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Summary of Significant Accounting Policies and Other Information
9 Months Ended
Oct. 29, 2011
Summary of Significant Accounting Policies and Other Information
2. Summary of Significant Accounting Policies and Other Information
There have been no material changes to the significant accounting policies previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2011.
Recent Accounting Pronouncements
In September 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-08, Testing Goodwill for Impairment. ASU 2011-08 amends Accounting Standards Codification (“ASC”) 350-20, Goodwill, by providing entities which are testing goodwill for impairment with the option of performing a qualitative assessment before calculating the fair value of the reporting unit. If the entity determines, on the basis of qualitative factors, that it is more likely than not that the fair value of the reporting unit exceeds the carrying amount, further testing of goodwill for impairment would not need to be performed. The ASU does not change how goodwill is calculated or assigned to reporting units, revise the requirement to test goodwill annually for impairment or amend the requirement to test goodwill for impairment between annual tests if events or circumstances warrant; however the ASU does revise the examples of events and circumstances that an entity should consider in its assessment. ASU 2011-08 will be effective for the Company for interim and annual periods beginning after December 15, 2011, with early adoption permitted. The Company does not expect the adoption of this ASU to have any impact on its consolidated financial statements.
In June 2011, the FASB issued ASU No. 2011-05, Presentation of Comprehensive Income. ASU 2011-05 amends ASC 220, Comprehensive Income, by requiring entities to report components of comprehensive income in either a continuous statement of comprehensive income or two separate but consecutive statements, removing the option to present the components of other comprehensive income as part of the statement of stockholders’ equity. The items that must be reported in other comprehensive income were not changed. ASU 2011-05 will be effective for the Company for fiscal years, and interim periods within those years, beginning after December 15, 2011 and must be applied retrospectively. The Company is evaluating its presentation options under this ASU; however these changes are not expected to impact the consolidated financial statements other than the change in presentation.
In May 2011, the FASB issued ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. ASU 2011-04 amends ASC 820, Fair Value Measurement, by expanding existing disclosure requirements for fair value measurements and modifying certain definitions in the guidance, which may change how the fair value measurement guidance of ASC 820 is applied. ASU 2011-04 will be effective for the Company for interim and annual periods beginning after December 15, 2011 and must be applied prospectively. The Company is evaluating the impact that this ASU may have on its consolidated financial statements, if any.
Supplemental Cash Flow Information
Interest paid for the thirty-nine weeks ended October 29, 2011 and October 30, 2010 was $7.6 million and $17.7 million, respectively. Income taxes paid for the thirty-nine weeks ended October 29, 2011 and October 30, 2010 were $3.8 million and $5.1 million respectively. In the thirty-nine weeks ended October 29, 2011, the Company made additions to property and equipment of $8.2 million which remained unpaid and recorded in accounts payable and accrued liabilities as of October 29, 2011.