|
NOTE 6 — PROPERTY, EQUIPMENT AND IMPROVEMENTS, NET
Property, equipment and improvements, net consisted of the following (in thousands):
|
|
|
Estimated |
|
April 28, |
|
January 28, |
|
|
Description |
|
Useful Life |
|
2012 |
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
Land |
|
— |
|
$ |
1,597 |
|
$ |
1,597 |
|
|
Corporate office, distribution center and related building improvements |
|
25 years |
|
12,319 |
|
12,319 |
|
|
Store leasehold improvements |
|
Term of related lease, typically 10 years |
|
62,259 |
|
62,961 |
|
|
Store furniture and fixtures |
|
3-10 years |
|
78,740 |
|
79,793 |
|
|
Corporate office and distribution center furniture, fixtures and equipment |
|
7 years |
|
5,567 |
|
5,562 |
|
|
Computer and point of sale hardware and software |
|
|
|
34,360 |
|
34,039 |
|
|
Construction in progress |
|
|
|
1,790 |
|
518 |
|
|
|
|
|
|
196,632 |
|
196,789 |
|
|
Less accumulated depreciation and amortization |
|
|
|
(143,732 |
) |
(140,346 |
) |
|
Net property, equipment and improvements |
|
|
|
$ |
52,900 |
|
$ |
56,443 |
|
As a result of an impairment analysis, which included the evaluation of individual under-performing stores and assessing the recoverability of the carrying value of the improvements and equipment related to the stores, we determined that improvements and equipment at certain under-performing stores were impaired. As a result, we recorded asset impairments related to property, equipment and improvements of approximately $0.1 million at five stores during the thirteen-week period ended April 28, 2012.
Our assessment of the recoverability of the carrying value of our assets involves the projection of future cash flows, which requires the use of significant estimates and assumptions. Differences in circumstances or estimates could produce significantly different results. The current challenging economic environment, which continues to negatively affect the retail industry, makes it possible that additional long-lived asset impairments could be identified and recorded in future periods. |