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EXIT AND DISPOSAL ACTIVITIES
6 Months Ended
Jul. 30, 2016
Restructuring and Related Activities [Abstract]  
EXIT AND DISPOSAL ACTIVITIES

NOTE 6: EXIT AND DISPOSAL ACTIVITIES

 

Fixed Assets

 

The Company’s policy is to review the carrying value of all long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. We measure impairment losses of fixed assets and leasehold improvements as the amount by which the carrying amount of a long-lived asset exceeds its fair value as prescribed by FASB ASC 360, "Impairment or Disposal of Long-Lived Assets." If a long-lived asset is found to be impaired, the amount recognized for impairment is equal to the difference between the carrying value and the asset’s fair value. The fair value is based on estimated market values for similar assets or other reasonable estimates of fair market value based upon a discounted cash flow model.

 

We did not record any charges in selling, general and administrative expense for the impairment of fixed assets and leasehold improvements in the second quarter of 2016 or 2015 in association with the closure or scheduled relocation of certain stores. In the first six months of 2016, the Company recorded an additional charge of less than $0.1 million for fixed assets related to planned store closures. The Company utilized the full amount of this charge in the second quarter of 2016. In the first six months of 2015, the Company recorded an additional charge of $0.3 million for fixed assets and leasehold improvements related to the 2014 store closures. There was $0.7 million remaining in the reserve as of July 30, 2016.

 

Inventory

 

As discussed in Note 2 - Inventories, we adjust inventory values on a consistent basis to reflect current market conditions. In accordance with FASB ASC 330, "Inventories," we write down inventory to net realizable value in the period in which conditions giving rise to the write-downs are first recognized.

 

No below-cost inventory adjustments were recorded during the twenty-six weeks ended July 30, 2016 or August 1, 2015.