0000950170-22-002646 | 10-K | XBRL Viewer | BIG 5 Sporting Goods Corp

Description of Business

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Description of Business

Big 5 Sporting Goods Corporation (the “Company”) is a leading sporting goods retailer in the western United States, operating 431 stores and an e-commerce platform as of January 2, 2022. The Company provides a full-line product offering in a traditional sporting goods store format that averages approximately 11,000 square feet. The Company’s product mix includes athletic shoes, apparel and accessories, as well as a broad selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, home recreation, tennis, golf, and winter and summer recreation. The Company is a holding company that operates as one reportable segment under the “Big 5 Sporting Goods” name through Big 5 Corp., its 100%-owned subsidiary, and Big 5 Services Corp., which is a 100%-owned subsidiary of Big 5 Corp. Big 5 Services Corp. provides a centralized operation for the issuance and administration of gift cards and returned merchandise credits (collectively, “stored-value cards”).

The Company’s consolidated financial statements as of January 2, 2022 and January 3, 2021 and for the years ended January 2, 2022 (“fiscal 2021”) and January 3, 2021 (“fiscal 2020”) represent the financial position, results of operations and cash flows of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

Summary of Significant Accounting Policies

12 Months Ended

Jan. 02, 2022

Summary of Significant Accounting Policies

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Summary of Significant Accounting Policies

Consolidation

The accompanying consolidated financial statements include the accounts of Big 5 Sporting Goods Corporation, Big 5 Corp. and Big 5 Services Corp. Intercompany balances and transactions have been eliminated in consolidation.

Reporting Period

The Company follows the concept of a 52-53 week fiscal year, which ends on the Sunday nearest December 31. Fiscal 2021 included 52 weeks and fiscal 2020 included 53 weeks.

Recently Issued Accounting Updates

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This standard provides optional guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this standard apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The amendments in this standard are elective and are effective upon issuance for all entities, and the impact from this standard was immaterial.

Other recently issued accounting updates are not expected to have a material impact on the Company’s consolidated financial statements.

COVID-19 Impact on Concentration of Risk

The novel coronavirus (“COVID-19”) pandemic has significantly impacted health and economic conditions throughout the United States and globally, as public concern about becoming ill with the virus has led to the issuance of recommendations and/or mandates from federal, state and local authorities to practice social distancing or self-quarantine.

The Company primarily operates traditional sporting goods retail stores located in the western United States, with approximately 52% of its stores, along with its corporate offices and distribution center, located in California. Because of this, the Company is subject to regional risks, including the impact of the COVID-19 outbreak. Beginning on March 20, 2020, and continuing into the second quarter of fiscal 2020, the Company temporarily closed more than one-half of its retail store locations in response to state and local shelter orders related to the COVID-19 outbreak. The Company was subsequently able to gradually reopen its store locations based on initially qualifying as an “essential” business under applicable regulations and later as a result of the easing of regulatory restrictions on retail operations in the Company’s market areas. In an effort to promote social distancing protocols, the Company implemented reduced store hours, limited the number of customers in its stores at any one time and generally implemented social-distancing guidelines throughout the store operating space in fiscal 2020. As of the end of fiscal 2020 and during fiscal 2021, all of the Company’s stores were open for in-store shopping with reduced operating hours and certain COVID-19-related protocols in place. The Company may further restrict its store operations and operations in its distribution facility if deemed necessary or if recommended or mandated by authorities, and new temporary closures of stores or new safety protocols may be required if additional orders are issued in response to changing health conditions.

A substantial amount of the Company’s inventory is manufactured abroad. COVID-19, and surging consumer demand initially associated with the pandemic, has also impacted the Company’s supply chain for products sold, particularly those products that are sourced from Asia. To the extent one or more vendors is negatively impacted by continued supply chain disruptions or by COVID-19, including due to interruptions at or closure of those vendors’ distribution centers or manufacturing facilities, or the Company or its vendors are unable to obtain the necessary shipping capacity to transport products to the Company’s distribution center, the Company may be unable to maintain delivery schedules or adequate inventory in its stores. During the second half of fiscal 2021, the Company experienced significant shipping delays of products sourced from overseas vendors to be received at the Ports of Los Angeles and Long Beach, which reflected increased shipping volume and insufficient labor resources at the ports that have significantly increased cargo backlogs. These factors, in addition to workforce shortages in the trucking industry, have limited the Company’s ability to obtain desired quantities of inventory for various merchandise categories. While the Company has generally been able to sufficiently stock product in its stores to meet most consumer demand during the pandemic, future prolonged and sustained delays in product reaching the Company’s stores from overseas vendors, particularly during the holiday season, could result in the inability to obtain adequate levels of merchandise inventories to meet consumers’ needs, which could have an adverse impact on net sales and profitability.

General Concentration of Risk

The Company maintains its cash accounts in financial institutions, and accounts at these institutions are insured by the Federal Deposit Insurance Corporation up to $250,000. Cash equivalents represent investments of excess cash on hand of $75.0 million and $50.0 million into U.S. Treasury bills as of January 2, 2022 and January 3, 2021, respectively.

Because of the Company’s geographic concentration in the western United States, the Company is subject to regional risks, such as the economy, including downturns in the housing market, state financial conditions, unemployment and gas prices. Other regional risks include weather conditions, fires, droughts, earthquakes, power outages, floods and other natural disasters specific to the states in which the Company operates.

The Company relies on a single distribution center located in Riverside, California, which services all of its stores and e-commerce platform. Any natural disaster or other serious disruption to the distribution center due to fire, earthquake or any other cause could damage a significant portion of inventory and could materially impair the Company’s ability to adequately stock its stores and fulfill its e-commerce business.

A substantial amount of the Company’s inventory is manufactured abroad. From time to time, shipping ports experience capacity constraints (such as delays associated with COVID-19), labor strikes, work stoppages or other disruptions that may delay the delivery of imported products. A contract dispute may lead to protracted delays in the movement of the Company’s products, which could further delay the delivery of products to the Company’s stores and impact net sales and profitability. In addition, other conditions outside of the Company’s control, such as adverse weather conditions or acts of terrorism, could significantly disrupt operations at shipping ports or otherwise impact transportation of the imported merchandise we sell.

The Company purchases merchandise from over 700 suppliers, and the Company’s 20 largest suppliers accounted for 36.8% of total purchases in fiscal 2021. One vendor represented greater than 5% of total purchases, at 7.6%, in fiscal 2021. A significant portion of the Company’s inventory is manufactured abroad in Asia. Foreign imports subject the Company to the risks of changes in, or the imposition of new, import tariffs, duties or quotas, new restrictions on imports, loss of “most favored nation” status with the United States for a particular foreign country, antidumping or countervailing duty orders, retaliatory actions in response to illegal trade practices, work stoppages, delays in shipment, freight expense increases, product cost increases due to foreign currency fluctuations or revaluations, public health issues that could lead to temporary closures of facilities or shipping ports, such as the recent outbreak of COVID-19, and other economic uncertainties. If a disruption of trade were to occur from the countries in which the suppliers of the Company’s vendors are located, the Company may be unable to obtain sufficient quantities of products to satisfy its requirements, or the cost of obtaining products may increase.

In early fiscal 2021, the Company was informed of an expansion of Nike’s direct-to-consumer initiatives that will impact certain multi-branded retailers, including the Company, and which will lead to a significant reduction in the Company’s future supply chain relative to this vendor. This transition is not expected to impact the Company’s ability to continue to purchase certain Nike branded products from authorized licensees. The Company is actively expanding its relationships with other new and existing vendors in an effort to replace the affected Nike product within its product mix.

The Company could be exposed to credit risk in the event of nonperformance by its lender under its revolving credit facility. Instability in the financial and capital markets could bring additional potential risks to the Company, including higher costs of credit, potential lender defaults, and potential commercial bank failures. The Company has received no indication that any such events will negatively impact its lender under its credit facility; however, the possibility does exist.

Use of Estimates

Management makes a number of estimates and assumptions relating to the reporting of assets, liabilities and stockholders’ equity and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expense during the reporting period to prepare these consolidated financial statements in conformity with GAAP. Certain items subject to such estimates and assumptions include the carrying amount of merchandise inventories, property and equipment, lease assets and lease liabilities; valuation allowances for receivables, sales returns and deferred income tax assets; estimates related to stored-value cards and the valuation of share-based compensation awards; and obligations related to litigation, self-insurance liabilities and employee benefits. Due to the inherent uncertainty involved in making assumptions and estimates, events and changes in circumstances arising after January 2, 2022, including those resulting from the impacts of the COVID-19 pandemic, may result in actual outcomes that differ from those contemplated by management’s assumptions and estimates.

Segment Reporting

The Company operates solely as a sporting goods retailer, which includes both retail stores and an e-commerce platform, that offers a broad range of products in the western United States and online, and whose Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer. The CODM reviews financial information presented on a consolidated basis, for purposes of allocating resources and evaluating financial performance. The Company’s stores typically have similar square footage, with the stores and e-commerce platform offering a similar general product mix. The Company’s core customer demographic remains similar across all sales channels, as does the Company’s process for the procurement and marketing of its product mix. Furthermore, the Company distributes its product mix for both the stores and e-commerce platform from a single distribution center. Given the consolidated level of review by the CODM, the Company operates as one reportable segment as defined by ASC 280, Segment Reporting.

Earnings Per Share

The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share, which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share is calculated by dividing net income by the weighted-average shares of common stock outstanding, reduced by shares repurchased and held in treasury, during the period. Diluted earnings per share represents basic earnings per share adjusted to include the potentially dilutive effect of outstanding share option awards, nonvested share awards and nonvested share unit awards.

Revenue Recognition

The Company operates solely as a sporting goods retailer, which includes both retail stores and an e-commerce platform, that offers a broad range of products in the western United States and online. Generally, all revenue is recognized when control of the promised goods is transferred to customers, in an amount that reflects the consideration in exchange for those goods. Accordingly, the Company implicitly enters into a contract with customers to deliver merchandise inventory at the point of sale. Collectability is reasonably assured since the Company only extends immaterial credit purchases to certain municipalities and local school districts.

As noted in the segment information elsewhere in this Note 2 to the Notes to Consolidated Financial Statements, the Company’s business consists of one reportable segment. In accordance with ASC 606, Revenue from Contracts with Customers, the Company disaggregates net sales into the following major merchandise categories to depict the nature and amount of revenue and related cash flows:


	Year Ended
	January 2, 2022		January 3, 2021
	(In thousands)
Hardgoods	$	637,181	$	623,728
Athletic and sport footwear		279,645		228,311
Athletic and sport apparel		241,526		184,538
Other sales		3,468		4,635
Net sales	$	1,161,820	$	1,041,212

Substantially all of the Company’s revenue is for single performance obligations for the following distinct items:

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Retail store sales

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E-commerce sales

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Stored-value cards

For performance obligations related to retail store and e-commerce sales contracts, the Company typically transfers control, for retail stores, upon consummation of the sale when the product is paid for and taken by the customer and, for e-commerce sales, when the product is tendered for delivery to the common carrier. For performance obligations related to stored-value cards, the Company typically transfers control upon redemption of the stored-value card through consummation of a future sales transaction.

The transaction price for each contract is the stated price on the product, reduced by any stated discounts at that point in time. The Company does not engage in sales of products that attach a future material right which could result in a separate performance obligation for the purchase of goods in the future at a material discount. The implicit point-of-sale contract with the customer, as reflected in the transaction receipt, states the final terms of the sale, including the description, quantity, and price of each product purchased. Payment for the Company’s contracts is due in full upon delivery. The customer agrees to a stated price implicit in the contract.

The transaction price relative to sales subject to a right of return reflects the amount of estimated consideration to which the Company expects to be entitled. This amount of variable consideration included in the transaction price, and measurement of net sales, is included in net sales only to the extent that it is probable that there will be no significant reversal in a future period. Actual amounts of consideration ultimately received may differ from the Company’s estimates. There were no material adjustments to the Company’s previous estimates. The allowance for sales returns is estimated based upon historical experience and a provision for estimated returns is recorded as a reduction in sales in the relevant period. The estimated right-of-return merchandise cost related to the sales returns is recorded as prepaid expense in the Company’s consolidated balance sheet as of January 2, 2022. If actual results in the future vary from the Company’s estimates, the Company adjusts these estimates, which would affect net sales and earnings in the period such variances become known.

The Company has elected to apply the practical expedient, relative to e-commerce sales, which allows an entity to account for shipping and handling as fulfillment activities, and not a separate performance obligation. Accordingly, the Company recognizes revenue for only one performance obligation, the sale of the product, at shipping point (when the customer gains control). Revenue associated with e-commerce sales is not material.

Contract liabilities are recognized primarily for stored-value card sales. Cash received from the sale of stored-value cards is recorded as a contract liability in accrued expenses in the Company’s consolidated balance sheets, and the Company recognizes revenue upon the customer’s redemption of the stored-value card. Stored-value card breakage is recognized as revenue in proportion to the pattern of customer redemptions by applying a historical breakage rate of five percent. The Company does not sell or provide stored-value cards that carry expiration dates.

The Company recognized $5.9 million and $5.4 million in stored-value card redemption revenue for fiscal 2021 and 2020, respectively. The Company also recognized $0.3 million in stored-value card breakage revenue for each of fiscal 2021 and 2020. The Company had outstanding stored-value card liabilities of $8.3 million and $7.5 million as of January 2, 2022 and January 3, 2021, respectively, which are included in accrued expenses in the Company’s consolidated balance sheets. Based upon historical experience, stored-value cards are predominantly redeemed in the first two years following their issuance date.

The Company recorded, as prepaid expense in the Company’s consolidated balance sheets, estimated right-of-return merchandise cost of $1.2 million related to estimated sales returns as of January 2, 2022 and January 3, 2021, and recorded, as accrued expense in the Company’s consolidated balance sheets, an allowance for sales returns reserve of $2.5 million and $2.4 million as of January 2, 2022 and January 3, 2021, respectively.

Cost of Sales

Cost of sales includes the cost of merchandise, net of discounts or allowances earned, freight (including e-commerce shipping and handling costs), inventory reserves, buying, distribution center expense, including depreciation and amortization, and store occupancy expense. Store occupancy expense includes rent, amortization of leasehold improvements, common area maintenance, property taxes and insurance.

Selling and Administrative Expense

Selling and administrative expense includes store-related expense, other than store occupancy expense, as well as advertising, depreciation and amortization, expense associated with operating the Company’s corporate headquarters and impairment charges, if any.

Vendor Allowances

The Company receives allowances for co-operative advertising and volume purchase rebates earned through programs with certain vendors. The Company records a receivable for these allowances which are earned but not yet received when it is determined the amounts are probable and reasonably estimable. Amounts relating to the purchase of merchandise are treated as a reduction of inventory cost and reduce cost of goods sold as the merchandise is sold. After reducing advertising significantly in fiscal 2021 and 2020 in response to the COVID-19 pandemic, beginning in the second half of fiscal 2020, amounts that represent a reimbursement of costs incurred, such as advertising, are recorded as a reduction of inventory cost and reduce cost of goods sold as the merchandise is sold. These amounts were previously recorded as a reduction to selling and administrative expense.

Advertising Expense

Advertising is expensed when the advertising first occurs. Advertising expense, net of co-operative advertising allowances, amounted to $11.0 million and $10.6 million for fiscal 2021 and 2020, respectively. The Company reduced advertising significantly in fiscal 2021 and 2020 in response to the COVID-19 pandemic. Advertising expense is included in selling and administrative expense in the Company’s consolidated statements of operations. The Company receives co-operative advertising allowances from certain product vendors in order to subsidize qualifying advertising and similar promotional expenditures made relating to vendors’ products. Co-operative advertising allowances recognized as a reduction to selling and administrative expense amounted to zero and $1.1 million for fiscal 2021 and 2020, respectively. Beginning in the second half of fiscal 2020, as a result of the significant reductions of print advertising in fiscal 2021 and 2020, the Company treated these advertising allowances as a reduction of inventory cost and cost of goods sold which had an immaterial effect on the Company’s consolidated financial statements.

Share-Based Compensation

The Company accounts for its share-based compensation in accordance with ASC 718, Compensation—Stock Compensation. The Company recognizes compensation expense on a straight-line basis over the requisite service period using the fair-value method for share option awards, nonvested share awards and nonvested share unit awards granted with service-only conditions. See Note 13 to the Notes to Consolidated Financial Statements for a further discussion on share-based compensation.

Pre-opening Costs

Pre-opening costs for new stores, which are not material, consist primarily of payroll and recruiting expense, training, marketing, rent, travel and supplies, and are expensed as incurred.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and highly liquid investments of excess cash into U.S. Treasury bills, which have maturities of 90 days or less. See Note 4 to the Notes to Consolidated Financial Statements for a further discussion on the fair value of U.S. Treasury bills. Book overdrafts are classified as current liabilities in the Company’s consolidated balance sheets.

Accounts Receivable

Accounts receivable consist primarily of third party purchasing card receivables, amounts due from inventory vendors for returned products, volume purchase rebates or co-operative advertising, amounts due from lessors for tenant improvement allowances and insurance recovery receivables. Accounts receivable have not historically resulted in any material credit losses. An allowance for doubtful accounts is provided when accounts are determined to be uncollectible.

Valuation of Merchandise Inventories, Net

The Company’s merchandise inventories are made up of finished goods and are valued at the lower of cost or net realizable value using the weighted-average cost method that approximates the first-in, first-out (“FIFO”) method. Average cost includes the direct purchase price of merchandise inventory, net of vendor allowances and cash discounts, in-bound freight-related expense and allocated overhead expense associated with the Company’s distribution center.

Management regularly reviews inventories and records valuation reserves for damaged and defective merchandise, merchandise items with slow-moving or obsolescence exposure and merchandise that has a carrying value that exceeds net realizable value. Because of its merchandise mix, the Company has not historically experienced significant occurrences of obsolescence.

Inventory shrinkage is accrued as a percentage of merchandise sales based on historical inventory shrinkage trends. The Company performs physical inventories of its stores at least once per year and cycle counts inventories at its distribution center throughout the year. The reserve for inventory shrinkage primarily represents an estimate for inventory shrinkage for each store since the last physical inventory date through the reporting date.

These reserves are estimates, which could vary significantly, either favorably or unfavorably, from actual results if future economic conditions, consumer demand and competitive environments differ from expectations.

Prepaid Expenses and Other Assets

Prepaid expenses include the prepayment of various operating expenses such as insurance, income and property taxes, software maintenance and supplies, which are expensed when the operating cost is realized, as well as estimated right-of-return merchandise cost related to estimated sales returns.

Other assets include the long-term portion of certain prepaid expenses, capitalized deferred financing fees related to the Company’s credit facility and capitalized implementation costs related to hosting arrangements that are service contracts. While deferred financing fees and implementation costs are capitalized and amortized over the respective terms of their arrangements, costs related to the service element of a hosting arrangement that is a service contract are expensed as incurred.

Property and Equipment, Net

Property and equipment are stated at cost and are being depreciated or amortized utilizing the straight-line method over the following estimated useful lives:


Land		Indefinite
Buildings		20 years
Leasehold improvements		Shorter of estimated useful life or term of lease
Furniture and equipment		3 – 10 years
Internal-use software		3 – 7 years

Maintenance and repairs are expensed as incurred.

The Company incurs costs to purchase and develop software for internal use. Costs related to the application development stage are capitalized and amortized over the estimated useful life of the software. Costs related to the design or maintenance of internal-use software are expensed as incurred. See Note 3 to the Notes to Consolidated Financial Statements for a further discussion on property and equipment.

Valuation of Long-Lived Assets

In accordance with ASC 360, Property, Plant, and Equipment, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Long-lived assets are reviewed for recoverability at the lowest level in which there are identifiable cash flows (“asset group”), usually at the store level. The carrying amount of a store asset group includes stores’ property and equipment, primarily leasehold improvements, and operating lease ROU assets. The carrying amount of a store asset group is not considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the store asset group. Factors that could trigger an impairment review include a current-period operating or cash flow loss combined with a history of operating or cash flow losses, and a projection that demonstrates continuing losses or insufficient income over the remaining reasonably certain lease term associated with the use of a store asset group. Other factors may include an adverse change in the business climate or an adverse action or assessment by a regulator in the market of a store asset group. When stores are identified as having an indicator of impairment, the Company forecasts undiscounted cash flows over the store asset group’s remaining reasonably certain lease term and compares the undiscounted cash flows to the carrying amount of the store asset group. If the store asset group is determined not to be recoverable, then an impairment charge will be recognized in the amount by which the carrying amount of the store asset group exceeds its fair value, determined using discounted cash flow valuation techniques, as contemplated in ASC 820, Fair Value Measurements.

The Company determines the cash flows expected to result from the store asset group by projecting future revenue, gross margin and operating expense for each store asset group under evaluation for impairment. The estimates of future cash flows involve management judgment and are based upon assumptions about expected future operating performance. Assumptions used in these forecasts are consistent with internal planning, and include assumptions about sales growth rates, gross margins and operating expense in relation to the current economic environment and the Company’s future expectations, competitive factors in its various markets, inflation, sales trends and other relevant environmental factors that may impact the store under evaluation. The actual cash flows could differ from management’s estimates due to changes in business conditions, operating performance and economic conditions. If economic conditions deteriorate in the markets in which the Company conducts business, or if other negative market conditions develop, the Company may experience additional impairment charges in the future for underperforming stores.

The resulting impairment charge, if any, is allocated to the property and equipment, primarily leasehold improvements, and operating lease ROU assets on a pro rata basis using the relative carrying amounts of those assets. The allocated impairment charge to a long-lived asset is limited to the extent that the impairment charge does not reduce the carrying amount of the long-lived asset below its individual fair value. The estimation of the fair value of an ROU asset involves the evaluation of current market value rental amounts for leases associated with ROU assets. The estimates of current market value rental amounts are primarily based on recent observable market rental data of other comparable retail store locations. The fair value of an ROU asset is measured using a discounted cash flow valuation technique by discounting the estimated current and future market rental values using a property-specific discount rate.

In fiscal 2021 and 2020, the Company recognized no non-cash impairment charges. Impairment charges, if any, represent property and equipment, primarily leasehold improvements, and are included in selling and administrative expense in the Company’s consolidated statements of operations.

Leases

In accordance with ASC 842, Leases, the Company determines if an arrangement is a lease at inception. The Company has operating and finance leases for the Company’s retail store facilities, distribution center, corporate offices, information technology hardware, and distribution center delivery tractors and equipment. Operating leases are included in operating lease ROU assets and operating lease liabilities, current and noncurrent, on the Company’s consolidated balance sheets. Finance leases are included in property and equipment and finance lease liabilities, current and noncurrent, on the Company’s consolidated balance sheets. Lease liabilities are calculated using the effective interest method, regardless of classification, while the amortization of ROU assets varies depending upon classification. Finance lease classification results in a front-loaded expense recognition pattern over the lease term which amortizes the ROU asset by recognizing interest expense and amortization expense as separate components of lease expense and calculates the amortization expense component on a straight-line basis. Conversely, operating lease classification results in a straight-line expense recognition pattern over the lease term and recognizes lease expense as a single expense component, which results in amortization of the ROU asset that equals the difference between lease expense and interest expense. Lease expense for finance and operating leases are included in cost of sales or selling and administrative expense, based on the use of the leased asset, on the Company’s consolidated statement of operations. Variable payments such as property taxes, insurance and common area maintenance related to triple net leases, as well as certain equipment sales taxes, licenses, fees and repairs, are expensed as incurred, and leases with an initial term of 12 months or less are excluded from minimum lease payments and are not recorded on the Company’s consolidated balance sheets. The Company recognizes variable lease expense for these short-term leases on a straight-line basis over the remaining lease term.

ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the reasonably certain lease term. As the Company’s leases generally do not provide an implicit rate, the Company uses a collateralized incremental borrowing rate (“IBR”) to determine the present value of lease payments. The collateralized IBR is based on a synthetic credit rating that is externally prepared on an annual basis. This analysis considers qualitative and quantitative factors based on guidance provided by a rating agency for the consumer durables industry. The Company adjusts the selected IBR quarterly with a company-specific unsecured yield curve that approximates the Company’s market risk profile. The collateralized IBR is also based upon the estimated impact that the collateral has on the IBR. To account for the collateralized nature of the IBR, the Company utilized a notching method based on notching guidance provided by a rating agency whereby the Company’s base credit rating is notched upward as the yield curve on a secured loan is expected to be lower versus an unsecured loan.

The operating lease ROU asset also includes any prepaid lease payments made and is reduced by lease incentives such as tenant improvement allowances. The operating lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term.

Certain of the leases for the Company’s retail store facilities provide for payments based on future sales volumes at the leased location, which are not measurable at the inception of the lease. Under ASC 842, these contingent rents are expensed as they accrue.

In response to the large volume of anticipated lease concessions to be granted related to the effects of the COVID-19 pandemic, and the resultant expected cost and complexity of applying the lease modification requirements in ASC 842, the FASB issued Staff Q&A—Topic 842 and Topic 840: Accounting For Lease Concessions Related to the Effects of the COVID-19 Pandemic, in April 2020 as interpretive guidance to provide clarity in response to the crisis. The FASB staff indicated that it would be acceptable for entities to make an election to account for lease concessions related to the effects of the COVID-19 pandemic consistent with how they would be accounted for as though enforceable rights and obligations for those concessions existed in the original contract. Consequently, for such lease concessions, an entity will not need to reassess each existing contract to determine whether enforceable rights and obligations for concessions exist and an entity can elect to apply or not to apply the lease modification guidance in ASC 842 to those contracts. The election is available for concessions related to the effects of the COVID-19 pandemic that result in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract.

In accordance with this interpretive guidance, the Company elected to account for lease concessions related to the effects of the COVID-19 pandemic that resulted in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract consistent with how they would be accounted for as though enforceable rights and obligations for those concessions existed in the original contract. Consequently, for such lease concessions, the Company did not reassess each existing contract to determine whether enforceable rights and obligations for concessions existed and elected not to apply the lease modification guidance in ASC 842 to those contracts. The Company accounted for COVID-19 lease abatements of $3.1 million in fiscal 2020 as reductions to variable lease expense and accounted for lease deferrals of $0.1 million and $0.6 million as of January 2, 2022 and January 3, 2021, respectively, as if no changes to the lease contract were made while continuing to recognize expense during the deferral period and deferring the payment obligation as a liability.

See Note 6 to the Notes to Consolidated Financial Statements for a further discussion on leases.

Self-Insurance Liabilities

The Company is self-insured for its various insurance risks including its estimated workers’ compensation liability risk in certain states. The Company also has a self-funded insurance program for a portion of its employee medical benefits. Under these programs, the Company maintains insurance coverage for losses in excess of specified per-occurrence amounts. Estimated expenses incurred under the self-insured workers’ compensation and medical benefits programs, including incurred but not reported claims, are recorded as expense based upon historical experience, trends of paid and incurred claims, and other actuarial assumptions. If actual claims trends under these programs, including the severity or frequency of claims, differ from the Company’s estimates, its financial results may be significantly impacted. The Company’s actuarially-estimated self-insurance liabilities, which are reported gross of expected workers’ compensation insurance reimbursements, are classified on the Company’s consolidated balance sheets as accrued expenses or other long-term liabilities based upon whether they are expected to be paid during or beyond the normal operating cycle of 12 months from the date of the Company’s consolidated financial statements. Self-insurance liabilities totaled $10.2 million and $11.0 million as of January 2, 2022 and January 3, 2021, respectively, of which $4.4 million and $4.8 million were recorded as a component of accrued expenses as of January 2, 2022 and January 3, 2021, respectively, and $5.8 million and $6.2 million were recorded as a component of other long-term liabilities as of January 2, 2022 and January 3, 2021, respectively, in the Company’s consolidated balance sheets.

Income Taxes

Under the asset and liability method prescribed within ASC 740, Income Taxes, the Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. 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 realized or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The realizability of deferred tax assets is assessed throughout the year and a valuation allowance is recorded if necessary to reduce net deferred tax assets to the amount more likely than not to be realized. Certain prior period deferred tax disclosures were reclassified to conform with current period presentation.

ASC 740 provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. ASC 740 also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

The Company’s practice is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in selling and administrative expense in the Company’s consolidated statements of operations. As of January 2, 2022 and January 3, 2021, the Company had no accrued interest or penalties. See Note 8 to the Notes to Consolidated Financial Statements for a further discussion on income taxes.

Treasury Stock Purchases

The Company repurchases its common stock in the open market pursuant to programs approved by its Board of Directors. In fiscal 2016, the Board of Directors authorized a share repurchase program for the purchase of up to $25.0 million of the Company’s common stock, which was in effect through the fourth quarter of fiscal 2021 and under which a total of $7.7 million remained available for share repurchases as of January 2, 2022. In the first quarter of fiscal 2022, the Board of Directors authorized a new share repurchase program of up to $25.0 million of our common stock, which replaced the previous share repurchase program. Under these programs, the Company may purchase shares from time to time in the open market or in privately negotiated transactions in compliance with the applicable rules and regulations of the Securities and Exchange Commission. The Company may repurchase its common stock for a variety of reasons, including, among other things, its alternative cash requirements, existing business conditions and the current market price of its stock. However, the timing and amount of such purchases, if any, would be at the discretion of management and the Board of Directors. The Company repurchased 361,323 shares of common stock in fiscal 2021, and repurchased no shares of common stock in fiscal 2020.

Property and Equipment, Net

12 Months Ended

Jan. 02, 2022

Property Plant And Equipment [Abstract]

Property and Equipment, Net

(3)

Property and Equipment, Net

Property and equipment, net, consist of the following:


	January 2, 2022			January 3, 2021
	(In thousands)
Leasehold improvements	$	176,066		$	170,701
Furniture and equipment		142,638			134,623
Internal-use software		37,188			37,147
Land		2,750			2,750
Building		1,775			1,775
		360,417			346,996
Accumulated depreciation and amortization (1)		(301,852	)		(290,638	)
		58,565			56,358
Assets not placed into service		1,836			887
Property and equipment, net	$	60,401		$	57,245

(1)

Includes accumulated amortization for internal-use software development costs of $32.7 million and $30.8 million as of January 2, 2022 and January 3, 2021, respectively.

Depreciation expense associated with property and equipment, including assets leased under finance leases, was $7.6 million and $6.7 million for fiscal 2021 and 2020, respectively. Amortization expense for leasehold improvements was $8.0 million and $8.9 million for fiscal 2021 and 2020, respectively. Amortization expense for internal-use software was $2.1 million and $2.9 million for fiscal 2021 and 2020, respectively. The gross cost of equipment under finance leases, included above, was $16.5 million and $10.1 million as of January 2, 2022 and January 3, 2021, respectively. The accumulated depreciation related to these finance leases was $6.1 million and $5.5 million as of January 2, 2022 and January 3, 2021, respectively.

Fair Value Measurements

12 Months Ended

Jan. 02, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

(4)

Fair Value Measurements

The carrying values of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate the fair values of these instruments due to their short-term nature. Cash equivalents consist of highly liquid investments of excess cash into U.S. Treasury bills, which have maturities of 90 days or less. As of January 2, 2022 and January 3, 2021, the Company recorded $75.0 million and $50.0 million, respectively, in cash equivalents, and classified these assets as Level 1 inputs, which are quoted prices (unadjusted) in active markets for identical assets that the Company can access at the measurement date. The Company records these cash equivalents monthly, based on the prevailing market interest rate as of the measurement date. Book overdrafts for checks outstanding are classified as current liabilities in the Company’s consolidated balance sheets. The carrying amount for borrowings, if any, under the Company’s credit facility approximates fair value because of the variable market interest rate charged to the Company for these borrowings. When the Company recognizes impairment on certain of its underperforming stores, the carrying values of these stores are reduced to their estimated fair values.

The Company’s only significant assets or liabilities measured at fair value on a nonrecurring basis subsequent to their initial recognition were assets subject to long-lived asset impairment related to certain underperforming stores. The Company estimates the fair values of these long-lived assets based on the Company’s own judgments about the assumptions that market participants would use in pricing the asset and on observable real estate market data of underperforming stores’ specific comparable markets, when available. The Company classifies these fair value measurements as Level 3 inputs, which are unobservable inputs for which market data are not available and that are developed using the best information available about pricing assumptions used by market participants in accordance with ASC 820. As of January 2, 2022, there were no long-lived assets subject to impairment, and as of January 3, 2021, these long-lived assets were immaterial.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Accrued Expenses

12 Months Ended

Jan. 02, 2022

Payables And Accruals [Abstract]

Accrued Expenses

(5)

Accrued Expenses

The major components of accrued expenses are as follows:


	January 2, 2022		January 3, 2021
	(In thousands)
Payroll and related expense	$	37,345	$	37,826
Sales tax		12,112		11,609
Occupancy expense		10,168		10,215
Other		25,416		23,227
Accrued expenses	$	85,041	$	82,877

Payroll and related expense as of January 2, 2022 and January 3, 2021 reflected a deferral of the employer portion of Social Security tax provided by the U.S. Coronavirus Aid, Relief and Economic Security (“CARES”) Act, which allowed employers to defer their portion of the social security payroll tax otherwise due with respect to wages earned from March 27, 2020 through December 31, 2020.

Lease Commitments

12 Months Ended

Jan. 02, 2022

Leases [Abstract]

Lease Commitments

(6)

Lease Commitments

The Company has operating and finance leases for the Company’s retail store facilities, distribution center, corporate offices, information technology hardware, and distribution center delivery tractors and equipment, and accounts for these leases in accordance with ASC 842. The Company’s operating leases have remaining reasonably certain lease terms of up to 13 years, which typically include options to extend the leases for up to 5 years. The Company’s finance leases have remaining reasonably certain lease terms of up to 6 years.

Certain of the leases for the Company’s retail store facilities provide for variable payments for property taxes, insurance, common area maintenance payments related to triple net leases, rental payments based on future sales volumes at the leased location, as well as certain equipment sales taxes, licenses, fees and repairs, which are not measurable at the inception of the lease, or rental payments that are adjusted periodically for inflation. The Company recognizes variable lease expense for these leases in the period incurred which, for contingent rent, begins in the period in which it becomes probable that the specified target that triggers the variable lease payments will be achieved. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

In accordance with ASC 842, the components of lease expense were as follows:


	Year Ended
	January 2, 2022			January 3, 2021
	(In thousands)
Lease expense:
Amortization of right-of-use assets	$	2,940		$	2,721
Interest on lease liabilities		260			297
Finance lease expense		3,200			3,018
Operating lease expense		81,734			83,030
Variable lease expense (1)		18,384			15,238
Sublease income		(91	)		(1,192	)
Total lease expense	$	103,227		$	100,094

(1)

Variable lease expense for fiscal 2020 was reduced by $3.1 million for lease abatements related to the effects of the COVID-19 pandemic that resulted in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract. See Note 2 to the Notes to Consolidated Financial Statements for a further discussion on lease concessions.

In accordance with ASC 842, other information related to leases was as follows:


	Year Ended
	January 2, 2022			January 3, 2021
	(In thousands)
Operating cash flows from operating leases	$	85,238		$	83,028
Financing cash flows from finance leases		2,887			2,858
Operating cash flows from finance leases		271			313
Cash paid for amounts included in the measurement of lease liabilities	$	88,396		$	86,199

Right-of-use assets obtained in exchange for new finance lease liabilities	$	8,723		$	—
Right-of-use assets obtained in exchange for new operating lease liabilities	$	56,953		$	80,452
Weighted-average remaining lease term—finance leases	3.8 years			2.4 years
Weighted-average remaining lease term—operating leases	4.8 years			5.0 years
Weighted-average discount rate—finance leases		3.1	%		4.8	%
Weighted-average discount rate—operating leases		5.4	%		6.1	%

In accordance with ASC 842, maturities of finance and operating lease liabilities as of January 2, 2022 were as follows:


Year Ending:	Finance Leases			Operating Leases
	(In thousands)
2022	$	3,748		$	86,185
2023		2,585			68,475
2024		1,787			59,654
2025		1,304			42,975
2026		867			27,670
Thereafter		197			34,051
Undiscounted cash flows	$	10,488		$	319,010
Reconciliation of lease liabilities:
Weighted-average remaining lease term	3.8 years			4.8 years
Weighted-average discount rate		3.1	%		5.4	%
Present values	$	9,974		$	281,016
Lease liabilities - current		3,518			76,882
Lease liabilities - long-term		6,456			204,134
Lease liabilities - total	$	9,974		$	281,016
Difference between undiscounted and discounted cash flows	$	514		$	37,994

Long-Term Debt

12 Months Ended

Jan. 02, 2022

Debt Disclosure [Abstract]

Long-Term Debt

(7)

Long-Term Debt

The Company, Big 5 Corp. and Big 5 Services Corp. were parties to a credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, and a syndicate of other lenders, as amended (the “Prior Credit Agreement”), which was terminated and replaced on February 24, 2021, as discussed below.

On February 24, 2021, the Company entered into a Loan, Guaranty and Security Agreement with Bank of America, N.A. (“BofA”), as agent and lender, which was amended on November 22, 2021 (as so amended, the “Loan Agreement”). The Loan Agreement has a maturity date of February 24, 2026 and provides for a revolving credit facility with an aggregate committed availability of up to $150.0 million. The Company may also request additional increases in aggregate availability, up to a maximum of $200.0 million, in which case the existing lender under the Loan Agreement will have the option to increase the commitment to accommodate the requested increase. If such existing lender does not exercise that option, the Company may (with the consent of BofA in its role as the administrative agent, not to be unreasonably withheld) seek other lenders willing to provide such commitments. The credit facility includes a $50.0 million sublimit for issuances of letters of credit.

Similar to the Prior Credit Agreement, the Company may borrow under the Loan Agreement from time to time, provided the amounts outstanding will not exceed the lesser of the then aggregate committed availability (as discussed above) and the Borrowing Base (such lesser amount being referred to as the “Line Cap”). As defined in the Loan Agreement, the “Borrowing Base” generally is comprised of the sum, at the time of calculation, of (a) 90.00% of eligible credit card receivables; plus (b) the cost of eligible inventory (other than eligible in-transit inventory), net of inventory reserves, multiplied by 90.00% of the appraised net orderly liquidation value of eligible inventory (expressed as a percentage of the cost of eligible inventory); plus (c) the cost of eligible in-transit inventory, net of inventory reserves, multiplied by 90.00% of the appraised net orderly liquidation value of eligible in-transit inventory (expressed as a percentage of the cost of eligible in-transit inventory), minus (d) certain agreed-upon reserves as well as other reserves established by BofA in its role as the administrative agent in its reasonable discretion.

Generally, the Company may designate specific borrowings under the Loan Agreement as either base rate loans or LIBO rate loans. The applicable interest rate on the Company’s borrowings is a function of the daily average, over the preceding fiscal quarter, of the excess of the Line Cap over amounts borrowed (such amount being referred to as the “Average Daily Availability”). Those loans designated as LIBO rate loans bear interest at a rate equal to the then applicable adjusted LIBO rate plus an applicable margin as shown in the table below. Those loans designated as base rate loans bear interest at a rate equal to the applicable margin for base rate loans (as shown below) plus the highest of (a) the Federal funds rate, as in effect from time to time, plus one-half of one percent (0.50%), (b) the LIBO rate, plus one percentage point (1.00%), or (c) the rate of interest in effect for such day as announced from time to time within BofA as its “prime rate.” The applicable margin for all loans is a function of Average Daily Availability for the preceding fiscal quarter as set forth below.


Level	Average Daily Availability	LIBO Rate Applicable Margin	Base Rate Applicable Margin
I	Greater than or equal to $70,000,000	1.375%	0.375%
II	Less than $70,000,000	1.500%	0.500%

The commitment fee assessed on the unused portion of the credit facility is 0.20% per annum.

Obligations under the Loan Agreement are secured by a general lien on and security interest in substantially all of the Company’s assets. The Loan Agreement contains covenants that require the Company to maintain a fixed charge coverage ratio of not less than 1.0:1.0 in certain circumstances, and limits the ability to, among other things, incur liens, incur additional indebtedness, transfer or dispose of assets, change the nature of the business, guarantee obligations, pay dividends or make other distributions or repurchase stock, and make advances, loans or investments. The Company may generally declare or pay cash dividends or repurchase stock only if, among other things, no default or event of default then exists or would arise from such dividend or repurchase of stock and, after giving effect to such dividend or repurchase, certain availability and/or fixed charge coverage ratio requirements are satisfied, although the Company is permitted to make up to $5.0 million of dividend payments or stock repurchases per year without satisfaction of the availability or fixed charge coverage ratio requirements, but dividends or stock repurchases made without satisfying the availability and/or fixed charge coverage ratio requirements will require the establishment of an additional reserve that will reduce borrowing availability under the Loan Agreement for 75 days. The Loan Agreement contains customary events of default, including, without limitation, failure to pay when due principal amounts with respect to the credit facility, failure to pay any interest or other amounts under the credit facility, failure to comply with certain agreements or covenants contained in the Loan Agreement, failure to satisfy certain judgments against the Company, failure to pay when due (or any other default which permits the acceleration of) certain other material indebtedness in principal amount in excess of $5.0 million, and certain insolvency and bankruptcy events. As amended, the Loan Agreement provides for a transition to an alternative benchmark reference rate following the cessation of the LIBO rate.

As previously disclosed, the Prior Credit Agreement had a maturity date of September 29, 2022 and, as amended, provided for a line of credit up to $140.0 million, which amount could be increased at the Company’s option up to a maximum of $165.0 million. The Company could also request additional increases in aggregate availability, on an uncommitted basis up to a maximum of $200.0 million. On March 30, 2020, the Company exercised the accordion feature and increased the amount available under the revolving credit facility to $165.0 million in response to the COVID-19 pandemic and drew down additional amounts at that time. The revolving credit facility under the Prior Credit Agreement included a $25.0 million sublimit for issuances of letters of credit and a $20.0 million sublimit for swingline loans. The Prior Credit Agreement provided for LIBO rate loans to bear interest at a rate equal to the applicable adjusted LIBO rate plus an applicable margin, as shown in the table below. The loans designated as base rate loans bore interest at a rate equal to the applicable margin for base rate loans (as shown below) plus the highest of (a) the Federal funds rate in effect plus one-half of one percent, (b) the LIBO rate, plus one percentage point, or (c) the prime interest rate. Under the Prior Credit Agreement, the applicable margin for all loans was a function of Average Daily Availability for the preceding fiscal quarter as set forth below.


Level	Average Daily Availability	LIBO Rate Applicable Margin	Base Rate Applicable Margin
I	Greater than or equal to $70,000,000	1.250%	0.250%
II	Less than $70,000,000	1.375%	0.500%

The commitment fee assessed on the unused portion of the credit facility under the Prior Credit Agreement was 0.20% per annum.

In the first quarter of fiscal 2021, the Company paid and capitalized $0.7 million in new creditor and third-party fees associated with the Loan Agreement, which will be amortized over the term of the Loan Agreement, and extinguished $0.2 million of deferred financing fees associated with the Prior Credit Agreement.

As of January 2, 2022 and January 3, 2021, the Company had no long-term revolving credit borrowings outstanding.

Income Taxes

12 Months Ended

Jan. 02, 2022

Income Tax Disclosure [Abstract]

Income Taxes

(8)

Income Taxes

Income tax expense (benefit) consists of the following:


	Current		Deferred			Total
	(In thousands)
Fiscal 2021:
Federal	$	23,422	$	1,121		$	24,543
State		7,582		613			8,195
	$	31,004	$	1,734		$	32,738
Fiscal 2020:
Federal	$	13,786	$	86		$	13,872
State		4,871		(298	)		4,573
	$	18,657	$	(212	)	$	18,445

The provision for income taxes differs from the amounts computed by applying the federal statutory tax rate of 21% to earnings before income taxes, as follows:


	Year Ended
	January 2, 2022			January 3, 2021
	(In thousands)
Tax expense at statutory rate	$	28,376		$	15,621
State tax expense, net of federal tax effect		7,167			3,975
Additional deduction related to share-based compensation		(2,623	)		—
Nondeductible expenses		729			86
Tax credits		(603	)		(246	)
Change in valuation allowance		(318	)		(418	)
CARES Act net operating loss carryback		—			(822	)
Write-offs related to nonvested share awards		—			260
Other		10			(11	)
	$	32,738		$	18,445

Deferred tax assets and liabilities as of January 2, 2022 and January 3, 2021 are tax-effected based on the federal and state corporate income tax rates.

Deferred tax assets and liabilities consist of the following tax-effected temporary differences:


	January 2, 2022			January 3, 2021
	(In thousands)
Deferred tax assets:
Employee benefit-related liabilities	$	2,889		$	2,986
Deferred rent		2,828			3,509
Insurance liabilities		2,421			2,581
State taxes		1,545			1,014
Gift card liability		1,420			1,324
Merchandise inventory		1,215			2,253
Share-based compensation		805			815
California Enterprise Zone Tax Credits		381			975
Other deferred tax assets		1,500			1,396
Gross deferred tax assets		15,004			16,853
Less: Valuation allowance		(280	)		(683	)
Deferred tax assets, net of valuation allowance		14,724			16,170
Deferred tax liabilities:
Prepaid expense		(1,147	)		(989	)
Federal liability on state deferred tax assets		(996	)		(1,125	)
Other deferred tax liabilities		(484	)		(225	)
Deferred tax liabilities		(2,627	)		(2,339	)
Net deferred tax assets	$	12,097		$	13,831

As of fiscal 2021 and 2020, the Company maintained a valuation allowance of $0.3 million and $0.7 million, respectively, related to unused California Enterprise Zone Tax Credits, which the Company will not be able to carry forward beyond 2024 as a result of California’s termination of this program. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections of future taxable income over the periods during which the deferred tax assets are deductible, except as noted above, management believes it is more likely than not that the Company will realize the benefits of these deductible differences. The amount of the deferred tax asset considered realizable, however, could be reduced if estimates of future taxable income are reduced. Certain prior period amounts were reclassified to conform with current period presentation requirements.

The Company files a consolidated federal income tax return and files tax returns in various state and local jurisdictions. The statutes of limitations for its consolidated federal income tax returns are open for fiscal years 2018 and after, and state and local income tax returns are open for fiscal years 2017 and after.

As of January 2, 2022 and January 3, 2021, the Company had no unrecognized tax benefits that, if recognized, would affect the Company’s effective income tax rate over the next 12 months. The Company’s policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expense. As of January 2, 2022 and January 3, 2021, the Company had no accrued interest or penalties.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 740
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 740
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-Section 50
-Paragraph 17
-Subparagraph (b)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 740
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 270
-Section 50
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-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-Paragraph 2
-Subparagraph (a)
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 235
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Related Party Transactions

Earnings Per Share

12 Months Ended

Jan. 02, 2022

Earnings Per Share [Abstract]

Earnings Per Share

(9)

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per common share:


	Year Ended
	January 2, 2022		January 3, 2021
	(In thousands, except per share data)
Net income	$	102,386	$	55,940
Weighted-average shares of common stock outstanding:
Basic		21,670		21,260
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards		842		403
Diluted		22,512		21,663
Basic earnings per share	$	4.73	$	2.63
Diluted earnings per share	$	4.55	$	2.58
Antidilutive share option awards excluded from diluted calculation		2		494
Antidilutive nonvested share and nonvested share unit awards excluded from diluted calculation		—		46

The computation of diluted earnings per share for the periods presented excludes certain share option awards since the exercise prices of these share option awards exceeded the average market price of the Company’s common shares, and the effect of their inclusion would have been antidilutive (i.e., including such share option awards would result in higher earnings per share).

No nonvested share awards or nonvested share unit awards were antidilutive for fiscal 2021. The computation of diluted earnings per share for fiscal 2020 excludes certain nonvested share awards and nonvested share unit awards that were outstanding and antidilutive, since the grant date fair values of these nonvested share awards and nonvested share unit awards exceeded the average market price of the Company’s common shares.

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Jan. 02, 2022
Postemployment Benefits [Abstract]
Employee Benefit Plans	(10) Employee Benefit Plans The Company has a 401(k) plan covering eligible employees. Employee contributions are supplemented by Company contributions subject to 401(k) plan terms. The Company recognized employer matching and profit-sharing contributions of $5.3 million and $3.7 million for fiscal 2021 and 2020, respectively.

Related Party Transactions

12 Months Ended

Jan. 02, 2022

(11)

Related Party Transactions

Prior to his death in fiscal 2008, the Company had an employment agreement with Robert W. Miller (“Mr. Miller”), co-founder of the Company and the father of Steven G. Miller, Chairman of the Board, President, Chief Executive Officer and a director of the Company. The employment agreement provided for Mr. Miller to receive an annual base salary of $350,000. The employment agreement further provided that, following his death, the Company would pay his surviving wife $350,000 per year and provide her specified benefits for the remainder of her life. During fiscal 2020, the Company made a payment of $350,000 to Mr. Miller’s wife. The Company recognized expense of $0.3 million in fiscal 2020, to provide for a liability for the future obligations under this agreement. Based upon actuarial valuation estimates related to this agreement, the Company had a recorded liability of $1.0 million as of January 3, 2021. The short-term portion of this liability was recorded in accrued expenses in the Company’s consolidated balance sheets and the long-term portion was recorded in other long-term liabilities in the Company’s consolidated balance sheet.

In January 2021, Mrs. Miller passed away and, accordingly, the Company eliminated the liability of $1.0 million and reduced selling and administrative expense by the same amount in the first quarter of fiscal 2021.

Commitments and Contingencies

12 Months Ended

Jan. 02, 2022

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

(12)

Commitments and Contingencies

Eminent Domain Matter

On approximately March 13, 2018, the Orange County Transportation Authority (“OCTA”) filed an eminent domain action against the Company and its Westminster, California, store location to acquire the Company’s interest in the property for public purposes related to a transportation project. The Company surrendered possession of this location on approximately January 31, 2019. On March 31, 2020, the Company and representatives of the OCTA agreed to a preliminary settlement of the proceedings, which was formally approved by the OCTA’s Board on approximately April 27, 2020. Pursuant to the terms of the settlement, on May 21, 2020, the Company received a cash condemnation settlement from the OCTA in the amount of $2.5 million for lost profit and property. The Company recorded a pre-tax gain for the $2.5 million in the second quarter of fiscal 2020 related to the settlement, of which $0.2 million represented lost property and equipment, which was included as other income in the Company’s consolidated statement of operations. Attorneys’ fees related to this settlement totaled $0.1 million in fiscal 2020 and were included in selling and administrative expense in the Company’s consolidated statement of operations.

Recovery of Insurance Proceeds

In the second quarter of fiscal 2020, seven of the Company’s stores were damaged and qualified for loss recovery claims as a result of civil unrest, and the Company disposed of assets of approximately $0.6 million related to lost inventory and property and equipment. In the first quarter of fiscal 2021, the Company reached an agreement with its insurance carrier and, after application of a deductible of $0.3 million, the Company received a cash insurance recovery of $1.3 million in total, of which $1.0 million related to the reimbursement of lost inventory and profit margin, $0.2 million related to the reimbursement of property and equipment, and $0.1 million related to a reimbursement for business interruption. Accordingly, the Company recognized gains of $0.5 million related to the recovery of lost profit margin and business interruption, and $0.2 million related to the recovery of property and equipment. The gain related to the recovery of lost profit margin and business interruption is included in the Company’s consolidated statement of operations as a reduction to cost of goods sold, and the gain related to the recovery of lost property and equipment is included in the Company’s consolidated statement of operations as a reduction to selling and administrative expense for fiscal 2021.

In July 2019, one of the Company’s stores was damaged as a result of a fire and, in the fourth quarter of fiscal 2019, the Company disposed of assets of approximately $0.8 million related to lost inventory and property and equipment. In the fourth quarter of fiscal 2020, the Company reached an agreement with its insurance carrier and, after application of a previous advance of $0.5 million and deductible of $0.2 million, the Company received a cash insurance recovery and recorded a gain of $2.8 million in total, of which $1.7 million related to the reimbursement of property and equipment, $0.8 million related to the reimbursement of lost profit margin, and $0.3 million related to a reimbursement for business interruption. The reimbursement of lost property and equipment is included in the Company’s consolidated statements of operations as a reduction to selling and administrative expense, and the reimbursement of lost profit margin and business interruption is included in the Company’s consolidated statements of operations as a reduction to cost of goods sold for fiscal 2020.

The Company is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters is not expected to have a material adverse effect on the Company’s results of operations or financial condition.

Share-Based Compensation Plans

12 Months Ended

Jan. 02, 2022

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation Plans

(13)

Share-Based Compensation Plans

2019 Equity Incentive Plan

In April 2019, the Company adopted the 2019 Equity Incentive Plan (“2019 Plan”), which replaced the Company’s Amended and Restated 2007 Equity and Performance Incentive Plan (the “Prior Plan”). Awards under the 2019 Plan may consist of share option awards (both incentive share option awards and non-qualified share option awards), stock appreciation rights, nonvested share awards, other stock unit awards or dividend equivalents. In the past, share option awards issued by the Company have typically been non-qualified share option awards, while nonvested share awards and nonvested share unit awards issued by the Company have typically been based on the attainment of service-only conditions. Upon the adoption of the 2019 Plan, the Company stopped issuing awards under the Prior Plan, although the Company will continue to honor any outstanding awards under the Prior Plan.

The 2019 Plan (i) permits the Company to issue a maximum of 3,848,803 shares of the Company’s common stock plus the number of any additional shares that may thereafter become available as a result of the forfeiture, expiration or other cancellation of awards under any prior plans; and (ii) expires on April 11, 2029.

Any share option awards or stock appreciation rights shall be counted against this limit as one share for every one share granted. Any shares that are subject to awards other than share option awards or stock appreciation rights (including shares delivered on the settlement of dividend equivalents) shall be counted against this limit as 2.5 shares for every one share granted. The aggregate number of shares available under the 2019 Plan and the number of outstanding share option awards will be increased or decreased to reflect any changes in the outstanding common stock of the Company by reason of any recapitalization, spin-off, reorganization, reclassification, stock dividend, stock split, reverse stock split, or similar transaction.

At its discretion, the Company grants share option awards, nonvested share awards and nonvested share unit awards to certain employees, as defined by ASC 718, Compensation—Stock Compensation, under the Company’s 2019 Plan, and accounts for its share-based compensation in accordance with ASC 718. As of January 2, 2022, 1,716,479 shares remained available for future grant, and 383,035 share option awards, 551,700 nonvested share awards and zero nonvested share unit awards remained outstanding.

The Company accounts for its share-based compensation in accordance with ASC 718 and recognizes compensation expense on a straight-line basis over the requisite service period, net of estimated forfeitures, using the fair-value method for share option awards, nonvested share awards and nonvested share unit awards granted with service-only conditions. The estimated forfeiture rate considers historical employee turnover rates stratified into employee pools in comparison with an overall employee turnover rate, as well as expectations about the future. The Company periodically revises the estimated forfeiture rate in subsequent periods if actual forfeitures differ from those estimates. Compensation expense recorded under this method for fiscal 2021 and 2020 was $2.0 million and $1.7 million, respectively, which reduced operating income and income before income taxes by the same amount. Compensation expense recognized in cost of sales was $0.1 million in fiscal 2021 and 2020 and compensation expense recognized in selling and administrative expense was $1.9 million and $1.6 million in fiscal 2021 and 2020, respectively. The recognized tax benefit related to compensation expense for fiscal 2021 and 2020 was $0.5 million and $0.4 million, respectively. Net income for fiscal 2021 and 2020 reflects the net-of-tax charge of $1.5 million and $1.3 million, respectively, or $0.07 and $0.06 per basic and diluted share, respectively.

Share Option Awards

Share option awards granted by the Company generally vest and become exercisable in four equal installments of 25% per year with a maximum life of ten years. The exercise price of share option awards is equal to the quoted market price of the Company’s common stock on the date of grant. The Company granted 10,000 share option awards with a weighted-average grant-date fair value of $12.16 per share option award in fiscal 2021, and granted 257,000 share option awards with a weighted-average grant-date fair value of $1.25 per share option award in fiscal 2020.

The following table details the Company’s share option awards activity for the current fiscal year:


	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (In Years)		Aggregate Intrinsic Value
Outstanding at January 3, 2021		742,800		$	4.62
Granted		10,000			24.72
Exercised		(369,765	)		5.85
Outstanding at January 2, 2022		383,035		$	3.96		7.60	$	5,823,394
Exercisable at January 2, 2022		15,105		$	4.17		7.16	$	224,197
Vested and Expected to Vest at January 2, 2022		378,595		$	3.96		7.59	$	5,752,679

The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based upon the Company’s closing stock price of $19.01 per share as of January 2, 2022, which would have been received by the share option award holders had all share option award holders exercised their share option awards as of that date.

The total intrinsic value of share option awards exercised, the total cash received from employees as a result of employee share option award exercises and the actual tax benefit realized for the tax deduction from share option award exercises in fiscal 2021 was approximately $6.6 million, $2.2 million and $1.6 million, respectively.

The fair value of each share option award on the date of grant was estimated using the Black-Scholes method based on the following weighted-average assumptions:


	Year Ended
	January 2, 2022			January 3, 2021
Risk-free interest rate		1.3	%		0.9	%
Expected term	6.5 years			5.7 years
Expected volatility		75.7	%		63.0	%
Expected dividend yield		4.0	%		—

The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected term of the option award; the expected term represents the weighted-average period of time that option awards granted are expected to be outstanding giving consideration to vesting schedules and historical participant exercise behavior; the expected volatility is based upon historical volatility of the Company’s common stock; and the expected dividend yield is based upon the Company’s dividend rate at the time fair value is measured and future expectations.

As of January 2, 2022, there was $0.4 million of total unrecognized compensation expense related to nonvested share option awards granted. That expense is expected to be recognized over a weighted-average period of 1.6 years.

Nonvested Share Awards and Nonvested Share Unit Awards

Nonvested share awards granted by the Company vest for employees from the date of grant in four equal annual installments of 25% per year. Nonvested share awards and nonvested share unit awards granted by the Company to non-employee directors for their service as directors, as defined by ASC 718, vest 100% on the earlier of (a) the date of the Company’s next annual stockholders meeting following the grant date, or (b) the first anniversary of the grant date.

Nonvested share awards become outstanding when granted and are delivered to the recipient upon their vesting. Vested share unit awards, including any dividend reinvestments, are delivered to the recipient on the tenth business day of January following the year in which the recipient’s service to the Company is terminated, at which time the units convert to shares and become outstanding. On January 14, 2022, the Company delivered 124,012 shares on vested share unit awards, which included dividend reinvestments, to a Board member who retired in November 2021. Outstanding nonvested share awards and nonvested share unit awards accrue dividends at the same rate as dividends paid to the Company’s shareholders. Accrued dividends on nonvested share awards are paid upon vesting of the underlying shares and forfeited if a recipient’s service to the Company is terminated prior to vesting. Accrued dividends on nonvested share unit awards are reinvested into additional nonvested share unit awards, vest on the same schedule as the underlying share unit awards, and are settled at the same time as the underlying share unit awards. The total fair value of nonvested share awards which vested during fiscal 2021 and 2020 was $5.3 million and $0.4 million, respectively. The total fair value of nonvested share unit awards which vested during fiscal 2021 and 2020 was $2.1 million and $0.2 million, respectively.

The Company granted 248,550 nonvested share awards with a weighted-average grant-date fair value of $15.61 per share award in fiscal 2021 and granted 321,600 nonvested share awards with a weighted-average grant-date fair value of $1.69 per share award in fiscal 2020.

The following table details the Company’s nonvested share awards activity for the current fiscal year:


	Shares			Weighted- Average Grant- Date Fair Value
Balance at January 3, 2021		591,325		$	3.79
Granted		248,550			15.61
Vested		(268,550	)		4.83
Forfeited		(19,625	)		6.59
Balance at January 2, 2022		551,700		$	8.51

To satisfy employee minimum statutory tax withholding requirements for nonvested share awards that vest, the Company withholds and retires a portion of the vesting common shares, unless an employee elects to pay cash. In fiscal 2021, the Company withheld 70,228 common shares with a total value of $1.0 million. This amount is presented as a cash outflow from financing activities in the Company’s consolidated statement of cash flows.

As of January 2, 2022, dividends accrued but not paid related to nonvested share awards were $1.6 million.

The Company granted 2,614 nonvested share unit awards with a weighted-average grant-date fair value of $28.69 per share unit award in fiscal 2021 and granted 40,000 nonvested share unit awards with a weighted-average grant-date fair value of $2.28 per share unit award in fiscal 2020. The weighted-average grant-date fair value of nonvested share awards and nonvested share unit awards is the quoted market price of the Company’s common stock on the date of grant.

The following table details the Company’s nonvested share unit awards activity for the current fiscal year:


	Units			Weighted- Average Grant- Date Fair Value
Balance at January 3, 2021		41,160		$	1.91
Granted		2,614			28.69
Dividend reinvestments		30,182			24.79
Vested		(42,614	)		3.90
Dividend reinvestments vested		(31,342	)		24.13
Balance at January 2, 2022		—		$	—

As of January 2, 2022, there were 285,591 cumulative vested share unit awards remaining, of which 79,271 of these awards represented cumulative dividend reinvestments. These cumulative vested share unit awards are deliverable to the holders on the tenth business day of January following the year in which the holder’s service to the Company terminates, at which time the units convert to shares of the Company’s common stock and become outstanding.

As of January 2, 2022, there was $3.2 million of total unrecognized compensation expense related to nonvested share awards, which is expected to be recognized over a weighted-average period of 2.2 years. There was no remaining unrecognized compensation expense related to nonvested share unit awards.

Subsequent Event

12 Months Ended

Jan. 02, 2022

Subsequent Events [Abstract]

Subsequent Event

(14)

Subsequent Event

In the first quarter of fiscal 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.25 per share of outstanding common stock, which will be paid on March 25, 2022 to stockholders of record as of March 11, 2022.

Also, in the first quarter of fiscal 2022, the Company’s Board of Directors authorized a new share repurchase program for the purchase of up to an additional $25.0 million of the Company’s common stock. This program replaced the Company’s previous share repurchase program, under which $7.7 million remained available for repurchase.

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Jan. 02, 2022

Valuation And Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

BIG 5 SPORTING GOODS CORPORATION

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

(In thousands)


	Balance at Beginning of Period		Charged to Costs and Expenses				Deductions			Balance at End of Period
January 2, 2022
Allowance for doubtful receivables	$	58	$	83			$	(79	)	$	62
Allowance for sales returns	$	2,444	$	84		(1)	$	—		$	2,528
Inventory reserves	$	6,138	$	3,335			$	(3,926	)	$	5,547
January 3, 2021
Allowance for doubtful receivables	$	58	$	44			$	(44	)	$	58
Allowance for sales returns	$	2,702	$	(258	)	(1)	$	—		$	2,444
Inventory reserves	$	6,796	$	2,954			$	(3,612	)	$	6,138

(1)

Represents an increase (decrease) in the required reserve based upon the Company’s evaluation of anticipated merchandise returns.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Jan. 02, 2022

Recently Issued Accounting Updates

Consolidation

Reporting Period

The Company follows the concept of a 52-53 week fiscal year, which ends on the Sunday nearest December 31. Fiscal 2021 included 52 weeks and fiscal 2020 included 53 weeks.

Other recently issued accounting updates are not expected to have a material impact on the Company’s consolidated financial statements.

Concentration of Risk

COVID-19 Impact on Concentration of Risk

General Concentration of Risk

The Company operates solely as a sporting goods retailer, which includes both retail stores and an e-commerce platform, that offers a broad range of products in the western United States and online. Generally, all revenue is recognized when control of the promised goods is transferred to customers, in an amount that reflects the consideration in exchange for those goods. Accordingly, the Company implicitly enters into a contract with customers to deliver merchandise inventory at the point of sale. Collectability is reasonably assured since the Company only extends immaterial credit purchases to certain municipalities and local school districts.


	Year Ended
	January 2, 2022		January 3, 2021
	(In thousands)
Hardgoods	$	637,181	$	623,728
Athletic and sport footwear		279,645		228,311
Athletic and sport apparel		241,526		184,538
Other sales		3,468		4,635
Net sales	$	1,161,820	$	1,041,212

Substantially all of the Company’s revenue is for single performance obligations for the following distinct items:

•

Retail store sales

•

E-commerce sales

•

Stored-value cards

Cost of Sales

Selling and Administrative Expense

Vendor Allowances

Advertising Expense

Share-Based Compensation

Pre-opening Costs

Pre-opening costs for new stores, which are not material, consist primarily of payroll and recruiting expense, training, marketing, rent, travel and supplies, and are expensed as incurred.

Cash and Cash Equivalents

Accounts Receivable

Valuation of Merchandise Inventories, Net

Prepaid Expenses And Other Assets

Prepaid Expenses and Other Assets

Property and Equipment, Net

Property and equipment are stated at cost and are being depreciated or amortized utilizing the straight-line method over the following estimated useful lives:


Land		Indefinite
Buildings		20 years
Leasehold improvements		Shorter of estimated useful life or term of lease
Furniture and equipment		3 – 10 years
Internal-use software		3 – 7 years

Maintenance and repairs are expensed as incurred.

Valuation of Long-Lived Assets

Leases

See Note 6 to the Notes to Consolidated Financial Statements for a further discussion on leases.

Self-Insurance Liabilities

Income Taxes

Treasury Stock Purchases

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 02, 2022

Summary of Disaggregates Net Sales into Major Merchandise Categories to Depict Nature and Amount of Revenue and Related Cash Flows

In accordance with ASC 606, Revenue from Contracts with Customers, the Company disaggregates net sales into the following major merchandise categories to depict the nature and amount of revenue and related cash flows:


	Year Ended
	January 2, 2022		January 3, 2021
	(In thousands)
Hardgoods	$	637,181	$	623,728
Athletic and sport footwear		279,645		228,311
Athletic and sport apparel		241,526		184,538
Other sales		3,468		4,635
Net sales	$	1,161,820	$	1,041,212

Schedule of Estimated Useful Life of Property and Equipment

Property and equipment are stated at cost and are being depreciated or amortized utilizing the straight-line method over the following estimated useful lives:


Land		Indefinite
Buildings		20 years
Leasehold improvements		Shorter of estimated useful life or term of lease
Furniture and equipment		3 – 10 years
Internal-use software		3 – 7 years

Property and Equipment, Net (Tables)

12 Months Ended

Jan. 02, 2022

Property Plant And Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment, net, consist of the following:


	January 2, 2022			January 3, 2021
	(In thousands)
Leasehold improvements	$	176,066		$	170,701
Furniture and equipment		142,638			134,623
Internal-use software		37,188			37,147
Land		2,750			2,750
Building		1,775			1,775
		360,417			346,996
Accumulated depreciation and amortization (1)		(301,852	)		(290,638	)
		58,565			56,358
Assets not placed into service		1,836			887
Property and equipment, net	$	60,401		$	57,245

(1)

Includes accumulated amortization for internal-use software development costs of $32.7 million and $30.8 million as of January 2, 2022 and January 3, 2021, respectively.

Accrued Expenses (Tables)

12 Months Ended

Jan. 02, 2022

Payables And Accruals [Abstract]

Summary of Accrued Expenses

The major components of accrued expenses are as follows:


	January 2, 2022		January 3, 2021
	(In thousands)
Payroll and related expense	$	37,345	$	37,826
Sales tax		12,112		11,609
Occupancy expense		10,168		10,215
Other		25,416		23,227
Accrued expenses	$	85,041	$	82,877

Lease Commitments (Tables)

12 Months Ended

Jan. 02, 2022

Leases [Abstract]

Summary of Components of Lease Expense

In accordance with ASC 842, the components of lease expense were as follows:


	Year Ended
	January 2, 2022			January 3, 2021
	(In thousands)
Lease expense:
Amortization of right-of-use assets	$	2,940		$	2,721
Interest on lease liabilities		260			297
Finance lease expense		3,200			3,018
Operating lease expense		81,734			83,030
Variable lease expense (1)		18,384			15,238
Sublease income		(91	)		(1,192	)
Total lease expense	$	103,227		$	100,094

(1)

Schedule of Other Information Related To Leases

In accordance with ASC 842, other information related to leases was as follows:


	Year Ended
	January 2, 2022			January 3, 2021
	(In thousands)
Operating cash flows from operating leases	$	85,238		$	83,028
Financing cash flows from finance leases		2,887			2,858
Operating cash flows from finance leases		271			313
Cash paid for amounts included in the measurement of lease liabilities	$	88,396		$	86,199

Right-of-use assets obtained in exchange for new finance lease liabilities	$	8,723		$	—
Right-of-use assets obtained in exchange for new operating lease liabilities	$	56,953		$	80,452
Weighted-average remaining lease term—finance leases	3.8 years			2.4 years
Weighted-average remaining lease term—operating leases	4.8 years			5.0 years
Weighted-average discount rate—finance leases		3.1	%		4.8	%
Weighted-average discount rate—operating leases		5.4	%		6.1	%

Schedule of Maturities For Finance And Operating Leases

In accordance with ASC 842, maturities of finance and operating lease liabilities as of January 2, 2022 were as follows:


Year Ending:	Finance Leases			Operating Leases
	(In thousands)
2022	$	3,748		$	86,185
2023		2,585			68,475
2024		1,787			59,654
2025		1,304			42,975
2026		867			27,670
Thereafter		197			34,051
Undiscounted cash flows	$	10,488		$	319,010
Reconciliation of lease liabilities:
Weighted-average remaining lease term	3.8 years			4.8 years
Weighted-average discount rate		3.1	%		5.4	%
Present values	$	9,974		$	281,016
Lease liabilities - current		3,518			76,882
Lease liabilities - long-term		6,456			204,134
Lease liabilities - total	$	9,974		$	281,016
Difference between undiscounted and discounted cash flows	$	514		$	37,994

Long-Term Debt (Tables)

12 Months Ended

Jan. 02, 2022

Loan, Guaranty and Security Agreement [Member]

Average Daily Excess Availability for Preceding Fiscal Quarter

The applicable margin for all loans is a function of Average Daily Availability for the preceding fiscal quarter as set forth below.


Level	Average Daily Availability	LIBO Rate Applicable Margin	Base Rate Applicable Margin
I	Greater than or equal to $70,000,000	1.375%	0.375%
II	Less than $70,000,000	1.500%	0.500%

Prior Credit Agreement [Member]

Average Daily Excess Availability for Preceding Fiscal Quarter

Under the Prior Credit Agreement, the applicable margin for all loans was a function of Average Daily Availability for the preceding fiscal quarter as set forth below.


Level	Average Daily Availability	LIBO Rate Applicable Margin	Base Rate Applicable Margin
I	Greater than or equal to $70,000,000	1.250%	0.250%
II	Less than $70,000,000	1.375%	0.500%

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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Summary of Income Tax Expense (Benefit)

Income Taxes (Tables)

12 Months Ended

Jan. 02, 2022

Income Tax Disclosure [Abstract]

Income tax expense (benefit) consists of the following:


	Current		Deferred			Total
	(In thousands)
Fiscal 2021:
Federal	$	23,422	$	1,121		$	24,543
State		7,582		613			8,195
	$	31,004	$	1,734		$	32,738
Fiscal 2020:
Federal	$	13,786	$	86		$	13,872
State		4,871		(298	)		4,573
	$	18,657	$	(212	)	$	18,445

Schedule of Federal Statutory Tax Rate Reconciliation

The provision for income taxes differs from the amounts computed by applying the federal statutory tax rate of 21% to earnings before income taxes, as follows:


	Year Ended
	January 2, 2022			January 3, 2021
	(In thousands)
Tax expense at statutory rate	$	28,376		$	15,621
State tax expense, net of federal tax effect		7,167			3,975
Additional deduction related to share-based compensation		(2,623	)		—
Nondeductible expenses		729			86
Tax credits		(603	)		(246	)
Change in valuation allowance		(318	)		(418	)
CARES Act net operating loss carryback		—			(822	)
Write-offs related to nonvested share awards		—			260
Other		10			(11	)
	$	32,738		$	18,445

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consist of the following tax-effected temporary differences:


	January 2, 2022			January 3, 2021
	(In thousands)
Deferred tax assets:
Employee benefit-related liabilities	$	2,889		$	2,986
Deferred rent		2,828			3,509
Insurance liabilities		2,421			2,581
State taxes		1,545			1,014
Gift card liability		1,420			1,324
Merchandise inventory		1,215			2,253
Share-based compensation		805			815
California Enterprise Zone Tax Credits		381			975
Other deferred tax assets		1,500			1,396
Gross deferred tax assets		15,004			16,853
Less: Valuation allowance		(280	)		(683	)
Deferred tax assets, net of valuation allowance		14,724			16,170
Deferred tax liabilities:
Prepaid expense		(1,147	)		(989	)
Federal liability on state deferred tax assets		(996	)		(1,125	)
Other deferred tax liabilities		(484	)		(225	)
Deferred tax liabilities		(2,627	)		(2,339	)
Net deferred tax assets	$	12,097		$	13,831

Earnings Per Share (Tables)

12 Months Ended

Jan. 02, 2022

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Common Share

The following table sets forth the computation of basic and diluted earnings per common share:


	Year Ended
	January 2, 2022		January 3, 2021
	(In thousands, except per share data)
Net income	$	102,386	$	55,940
Weighted-average shares of common stock outstanding:
Basic		21,670		21,260
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards		842		403
Diluted		22,512		21,663
Basic earnings per share	$	4.73	$	2.63
Diluted earnings per share	$	4.55	$	2.58
Antidilutive share option awards excluded from diluted calculation		2		494
Antidilutive nonvested share and nonvested share unit awards excluded from diluted calculation		—		46

Share-Based Compensation Plans (Tables)

12 Months Ended

Jan. 02, 2022

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Share Option Awards

The following table details the Company’s share option awards activity for the current fiscal year:


	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (In Years)		Aggregate Intrinsic Value
Outstanding at January 3, 2021		742,800		$	4.62
Granted		10,000			24.72
Exercised		(369,765	)		5.85
Outstanding at January 2, 2022		383,035		$	3.96		7.60	$	5,823,394
Exercisable at January 2, 2022		15,105		$	4.17		7.16	$	224,197
Vested and Expected to Vest at January 2, 2022		378,595		$	3.96		7.59	$	5,752,679

Weighted-Average Assumptions Used to Estimate the Fair Value of Each Share Option Award

The fair value of each share option award on the date of grant was estimated using the Black-Scholes method based on the following weighted-average assumptions:


	Year Ended
	January 2, 2022			January 3, 2021
Risk-free interest rate		1.3	%		0.9	%
Expected term	6.5 years			5.7 years
Expected volatility		75.7	%		63.0	%
Expected dividend yield		4.0	%		—

Summary of Nonvested Share Awards Activity

The following table details the Company’s nonvested share awards activity for the current fiscal year:


	Shares			Weighted- Average Grant- Date Fair Value
Balance at January 3, 2021		591,325		$	3.79
Granted		248,550			15.61
Vested		(268,550	)		4.83
Forfeited		(19,625	)		6.59
Balance at January 2, 2022		551,700		$	8.51

The following table details the Company’s nonvested share unit awards activity for the current fiscal year:


	Units			Weighted- Average Grant- Date Fair Value
Balance at January 3, 2021		41,160		$	1.91
Granted		2,614			28.69
Dividend reinvestments		30,182			24.79
Vested		(42,614	)		3.90
Dividend reinvestments vested		(31,342	)		24.13
Balance at January 2, 2022		—		$	—

Description of Business - Additional Information (Detail)	12 Months Ended
	Jan. 02, 2022 ft² Store Segment
Description Of Business [Line Items]
Number of operating stores \| Store	431
Area of traditional sporting goods store \| ft²	11,000
Number of reportable segment \| Segment	1
Big 5 Corp [Member]
Description Of Business [Line Items]
Subsidiary interest ownership percentage	100.00%
Big 5 Service Corp [Member]
Description Of Business [Line Items]
Subsidiary interest ownership percentage	100.00%

Summary of Significant Accounting Policies - Additional Information (Detail)		12 Months Ended
	Mar. 20, 2020	Jan. 02, 2022 USD ($) Supplier Segment shares	Jan. 03, 2021 USD ($) shares	Apr. 03, 2022 USD ($)	Jan. 01, 2017 USD ($)
Accounting Policies [Line Items]
Reporting period, minimum		364 days
Reporting period, maximum		371 days
Cash deposits insured by the Federal Deposit Insurance Corporation		$ 250,000
Cash and cash equivalents		$ 97,420,000	$ 64,654,000
Concentration risk, suppliers \| Supplier		700
Concentration risk, largest supplier \| Supplier		20
Suppliers accounted for total purchases		36.80%
Vendor represented greater than of total purchases \| Supplier		1
Number of reportable segment \| Segment		1
Number of performance obligation		one
Percentage of gift card historical breakage rate		5.00%
Stored value card redemption revenue recognized		$ 5,900,000	5,400,000
Outstanding stored value card liabilities		$ 8,300,000	7,500,000
Stored value cards redeemed period		2 years
Advertising expense, net of co-operative advertising allowances		$ 11,000,000.0	10,600,000
Co-operative advertising allowances		0	1,100,000
Impairment charges		0	0
Self-insurance liabilities		10,200,000	11,000,000.0
Accrued interest or penalties		$ 0	$ 0
Common Stock [Member]
Accounting Policies [Line Items]
Share repurchase program, additional authorized amount					$ 25,000,000.0
Number of shares repurchased during period \| shares		361,323	0
Share repurchase program, remaining amount available for repurchase		$ 7,700,000
Common Stock [Member] \| Current Share Repurchase Program [Member] \| Scenario Forecast [Member]
Accounting Policies [Line Items]
Share repurchase program, additional authorized amount				$ 25,000,000.0
Accrued expenses [Member]
Accounting Policies [Line Items]
Self-insurance liabilities		4,400,000	$ 4,800,000
Other long-term liabilities [Member]
Accounting Policies [Line Items]
Self-insurance liabilities		5,800,000	6,200,000
Stored Value Card Breakage Revenue [Member]
Accounting Policies [Line Items]
Recognized stored value card breakage revenue		$ 300,000	300,000
One vendor [Member]
Accounting Policies [Line Items]
Suppliers accounted for total purchases		7.60%
Percentage of vendors represented greater than of total purchases		5.00%
U.S. Treasury Bills [Member]
Accounting Policies [Line Items]
Cash and cash equivalents		$ 75,000,000.0	50,000,000.0
COVID-19 [Member]
Accounting Policies [Line Items]
Percentage of minimum number of retail store locations closed	50.00%
Lease abatements, to decrease on variable lease expense			3,100,000
Deferred, lease liability		$ 100,000	600,000
COVID-19 [Member] \| California [Member]
Accounting Policies [Line Items]
Percentage of stores		52.00%
Merchandise [Member] \| Accounting Standards Update 2014-09 \| ASC 606 [Member]
Accounting Policies [Line Items]
Estimated right of return related to estimated sales returns		$ 1,200,000	1,200,000
Allowance for sales returns reserve		$ 2,500,000	$ 2,400,000

Summary of Significant Accounting Policies - Summary of Disaggregates Net Sales into Major Merchandise Categories to Depict Nature and Amount of Revenue and Related Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2022	Jan. 03, 2021
Accounting Policies [Line Items]
Net sales	$ 1,161,820	$ 1,041,212
Hardgoods [Member]
Accounting Policies [Line Items]
Net sales	637,181	623,728
Athletic and sport footwear [Member]
Accounting Policies [Line Items]
Net sales	279,645	228,311
Athletic and sport apparel [Member]
Accounting Policies [Line Items]
Net sales	241,526	184,538
Other sales [Member]
Accounting Policies [Line Items]
Net sales	$ 3,468	$ 4,635

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Summary of Significant Accounting Policies - Schedule of Estimated Useful Life of Property and Equipment (Detail)	12 Months Ended
	Jan. 02, 2022
Land [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	Indefinite
Buildings [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	20 years
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	Shorter of estimated useful life or term of lease
Furniture and equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Furniture and equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	10 years
Internal-use software [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Internal-use software [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	7 years

Property and Equipment, Net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands	Jan. 02, 2022	Jan. 03, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 360,417	$ 346,996
Accumulated depreciation and amortization	(301,852)	(290,638)
Property and equipment, net excluding assets not placed into service	58,565	56,358
Assets not placed into service	1,836	887
Property and equipment, net	60,401	57,245
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	176,066	170,701
Furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	142,638	134,623
Internal-use software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	37,188	37,147
Land [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,750	2,750
Building [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,775	$ 1,775

Property and Equipment, Net - Schedule of Property and Equipment (Parenthetical) (Detail) - USD ($) $ in Millions	Jan. 02, 2022	Jan. 03, 2021
Internal-use software development [Member]
Property, Plant and Equipment [Line Items]
Accumulated amortization for internal-use software development costs	$ 32.7	$ 30.8

Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2022	Jan. 03, 2021
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 7.6	$ 6.7
Amortization expense	8.0	8.9
Finance leases, gross	16.5	10.1
Accumulated depreciation of finance leases	6.1	5.5
Internal-use software [Member]
Property, Plant and Equipment [Line Items]
Amortization expense	$ 2.1	$ 2.9

Fair Value Measurements - Additional Information (Details) - USD ($)	12 Months Ended
	Jan. 02, 2022	Jan. 03, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment charges	$ 0	$ 0
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 75,000,000.0	$ 50,000,000.0

Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands	Jan. 02, 2022	Jan. 03, 2021
Payables And Accruals [Abstract]
Payroll and related expense	$ 37,345	$ 37,826
Sales tax	12,112	11,609
Occupancy expense	10,168	10,215
Other	25,416	23,227
Accrued expenses	$ 85,041	$ 82,877

Lease Commitments - Additional Information (Detail)	12 Months Ended
Lease Commitments - Additional Information (Detail)	Jan. 02, 2022
Lessee Lease Description [Line Items]
Operating lease, option to extend, description	options to extend the leases for up to 5 years
Operating lease, option to extend	true
Maximum [Member]
Lessee Lease Description [Line Items]
Operating lease term	13 years
Operating lease, option to extend	5 years
Finance lease term	6 years

Lease Commitments - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2022	Jan. 03, 2021
Lease expense:
Amortization of right-of-use assets	$ 2,940	$ 2,721
Interest on lease liabilities	260	297
Finance lease expense	3,200	3,018
Operating lease expense	81,734	83,030
Variable lease expense	18,384	15,238
Sublease income	(91)	(1,192)
Total lease expense	$ 103,227	$ 100,094

Lease Commitments - Summary of Components of Lease Expenses (Parenthetical) (Detail) $ in Millions	12 Months Ended
	Jan. 03, 2021 USD ($)
COVID-19 [Member]
Lessee Lease Description [Line Items]
Lease abatements, to decrease on variable lease expense	$ 3.1

Lease Commitments - Schedule of Other Information Related to Leases (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2022	Jan. 03, 2021
Leases [Abstract]
Operating cash flows from operating leases	$ 85,238	$ 83,028
Financing cash flows from finance leases	2,887	2,858
Operating cash flows from finance leases	271	313
Cash paid for amounts included in the measurement of lease liabilities	88,396	86,199
Right-of-use assets obtained in exchange for new finance lease liabilities	8,723
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 56,953	$ 80,452
Weighted-average remaining lease term—finance leases	3 years 9 months 18 days	2 years 4 months 24 days
Weighted-average remaining lease term—operating leases	4 years 9 months 18 days	5 years
Weighted-average discount rate - Finance Leases	3.10%	4.80%
Weighted-average discount rate - Operating Leases	5.40%	6.10%

Lease Commitments - Schedule of Finance and Operating Lease Liabilities (Detail) - USD ($) $ in Thousands	Jan. 02, 2022	Jan. 03, 2021
Finance Lease Liabilities, Payments, Due [Abstract]
Finance leases, 2022	$ 3,748
Finance leases, 2023	2,585
Finance leases, 2024	1,787
Finance leases, 2025	1,304
Finance leases, 2026	867
Finance leases, thereafter	197
Finance leases, total lease payments	$ 10,488
Weighted-average remaining lease term	3 years 9 months 18 days	2 years 4 months 24 days
Weighted-average discount rate - Finance Leases	3.10%	4.80%
Present values	$ 9,974
Lease liabilities - current	3,518	$ 2,089
Lease liabilities - long-term	6,456	$ 2,504
Lease liabilities - total	9,974
Difference between undiscounted and discounted cash flows	514
Operating Lease Liabilities, Payments Due [Abstract]
Operating leases, 2022	86,185
Operating leases, 2023	68,475
Operating leases, 2024	59,654
Operating leases, 2025	42,975
Operating leases, 2026	27,670
Operating leases, thereafter	34,051
Operating leases, total lease payments	$ 319,010
Weighted-average remaining lease term	4 years 9 months 18 days	5 years
Weighted-average discount rate - Operating Leases	5.40%	6.10%
Present values	$ 281,016
Lease liabilities - current	76,882	$ 73,737
Lease liabilities - long-term	204,134	$ 217,788
Lease liabilities - total	281,016
Difference between undiscounted and discounted cash flows	$ 37,994

Long-Term Debt - Additional Information (Detail) - USD ($)		3 Months Ended	12 Months Ended
	Feb. 24, 2021	Apr. 04, 2021	Jan. 02, 2022	Jan. 03, 2021	Mar. 30, 2020
Debt Instrument [Line Items]
Credit Agreement description			The Company, Big 5 Corp. and Big 5 Services Corp. were parties to a credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, and a syndicate of other lenders, as amended (the “Prior Credit Agreement”), which was terminated and replaced on February 24, 2021, as discussed below.
Long-term revolving credit borrowings outstanding			$ 0	$ 0
Debt issuance costs paid		$ 700,000	$ 746,000	$ 106,000
Loan, Guaranty and Security Agreement [Member]
Debt Instrument [Line Items]
Revolving credit facility	$ 150,000,000.0
Maximum limit of credit facility	200,000,000.0
Sublimit for issuances of letters of credit	$ 50,000,000.0
Maturity date of credit agreement	Feb. 24, 2026
Percentage of eligible credit card accounts receivables	90.00%
Percentage of the value of eligible inventory	90.00%
Percentage of the value of eligible in-transit inventory	90.00%
Interest rate, description			the applicable margin for base rate loans (as shown below) plus the highest of (a) the Federal funds rate, as in effect from time to time, plus one-half of one percent (0.50%), (b) the LIBO rate, plus one percentage point (1.00%), or (c) the rate of interest in effect for such day as announced from time to time within BofA as its “prime rate.”
Commitment fee assessed	0.20%
Debt instrument, covenant description			Obligations under the Loan Agreement are secured by a general lien on and security interest in substantially all of the Company’s assets. The Loan Agreement contains covenants that require the Company to maintain a fixed charge coverage ratio of not less than 1.0:1.0 in certain circumstances, and limits the ability
Events of default, description			The Loan Agreement contains customary events of default, including, without limitation, failure to pay when due principal amounts with respect to the credit facility, failure to pay any interest or other amounts under the credit facility, failure to comply with certain agreements or covenants contained in the Loan Agreement, failure to satisfy certain judgments against the Company, failure to pay when due (or any other default which permits the acceleration of) certain other material indebtedness in principal amount in excess of $5.0 million, and certain insolvency and bankruptcy events. As amended, the Loan Agreement provides for a transition to an alternative benchmark reference rate following the cessation of the LIBO rate.
Maximum dividend payment or stock purchase amount	$ 5,000,000.0
Line of Credit Facility default debt minimum amount	$ 5,000,000.0
Loan, Guaranty and Security Agreement [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Fixed charge coverage ratio	100.00%
Loan, Guaranty and Security Agreement [Member] \| Federal Funds Rate [Member]
Debt Instrument [Line Items]
Applicable margin in addition to variable rate	0.50%
Loan, Guaranty and Security Agreement [Member] \| LIBO Rate [Member]
Debt Instrument [Line Items]
Applicable margin in addition to variable rate	1.00%
Prior Credit Agreement [Member]
Debt Instrument [Line Items]
Revolving credit facility			$ 140,000,000.0		$ 165,000,000.0
Maximum limit of credit facility			200,000,000.0
Sublimit for issuances of letters of credit			$ 25,000,000.0
Maturity date of credit agreement			Sep. 29, 2022
Interest rate, description			The Prior Credit Agreement provided for LIBO rate loans to bear interest at a rate equal to the applicable adjusted LIBO rate plus an applicable margin, as shown in the table below. The loans designated as base rate loans bore interest at a rate equal to the applicable margin for base rate loans (as shown below) plus the highest of (a) the Federal funds rate in effect plus one-half of one percent, (b) the LIBO rate, plus one percentage point, or (c) the prime interest rate.
Commitment fee assessed			0.20%
First tier of increase to the borrowing capacity			$ 165,000,000.0
Sublimit for swingline loans			$ 20,000,000.0
Write off of deferred debt issuance cost		$ 200,000
Prior Credit Agreement [Member] \| Federal Funds Rate [Member]
Debt Instrument [Line Items]
Applicable margin in addition to variable rate			0.50%
Prior Credit Agreement [Member] \| LIBO Rate [Member]
Debt Instrument [Line Items]
Applicable margin in addition to variable rate			1.00%

Long-Term Debt - Average Daily Excess Availability for Preceding Fiscal Quarter (Detail)		12 Months Ended
	Feb. 24, 2021	Jan. 02, 2022
Loan, Guaranty and Security Agreement [Member] \| Level I [Member]
Line Of Credit Facility [Line Items]
Average Daily Availability	Greater than or equal to $70,000,000
LIBO Rate Applicable Margin	1.375%
Base Rate Applicable Margin	0.375%
Loan, Guaranty and Security Agreement [Member] \| Level II [Member]
Line Of Credit Facility [Line Items]
Average Daily Availability	Less than $70,000,000
LIBO Rate Applicable Margin	1.50%
Base Rate Applicable Margin	0.50%
Prior Credit Agreement [Member] \| Level I [Member]
Line Of Credit Facility [Line Items]
Average Daily Availability		Greater than or equal to $70,000,000
LIBO Rate Applicable Margin		1.25%
Base Rate Applicable Margin		0.25%
Prior Credit Agreement [Member] \| Level II [Member]
Line Of Credit Facility [Line Items]
Average Daily Availability		Less than $70,000,000
LIBO Rate Applicable Margin		1.375%
Base Rate Applicable Margin		0.50%

Income Taxes - Summary of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2022	Jan. 03, 2021
Income Tax Disclosure [Abstract]
Current, Federal	$ 23,422	$ 13,786
Current, State	7,582	4,871
Current, Total	31,004	18,657
Deferred, Federal	1,121	86
Deferred, State	613	(298)
Deferred, Total	1,734	(212)
Total, Federal	24,543	13,872
Total, State	8,195	4,573
Total income tax expense (benefit)	$ 32,738	$ 18,445

Income Taxes - Additional Information (Detail) - USD ($)	12 Months Ended
	Jan. 02, 2022	Jan. 03, 2021
Income Tax Contingency [Line Items]
Federal statutory tax rate	21.00%
Deferred tax assets valuation allowance	$ 280,000	$ 683,000
Unrecognized tax benefits	$ 0	0
Unrecognized tax benefits, period	over the next 12 months
Accrued interest or penalties	$ 0	0
Earliest Tax Year [Member] \| Federal [Member]
Income Tax Contingency [Line Items]
Income tax returns in period	2018
Earliest Tax Year [Member] \| State and Local [Member]
Income Tax Contingency [Line Items]
Income tax returns in period	2017
California Enterprise Zone Tax Credits [Member]
Income Tax Contingency [Line Items]
Deferred tax assets valuation allowance	$ 300,000	$ 700,000
Tax credits carry forward latest expiration year	2024

Income Taxes - Schedule of Federal Statutory Tax Rate Reconciliation (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2022	Jan. 03, 2021
Income Tax Disclosure [Abstract]
Tax expense at statutory rate	$ 28,376	$ 15,621
State tax expense, net of federal tax effect	7,167	3,975
Additional deduction related to share-based compensation	(2,623)
Nondeductible expenses	729	86
Tax credits	(603)	(246)
Change in valuation allowance	(318)	(418)
CARES Act net operating loss carryback		(822)
Write-offs related to nonvested share awards		260
Other	(10)	(11)
Total income tax expense (benefit)	$ 32,738	$ 18,445

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Jan. 02, 2022	Jan. 03, 2021
Deferred tax assets:
Employee benefit-related liabilities	$ 2,889	$ 2,986
Deferred rent	2,828	3,509
Insurance liabilities	2,421	2,581
State taxes	1,545	1,014
Gift card liability	1,420	1,324
Merchandise inventory	1,215	2,253
Share-based compensation	805	815
California Enterprise Zone Tax Credits	381	975
Other deferred tax assets	1,500	1,396
Gross deferred tax assets	15,004	16,853
Less: Valuation allowance	(280)	(683)
Deferred tax assets, net of valuation allowance	14,724	16,170
Deferred tax liabilities:
Prepaid expense	(1,147)	(989)
Federal liability on state deferred tax assets	(996)	(1,125)
Other deferred tax liabilities	(484)	(225)
Deferred tax liabilities	(2,627)	(2,339)
Net deferred tax assets	$ 12,097	$ 13,831

Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 02, 2022	Jan. 03, 2021
Earnings Per Share Basic [Line Items]
Net income	$ 102,386	$ 55,940
Weighted-average shares of common stock outstanding:
Basic	21,670,000	21,260,000
Dilutive effect of common stock equivalents arising from share option, nonvested share and nonvested share unit awards	842,000	403,000
Diluted	22,512,000	21,663,000
Basic earnings per share	$ 4.73	$ 2.63
Diluted earnings per share	$ 4.55	$ 2.58
Share Option Awards [Member]
Weighted-average shares of common stock outstanding:
Antidilutive shares/unit awards excluded from diluted calculation	2,000	494,000
Nonvested Share Awards and Nonvested Share Unit Awards [Member]
Weighted-average shares of common stock outstanding:
Antidilutive shares/unit awards excluded from diluted calculation	0	46,000

Earnings Per Share - Additional Information (Detail) - shares	12 Months Ended
	Jan. 02, 2022	Jan. 03, 2021
Nonvested Share Awards and Nonvested Share Unit Awards [Member]
Earnings Per Share Basic [Line Items]
Antidilutive options	0	46,000

Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2022	Jan. 03, 2021
Compensation And Retirement Disclosure [Abstract]
Employer matching and profit-sharing contributions	$ 5.3	$ 3.7

Related Party Transactions - Additional Information (Detail) - Co-founder [Member] - USD ($)	3 Months Ended	12 Months Ended
	Apr. 04, 2021	Jan. 02, 2022	Jan. 03, 2021	Jan. 31, 2021
Related Party Transaction [Line Items]
Annual base salary under agreement to be paid to related party		$ 350,000
Salary base amount under agreement paid to related party			$ 350,000
Expense recognized to provide future obligations under agreement			300,000
Liability of future obligations			$ 1,000,000.0
Related party transaction, liability eliminate				$ 1,000,000.0
Selling and Administrative Expenses [Member]
Related Party Transaction [Line Items]
Related party transaction, reduce selling and administrative expense	$ 1,000,000.0

Carrying amount as of the balance sheet date of obligations due all related parties.

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