Hibbett Sports 2010 Annual Report Download - page 28

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information systems with the remaining 15% related primarily to office expansion, distribution center improvement and
security equipment for our stores.
As of January 30, 2010, we had an approximate $0.2 million outlay remaining on enhancements to our
merchandising system relating to inventory planning. We anticipate these upgrades will be implemented in the first
quarter of Fiscal 2011 and believe these enhancements will enable us to analyze and generally improve sales across all
markets and merchandise by allowing us to better analyze inventory at the store level.
Financing Activities.
Net cash provided by financing activities was $1.7 million in the 52 weeks ended January 30, 2010 compared
to net cash used of $15.3 and $51.1 million in the 52 weeks ended January 31, 2009 and February 2, 2008, respectively.
The cash fluctuation as compared to prior fiscal years was primarily the result of the repurchase of our common stock.
We did not repurchase any of our common stock during Fiscal 2010. We expended $16.9 million and $52.7 million on
repurchases of our common stock during Fiscal 2009 and Fiscal 2008, respectively.
Financing activities also consisted of proceeds from transactions in our common stock and the excess tax
benefit from the exercise of incentive stock options. As stock options are exercised, we will continue to receive
proceeds and expect a tax deduction; however, the amounts and timing cannot be predicted.
At January 30, 2010, we had two unsecured revolving credit facilities that allow borrowings up to $30.0
million and $50.0 million, respectively, and which renew in August 2010 and November 2010, respectively. The
facilities do not require a commitment or agency fee nor are there any covenant restrictions. We plan to renew these
facilities as they expire and do not anticipate any problems in doing so; however, no assurance can be given that we
will be granted a renewal or terms which are acceptable to us. As of January 30, 2010, we did not have any debt
outstanding under either of these facilities.
At January 31, 2009, we had two unsecured revolving credit facilities that allow borrowings up to $30.0
million and $50.0 million, respectively, and which renewed in August 2009 and December 2009, respectively. At
February 2, 2008, we had a revolving credit facility that allowed borrowings up to $30.0 million and which renewed in
August 2008. None of our credit facilities in any year presented required a commitment or agency fee nor were there
any covenant restrictions.
The following table lists the aggregate maturities of various classes of obligations and expiration amounts
of various classes of commitments related to Hibbett Sports, Inc. at January 30, 2010 (in thousands):
Contractual Obligations
Less than 1
year 1 - 3 years 3 - 5 years
More than 5
years Total
Long-term debt obligations (1) -$ -$ -$ -$ -$
Capital lease obligations (1) 117 151 - - 268
Interest on capital lease obligations (1) 57 22 - - 79
Operating lease obligations (2) 40,528 63,933 36,047 19,511 160,019
Purchase obligations (3) 1,840 736 8 - 2,584
Other long-term liabilities (4) - - - 518 518
Total 42,542$ 64,842$ 36,055$ 20,029$ 163,468$
Payment due by period
(1) See “Part II, Item 8, Consolidated Financial Statements Note 5 – Debt and Capital Lease Obligations.”
(2) See “Part II, Item 8, Consolidated Financial Statements Note 9 – Lease Commitments.”
(3) Purchase obligations include all material legally binding contracts such as software license commitments and service
contracts. The table above also includes stand-by letters of credit in conjunction with our self-insured worker’s
compensation and general liability insurance coverages. Contractual obligations, including purchase orders for inventory,
that are not binding agreements are excluded from the table above. Utility contracts (excluding waste disposal contracts
that are binding agreements) and contracts which are binding (but have no minimum fee or purchase requirements) are
also excluded.
(4) Other long-term liabilities on our consolidated balance sheet primarily consists of deferred rent and deferred income
taxes. These liabilities have been excluded from the above table as the timing and/or amount of any cash payment is
uncertain. See “Part II, Item 8, Consolidated Financial Statements Note 1 – Deferred Rent” for a discussion on our
deferred rent liabilities. See “Part II, Item 8, Consolidated Financial Statements Note 8 – Income Taxes” for a discussion
of our deferred income tax positions and accruals for uncertain tax positions. The table above includes amounts accrued
for various deferred compensation arrangements on our consolidated balance sheets. See “Part II, Item 8, Consolidated
Financial Statements Note 6 – Defined Contribution Benefit Plans” for a discussion regarding our employee benefit plans.