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Impairment
6 Months Ended
Jul. 31, 2021
Text Block [Abstract]  
Impairment

Note 10 – Impairment

The Company evaluates the recoverability of the carrying amounts of long-lived assets when events or changes in circumstances dictate that their carrying values may not be recoverable. This review includes the evaluation of individual under-performing retail stores and assessing the recoverability of the carrying value of the assets related to the stores. Future cash flows are projected for the remaining lease life. If the estimated future cash flows are less than the carrying value of the assets, the Company records an impairment charge equal to the difference between the assets’ fair value and carrying value. The fair value is estimated using a discounted cash flow approach considering such factors as future sales levels, gross margins, changes in rent and other expenses as well as the overall operating environment specific to that store. The amount of the impairment charge is allocated proportionately to all assets in the asset group with no asset written down below its individual fair value.

The table below sets forth impairment information (in thousands, except store counts) for the periods indicated:    

 

 

13-Week Period Ended

 

 

26-Week Period Ended

 

 

 

July 31, 2021

 

 

August 1, 2020

 

 

July 31, 2021

 

 

August 1, 2020

 

Impairment of leasehold improvements, fixtures and equipment at stores

 

$

 

 

$

476

 

 

$

310

 

 

$

2,620

 

Impairment of right-of-use-assets

 

 

 

 

 

5,190

 

 

 

 

 

 

6,230

 

Total impairment

 

$

 

 

$

5,666

 

 

$

310

 

 

$

8,850

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total impairment, net of tax

 

$

 

 

$

4,378

 

 

$

234

 

 

$

6,805

 

Number of stores with leasehold improvements, fixtures and equipment impairment

 

 

 

 

 

4

 

 

 

2

 

 

 

20

 

Number of stores with right-of-use-asset impairment

 

 

 

 

 

17

 

 

 

 

 

 

23