
For the Year Ended March 31, 2015 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
Net sales | $ | 472,293 | $ | 505,862 | $ | 665,616 | $ | 485,603 | |||||||||
Cost of goods sold | 331,954 | 358,817 | 486,114 | 346,651 | |||||||||||||
Gross profit | 140,339 | 147,045 | 179,502 | 138,952 | |||||||||||||
Selling, general and administrative expenses | 116,589 | 119,112 | 132,563 | 120,127 | |||||||||||||
Net advertising expense | 27,224 | 33,049 | 38,915 | 29,638 | |||||||||||||
Depreciation and amortization expense | 10,475 | 10,823 | 10,062 | 8,840 | |||||||||||||
Asset impairment charge | — | — | 42,987 | 4,882 | |||||||||||||
Loss from operations | (13,949 | ) | (15,939 | ) | (45,025 | ) | (24,535 | ) | |||||||||
Other expense (income): | |||||||||||||||||
Interest expense | 629 | 678 | 615 | 678 | |||||||||||||
Interest income | (5 | ) | (2 | ) | (47 | ) | (9 | ) | |||||||||
Total other expense | 624 | 676 | 568 | 669 | |||||||||||||
Loss before income taxes | (14,573 | ) | (16,615 | ) | (45,593 | ) | (25,204 | ) | |||||||||
Income tax (benefit) expense | (4,304 | ) | (6,231 | ) | 41,272 | 24 | |||||||||||
Net loss | $ | (10,269 | ) | $ | (10,384 | ) | $ | (86,865 | ) | $ | (25,228 | ) | |||||
Net loss per share | |||||||||||||||||
Basic | $ | (0.36 | ) | $ | (0.37 | ) | $ | (3.10 | ) | $ | (0.91 | ) | |||||
Diluted | $ | (0.36 | ) | $ | (0.37 | ) | $ | (3.10 | ) | $ | (0.91 | ) | |||||
For the Year Ended March 31, 2014 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
Net sales | $ | 524,922 | $ | 568,315 | $ | 707,053 | $ | 538,280 | |||||||||
Cost of goods sold | 370,157 | 400,365 | 517,773 | 385,736 | |||||||||||||
Gross profit | 154,765 | 167,950 | 189,280 | 152,544 | |||||||||||||
Selling, general and administrative expenses | 119,309 | 120,389 | 132,360 | 121,892 | |||||||||||||
Net advertising expense | 25,896 | 30,539 | 36,964 | 30,780 | |||||||||||||
Depreciation and amortization expense | 11,038 | 10,406 | 10,785 | 10,891 | |||||||||||||
Asset impairment charge | — | — | 310 | 303 | |||||||||||||
(Loss) income from operations | (1,478 | ) | 6,616 | 8,861 | (11,322 | ) | |||||||||||
Other expense (income): | |||||||||||||||||
Interest expense | 604 | 557 | 695 | 609 | |||||||||||||
Interest income | (5 | ) | (2 | ) | (2 | ) | (1 | ) | |||||||||
Total other expense | 599 | 555 | 693 | 608 | |||||||||||||
(Loss) income before income taxes | (2,077 | ) | 6,061 | 8,168 | (11,930 | ) | |||||||||||
Income tax (benefit) expense | (817 | ) | 2,382 | 3,120 | (4,691 | ) | |||||||||||
Net (loss) income | $ | (1,260 | ) | $ | 3,679 | $ | 5,048 | $ | (7,239 | ) | |||||||
Net (loss) income per share | |||||||||||||||||
Basic | $ | (0.04 | ) | $ | 0.12 | $ | 0.17 | $ | (0.25 | ) | |||||||
Diluted | $ | (0.04 | ) | $ | 0.12 | $ | 0.17 | $ | (0.25 | ) | |||||||
Share_Repurchase_Program
Share Repurchase Program | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Share Repurchase Program Disclosure [Abstract] | ||||||||
Share Repurchase Program | Repurchase Program | |||||||
On May 14, 2014, the Company’s Board of Directors authorized a stock repurchase program (the “May 2014 Program”) allowing the Company to repurchase up to $40 million of its common stock. The stock repurchase program allows the Company to purchase its common stock on the open market or in privately negotiated transactions in accordance with applicable laws and regulations, and expires on May 20, 2015. The previous stock repurchase program expired on May 22, 2014. | ||||||||
The following table shows the number and cost of shares repurchased during the twelve months ended March 31, 2015 and 2014, respectively ($ in thousands): | ||||||||
Years Ended | ||||||||
31-Mar-15 | 31-Mar-14 | |||||||
May 2014 Program | ||||||||
Number of shares repurchased | 835,510 | — | ||||||
Cost of shares repurchased | $ | 5,281 | $ | — | ||||
May 2013 Program | ||||||||
Number of shares repurchased | — | 3,488,882 | ||||||
Cost of shares repurchased | $ | — | $ | 49,145 | ||||
As of March 31, 2015, the Company had $34.7 million remaining under the May 2014 Program. The repurchased shares are classified as treasury stock within stockholders’ equity in the accompanying consolidated balance sheets. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Description of Business | Description of Business | |||||||||||
hhgregg, Inc. is an appliance, electronics and furniture retailer that is committed to providing customers with a truly differentiated purchase experience through superior customer service, knowledgeable sales associates and the highest quality product selections. Founded in 1955, hhgregg is a multi-regional retailer with 228 brick-and-mortar stores in 20 states that also offers market-leading global and local brands at value prices nationwide via hhgregg.com. The Company operates in one reportable segment. | ||||||||||||
Principles of Consolidation | Principles of Consolidation | |||||||||||
The consolidated financial statements include the accounts of hhgregg, Inc. and its wholly-owned subsidiary, Gregg Appliances (the “Company” or “hhgregg”). The financial statements of Gregg Appliances include its wholly-owned subsidiary HHG Distributing LLC (“HHG Distributing”), which has no assets or operations. All intercompany balances and transactions have been eliminated upon consolidation. | ||||||||||||
Estimates | Estimates | |||||||||||
Management uses estimates and assumptions in preparing financial statements in conformity with accounting principles generally accepted in the United States. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates and assumptions. | ||||||||||||
Fiscal Year | Fiscal Year | |||||||||||
The Company’s fiscal year is the twelve-month period ended March 31. | ||||||||||||
Cash and Cash Equivalents | Cash | |||||||||||
Cash primarily consists of cash on hand and bank deposits. The Company had no outstanding checks in excess of funds on deposit (book overdrafts) at March 31, 2015 and 2014. | ||||||||||||
Accounts Receivable | Accounts Receivable | |||||||||||
Accounts receivable are recorded at the invoiced amount and are subject to finance charges. Accounts receivable-trade consists of credit card and trade receivables. Accounts receivable-other consists mainly of amounts due from vendors for advertising and volume rebates. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company reviews its allowance for doubtful accounts monthly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance sheet credit exposure related to its customers. | ||||||||||||
Merchandise Inventories | ||||||||||||
(g) | Merchandise Inventories | |||||||||||
Inventory is valued at the lower of the cost of the inventory or fair market value through the establishment of markdown and inventory loss reserves. The Company’s markdown reserve represents the excess of the carrying amount, typically average cost, over the amount it expects to realize from the ultimate sale or other disposal of the inventory. Subsequent changes in facts or circumstances do not result in the restoration of previously recorded markdowns or an increase in that newly established cost basis. | ||||||||||||
The Company purchases a significant portion of its merchandise from two vendors. For the year ended March 31, 2015, two vendors accounted for 32.4% and 16.3%, respectively, of merchandise purchases. For the year ended March 31, 2014, two vendors accounted for 29.2% and 17.1%, respectively, of merchandise purchases. For the year ended March 31, 2013, two vendors accounted for 27.5% and 17.0%, respectively, of merchandise purchases. | ||||||||||||
The Company included amounts due to a third party financing company for use under an inventory financing facility, entered into during fiscal 2013, within accounts payable in the accompanying consolidated balance sheet. Borrowings and payments on the inventory financing facility are classified as financing activities in the consolidated statements of cash flows. Originally the inventory financing facility was a $20 million unsecured credit line; however, during the fourth fiscal quarter of 2015 it was amended and is now a $10 million facility. The facility is non-interest bearing and is not collateralized with the inventory purchased. The facility includes customary covenants as well as customary events of default. The amounts borrowed on the credit line fluctuate on a daily basis. The amount of borrowings included within accounts payable as of March 31, 2015 and 2014 were $3.2 million and $5.3 million, respectively. As of March 31, 2015 and 2014, the Company had $6.8 million and $14.7 million available under the facility, respectively. The Company incurred no interest on these borrowings for the years ended March 31, 2015 and 2014. | ||||||||||||
Property and Equipment | Property and Equipment | |||||||||||
Property and equipment are recorded at cost and are depreciated over their expected useful lives on a straight-line basis. Leasehold improvements are depreciated over the shorter of the lease term or expected useful life. Repairs and maintenance costs are charged directly to expense as incurred. In certain lease arrangements, the Company is considered the owner of the building during the construction period. At the end of the construction period, the Company will sell and lease the location back applying provisions of lease accounting guidance. Any gains on sale and leaseback transactions are deferred and amortized over the life of the respective lease. The Company does not have any continuing involvement with the sale and leaseback locations, other than a normal leaseback, and the locations are accounted for as operating leases. In fiscal 2015 and 2014, the Company did not execute any sale and leaseback transactions. | ||||||||||||
Property and equipment consisted of the following at March 31, 2015 and 2014 (in thousands): | ||||||||||||
2015 | 2014 | |||||||||||
Machinery and equipment | $ | 25,956 | $ | 28,478 | ||||||||
Store fixtures and furniture | 162,737 | 180,799 | ||||||||||
Vehicles | 1,962 | 2,207 | ||||||||||
Signs | 15,070 | 19,545 | ||||||||||
Leasehold improvements | 130,887 | 178,888 | ||||||||||
Construction in progress | 3,862 | 8,167 | ||||||||||
340,474 | 418,084 | |||||||||||
Less accumulated depreciation and amortization | (212,367 | ) | (224,202 | ) | ||||||||
Net property and equipment | $ | 128,107 | $ | 193,882 | ||||||||
Estimated useful lives by major asset category are as follows: | ||||||||||||
Asset | Life | |||||||||||
(in years) | ||||||||||||
Machinery and equipment | 7-May | |||||||||||
Store fixtures and furniture | 7-Mar | |||||||||||
Vehicles | 5 | |||||||||||
Signs | 7 | |||||||||||
Leasehold improvements | 15-May | |||||||||||
Depreciation and amortization expense for the years ended March 31, 2015, 2014 and 2013 was $40.2 million, $43.1 million and $40.1 million, respectively. | ||||||||||||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets | |||||||||||
Long-lived assets other than goodwill and indefinite-lived intangible assets, which are separately tested for impairment, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. When evaluating long-lived assets for potential impairment, the Company compares the carrying amount of the asset or asset group to the asset’s or asset group’s estimated undiscounted future cash flows. If the estimated future cash flows are less than the carrying amount of the asset or asset group, an impairment loss is calculated. The impairment loss calculation compares the carrying amount of the asset or asset group to the asset’s or asset group’s estimated fair value, which may be based on estimated discounted future cash flows. An impairment loss is recognized for the amount by which the asset’s or asset group’s carrying amount exceeds the asset’s or asset group’s estimated fair value. If an impairment loss is recognized, the adjusted carrying amount of the asset or asset group becomes its new cost basis. For a depreciable long-lived asset, the new cost basis will be depreciated (amortized) over the remaining useful life of that asset or asset group. | ||||||||||||
For the fiscal year ended March 31, 2015, the Company continued to experience declining sales and as a result had several stores whose profit contributions were significantly lower than the chain average. This decrease in profit triggered the need for an impairment analysis to be performed. The property and equipment at 56 locations with a net book value of $48.7 million were reduced to estimated aggregate fair value of $0.8 million based on their projected cash flows, discounted at 15%. For the fiscal year ended March 31, 2014, the Company recorded an asset impairment charge as a result of entering into a lease modification to downsize a store after determining that certain of the assets in use would be abandoned. In addition, the Company recorded an asset impairment charge during fiscal 2014 as a result of idling certain store fixtures associated with the Company’s changing product mix. During the fiscal year ended March 31, 2013, the Company had one store whose profit contributions were significantly lower than the chain average due to decreased sales. Based on the above reasons, the carrying amounts of the assets related to these stores were reduced to fair value, resulting in pre-tax charges of $47.9 million, $0.6 million and $0.5 million for the years ended March 31, 2015, 2014 and 2013, respectively. | ||||||||||||
Deferred Financing Costs | Deferred Financing Costs | |||||||||||
Costs incurred related to debt financing are capitalized and amortized over the life of the related debt as a component of interest expense. Debt financing costs are related to the Company’s Amended Facility as discussed in Note 5 below. The Company recognized related amortization expense of deferred financing costs of $0.5 million, $0.6 million and $0.7 million for the years ended March 31, 2015, 2014 and 2013, respectively. | ||||||||||||
Self-Insured Liabilities | Self-Insured Liabilities | |||||||||||
The Company is self-insured for certain losses related to workers’ compensation, medical insurance, general liability and motor vehicle insurance claims. However, the Company obtains third-party insurance coverage to limit its exposure to these claims. The following table provides the Company’s stop loss coverage for the fiscal years ended March 31, 2015, 2014 and 2013 (in thousands): | ||||||||||||
Fiscal Year Ended | ||||||||||||
March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Workers’ Compensation — per occurrence | $ | 300 | $ | 300 | $ | 300 | ||||||
Workers’ Compensation — per occurrence (OH) | $ | 300 | $ | 500 | $ | 500 | ||||||
General Liability — per occurrence | $ | 250 | $ | 250 | $ | 250 | ||||||
Motor Vehicles — per occurrence | $ | 100 | $ | 100 | $ | 100 | ||||||
Medical Insurance — per participant, per year | $ | 300 | $ | 300 | $ | 300 | ||||||
When estimating self-insured liabilities, a number of factors are considered, including historical claims experience, demographic factors, severity factors and valuations provided by independent third-party actuaries. Quarterly, management reviews its assumptions and the valuations provided by independent third-party actuaries to determine the adequacy of the self-insured liabilities. | ||||||||||||
Accrued Straight-Line Rent | Accrued Straight-Line Rent | |||||||||||
Retail and distribution operations are conducted from leased locations. The leases generally require payment of real estate taxes, insurance and common area maintenance, in addition to rent. The terms of the lease agreements generally range from 10 to 15 years. Most of the leases contain renewal options and escalation clauses, and certain store leases require contingent rents based on factors such as specified percentages of revenue or the consumer price index. | ||||||||||||
For leases that contain predetermined fixed escalations of the minimum rent, the related rent expense is recognized on a straight-line basis from the date the Company takes possession of the property to the end of the lease term. Any difference between the straight-line rent amounts and amounts payable under the leases are recorded as part of deferred rent. Cash or lease incentives received upon entering into certain store leases (tenant allowances) are recognized on a straight-line basis as a reduction to rent from the date the Company takes possession of the property through the end of the lease term. The unamortized portion of tenant allowances is recorded as a part of deferred rent. For leases that require contingent rents, management makes an estimate of the contingent rent annually and recognizes the related rent expense on a straight-line basis over the year. As of March 31, 2015 and 2014, deferred rent included in long-term liabilities in the Company’s consolidated balance sheets was $67.9 million and $73.5 million, respectively. | ||||||||||||
Transaction costs associated with the sale and leaseback of properties and any related deferred gain or loss are recognized on a straight-line basis over the initial period of the lease agreements. The Company does not have any retained or contingent interests in the properties, nor does the Company provide any guarantees in connection with the sale and leaseback of properties, other than a corporate-level guarantee of lease payments. At March 31, 2015 and 2014, deferred gains of $1.5 million and $1.7 million, respectively, were recorded in other long term liabilities relating to sale and leaseback transactions. | ||||||||||||
Revenue Recognition | Revenue Recognition | |||||||||||
The Company recognizes revenue from the sale of merchandise at the time the customer takes possession of the merchandise. The Company recognizes revenue related to the delivery of merchandise at the time the merchandise is delivered. The Company honors returns from customers within 30 days from the date of sale and provides allowances for returns based on historical experience. The Company recorded an allowance for sales returns in accrued liabilities of $0.5 million and $0.6 million at March 31, 2015 and 2014, respectively. The Company recognizes service revenue at the time that evidence of an agreement exists, the service is completed, the price is fixed or determinable and collectability is reasonably assured. | ||||||||||||
The Company sells gift cards to its customers in its retail stores. The Company does not charge administrative fees on unused gift cards and the Company’s gift cards (other than promotional rebate gift cards) do not have an expiration date. Revenue is recognized from gift cards when: (i) the gift card is redeemed by the customer or (ii) the likelihood of the gift card being redeemed by the customer is remote, referred to as gift card breakage, and the Company determines that it does not have a legal obligation to remit the value of unredeemed gift cards to the relevant jurisdictions. The Company determines its gift card breakage rate based on historical redemption patterns. Breakage recognized was not material to the Company’s results of operations during fiscal 2015, 2014 or 2013. | ||||||||||||
The Company sells premium service plans (“PSPs”) on appliance and electronic merchandise for periods ranging up to 10 years. For PSPs sold by the Company on behalf of a third party, the net commission revenue is recognized at the time of sale. The Company is not the primary obligor on PSPs sold on behalf of third parties. Funds received for PSPs in which the Company is the primary obligor are deferred in accrued liabilities and other long-term liabilities in the Company’s consolidated balance sheets, and the incremental direct costs of selling the PSPs are capitalized and amortized on a straight-line basis over the term of the service agreement. Costs of services performed pursuant to the PSPs are expensed as incurred. | ||||||||||||
The information below provides the changes in the Company’s deferred revenue on extended service agreements for the years ended March 31, 2015, 2014 and 2013 (in thousands): | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Deferred revenue on extended service agreements: | ||||||||||||
Balance at beginning of year | $ | 1,423 | $ | 1,048 | $ | 623 | ||||||
Revenue deferred on new agreements | 5,022 | 5,439 | 4,111 | |||||||||
Revenue recognized | (4,107 | ) | (5,064 | ) | (3,686 | ) | ||||||
Balance at end of year | $ | 2,338 | $ | 1,423 | $ | 1,048 | ||||||
For revenue transactions that involve multiple deliverables, we defer the revenue associated with any undelivered elements. The amount of revenue deferred in connection with the undelivered elements is determined using the relative fair value of each element, which is generally based on each element’s relative retail price. The Company frequently offers sales incentives that entitle customers to receive a reduction in the price of a product or service by submitting a claim for a refund or rebate. When certain purchase requirements are met, the customer is eligible to receive a hhgregg rebate gift card that may be redeemed on future purchases at hhgregg stores. Rebate gift cards expire six months from the date of issuance. The Company defers revenue at the time an eligible transaction occurs, based on the percentage of gift cards that are projected to be redeemed which includes an estimate of breakage and the relative fair value of the gift cards. The Company recognizes revenue when: (i) a gift card is redeemed by the customer, or (ii) a rebate gift card expires. Deferred revenue related to the rebate gift cards included within accrued liabilities within our Consolidated Balance Sheets was $3.8 million and $3.4 million at March 31, 2015 and 2014, respectively. | ||||||||||||
The Company offers a private-label credit card agreement through a lending institution for the issuance of promotional financing bearing the hhgregg brand name. Under the agreement, the lending institution manages and directly extends credit to the customers. Cardholders who choose a private-label credit card can receive zero-interest promotional financing on qualifying purchases. The bank is the sole owner of the accounts receivable generated under the program and absorbs losses associated with non-payment by the cardholders and fraudulent usage of the accounts. Accordingly, we do not hold any consumer receivables related to these programs. We pay financing fees to the lending institution and these fees are variable based on certain factors such as the London Interbank Offered Rate (“LIBOR”) and types of promotional financing offers. | ||||||||||||
The Company collects certain taxes from their customers at the time of sale and remits the collected taxes to government authorities. These taxes are excluded from net sales and cost of goods sold in the Company’s consolidated statements of income. | ||||||||||||
Cost of Goods Sold | Cost of Goods Sold | |||||||||||
Cost of goods sold is defined as the cost of gross inventory sold, including any handling charges, in-bound freight expenses and physical inventory losses, less the recognized portion of certain vendor allowances. Because the Company does not include costs related to its store distribution facilities, including depreciation expense, in cost of goods sold, the Company’s gross profit may not be comparable to that of other retailers that include these costs in cost of goods sold and in the calculation of gross profit. | ||||||||||||
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses | |||||||||||
Selling, general and administrative expenses (“SG&A”) includes wages, rent, taxes (other than income taxes), insurance, utilities, delivery costs, distribution costs, service expense, repairs and maintenance of stores and equipment, store opening costs, stock-based compensation and other general administrative expenses. | ||||||||||||
Shipping and handling costs and expenses of $109.0 million, $111.3 million, and $105.9 million for fiscal 2015, 2014 and 2013, respectively, were included in SG&A expenses. Included in these costs were home delivery expenses of $56.7 million, $59.8 million, and $55.9 million for the years ended March 31, 2015, 2014, and 2013, respectively. | ||||||||||||
Vendor Allowances | Vendor Allowances | |||||||||||
The Company receives funds from its vendors for various programs including volume purchase rebates, marketing support, markdowns, margin protection, training and sales incentives. Vendor allowances provided as a reimbursement of specific, incremental and identifiable costs incurred to promote a vendor’s products are included as an expense reduction when the cost is incurred. All other vendor allowances are initially deferred and recorded as a reduction of merchandise inventories. The deferred amounts are then included as a reduction of cost of goods sold when the related product is sold. | ||||||||||||
Advertising Costs | Advertising Costs | |||||||||||
Advertising costs are expensed as incurred, with the exception of television production costs which are expensed the first time the advertisement is aired. These amounts have been reduced by vendor allowances under cooperative advertising which totaled $32.4 million, $37.0 million, and $43.1 million for the years ended March 31, 2015, 2014 and 2013, respectively. | ||||||||||||
Store Opening Costs | Store Opening Costs | |||||||||||
Store opening costs, other than capital expenditures, are expensed as incurred and recorded in selling, general and administrative expenses. | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. | ||||||||||||
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||||||||||||
The Company is subject to U.S. federal and certain state and local income taxes. The Company’s income tax returns, like those of most companies, are periodically audited by federal and state tax authorities. These audits include questions regarding the Company’s tax filing positions, including the timing and amount of deductions and the allocation of income among various tax jurisdictions. At any one time, multiple tax years are subject to audit by the various tax authorities. In evaluating the exposures associated with the Company’s various tax filing positions, the Company records a liability for more likely than not exposures. A number of years may elapse before a particular matter, for which the Company has established a liability, is audited and fully resolved or clarified. The Company adjusts its liability for unrecognized tax benefits and income tax provision in the period in which an uncertain tax position is effectively settled, the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. | ||||||||||||
We evaluate our deferred income tax assets and liabilities quarterly to determine whether or not a valuation allowance is necessary. We are required to assess the available positive and negative evidence to estimate if sufficient income will be generated to utilize deferred tax assets. The establishment of valuation allowances requires significant judgment and is impacted by various estimates. A significant piece of negative evidence that we consider is cumulative losses in recent periods. Such evidence is a significant piece of objective negative evidence that is difficult to overcome. While management believes positive evidence exists with regard to the realizability of these deferred tax assets, it is not considered sufficient to outweigh the objectively verifiable negative evidence. The significant negative evidence of our losses generated before income taxes in recent periods and the unfavorable shift in our business could not be overcome by considering other sources of taxable income, which included tax planning strategies. The full valuation allowance will remain until there exists significant objective positive evidence, such as sustained achievement of cumulative profits. | ||||||||||||
Stock Based Compensation | Stock-Based Compensation | |||||||||||
The Company records all stock-based compensation, including grants of employee stock options and restricted stock units, using the fair value-based method. Refer to note 7 for additional information regarding the Company’s stock-based compensation. | ||||||||||||
Litigation | Litigation | |||||||||||
Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. | ||||||||||||
New Accounting Pronouncements, Policy | ||||||||||||
(v) | Recently Issued Accounting Pronouncements | |||||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606), to clarify the principles used to recognize revenue for all entities. The new guidance is effective for annual and interim periods beginning after December 15, 2016, with no early adoption permitted. While the Company is still in the process of evaluating the impact, if any, the adoption of this guidance will have on its financial position, we do not currently expect a material impact on our results of operations, cash flows or financial position. | ||||||||||||
In April 2015, the FASB issued an accounting pronouncement (FASB ASU 2015-3) related to the presentation of debt | ||||||||||||
issuance costs (FASB ASC Subtopic 835-30). This standard will require debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability rather than as an asset. These costs will continue to be amortized to interest expense using the effective interest method. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, and retrospective adoption is required. We will adopt this pronouncement for our fiscal year beginning April 1, 2016. We do not expect this pronouncement to have a material effect on our consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Property and Equipment | Property and equipment consisted of the following at March 31, 2015 and 2014 (in thousands): | |||||||||||
2015 | 2014 | |||||||||||
Machinery and equipment | $ | 25,956 | $ | 28,478 | ||||||||
Store fixtures and furniture | 162,737 | 180,799 | ||||||||||
Vehicles | 1,962 | 2,207 | ||||||||||
Signs | 15,070 | 19,545 | ||||||||||
Leasehold improvements | 130,887 | 178,888 | ||||||||||
Construction in progress | 3,862 | 8,167 | ||||||||||
340,474 | 418,084 | |||||||||||
Less accumulated depreciation and amortization | (212,367 | ) | (224,202 | ) | ||||||||
Net property and equipment | $ | 128,107 | $ | 193,882 | ||||||||
Estimated useful lives by major asset category are as follows: | ||||||||||||
Asset | Life | |||||||||||
(in years) | ||||||||||||
Machinery and equipment | 7-May | |||||||||||
Store fixtures and furniture | 7-Mar | |||||||||||
Vehicles | 5 | |||||||||||
Signs | 7 | |||||||||||
Leasehold improvements | 15-May | |||||||||||
Schedule of Insurance Coverage | The following table provides the Company’s stop loss coverage for the fiscal years ended March 31, 2015, 2014 and 2013 (in thousands): | |||||||||||
Fiscal Year Ended | ||||||||||||
March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Workers’ Compensation — per occurrence | $ | 300 | $ | 300 | $ | 300 | ||||||
Workers’ Compensation — per occurrence (OH) | $ | 300 | $ | 500 | $ | 500 | ||||||
General Liability — per occurrence | $ | 250 | $ | 250 | $ | 250 | ||||||
Motor Vehicles — per occurrence | $ | 100 | $ | 100 | $ | 100 | ||||||
Medical Insurance — per participant, per year | $ | 300 | $ | 300 | $ | 300 | ||||||
Deferred Revenue, by Arrangement, Disclosure | The information below provides the changes in the Company’s deferred revenue on extended service agreements for the years ended March 31, 2015, 2014 and 2013 (in thousands): | |||||||||||
2015 | 2014 | 2013 | ||||||||||
Deferred revenue on extended service agreements: | ||||||||||||
Balance at beginning of year | $ | 1,423 | $ | 1,048 | $ | 623 | ||||||
Revenue deferred on new agreements | 5,022 | 5,439 | 4,111 | |||||||||
Revenue recognized | (4,107 | ) | (5,064 | ) | (3,686 | ) | ||||||
Balance at end of year | $ | 2,338 | $ | 1,423 | $ | 1,048 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Details of Impairment of Long-Lived Assets Held and Used by Asset | The following table summarizes the fair value remeasurements recorded during the years ended March 31, 2015, 2014, and 2013 (in millions): | |||||||||||
2015 | 2014 | 2013 | ||||||||||
Carrying value (pre-asset impairment) | $ | 48.7 | $ | 1 | $ | 0.9 | ||||||
Asset impairment loss (included in income from operations) | 47.9 | 0.6 | 0.5 | |||||||||
Remaining net carrying value | $ | 0.8 | $ | 0.4 | $ | 0.4 | ||||||
Net_Income_per_Share_Tables
Net Income per Share (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Net Income Loss Per Basic and Diluted Share | The following table presents net (loss) income per basic and diluted share for the years ended March 31, 2015, 2014 and 2013 (in thousands, except share and per share amounts): | |||||||||||
2015 | 2014 | 2013 | ||||||||||
Net (loss) income (A) | $ | (132,746 | ) | $ | 228 | $ | 25,369 | |||||
Weighted average outstanding shares of common stock (B) | 28,129,596 | 30,209,928 | 34,430,641 | |||||||||
Dilutive effect of employee stock options and restricted stock units | — | 474,061 | 66,147 | |||||||||
Common stock and potential dilutive common shares (C) | 28,129,596 | 30,683,989 | 34,496,788 | |||||||||
Net (loss) income per share: | ||||||||||||
Basic (A/B) | $ | (4.72 | ) | $ | 0.01 | $ | 0.74 | |||||
Diluted (A/C) | $ | (4.72 | ) | $ | 0.01 | $ | 0.74 | |||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Net Merchandise Inventories | Net merchandise inventories consisted of the following at March 31, 2015 and 2014 (in thousands): | |||||||
2015 | 2014 | |||||||
Appliances | $ | 119,396 | $ | 134,053 | ||||
Consumer electronics | 94,441 | 108,193 | ||||||
Computers and tablets | 24,697 | 36,039 | ||||||
Home products | 18,935 | 20,257 | ||||||
Net merchandise inventory | $ | 257,469 | $ | 298,542 | ||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Summary of Debt | A summary of debt at March 31, 2015 and 2014 is as follows (in thousands): | |||||||
2015 | 2014 | |||||||
Line of credit | $ | — | $ | — | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) for the years ended March 31, 2015, 2014 and 2013 consisted of the following (in thousands): | |||||||||||
2015 | 2014 | 2013 | ||||||||||
Current: | ||||||||||||
Federal | $ | (9,949 | ) | $ | 1,528 | $ | 6,448 | |||||
State | (692 | ) | (246 | ) | 2,008 | |||||||
Total current | (10,641 | ) | 1,282 | 8,456 | ||||||||
Deferred: | ||||||||||||
Federal | 33,815 | (1,618 | ) | 7,163 | ||||||||
State | 7,587 | 330 | 436 | |||||||||
Total deferred | 41,402 | (1,288 | ) | 7,599 | ||||||||
Total expense (benefit) | $ | 30,761 | $ | (6 | ) | $ | 16,055 | |||||
Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes at March 31, 2015 and 2014 consisted of the following (in thousands): | |||||||||||
2015 | 2014 | |||||||||||
Deferred tax assets: | ||||||||||||
Goodwill for tax purposes | $ | 31,534 | $ | 38,447 | ||||||||
Accrued expenses | 12,341 | 11,618 | ||||||||||
Long-term deferred compensation | 2,281 | 2,344 | ||||||||||
Inventories | — | 3,083 | ||||||||||
Stock-compensation expense | 7,239 | 7,960 | ||||||||||
Other | 2,303 | 3,856 | ||||||||||
Credit carryforwards | 6,509 | 239 | ||||||||||
Net operating loss carryforward | 13,979 | 193 | ||||||||||
Valuation allowance | (66,122 | ) | — | |||||||||
Total deferred tax assets | 10,064 | 67,740 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property and equipment | (2,986 | ) | 25,180 | |||||||||
Inventories | (5,903 | ) | — | |||||||||
Other | (1,175 | ) | 1,158 | |||||||||
Total deferred tax liabilities | (10,064 | ) | 26,338 | |||||||||
Net deferred tax assets | $ | — | $ | 41,402 | ||||||||
Schedule of Effective Income Tax Rate Reconciliation | The expense (benefit) for income taxes differs from the amount of income tax determined by applying the U.S. federal income tax rate of 35% to income before income taxes due to the following (in thousands): | |||||||||||
2015 | 2014 | 2013 | ||||||||||
Computed “expected” tax (benefit) expense | $ | (35,695 | ) | $ | 78 | $ | 14,498 | |||||
State income tax (benefit) expense, net of federal income tax impact | (4,295 | ) | 49 | 1,516 | ||||||||
Valuation allowance | 66,122 | — | ||||||||||
Stock compensation | 2,254 | 26 | — | |||||||||
Other | 2,375 | (159 | ) | 41 | ||||||||
$ | 30,761 | $ | (6 | ) | $ | 16,055 | ||||||
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Black Scholes Model Weighted Average Assumptions | The weighted-average estimated fair value of options granted to employees and directors under the 2007 Equity Incentive Plan was $4.06, $7.08, and $5.34 during the 12 months ended March 31, 2015, 2014 and 2013, respectively, as determined using the Black-Scholes model with the following weighted average assumptions: | ||||||||||||
2015 | 2014 | 2013 | |||||||||||
Risk-free interest rate | 1.22% - 1.6 | 0.06% - 1.53 | 0.56% - 0.69 | ||||||||||
Dividend yield | — | — | — | ||||||||||
Expected volatility | 57 | % | 63 | % | 61.9 | % | |||||||
Expected life of the options (years) | 4.5 | 4.5 | 4.5 | ||||||||||
Summary of Stock Option Plans Activity | The following table summarizes the activity under the Company’s Stock Option Plans for the fiscal year ended March 31, 2015: | ||||||||||||
Number of Options | Weighted | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value (in thousands) | ||||||||||
Outstanding | Average | ||||||||||||
Exercise | |||||||||||||
Price | |||||||||||||
Outstanding at March 31, 2014 | 3,232,208 | $ | 13.61 | ||||||||||
Granted | 1,133,640 | 8.61 | |||||||||||
Exercised | — | — | |||||||||||
Canceled | (504,785 | ) | 11.02 | ||||||||||
Expired | (363,141 | ) | 13.1 | ||||||||||
Outstanding at March 31, 2015 | 3,497,922 | $ | 12.41 | 4.21 | $ | 26 | |||||||
Vested or expected to vest at March 31, 2015 | 3,363,180 | $ | 12.5 | 4.15 | $ | 22 | |||||||
Exercisable at March 31, 2015 | 1,702,763 | $ | 13.87 | 2.73 | $ | — | |||||||
Summary of RSU Vesting Activity | The following table summarizes time vested RSU vesting activity for the fiscal year ended March 31, 2015: | ||||||||||||
Nonvested RSU’s | Shares | Weighted | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value (in thousands) | |||||||||
Average | |||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Nonvested at March 31, 2014 | 143,503 | $ | 12.72 | ||||||||||
Granted | 45,150 | 9.17 | |||||||||||
Vested | (56,100 | ) | 14.16 | ||||||||||
Forfeited | (5,600 | ) | 10.86 | ||||||||||
Nonvested at March 31, 2015 | 126,953 | $ | 11.07 | 1.35 | $ | — | |||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Leases [Abstract] | |||||||||||||
Schedule of Rent Expense | The composition of net rent expense for all operating leases, including leases of property and equipment, was as follows for the years ended March 31, 2015, 2014 and 2013 (in thousands): | ||||||||||||
2015 | 2014 | 2013 | |||||||||||
Minimum rentals | $ | 90,773 | $ | 91,174 | $ | 89,407 | |||||||
Contingent rentals | 13 | 52 | 74 | ||||||||||
Total rent expense | $ | 90,786 | $ | 91,226 | $ | 89,481 | |||||||
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum required rental payments for noncancelable operating leases, with terms of one year or more, consist of the following as of March 31, 2015 (in thousands): | ||||||||||||
Rental Payments | |||||||||||||
Payable in fiscal year: | |||||||||||||
2016 | $ | 90,797 | |||||||||||
2017 | 89,429 | ||||||||||||
2018 | 84,606 | ||||||||||||
2019 | 79,941 | ||||||||||||
2020 | 71,298 | ||||||||||||
Thereafter | 112,635 | ||||||||||||
Total required payments | $ | 528,706 | |||||||||||
Total minimum rental lease payments have not been reduced by minimum sublease rent income of approximately $0.6 million due under future noncancelable subleases. |
Interim_Financial_Results_Unau1
Interim Financial Results (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information | In management’s opinion, this unaudited quarterly information has been prepared on a consistent basis with the audited financial statements and includes all necessary adjustments, consisting only of normal recurring adjustments that management considers necessary for a fair presentation of the unaudited quarterly results when read in conjunction with the consolidated financial statements. | ||||||||||||||||
For the Year Ended March 31, 2015 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
Net sales | $ | 472,293 | $ | 505,862 | $ | 665,616 | $ | 485,603 | |||||||||
Cost of goods sold | 331,954 | 358,817 | 486,114 | 346,651 | |||||||||||||
Gross profit | 140,339 | 147,045 | 179,502 | 138,952 | |||||||||||||
Selling, general and administrative expenses | 116,589 | 119,112 | 132,563 | 120,127 | |||||||||||||
Net advertising expense | 27,224 | 33,049 | 38,915 | 29,638 | |||||||||||||
Depreciation and amortization expense | 10,475 | 10,823 | 10,062 | 8,840 | |||||||||||||
Asset impairment charge | — | — | 42,987 | 4,882 | |||||||||||||
Loss from operations | (13,949 | ) | (15,939 | ) | (45,025 | ) | (24,535 | ) | |||||||||
Other expense (income): | |||||||||||||||||
Interest expense | 629 | 678 | 615 | 678 | |||||||||||||
Interest income | (5 | ) | (2 | ) | (47 | ) | (9 | ) | |||||||||
Total other expense | 624 | 676 | 568 | 669 | |||||||||||||
Loss before income taxes | (14,573 | ) | (16,615 | ) | (45,593 | ) | (25,204 | ) | |||||||||
Income tax (benefit) expense | (4,304 | ) | (6,231 | ) | 41,272 | 24 | |||||||||||
Net loss | $ | (10,269 | ) | $ | (10,384 | ) | $ | (86,865 | ) | $ | (25,228 | ) | |||||
Net loss per share | |||||||||||||||||
Basic | $ | (0.36 | ) | $ | (0.37 | ) | $ | (3.10 | ) | $ | (0.91 | ) | |||||
Diluted | $ | (0.36 | ) | $ | (0.37 | ) | $ | (3.10 | ) | $ | (0.91 | ) | |||||
For the Year Ended March 31, 2014 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
Net sales | $ | 524,922 | $ | 568,315 | $ | 707,053 | $ | 538,280 | |||||||||
Cost of goods sold | 370,157 | 400,365 | 517,773 | 385,736 | |||||||||||||
Gross profit | 154,765 | 167,950 | 189,280 | 152,544 | |||||||||||||
Selling, general and administrative expenses | 119,309 | 120,389 | 132,360 | 121,892 | |||||||||||||
Net advertising expense | 25,896 | 30,539 | 36,964 | 30,780 | |||||||||||||
Depreciation and amortization expense | 11,038 | 10,406 | 10,785 | 10,891 | |||||||||||||
Asset impairment charge | — | — | 310 | 303 | |||||||||||||
(Loss) income from operations | (1,478 | ) | 6,616 | 8,861 | (11,322 | ) | |||||||||||
Other expense (income): | |||||||||||||||||
Interest expense | 604 | 557 | 695 | 609 | |||||||||||||
Interest income | (5 | ) | (2 | ) | (2 | ) | (1 | ) | |||||||||
Total other expense | 599 | 555 | 693 | 608 | |||||||||||||
(Loss) income before income taxes | (2,077 | ) | 6,061 | 8,168 | (11,930 | ) | |||||||||||
Income tax (benefit) expense | (817 | ) | 2,382 | 3,120 | (4,691 | ) | |||||||||||
Net (loss) income | $ | (1,260 | ) | $ | 3,679 | $ | 5,048 | $ | (7,239 | ) | |||||||
Net (loss) income per share | |||||||||||||||||
Basic | $ | (0.04 | ) | $ | 0.12 | $ | 0.17 | $ | (0.25 | ) | |||||||
Diluted | $ | (0.04 | ) | $ | 0.12 | $ | 0.17 | $ | (0.25 | ) | |||||||
Share_Repurchase_Program_Table
Share Repurchase Program (Tables) | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Share Repurchase Program Disclosure [Abstract] | ||||||||
Number and cost of shares repurchased | The following table shows the number and cost of shares repurchased during the twelve months ended March 31, 2015 and 2014, respectively ($ in thousands): | |||||||
Years Ended | ||||||||
31-Mar-15 | 31-Mar-14 | |||||||
May 2014 Program | ||||||||
Number of shares repurchased | 835,510 | — | ||||||
Cost of shares repurchased | $ | 5,281 | $ | — | ||||
May 2013 Program | ||||||||
Number of shares repurchased | — | 3,488,882 | ||||||
Cost of shares repurchased | $ | — | $ | 49,145 | ||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | |
Segment | ||||
Store | ||||
state | ||||
Accounting Policies [Abstract] | ||||
Number of stores | 228 | |||
Number of States in which Entity Operates | 20 | |||
Number of reportable segments | 1 | |||
Amortization of deferred financing costs | $538,000 | $604,000 | $664,000 | |
Deferred rent | 67,935,000 | 73,493,000 | ||
Sale leaseback transaction, deferred gain | 1,500,000 | 1,700,000 | ||
Shipping and handling costs and expenses | 109,000,000 | 111,300,000 | 105,900,000 | |
Delivery expenses | 56,700,000 | 59,800,000 | 55,900,000 | |
Advertising costs, vender allowances | 32,400,000 | 37,000,000 | 43,100,000 | |
Line of credit facility, maximum borrowing capacity | $10,000,000 | $20,000,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Merchandise Inventories) (Details) (USD $) | 12 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | |
Store | Vendor | Vendor | ||
Vendor | Store | |||
Concentration Risk [Line Items] | ||||
Number of stores measured for impairment | 56 | 1 | ||
Number of vendors | 2 | 2 | 2 | |
Line of credit facility, maximum borrowing capacity | $10,000,000 | $20,000,000 | ||
Vendor One [Member] | Inventory, Merchandise Purchases [Member] | Supplier Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 32.40% | 29.20% | 27.50% | |
Vendor Two [Member] | Inventory, Merchandise Purchases [Member] | Supplier Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 16.30% | 17.10% | 17.00% | |
Line of Credit [Member] | ||||
Concentration Risk [Line Items] | ||||
Line of Credit Facility, Amount Outstanding | 3,200,000 | 5,300,000 | ||
Line of credit facility, remaining borrowing capacity | $6,800,000 | 14,700,000 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Property and Equipment) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Property, Plant and Equipment [Line Items] | |||||||||||
Gross property and equipment | $340,474 | $418,084 | $340,474 | $418,084 | |||||||
Less accumulated depreciation and amortization | -212,367 | -224,202 | -212,367 | -224,202 | |||||||
Net property and equipment | 128,107 | 193,882 | 128,107 | 193,882 | |||||||
Depreciation and amortization expense | 8,840 | 10,062 | 10,823 | 10,475 | 10,891 | 10,785 | 10,406 | 11,038 | 40,200 | 43,120 | 40,135 |
Minimum [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Lease agreement term | 10 years | ||||||||||
Maximum [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Lease agreement term | 15 years | ||||||||||
Machinery and equipment [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Gross property and equipment | 25,956 | 28,478 | 25,956 | 28,478 | |||||||
Machinery and equipment [Member] | Minimum [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Useful life | 5 years | ||||||||||
Machinery and equipment [Member] | Maximum [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Useful life | 7 years | ||||||||||
Store fixtures and furniture [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Gross property and equipment | 162,737 | 180,799 | 162,737 | 180,799 | |||||||
Store fixtures and furniture [Member] | Minimum [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Useful life | 3 years | ||||||||||
Store fixtures and furniture [Member] | Maximum [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Useful life | 7 years | ||||||||||
Vehicles [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Gross property and equipment | 1,962 | 2,207 | 1,962 | 2,207 | |||||||
Useful life | 5 years | ||||||||||
Signs [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Gross property and equipment | 15,070 | 19,545 | 15,070 | 19,545 | |||||||
Useful life | 7 years | ||||||||||
Leasehold improvements [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Gross property and equipment | 130,887 | 178,888 | 130,887 | 178,888 | |||||||
Leasehold improvements [Member] | Minimum [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Useful life | 5 years | ||||||||||
Leasehold improvements [Member] | Maximum [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Useful life | 15 years | ||||||||||
Construction in progress [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Gross property and equipment | $3,862 | $8,167 | $3,862 | $8,167 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Impairment of Long-Lived Assets) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Store | Store | ||||||||||
Accounting Policies [Abstract] | |||||||||||
Number of stores measured for impairment | 56 | 1 | |||||||||
Impaired long-term assets, net book value | $48,700,000 | $48,700,000 | |||||||||
Impaired long-term assets, estimated fair value | 800,000 | 800,000 | |||||||||
Impaired long-term assets, discount rate | 15.00% | 15.00% | |||||||||
Asset impairment charges | 4,882,000 | 42,987,000 | 0 | 0 | 303,000 | 310,000 | 0 | 0 | 47,869,000 | 613,000 | 504,000 |
Bank overdrafts | $0 | $0 | $0 | $0 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Self-Insured Liabilities) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Workers' Compensation [Member] | |||
Schedule of Insurance Coverage [Line Items] | |||
Self insurance, stop loss coverage | $300 | $300 | $300 |
Workers' Compensation (OH) [Member] | |||
Schedule of Insurance Coverage [Line Items] | |||
Self insurance, stop loss coverage | 300 | 500 | 500 |
General Liability [Member] | |||
Schedule of Insurance Coverage [Line Items] | |||
Self insurance, stop loss coverage | 250 | 250 | 250 |
Motor Vehicles [Member] | |||
Schedule of Insurance Coverage [Line Items] | |||
Self insurance, stop loss coverage | 100 | 100 | 100 |
Medical Insurance [Member] | |||
Schedule of Insurance Coverage [Line Items] | |||
Self insurance, stop loss coverage | $300 | $300 | $300 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies (Deferred Revenue) (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Accounting Policies [Abstract] | |||
Allowance for sales returns | $500,000 | $600,000 | |
Premium service plan term | 10 years | ||
Movement in Deferred Revenue [Roll Forward] | |||
Balance at beginning of year | 3,400,000 | ||
Balance at end of year | 3,400,000 | ||
Extended Service Agreements [Member] | |||
Movement in Deferred Revenue [Roll Forward] | |||
Balance at beginning of year | 1,423,000 | 1,048,000 | 623,000 |
Revenue deferred on new agreements | 5,022,000 | 5,439,000 | 4,111,000 |
Revenue recognized | -4,107,000 | -5,064,000 | -3,686,000 |
Balance at end of year | 2,338,000 | 1,423,000 | 1,048,000 |
Rebate Gift Cards [Member] | |||
Movement in Deferred Revenue [Roll Forward] | |||
Balance at end of year | $3,800,000 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Store | Store | ||||||||||
Fair Value Disclosures [Abstract] | |||||||||||
Bank Owned Life Insurance | $1,400,000 | $700,000 | $1,400,000 | $700,000 | |||||||
Number of stores measured for impairment | 56 | 1 | |||||||||
Carrying value (pre-asset impairment) | 48,700,000 | 1,000,000 | 900,000 | ||||||||
Asset impairment loss (included in income from operations) | 4,882,000 | 42,987,000 | 0 | 0 | 303,000 | 310,000 | 0 | 0 | 47,869,000 | 613,000 | 504,000 |
Remaining net carrying value | 800,000 | 400,000 | 400,000 | ||||||||
Impaired long-term assets, net book value | 48,700,000 | 48,700,000 | |||||||||
Impaired long-term assets, estimated fair value | $800,000 | $800,000 | |||||||||
Impaired long-term assets, discount rate | 15.00% | 15.00% |
Net_Income_per_Share_Details
Net Income per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | |||||||||||
Net (loss) income (A) | ($25,228) | ($86,865) | ($10,384) | ($10,269) | ($7,239) | $5,048 | $3,679 | ($1,260) | ($132,746) | $228 | $25,369 |
Weighted average outstanding shares of common stock (B) | 28,129,596 | 30,209,928 | 34,430,641 | ||||||||
Dilutive effect of employee stock options and restricted stock units | 0 | 474,061 | 66,147 | ||||||||
Common stock and potential dilutive common shares (C) | 28,129,596 | 30,683,989 | 34,496,788 | ||||||||
Net (loss) income per share: | |||||||||||
Basic (A/B) (in dollars per share) | ($0.91) | ($3.10) | ($0.37) | ($0.36) | ($0.25) | $0.17 | $0.12 | ($0.04) | ($4.72) | $0.01 | $0.74 |
Diluted (A/C) (in dollars per share) | ($0.91) | ($3.10) | ($0.37) | ($0.36) | ($0.25) | $0.17 | $0.12 | ($0.04) | ($4.72) | $0.01 | $0.74 |
Net_Income_per_Share_Additiona
Net Income per Share (Additional Information) (Details) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Antidilutive shares not included in the net income per diluted share calculation | 3,746,721 | 1,225,819 | 3,529,249 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Inventory [Line Items] | ||
Net merchandise inventory | $257,469 | $298,542 |
Appliances [Member] | ||
Schedule of Inventory [Line Items] | ||
Net merchandise inventory | 119,396 | 134,053 |
Video [Member] | ||
Schedule of Inventory [Line Items] | ||
Net merchandise inventory | 94,441 | 108,193 |
Computing and mobile phones [Member] | ||
Schedule of Inventory [Line Items] | ||
Net merchandise inventory | 24,697 | 36,039 |
Other [Member] | ||
Schedule of Inventory [Line Items] | ||
Net merchandise inventory | $18,935 | $20,257 |
Debt_Summary_of_Debt_Details
Debt (Summary of Debt) (Details) (Revolving Credit Facility [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maturity date | 29-Jul-18 | |
Line of credit | $0 | $0 |
Debt_Additional_Information_De
Debt (Additional Information) (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $10,000,000 | $20,000,000 | |
Line of credit facility, defined borrowing base, minimum percentage | 50.00% | ||
Line of credit facility borrowing base percentage of liquidation value of all eligible inventory | 90.00% | ||
Line of credit facility borrowing base percentage of the net book value of eligible inventory | 90.00% | ||
Financial maintenance covenant, percentage of excess availability | 10.00% | ||
Financial maintenance covenant, excess availability | 20,000,000 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Financial maintenance covenant, percentage of excess availability | 12.50% | ||
Line of Credit Facility, Amount Outstanding | 0 | ||
Letter of credit outstanding | 6,500,000 | 5,300,000 | |
Line of credit facility, total borrowing availability | 134,600,000 | 169,500,000 | |
Line of credit, interest rate | 3.75% | 3.75% | |
Lower Limit [Member] | |||
Debt Instrument [Line Items] | |||
Unused line rate for a daily average greater than or equal to 50% of the defined borrowing base | 0.25% | ||
Upper Limit [Member] | |||
Debt Instrument [Line Items] | |||
Unused line rate for a daily average greater than or equal to 50% of the defined borrowing base | 0.38% | ||
Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Financial maintenance covenant, fixed charge coverage ratio | 1 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit | 0 | 0 | |
Line of credit facility, maximum borrowing capacity | $400,000,000 | $300,000,000 | |
Line of credit facility, maturity date | 29-Jul-18 |
Income_Taxes_Schedule_of_Incom
Income Taxes (Schedule of Income Tax Expense) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Current: | |||||||||||
Federal | ($9,949) | $1,528 | $6,448 | ||||||||
State | -692 | -246 | 2,008 | ||||||||
Total current | -10,641 | 1,282 | 8,456 | ||||||||
Deferred: | |||||||||||
Federal | 33,815 | -1,618 | 7,163 | ||||||||
State | 7,587 | 330 | 436 | ||||||||
Total deferred | 41,402 | -1,288 | 7,599 | ||||||||
Total expense (benefit) | $24 | $41,272 | ($6,231) | ($4,304) | ($4,691) | $3,120 | $2,382 | ($817) | $30,761 | ($6) | $16,055 |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferred Taxes) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |||
Deferred tax assets: | |||
Goodwill for tax purposes | $31,534 | $38,447 | |
Accrued expenses | 12,341 | 11,618 | |
Long-term deferred compensation | 2,281 | 2,344 | |
Inventories | 0 | 3,083 | |
Stock-compensation expense | 7,239 | 7,960 | |
Other | 2,303 | 3,856 | |
Tax Credit Carryforward, Amount | 6,509 | ||
Credit carryforwards | 239 | ||
Valuation allowance | 13,979 | 193 | |
Valuation allowance | -66,122 | -56,900 | 0 |
Total deferred tax assets | 10,064 | 67,740 | |
Deferred tax liabilities: | |||
Property and equipment | 2,986 | 25,180 | |
Deferred Tax Liabilities, Inventory | 5,903 | 0 | |
Other | 1,175 | 1,158 | |
Total deferred tax liabilities | 10,064 | 26,338 | |
Net deferred tax assets | $0 | $41,402 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Tax Credit Carryforward, Amount | $6,509,000 | ||
Tax credit carryforwards, alternative minimum tax | 5,500,000 | ||
Federal operating loss carryforward | 31,700,000 | ||
State operating loss carryforwards | 65,500,000 | ||
Statutory income tax rate | 35.00% | ||
Valuation allowance | $66,122,000 | $56,900,000 | $0 |
Income_Taxes_Effective_Income_
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Income Tax Disclosure [Abstract] | |||||||||||
Computed “expected†tax (benefit) expense | ($35,695) | $78 | $14,498 | ||||||||
State income tax (benefit) expense, net of federal income tax impact | -4,295 | 49 | 1,516 | ||||||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 66,122 | 0 | |||||||||
Valuation allowance | -66,122 | -56,900 | 0 | -66,122 | 0 | ||||||
Stock compensation | 2,254 | 26 | 0 | ||||||||
Other | 2,375 | -159 | 41 | ||||||||
Total expense (benefit) | $24 | $41,272 | ($6,231) | ($4,304) | ($4,691) | $3,120 | $2,382 | ($817) | $30,761 | ($6) | $16,055 |
Stockbased_Compensation_Black_
Stock-based Compensation (Black Scholes Model Weighted Average Assumptions) (Details) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate, minimum | 1.22% | 0.06% | 0.56% |
Risk-free interest rate, maximum | 1.60% | 1.53% | 0.69% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 57.00% | 63.00% | 61.90% |
Expected life of the options (years) | 4 years 6 months | 4 years 6 months | 4 years 6 months |
Stockbased_Compensation_Summar
Stock-based Compensation (Summary of Stock Option Plans Activity) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Number of Options Outstanding | |||
Vested or expected to vest at March 31, 2013, Number of Options Outstanding | 3,363,180 | ||
Exercisable at March 31, 2013, Number of Options Outstanding | 1,702,763 | ||
Weighted Average Exercise Price per Share | |||
Vested or expected to vest at March 31, 2013, Weighted Average Exercise Price per Share | $12.50 | ||
Exercisable at March 31, 2013, Weighted Average Exercise Price per Share | $13.87 | ||
Outstanding at March 31, 2013, Weighted Average Remaining Contractual Life | 4 years 2 months 16 days | ||
Vested or expected to vest at March 31, 2013, Weighted Average Remaining Contractual Life | 4 years 1 month 25 days | ||
Exercisable at March 31, 2013, Weighted Average Remaining Contractual Life | 2 years 8 months 24 days | ||
Outstanding at March 31, 2013, Aggregate Intrinsic Value | $26 | ||
Vested or expected to vest at March 31, 2013, Aggregate Intrinsic Value | 22 | ||
Exercisable at March 31, 2013, Aggregate Intrinsic Value | $0 | ||
Stock Options [Member] | |||
Number of Options Outstanding | |||
Beginning Balance, shares | 3,232,208 | ||
Granted, shares | 1,133,640 | 1,820,805 | 795,000 |
Exercised, shares | 0 | ||
Canceled, shares | -504,785 | ||
Expired, shares | -363,141 | ||
Ending Balance, shares | 3,497,922 | 3,232,208 | |
Weighted Average Exercise Price per Share | |||
Beginning Balance, in dollars per share | $13.61 | ||
Granted, in dollars per share | $8.61 | ||
Exercised, in dollars per share | $0 | ||
Canceled, in dollars per share | $11.02 | ||
Expired, in dollars per share | $13.10 | ||
Ending Balance, in dollars per share | $12.41 | $13.61 |
Stockbased_Compensation_Summar1
Stock-based Compensation (Summary of RSU Vesting Activity) (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended |
Mar. 31, 2015 | |
Restricted Stock Units (RSUs) [Member] | |
Shares | |
Beginning Balance | 143,503 |
Granted | 45,150 |
Vested | -56,100 |
Forfeited | -5,600 |
Ending Balance | 126,953 |
Weighted Average Grant-Date Fair Value | |
Beginning Balance | $12.72 |
Granted | $9.17 |
Vested | $14.16 |
Forfeited | $10.86 |
Ending Balance | $11.07 |
Weighted Average Remaining Contractual Life | 1 year 4 months 7 days |
Aggregate Intrinsic Value (in thousands) | $0 |
Stockbased_Compensation_Narrat
Stock-based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $4,623,000 | $4,428,000 | $5,150,000 |
Total intrinsic value of options exercised during the period | 0 | 2,600,000 | 1,600,000 |
Proceeds from exercise of stock options | 0 | 5,814,000 | 4,356,000 |
Total grant date fair value of stock options vested during the period | 4,100,000 | 2,600,000 | 5,300,000 |
Equity Incentive Plan 2007 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 9,000,000 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, granted | 1,133,640 | 1,820,805 | 795,000 |
Share-based compensation expense | 4,200,000 | 4,200,000 | 5,200,000 |
Share-based compensation expense, net of tax | 2,500,000 | 3,100,000 | |
Total unrecognized stock option compensation cost | 5,300,000 | ||
Unrecognized stock option compensation cost, period for recognition | 1 year 8 months | ||
Stock Options [Member] | Equity Incentive Plan 2007 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, vesting period | 3 years | ||
Options, expiration term | 7 years | ||
Options, weighted-average estimated fair value of options granted | $4.06 | $7.08 | $5.34 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized stock option compensation cost | $700,000 | ||
Unrecognized stock option compensation cost, period for recognition | 1 year 4 months 7 days | ||
Restricted stock units, granted | 45,150 | ||
Restricted stock units, weighted average grant date fair value | $11.07 | $12.72 | |
Restricted stock units, forfeited | 5,600 | ||
Restricted Stock Units (RSUs) [Member] | Equity Incentive Plan 2007 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units, granted | 45,150 | 30,595 | 93,900 |
Restricted stock units, vesting term | 3 years | ||
Restricted stock units, weighted average grant date fair value | $9.17 |
Stockbased_Compensation_Narrat1
Stock-based Compensation Narrative of Exchange Program (Details) (USD $) | 1 Months Ended | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Apr. 30, 2013 | Mar. 31, 2015 |
participants | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
ShareBasedCompensationArrangementByShareBasedPaymentAwardShareConversion | 1 | |
hgg_ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfPlanParticipants | 58 | |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 898,665 | |
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsPercentOfOptionsCancelled | 31.00% | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $1.40 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Stock Option Exchange Program [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $10 |
Leases_Schedule_of_Rent_Expens
Leases (Schedule of Rent Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Leases [Abstract] | |||
Minimum rentals | $90,773 | $91,174 | $89,407 |
Contingent rentals | 13 | 52 | 74 |
Total rent expense | $90,786 | $91,226 | $89,481 |
Leases_Schedule_of_Future_Mini
Leases (Schedule of Future Minimum Operating Lease Payments) (Details) (USD $) | Mar. 31, 2015 |
Leases [Abstract] | |
2014 | $90,797,000 |
2015 | 89,429,000 |
2016 | 84,606,000 |
2017 | 79,941,000 |
2018 | 71,298,000 |
Thereafter | 112,635,000 |
Total required payments | 528,706,000 |
Future minimum sublease rent income | $600,000 |
Employee_Benefit_Plans_401k_Re
Employee Benefit Plans (401(k) Retirement Savings Plan) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, age requirement | 21 years | ||
Defined contribution plan, hours worked requirement | 1000 hours | ||
Defined contribution plan, hours worked requirement, measurement period | 12 months | ||
Defined contribution plan, employer matching contribution, percent of match | 7.00% | ||
Defined contribution plan, employer discretionary contribution amount | $0.70 | $0.60 | $0.90 |
Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, maximum annual contribution per employee, percent | 1.00% | ||
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, maximum annual contribution per employee, percent | 12.00% |
Employee_Benefit_Plans_Deferre
Employee Benefit Plans (Deferred Compensation Plan) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Deferred Compensation Arrangement with Individual, Distributions Paid | $0.60 | $0.20 |
Deferred Compensation Arrangement with individual, Forfeitures | 0.2 | |
Executive Management [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Deferred compensation arrangement, compensation expense | 0.2 | |
2014 Compensation Plan [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Deferred Compensation Liability, Classified, Noncurrent | 1.4 | 0.7 |
2014 Compensation Plan [Member] | Executive Management [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Deferred compensation arrangement, compensation expense | 0.2 | 0.1 |
Frozen Compensation Plan [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Deferred Compensation Liability, Classified, Noncurrent | 4.5 | 5.3 |
Frozen Compensation Plan [Member] | Executive Management [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Deferred compensation arrangement, age requirement | 55 years | |
Deferred compensation arrangement, requisite service period | 10 years | |
Deferred compensation arrangement, compensation expense | $0.20 |
Interim_Financial_Results_Unau2
Interim Financial Results (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Effect of Fourth Quarter Events [Line Items] | |||||||||||
Net sales | $485,603 | $665,616 | $505,862 | $472,293 | $538,280 | $707,053 | $568,315 | $524,922 | $2,129,374 | $2,338,570 | $2,474,759 |
Cost of goods sold | 346,651 | 486,114 | 358,817 | 331,954 | 385,736 | 517,773 | 400,365 | 370,157 | 1,523,536 | 1,674,031 | 1,757,173 |
Gross profit | 138,952 | 179,502 | 147,045 | 140,339 | 152,544 | 189,280 | 167,950 | 154,765 | 605,838 | 664,539 | 717,586 |
Selling, general and administrative expenses | 120,127 | 132,563 | 119,112 | 116,589 | 121,892 | 132,360 | 120,389 | 119,309 | 488,391 | 493,950 | 507,755 |
Net advertising expense | 29,638 | 38,915 | 33,049 | 27,224 | 30,780 | 36,964 | 30,539 | 25,896 | 128,826 | 124,179 | 125,433 |
Depreciation and amortization expense | 8,840 | 10,062 | 10,823 | 10,475 | 10,891 | 10,785 | 10,406 | 11,038 | 40,200 | 43,120 | 40,135 |
Asset impairment charges | 4,882 | 42,987 | 0 | 0 | 303 | 310 | 0 | 0 | 47,869 | 613 | 504 |
(Loss) income from operations | -24,535 | -45,025 | -15,939 | -13,949 | -11,322 | 8,861 | 6,616 | -1,478 | -99,448 | 2,677 | 43,759 |
Interest expense | 678 | 615 | 678 | 629 | 609 | 695 | 557 | 604 | 2,600 | 2,465 | 2,344 |
Interest income | -9 | -47 | -2 | -5 | -1 | -2 | -2 | -5 | -63 | -10 | -9 |
Total other expense | 669 | 568 | 676 | 624 | 608 | 693 | 555 | 599 | 2,537 | 2,455 | 2,335 |
(Loss) income before income taxes | -25,204 | -45,593 | -16,615 | -14,573 | -11,930 | 8,168 | 6,061 | -2,077 | -101,985 | 222 | 41,424 |
Income tax expense (benefit) | 24 | 41,272 | -6,231 | -4,304 | -4,691 | 3,120 | 2,382 | -817 | 30,761 | -6 | 16,055 |
Net (loss) income | ($25,228) | ($86,865) | ($10,384) | ($10,269) | ($7,239) | $5,048 | $3,679 | ($1,260) | ($132,746) | $228 | $25,369 |
Basic (in dollars per share) | ($0.91) | ($3.10) | ($0.37) | ($0.36) | ($0.25) | $0.17 | $0.12 | ($0.04) | ($4.72) | $0.01 | $0.74 |
Diluted (in dollars per share) | ($0.91) | ($3.10) | ($0.37) | ($0.36) | ($0.25) | $0.17 | $0.12 | ($0.04) | ($4.72) | $0.01 | $0.74 |
Share_Repurchase_Program_Numbe
Share Repurchase Program (Number and Cost of Share Repurchased) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Equity, Class of Treasury Stock [Line Items] | |||
Cost of shares repurchased | $5,281 | $49,145 | $48,232 |
May 2012 Program [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Number of shares repurchased | 835,510 | 0 | |
Cost of shares repurchased | 5,281 | 0 | |
May 2011 Program [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Number of shares repurchased | 0 | 3,488,882 | |
Cost of shares repurchased | $0 | $49,145 |
Share_Repurchase_Program_Narra
Share Repurchase Program (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 22-May-14 | Mar. 31, 2015 | 14-May-15 |
Schedule of Share Repurchase Program [Line Items] | |||
Common stock share repurchase program, expiration date | 20-May-15 | ||
Common stock share repurchase program, remaining authorized amount | $34.70 | ||
Scenario, Forecast [Member] | |||
Schedule of Share Repurchase Program [Line Items] | |||
Common stock share repurchase program, authorized amount | $40 |