Real estate, net

9 Months Ended

Oct. 29, 2011

Real Estate and Accumulated Depreciation Disclosure [Text Block]

2. Real estate, net



(In thousands)	October 29, 2011			January 29, 2011
Land	$	277,001		$	279,325
Buildings	752,151			755,558
Leasehold improvements	407,578			412,582
	1,436,730			1,447,465
Less: accumulated depreciation	(549,781		)	(530,349		)
Total	$	886,949		$	917,116

During the thirty-nine weeks ended October 29, 2011, we sold three owned properties to third parties for gross proceeds of approximately $9 million, resulting in a net gain of less than $1 million. Additionally, the master lease agreement requires Toys-Delaware to make a payment to the Company upon termination of the lease in conjunction with the successful execution of the sale of such properties by the Company to a third party if the proceeds from the sale are less than the net present value of the base rent for such property over the remaining term for such property, discounted at 10% per annum. We recorded termination payments of approximately $6 million for the properties sold during the thirty-nine weeks ended October 29, 2011, in Earnings (loss) from discontinued operations on the Condensed Consolidated Statement of Operations. Termination payments are included in Cash Flows from Operating Activities.

Net properties held for sale

Assets held for sale represent assets owned by us that our management has committed to sell in the near term. The following assets are classified as held for sale:



(In thousands)	October 29, 2011			January 29, 2011
Land	$	2,232		$	3,649
Buildings	2,111			4,166
Leasehold improvements	738			1,359
	5,081			9,174
Less: accumulated depreciation	(1,081		)	(2,499		)
Total	$	4,000		$	6,675

During the thirty-nine weeks ended October 29, 2011, we sold three properties, one of which was classified as held for sale in fiscal 2010. The property which was previously classified as held for sale, was sold to an unrelated third party for gross proceeds of approximately $3 million, resulting in a nominal loss.

Subsequent to the third quarter of fiscal 2011, the property classified as held for sale as of October 29, 2011, was sold for gross proceeds of approximately $3 million. Additionally, we recorded a termination payment of approximately $2 million in the fourth quarter of fiscal 2011.

- Definition

The entire disclosure for real estate and accumulated depreciation. This may include a schedule that describes the property and lists the initial cost of land, buildings and improvements, improvements and carrying costs capitalized after acquisition, and the total carrying cost for land, buildings and improvements for each property and in aggregate. The schedule also lists the accumulated depreciation for each property and in aggregate, the date each property was constructed and acquired, the useful life used to calculate depreciation and any encumbrances on the properties. The entity provides a reconciliation of the carrying amount of real estate from the beginning of the period to the end of the period. Any real estate investments that have been written down or reserved against are described, including the basis of the write-down. A material amount of intercompany profit in the total carrying amount of real estate is disclosed. The aggregate cost of all real estate investments for federal income tax purposes is also disclosed.

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