Sale Leaseback Transactions

12 Months Ended

Jan. 28, 2017

Sale Leaseback Transactions

Sale Leaseback Transactions

(10) Sale Leaseback Transactions

During the fiscal year ended January 28, 2017, the Company completed a deemed sale-leaseback of the land and buildings for 4 store locations. In each of the related lease agreements for these store locations, the Company was required to pay all construction costs directly with the right of reimbursement up to a pre-determined tenant allowance. Also, the Company indemnified the landlords with respect to costs arising from third-party damage arising from the acts or omission of employees, sub-lessees, assignees, agent, and/or contractors arising during construction. As a result, and, based on appropriate accounting guidance, the Company was deemed the owner of the land and building during the construction period. The deemed sale occurred when the construction of the assets were complete and the lease terms began. At the time of sale, any assets, up to the value of each pre-determined tenant allowance, were written off the Company’s books, and any remaining amounts were considered leasehold improvements.  The total value of tenant allowances received under these transactions during fiscal year 2016 was $11,923.