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Impairment
9 Months Ended
Oct. 30, 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 the assessment of 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

 

 

39-Week Period Ended

 

 

 

October 30, 2021

 

 

October 31, 2020

 

 

October 30, 2021

 

 

October 31, 2020

 

Impairment of leasehold improvements, fixtures and equipment at stores

 

$

444

 

 

$

162

 

 

$

754

 

 

$

2,782

 

Impairment of right-of-use-assets

 

 

 

 

 

15

 

 

 

 

 

 

6,245

 

Total impairment

 

$

444

 

 

$

177

 

 

$

754

 

 

$

9,027

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total impairment, net of tax

 

$

334

 

 

$

121

 

 

$

568

 

 

$

6,927

 

Number of stores with leasehold improvements, fixtures and equipment impairment

 

 

2

 

 

 

4

 

 

 

4

 

 

 

22

 

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

 

 

 

 

 

2

 

 

 

 

 

 

24