Annual report pursuant to Section 13 and 15(d)

Business Combination (Tables)

v2.4.0.6
Business Combination (Tables)
 12 Months Ended
Dec. 29, 2012
Business Combination [Abstract]  
Estimated fair values of purchased assets and liabilities assumed
         

Assets:

        

Accounts receivable (1)

   $ 1,132  

Inventory

     12,366  

Deferred income taxes

     120  

Property and equipment (2)

     16,430  

Intangible assets

     17,378  

Other assets

     2,287  
   

 

 

  

Total assets

   $ 49,713  
   

 

 

  

 

         

Liabilities:

        

Accounts payable

   $ (23,542 ) 

Accrued expenses

     (4,534 ) 

Deferred income taxes

     (2,734 ) 

Other liabilities

     (1,272 ) 
   

 

 

  

Total liabilities

   $ (32,082 ) 
   

 

 

  

Goodwill (3 )

   $ 9,082  
   

 

 

  

Final purchase price

   $ 26,713  
   

 

 

  

 

(1)

Accounts receivable decreased by $1.5 million from $2.6 million in the third quarter of fiscal 2011 due to the Company’s correction of an immaterial balance sheet reclassification.

(2 ) 

During the fourth quarter of 2012, the Company recorded an impairment charge of $1.0 million on building. Refer to “Note 4 – Property and Equipment, Net” for additional details.

(3 )

The goodwill resulting from the Acquisition was non-deductible for tax purposes. Goodwill increased by $1.5 million from $7.6 million in the third quarter of fiscal 2011 due to the Company’s correction of an immaterial balance sheet reclassification. During the fourth quarter of 2012, the Company recorded an impairment loss on goodwill of $9.1 million related to WAG (total impairment charge of $18.9 million on a consolidated basis). Refer to “Note 6 – Goodwill and Intangible Assets” for additional details.

Company's estimated usage of the asset
                 
    Weighted-Average
Useful Life		     Gross
Carrying
Amount		  

Intangible assets subject to amortization:

                

Internet platform intellectual property

     10 months     $ 4,300  

Product design intellectual property

     9 years       2,750  

Customer relationships

     4 years       2,050  

Favorable leases

     2.5 years       78  
           

 

 

  
              9,178  
     

Intangible assets not subject to amortization:

                

Trade names

     indefinite life       8,200  
           

 

 

  

Total

           $ 17,378  
           

 

 

  
Pro forma of financial information
         
    Fifty-Two
Weeks Ended
January 1, 2011 		 

Net sales

   $ 338,885  

Net loss

     (29,802 ) 

Basic net loss per share

     (0.98 ) 

Diluted net loss per share

     (0.98 ) 

 

         
     Fifty-Two
Weeks Ended
January 1, 2011		  

Weighted average shares used in computing basic net loss per common share

     30,269  

Weighted average shares used in computing diluted net loss per common share

     30,269