Accrued Expenses And Other Current Liabilities

12 Months Ended

Dec. 31, 2012

Accrued Expenses And Other Current Liabilities [Abstract]

Accrued Expenses And Other Current Liabilities

5. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

The following table summarizes accrued expenses and other current liabilities as of December 31, 2012 and 2011:


	December 31,
($ thousands)	2012		2011
Accrued compensation and benefits	$	19,714	$	28,680
Fulfillment, freight and duties		8,621		7,151
Professional services		13,588		8,429
Sales/use and VAT tax payable		12,444		9,642
Entrusted loan payable⁽²⁾		7,943		9,133
Accrued rent and occupancy		10,226		5,476
Other⁽¹⁾		8,835		7,995
Total accrued expenses and other current liabilities	$	81,371	$	76,506

⁽¹⁾ The amounts in Other consist of various accrued expenses and no individual item accounted for more than 5% of the total balance at December 31, 2012 or December 31, 2011.

⁽²⁾A corresponding entrusted loan receivable of $7.9 million and $9.1 million are recorded in Prepaid expenses and other current assets as of December 31, 2012 and 2011, respectively, as amounts are related to our subsidiaries in China.

Asset Retirement Obligations

We record a liability equal to the fair value of the estimated future cost to retire an asset, if the liability’s fair value can be reasonably estimated. Our asset retirement obligation (“ARO”) liabilities are primarily associated with the disposal of property and equipment which we are contractually obligated to remove at the end of certain retail and office leases in order to restore the facilities back original condition as specified in the related lease agreements. We estimate the fair value of these liabilities based on current store closing costs and discount the costs back as if they were to be performed at the inception of the lease. At the inception of such leases, we record the ARO as a liability and also record a related asset in an amount equal to the estimated fair value of the obligation. The capitalized asset is then depreciated on a straight-line basis over the useful life of the asset. Upon retirement of the ARO liability, any difference between the actual retirement costs incurred and the previously recorded estimated ARO liability is recognized as a gain or loss in the consolidated statements of operations. Our ARO liability as of December 31, 2012 and 2011 was $2.4 million and $1.9 million, respectively.