Hibbett Sports 2012 Annual Report Download - page 42

38
The following table presents the components of our advertising expense (in thousands):
January 28, January 29, January 30,
2012 2011 2010
Gross advertising costs 8,329$ 7,314$ 5,572$
Advertising reimbursements (3,748) (3,389) (2,268)
Net advertising costs 4,581$ 3,925$ 3,304$
Fiscal Year Ended
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.
Stock Repurchase Program
In November 2009, the Board of Directors (Board) authorized a 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 1,897,002 shares of our common stock during Fiscal 2012 at a cost of $68.6 million, including 36,352
shares acquired from holders of restricted stock unit awards to satisfy tax withholding requirements of $1.1 million. 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.
Under the old authorization, we had repurchased 7,761,813 shares of our common stock at a cost of $166.9 million.
Under both authorizations, we had repurchased a total of 11,120,040 shares of our common stock at an approximate cost of
$273.4 million as of January 28, 2012, and had approximately $144.7 million remaining under the Program for stock repurchase.
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 are exposed to credit risk in the event of default by our financial
institutions where we maintain deposits 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 28, 2012 and January 29, 2011 were $3.0 million and $3.6 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). These are trading securities and are classified as long-
term assets on the consolidated balance sheets and are included in other assets, net. At January 28, 2012 and January 29, 2011,
we had $1.4 million and $0.9 million, respectively, of investments included in other assets, net. Net unrealized holding gains for
both Fiscal 2012 and Fiscal 2011 were $0.1 million.
Trade and Other Accounts Receivable
Trade accounts receivable consist 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 28, 2012 and January 29, 2011 was $49,000 and $47,000,
respectively.
Other accounts receivable consists primarily of tenant allowances due from landlords and cooperative advertising due
from vendors. We analyze other accounts receivable for collectibility based on aging of individual components, underlying
contractual terms and economic conditions. Recorded amounts are deemed to be collectible.