Hibbett Sports 2011 Annual Report Download - page 41

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Cost of Goods Sold
We include inbound freight charges, merchandise purchases, store occupancy costs and a portion of our distribution
costs related to our retail business in cost of goods sold. Costs associated with moving merchandise to and between stores are
included in store operating, selling and administrative expenses.
Advertising
We expense advertising costs when incurred. We participate in various advertising and marketing cooperative
programs with our vendors, who, under these programs, reimburse us for certain costs incurred. A receivable for cooperative
advertising to be reimbursed is recorded as a decrease to expense as advertisements are run.
The following table presents the components of our advertising expense (in thousands):
January 29, January 30, January 31,
2011 2010 2009
Gross advertising costs 7,314$ 5,572$ 6,145$
Advertising reimbursements (3,389) (2,268) (3,054)
Net advertising costs 3,925$ 3,304$ 3,091$
Fiscal Year Ended
Stock Repurchase Program
In November 2009, the Board of Directors (Board) authorized a new Stock Repurchase Program (Program) of $250.0
million to repurchase our common stock through February 2, 2013. The Program replaced our existing plan that was adopted in
August 2004. Stock repurchases may be made in the open market or in negotiated transactions, with the amount and timing of
repurchases dependent on market conditions and at the discretion of our management.
We repurchased 1,461,225 shares of our common stock during Fiscal 2011 at a cost of $37.9 million, including 6,130
shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements of $0.2 million. We did not
repurchase any of our common stock during Fiscal 2010. As of January 29, 2011, we had approximately $212.1 million
remaining available under the Program for stock repurchase.
Under the previous authorization approved by the Board in August 2004, we repurchased 1,038,700 shares of our
common stock during the year ended January 31, 2009 at a cost of approximately $16.9 million. As of January 29, 2011, we had
repurchased a total of 9,223,038 shares of our common stock at an approximate cost of $204.8 million under the authorizations.
Cash and Cash Equivalents
We consider all short-term, highly liquid investments with original maturities of 90 days or less, including commercial
paper and money market funds, to be cash equivalents. We place our cash equivalents in high credit quality financial institutions.
We are exposed to credit risk in the event of default by these institutions to the extent the amount recorded on the consolidated
balance sheet exceeds the FDIC insurance limits per institution. Amounts due from third party credit card processors for the
settlement of debit and credit card transactions are included as cash equivalents as they are generally collected within three
business days. Cash equivalents related to credit and debit card transactions at January 29, 2011 and January 30, 2010 were $3.6
million and $2.8 million, respectively.
Investments
We hold investments in trust for the Hibbett Sports, Inc. Supplemental 401(k) Plan (Supplemental Plan) and the
Hibbett Sports, Inc. Executive Voluntary Deferral Plan (Deferral Plan) which are trading securities and are classified as long-
term assets on the consolidated balance sheet and are included in other assets, net. At January 29, 2011 and January 30, 2010, we
had approximately $0.9 million and $0.4 million, respectively, of investments included in other assets, net. Net unrealized
holding gains for Fiscal 2011 and Fiscal 2010 were $0.1 million and $11,000, respectively.
Trade and Other Accounts Receivable
Trade accounts receivable consists primarily of amounts due to us from sales to educational institutions for athletic
programs. We do not require collateral, and we maintain an allowance for potential uncollectible accounts based on an analysis
of the aging of accounts receivable at the date of the financial statements, historical losses and existing economic conditions,
when relevant. The allowance for doubtful accounts at January 29, 2011 and January 30, 2010 was $47,000 and $46,000,
respectively.