Nebraska
|
47-0366193
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer
Identification
No.)
|
2407
West 24th Street, Kearney, Nebraska
|
68845-4915
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Title
of class
|
Name
of Each Exchange on Which Registered
|
|
Common
Stock, $.01 par value
|
New
York Stock Exchange
|
Pages
|
||
Part
I. Financial
Information (unaudited)
|
||
Item
1.
|
Financial
Statements
|
3
|
Item
2.
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
|
14
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
22
|
Item
4.
|
Controls
and Procedures
|
22
|
Part
II. Other
Information
|
||
Item
1.
|
Legal
Proceedings
|
23
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
23
|
Item
3.
|
Defaults
Upon Senior Securities
|
23
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
23
|
Item
5.
|
Other
Information
|
24
|
Item
6.
|
Exhibits
|
24
|
Signatures
|
25
|
|
August
4, 2007 |
|
February
3, 2007 |
||||
ASSETS
|
|||||||
CURRENT
ASSETS:
|
|||||||
Cash
and cash equivalents
|
$
|
25,578
|
$
|
35,752
|
|||
Short-term
investments
|
132,095
|
115,721
|
|||||
Accounts
receivable, net of allowance of $42 and $72, respectively
|
3,841
|
4,046
|
|||||
Inventory
|
96,021
|
70,306
|
|||||
Prepaid
expenses and other assets
|
14,582
|
12,401
|
|||||
Total
current assets
|
272,117
|
238,226
|
|||||
PROPERTY
AND EQUIPMENT:
|
228,693
|
215,630
|
|||||
Less
accumulated depreciation and amortization
|
(128,896
|
)
|
(121,811
|
)
|
|||
99,797
|
93,819
|
||||||
LONG-TERM
INVESTMENTS
|
29,387
|
31,958
|
|||||
OTHER
ASSETS
|
4,044
|
4,195
|
|||||
$
|
405,345
|
$
|
368,198
|
||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
CURRENT
LIABILITIES:
|
|||||||
Accounts
payable
|
$
|
35,003
|
$
|
14,670
|
|||
Accrued
employee compensation
|
9,705
|
17,800
|
|||||
Accrued
store operating expenses
|
5,461
|
4,468
|
|||||
Gift
certificates redeemable
|
4,311
|
6,709
|
|||||
Income
taxes payable
|
1,466
|
5,562
|
|||||
Total
current liabilities
|
55,946
|
49,209
|
|||||
DEFERRED
COMPENSATION
|
3,845
|
3,368
|
|||||
DEFERRED
RENT LIABILITY
|
30,657
|
29,034
|
|||||
Total
liabilities
|
90,448
|
81,611
|
|||||
COMMITMENTS
|
|||||||
STOCKHOLDERS’
EQUITY:
|
|||||||
Common
stock, authorized 100,000,000 shares of $.01 par value; 30,192,753
and
29,408,576 shares
issued and outstanding at August 4, 2007 and February 3, 2007,
respectively
|
302
|
294
|
|||||
Additional
paid-in capital
|
59,823
|
43,493
|
|||||
Retained
earnings
|
254,772
|
242,800
|
|||||
Total
stockholders’ equity
|
314,897
|
286,587
|
|||||
$
|
405,345
|
$
|
368,198
|
Thirteen
Weeks Ended
|
Twenty-six
Weeks Ended
|
||||||||||||
August
4,
|
July
29,
|
August
4,
|
July
29,
|
||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
SALES,
Net of returns and allowances
|
$
|
124,257
|
$
|
102,398
|
$
|
245,368
|
$
|
212,004
|
|||||
COST
OF SALES (Including buying, distribution, and occupancy
costs)
|
77,844
|
68,330
|
153,452
|
138,909
|
|||||||||
Gross
profit
|
46,413
|
34,068
|
91,916
|
73,095
|
|||||||||
OPERATING
EXPENSES:
|
|||||||||||||
Selling
|
25,065
|
22,102
|
48,489
|
44,007
|
|||||||||
General
and administrative
|
4,891
|
3,677
|
9,871
|
7,541
|
|||||||||
29,956
|
25,779
|
58,360
|
51,548
|
||||||||||
INCOME
FROM OPERATIONS
|
16,457
|
8,289
|
33,556
|
21,547
|
|||||||||
OTHER
INCOME, Net
|
2,260
|
2,282
|
4,383
|
3,866
|
|||||||||
INCOME
BEFORE INCOME TAXES
|
18,717
|
10,571
|
37,939
|
25,413
|
|||||||||
PROVISION
FOR INCOME TAXES
|
6,925
|
3,932
|
13,954
|
9,420
|
|||||||||
NET
INCOME
|
$
|
11,792
|
$
|
6,639
|
$
|
23,985
|
$
|
15,993
|
|||||
EARNINGS
PER SHARE:
|
|||||||||||||
Basic
|
$
|
0.40
|
$
|
0.23
|
$
|
0.81
|
$
|
0.55
|
|||||
Diluted
|
$
|
0.38
|
$
|
0.22
|
$
|
0.78
|
$
|
0.53
|
|||||
Basic
weighted average shares
|
29,776
|
29,050
|
29,622
|
29,006
|
|||||||||
Diluted
weighted average shares
|
30,924
|
30,111
|
30,806
|
30,062
|
|
Number
of Shares |
Common
Stock |
Additional
Paid-in Capital |
Retained
Earnings |
Unearned
Compensation |
Total
|
|||||||||||||
|
|
|
|
|
|
|
|||||||||||||
FISCAL
2007
|
|
|
|
|
|
|
|||||||||||||
BALANCE,
February 3, 2007
|
29,408,576
|
$
|
294
|
$
|
43,493
|
$
|
242,800
|
$
|
-
|
$
|
286,587
|
||||||||
|
|||||||||||||||||||
Net
income
|
-
|
-
|
-
|
23,985
|
-
|
23,985
|
|||||||||||||
Dividends
paid on common stock, ($0.20
per share)
|
-
|
-
|
-
|
(12,013
|
)
|
-
|
(12,013
|
)
|
|||||||||||
Common
stock issued on exercise of
stock options
|
645,832
|
7
|
8,495
|
-
|
-
|
8,502
|
|||||||||||||
Issuance
of non-vested stock, net of forfeitures
|
138,345
|
1
|
(1
|
)
|
-
|
-
|
-
|
||||||||||||
Amortization
of non-vested stock grants
|
-
|
-
|
1,941
|
-
|
-
|
1,941
|
|||||||||||||
Stock
option compensation expense
|
-
|
-
|
202
|
-
|
-
|
202
|
|||||||||||||
Income
tax benefit related to exercise of
employee stock options
|
-
|
-
|
5,693
|
-
|
-
|
5,693
|
|||||||||||||
|
|||||||||||||||||||
BALANCE,
August 4, 2007
|
30,192,753
|
$
|
302
|
$
|
59,823
|
$
|
254,772
|
$
|
-
|
$
|
314,897
|
||||||||
|
|||||||||||||||||||
FISCAL
2006
|
|||||||||||||||||||
BALANCE,
January 28, 2006
|
19,339,153
|
$
|
193
|
$
|
39,651
|
$
|
261,948
|
$
|
(1,999
|
) |
$
|
299,793
|
|||||||
|
|||||||||||||||||||
Reclassify
unearned compensation
|
-
|
-
|
(1,999
|
)
|
-
|
1,999
|
-
|
||||||||||||
Net
income
|
-
|
-
|
-
|
15,993
|
-
|
15,993
|
|||||||||||||
Dividends
paid on common stock, ($0.1133
per share)
|
-
|
-
|
-
|
(6,647
|
)
|
-
|
(6,647
|
)
|
|||||||||||
Common
stock issued on exercise of
stock options
|
162,896
|
1
|
3,044
|
-
|
-
|
3,045
|
|||||||||||||
Issuance
of non-vested stock, net of forfeitures
|
135,850
|
2
|
(2
|
)
|
-
|
-
|
-
|
||||||||||||
Amortization
of non-vested stock grants
|
-
|
-
|
554
|
-
|
-
|
554
|
|||||||||||||
Stock
option compensation expense
|
-
|
-
|
782
|
-
|
-
|
782
|
|||||||||||||
Common
stock purchased and retired
|
(93,500
|
)
|
(1
|
)
|
(3,751
|
)
|
-
|
-
|
(3,752
|
)
|
|||||||||
|
|||||||||||||||||||
BALANCE,
July 29, 2006
|
19,544,399
|
$
|
195
|
$
|
38,279
|
$
|
271,294
|
$
|
-
|
$
|
309,768
|
Twenty-six
Weeks Ended
|
|||||||
August
4,
|
July
29,
|
||||||
2007
|
2006
|
||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|||||||
Net
income
|
$
|
23,985
|
$
|
15,993
|
|||
Adjustments
to reconcile net income to net cash flows from
operating activities:
|
|||||||
Depreciation
and amortization
|
9,485
|
8,975
|
|||||
Amortization
of non-vested stock grants
|
1,941
|
554
|
|||||
Stock
option compensation expense
|
202
|
782
|
|||||
Other
|
67
|
23
|
|||||
Changes
in operating assets and liabilities:
|
|||||||
Accounts
receivable
|
205
|
757
|
|||||
Inventory
|
(25,715
|
)
|
(22,162
|
)
|
|||
Prepaid
expenses
|
(2,181
|
)
|
(1,150
|
)
|
|||
Accounts
payable
|
19,723
|
15,829
|
|||||
Accrued
employee compensation
|
(8,095
|
)
|
(11,698
|
)
|
|||
Accrued
store operating expenses
|
993
|
462
|
|||||
Gift
certificates redeemable
|
(2,398
|
)
|
(1,922
|
)
|
|||
Long-term
liabilities and deferred compensation
|
2,100
|
1,587
|
|||||
Income
taxes payable
|
(3,451
|
)
|
(5,832
|
)
|
|||
Net
cash flows from operating activities
|
16,861
|
2,198
|
|||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|||||||
Purchase
of property and equipment
|
(14,938
|
)
|
(10,910
|
)
|
|||
Proceeds
from sale of property and equipment
|
18
|
3
|
|||||
Change
in other assets
|
151
|
32
|
|||||
Purchases
of investments
|
(39,366
|
)
|
(30,688
|
)
|
|||
Proceeds
from sales/maturities of investments
|
25,563
|
30,627
|
|||||
Net
cash flows from investing activities
|
(28,572
|
)
|
(10,936
|
)
|
|||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||
Proceeds
from the exercise of stock options
|
8,502
|
3,045
|
|||||
Excess
tax benefit from employee stock option exercises
|
5,048
|
1,136
|
|||||
Purchases
of common stock
|
-
|
(3,752
|
)
|
||||
Payment
of dividends
|
(12,013
|
)
|
(6,647
|
)
|
|||
Net
cash flows from financing activities
|
1,537
|
(6,218
|
)
|
||||
NET
DECREASE IN CASH AND CASH EQUIVALENTS
|
(10,174
|
)
|
(14,956
|
)
|
|||
CASH
AND CASH EQUIVALENTS, Beginning of period
|
35,752
|
23,438
|
|||||
CASH
AND CASH EQUIVALENTS, End of period
|
$
|
25,578
|
$
|
8,482
|
1.
|
Management
Representation
-
The accompanying unaudited financial statements have been prepared
in
accordance with accounting principles generally accepted in the United
States of America for interim financial information. Accordingly,
they do
not include all of the information and footnotes required by accounting
principles generally accepted in the United States of America for
complete
financial statements. In the opinion of management, all adjustments
necessary for the fair presentation of the results of operations
for the
interim periods have been included. All such adjustments are of a
normal
recurring nature. Because of the seasonal nature of the business,
results
for interim periods are not necessarily indicative of a full year's
operations. The accounting policies followed by the Company and additional
footnotes are reflected in the financial statements for the fiscal
year
ended February 3, 2007, included in The Buckle, Inc.'s 2006 Form
10-K.
|
2.
|
Stock-Based
Compensation
-
The Company has several stock option plans which allow for granting
of
stock options to employees, executives, and directors; as described
more
fully in the notes included in the Company’s 2006 Annual Report. The
options may be in the form of incentive stock options or non-qualified
stock options and are granted with an exercise price equal to the
market
value of the Company’s common stock on the date of grant. The options
generally expire ten years from the date of grant. The Company also
has a
restricted stock plan that allows for the granting of non-vested
shares of
common stock to employees and
executives.
|
2007
|
2006
|
||||||
Risk-free
interest rate (1)
|
4.80
|
%
|
4.50
- 5.00
|
%
|
|||
Dividend
yield (2)
|
2.40
|
%
|
1.60
- 2.00
|
%
|
|||
Expected
volatility (3)
|
39.0
|
%
|
45.0
|
%
|
|||
Expected
lives - years (4)
|
7.0
|
7.0
|
(1) |
Based
on the U.S. Treasury yield curve in effect at the time of grant
with a
term consistent with the
expected lives of stock
options.
|
(2) |
Based
on expected dividend yield as of the date of grant.
|
(3) |
Based
on historical volatility of the Company’s common stock over a period
consistent with the expected lives of options.
|
(4) |
Based
on historical and expected exercise behavior.
|
2007
|
||||||||||||||||
Weighted
|
||||||||||||||||
Weighted
|
Average
|
|||||||||||||||
Average
|
Remaining
|
Aggregate
|
||||||||||||||
Exercise
|
Contractual
|
Intrinsic
|
||||||||||||||
Shares
|
Price
|
Life
|
Value
|
|||||||||||||
Outstanding
- beginning of year
|
2,969,377
|
$
|
12.56
|
|||||||||||||
Granted
|
27,000
|
33.87
|
||||||||||||||
Expired/forfeited
|
(1,902
|
)
|
14.67
|
|||||||||||||
Exercised
|
(645,832
|
)
|
13.16
|
|||||||||||||
Outstanding
- end of quarter
|
2,348,643
|
$
|
12.64
|
4.28
|
years
|
$
|
50,807
|
|||||||||
Exercisable
- end of quarter
|
2,311,284
|
$
|
12.40
|
4.20
|
years
|
$
|
50,549
|
2007
|
|||||||
Weighted
Average
|
|||||||
Grant
Date
|
|||||||
Shares
|
Fair
Value
|
||||||
Non-Vested
- beginning of year
|
262,515
|
$
|
23.37
|
||||
Granted
|
139,800
|
33.87
|
|||||
Forfeited
|
(1,455
|
)
|
25.46
|
||||
Vested
|
(39,210
|
)
|
23.50
|
||||
Non-Vested
- end of quarter
|
361,650
|
$
|
27.41
|
3.
|
Description
of the Business
-
The Company is a retailer of medium to better priced casual apparel,
footwear, and accessories for fashion conscious young men and women.
The
Company operates its business as one reportable industry segment.
The
Company had 362 stores located in 38 states throughout the continental
United States (excluding the northeast) as of August 4, 2007, and
346
stores in 38 states as of July 29, 2006. During the second quarter
of
fiscal 2007, the Company opened 9 new stores and substantially renovated
5
stores. During the second quarter of fiscal 2006, the Company opened
5 new
stores and substantially renovated 2
stores.
|
Percentage
of Net Sales
|
Percentage
of Net Sales
|
||||||||||||
Thirteen
Weeks Ended
|
Twenty-six
Weeks Ended
|
||||||||||||
Merchandise
Group
|
August 4, 2007
|
July 29, 2006
|
August 4, 2007
|
July 29, 2006
|
|||||||||
Denims
|
37.4
|
%
|
38.2
|
%
|
39.8
|
%
|
41.0
|
%
|
|||||
Tops
(including sweaters)
|
36.5
|
32.1
|
33.8
|
30.2
|
|||||||||
Sportswear/Fashions
|
9.8
|
9.8
|
9.4
|
8.0
|
|||||||||
Accessories
|
8.1
|
9.4
|
7.8
|
8.9
|
|||||||||
Footwear
|
6.4
|
7.7
|
7.0
|
8.1
|
|||||||||
Casual
bottoms
|
1.4
|
2.3
|
1.6
|
2.7
|
|||||||||
Outerwear
|
0.3
|
0.4
|
0.5
|
1.0
|
|||||||||
Other
|
0.1
|
0.1
|
0.1
|
0.1
|
|||||||||
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
4.
|
Net
Earnings Per Share
-
Basic earnings per share data are based on the weighted average
outstanding common shares during the period. Diluted earnings per
share
data are based on the weighted average outstanding common shares
and the
effect of all dilutive potential common shares, including stock options.
Basic and diluted earnings per share for the period ended July 29,
2006
have been adjusted to reflect the impact of the Company’s 3-for-2 stock
split paid in the form of a stock dividend on January 12,
2007.
|
Thirteen
Weeks Ended
|
Thirteen
Weeks Ended
|
||||||||||||||||||
August
4, 2007
|
July
29, 2006
|
||||||||||||||||||
Per
Share
|
Per
Share
|
||||||||||||||||||
Income
|
Shares
|
Amount
|
Income
|
Shares
|
Amount
|
||||||||||||||
Basic
EPS
|
$
|
11,792
|
29,776
|
$
|
0.40
|
$
|
6,639
|
29,050
|
$
|
0.23
|
|||||||||
|
|||||||||||||||||||
Effect
of Dilutive Securities
Stock
options and non-vested shares
|
- | 1,148 |
(0.02
|
) | - |
1,061
|
(0.01
|
)
|
|||||||||||
Diluted
EPS
|
$
|
11,792
|
30,924
|
$
|
0.38
|
$
|
6,639
|
30,111
|
$
|
0.22
|
|
Twenty-six
Weeks Ended
|
Twenty-six
Weeks Ended
|
|||||||||||||||||
|
August
4, 2007
|
July
29, 2006
|
|||||||||||||||||
|
Per Share
|
Per Share
|
|
||||||||||||||||
|
|
|
Income
|
|
|
Shares
|
|
|
Amount
|
|
|
Income
|
|
|
Shares
|
|
|
Amount
|
|
Basic
EPS
|
$
|
23,985
|
29,622
|
$
|
0.81
|
$
|
15,993
|
29,006
|
$
|
0.55
|
|||||||||
|
|||||||||||||||||||
Effect
of Dilutive Securities
Stock
options and non-vested shares
|
- |
1,184
|
(0.03
|
)
|
- |
1,056
|
(0.02
|
)
|
|||||||||||
Diluted
EPS
|
$
|
23,985
|
30,806
|
$
|
0.78
|
$
|
15,993
|
30,062
|
$
|
0.53
|
5.
|
Stock
Split
-
On December 11, 2006, the Company’s Board of Directors approved a 3-for-2
stock split payable in the form of a stock dividend for shareholders
of
record as of January 3, 2007, with a distribution date of January
12,
2007. All share and per share data (except historical stockholders’ equity
data) presented in the financial statements for all periods has been
adjusted to reflect the impact of this stock
split.
|
6.
|
Other
Income
|
The
following table summarizes the Company’s Other Income for the thirteen and
twenty-six week periods included in this financial
statement:
|
Thirteen
Weeks Ended
|
Twenty-six
Weeks Ended
|
||||||||||||
August 4, 2007
|
July 29, 2006
|
August 4, 2007
|
July 29, 2006
|
||||||||||
Interest/dividends
earned on investments
|
$
|
2,173
|
$
|
1,409
|
$
|
4,059
|
$
|
2,939
|
|||||
Insurance
proceeds
|
-
|
470
|
162
|
470
|
|||||||||
VISA/Mastercard
settlement
|
-
|
356
|
-
|
356
|
|||||||||
Miscellaneous
|
87
|
47
|
162
|
101
|
|||||||||
Other
Income, net
|
$
|
2,260
|
$
|
2,282
|
$
|
4,383
|
$
|
3,866
|
7.
|
Recently
Issued Accounting
Pronouncements
|
8.
|
Supplemental
Cash Flow Information
|
Percentage of Net Sales
|
Percentage
|
Percentage of Net Sales
|
Percentage
|
||||||||||||||||
Thirteen Weeks Ended
|
Increase/
|
Twenty-six Weeks Ended
|
Increase/
|
||||||||||||||||
Aug.4, 2007
|
July 29, 2006
|
(Decrease)
|
Aug.4, 2007
|
July 29, 2006
|
(Decrease)
|
||||||||||||||
Net
sales
|
100.0
|
%
|
100.0
|
%
|
21.3
|
%
|
100.0
|
%
|
100.0
|
%
|
15.7
|
%
|
|||||||
Cost
of sales (including buying, distribution and occupancy
costs)
|
62.6
|
%
|
66.7
|
%
|
13.9
|
%
|
62.5
|
%
|
65.5
|
%
|
10.5
|
%
|
|||||||
Gross
profit
|
37.4
|
%
|
33.3
|
%
|
36.2
|
%
|
37.5
|
%
|
34.5
|
%
|
25.7
|
%
|
|||||||
Selling
expenses
|
20.2
|
%
|
21.6
|
%
|
13.4
|
%
|
19.8
|
%
|
20.8
|
%
|
10.2
|
%
|
|||||||
General
and administrative expenses
|
3.9
|
%
|
3.6
|
%
|
33.0
|
%
|
4.0
|
%
|
3.5
|
%
|
30.9
|
%
|
|||||||
Income
from operations
|
13.3
|
%
|
8.1
|
%
|
98.5
|
%
|
13.7
|
%
|
10.2
|
%
|
55.7
|
%
|
|||||||
Other
income, net
|
1.8
|
%
|
2.2
|
%
|
-0.9
|
%
|
1.8
|
%
|
1.8
|
%
|
13.4
|
%
|
|||||||
Income
before income taxes
|
15.1
|
%
|
10.3
|
%
|
77.1
|
%
|
15.5
|
%
|
12.0
|
%
|
49.3
|
%
|
|||||||
Provision
for income taxes
|
5.6
|
%
|
3.8
|
%
|
76.1
|
%
|
5.7
|
%
|
4.5
|
%
|
48.1
|
%
|
|||||||
Net
income
|
9.5
|
%
|
6.5
|
%
|
77.6
|
%
|
9.8
|
%
|
7.5
|
%
|
50.0
|
%
|
1.
|
Revenue
Recognition.
Retail store sales are recorded upon the purchase of merchandise
by
customers. Online sales are recorded when merchandise is delivered
to the
customer, with the time of delivery being based on an estimate of
the
shipping time from the Company’s distribution center to the customer.
Shipping fees charged to customers are included in revenue and shipping
costs are included in selling expenses. The Company accounts for
layaway
sales in accordance with SAB No. 101, recognizing revenue from sales
made
under its layaway program upon delivery of the merchandise to the
customer. Revenue is not recorded when gift cards and gift certificates
are sold, but rather when a card or certificate is redeemed for
merchandise. A current liability for unredeemed gift cards and
certificates is recorded at the time the card or certificate is purchased.
The amount of the gift certificate liability is determined using
the
outstanding balances from the prior three years of issuance and the
gift
card liability is determined using the outstanding balances from
the prior
four years of issuance. The liability recorded for unredeemed gift
cards
and gift certificates was $4.3 million and $6.7 million as of August
4,
2007 and February 3, 2007, respectively. The Company records breakage
as
other income when the probability of redemption, which is based on
historical redemption patterns, is
remote.
|
2.
|
Inventory.
Inventory is valued at the lower of cost or market. Cost is determined
using an average cost method that approximates the first-in, first-out
(FIFO) method. Management makes adjustments to inventory and cost
of goods
sold, based upon estimates, to reserve for merchandise obsolescence
and
markdowns that could affect market value, based on assumptions using
calculations applied to current inventory levels within each of four
different markdown levels. Management also reviews the levels of
inventory
in each markdown group and the overall aging of the inventory versus
the
estimated future demand for such product and the current market
conditions. Such judgments could vary significantly from actual results,
either favorably or unfavorably, due to fluctuations in future economic
conditions, industry trends, consumer demand, and the competitive
retail
environment. Such changes in market conditions could negatively impact
the
sale of markdown inventory causing further markdowns or inventory
obsolescence, resulting in increased cost of goods sold from write-offs
and reducing the Company’s net income. The liability recorded as a reserve
for markdowns and/or obsolescence was $6.4 million as of August 4,
2007
and February 3, 2007. We are not aware of any events, conditions,
or
changes in demand or price that would indicate that our inventory
valuation may not be materially accurate at this
time.
|
3.
|
Income
Taxes.
In June 2006, the FASB issued Interpretation No. 48, Accounting
for Uncertainty in Income Taxes, an Interpretation of FASB Statement
No.
109
(FIN 48). The Company adopted FIN 48 with the fiscal year beginning
February 4, 2007. Under FIN 48, tax benefits are recognized only
for tax
positions that are more likely than not to be sustained upon examination
by tax authorities. The amount recognized is measured as the largest
amount of benefit that is greater than 50 percent likely to be realized
upon ultimate settlement. Unrecognized tax benefits are tax benefits
claimed in the Company’s tax returns that do not met the recognition and
measurement standards. The adoption of FIN 48 had no impact on the
Company’s financial statements.
|
4.
|
Operating
Leases.
The Company leases retail stores under operating leases. Most lease
agreements contain tenant improvement allowances, rent holidays,
rent
escalation clauses, and/or contingent rent provisions. For purposes
of
recognizing lease incentives and minimum rental expenses on a
straight-line basis over the terms of the leases, the Company uses
the
date of initial possession to begin amortization, which is generally
when
the Company enters the space and begins to make improvements in
preparation of intended use. For tenant improvement allowances and
rent
holidays, the Company records a deferred rent liability on the balance
sheets and amortizes the deferred rent over the terms of the leases
as
reductions to rent expense on the statements of
income.
|
Payments
Due by Period
|
||||||||||||||||
Contractual
obligations (dollar amounts in thousands)
|
Total
|
Less than 1
year |
1-3 years
|
4-5 years
|
After 5
years |
|||||||||||
Long
term debt and purchase obligations
|
$
|
1,336
|
$
|
594
|
$
|
742
|
$
|
-
|
$
|
-
|
||||||
Deferred
compensation
|
$
|
3,845
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
3,845
|
||||||
Operating
leases
|
$
|
219,662
|
$
|
37,572
|
$
|
67,659
|
$
|
48,533
|
$
|
65,898
|
||||||
Total
contractual obligations
|
$
|
224,843
|
$
|
38,166
|
$
|
68,401
|
$
|
48,533
|
$
|
69,743
|
Amount
of Commitment Expiration Per Period
|
||||||||||||||||
Other
Commercial Commitments (dollar amounts in thousands)
|
Total
Amounts Committed |
Less than 1
year |
1-3 years
|
4-5 years
|
After 5
years |
|||||||||||
Lines
of credit
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Total
commercial commitments
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
Total Number
of Shares
Purchased
|
Average
Price Paid
Per
Share
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
|
Maximum Number of
Shares that May Yet Be Purchased Under Publicly
Announced Plans
|
||||||||||
May
6, to June 2, 2007
|
-
|
-
|
-
|
380,100
|
|||||||||
June
3, to July 7, 2007
|
-
|
-
|
-
|
380,100
|
|||||||||
July
8, to August 4, 2007
|
-
|
-
|
-
|
380,100
|
|||||||||
- | - | - |
Daniel
J. Hirschfeld
|
Robert
E. Campbell
|
Dennis
H. Nelson
|
John
P. Peetz
|
Karen
B. Rhoads
|
Ralph
M. Tysdal
|
James
E. Shada
|
Bruce
L. Hoberman
|
Bill
L. Fairfield
|
David
A. Roehr
|
Number
of Shares*
|
|||||||||||||
For
|
Against
|
Abstain
|
Del
N-Vote
|
||||||||||
(c)
1. Election of Board of Directors:
|
|||||||||||||
Daniel
J. Hirschfeld
|
28,309,421
|
0
|
490,414
|
||||||||||
Dennis
H. Nelson
|
28,621,793
|
0
|
178,042
|
||||||||||
Karen
B. Rhoads
|
27,857,810
|
0
|
942,025
|
||||||||||
James
E. Shada
|
28,211,297
|
0
|
588,538
|
||||||||||
Bill
L. Fairfield
|
28,761,326
|
0
|
38,509
|
||||||||||
Robert
E. Campbell
|
28,759,376
|
0
|
40,459
|
||||||||||
Jack
Peetz
|
28,757,221
|
0
|
42,614
|
||||||||||
Ralph
M. Tysdal
|
28,418,325
|
0
|
381,510
|
||||||||||
Bruce
L. Hoberman
|
28,764,971
|
0
|
34,864
|
||||||||||
David
A. Roehr
|
28,752,721
|
0
|
47,114
|
Number
of Shares*
|
|||||||||||||
For
|
Against
|
Abstain
|
Del
N-Vote
|
||||||||||
2.
Appoint Deloitte & Touche LLP as
independent auditors.
|
28,748,650
|
48,110
|
3,075
|
||||||||||
3.
Approve Company’s 2007 Management
Incentive Program
|
28,483,995
|
298,337
|
17,503
|
||||||||||
4.
Approve Amendment to Company’s
2005 Restricted Stock Plan
|
27,379,989
|
342,987
|
23,748
|
1,053,111
|
|||||||||
5.
Approve Awards Pursuant to Company’s
2005 Restricted Stock Plan
|
28,553,495
|
229,189
|
17,151
|
||||||||||
6.
Approve Amendment to Company’s
1993 Director Stock Option Plan
|
28,365,278
|
418,296
|
16,261
|
(a)
|
Exhibits
31.1 and 31.2 certifications, as well as Exhibits 32.1 and 32.2
Certifications Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant
to
Section 906 of the Sarbanes-Oxley Act of
2002.
|
THE
BUCKLE,
INC.
|
||
|
|
|
Dated: September 12, 2007 |
/s/ DENNIS
H.
NELSON.
|
|
|
||
DENNIS
H. NELSON,
President and CEO
|
||
Dated: September 12, 2007 |
/s/ KAREN
B.
RHOADS .
|
|
|
||
KAREN
B. RHOADS,
Vice President
|
||
of
Finance and CFO
|