XML 75 R20.htm IDEA: XBRL DOCUMENT v2.4.0.6
Leasehold Financing Obligations
3 Months Ended
May 04, 2013
Leasehold Financing Obligations [Abstract]  
LEASEHOLD FINANCING OBLIGATIONS
LEASEHOLD FINANCING OBLIGATIONS
As of May 4, 2013 and February 2, 2013, the Company had $61.0 million and $63.9 million, respectively, of long-term liabilities related to leasehold financing obligations. In certain lease arrangements, the Company is involved in the construction of the building. If it is determined that the Company has substantially all of the risks of ownership during construction of the leased property and therefore is deemed to be the owner of the construction project, the Company records an asset for the amount of the total project costs and an amount related to the value attributed to the pre-existing leased building in Property and Equipment, Net and the related financing obligation in Leasehold Financing Obligations on the Consolidated Balance Sheets. Once construction is complete, if it is determined that the asset does not qualify for sale-leaseback accounting treatment, the Company continues to amortize the obligation over the lease term and depreciates the asset over its useful life. The Company does not report rent expense for the portion of the rent payment determined to be related to the assets which are determined to be owned for accounting purposes. Rather, this portion of the rental payments under the lease are recognized as a reduction of the financing obligation and interest expense.
Total interest expense related to landlord financing obligations was $1.7 million and $1.6 million for the thirteen weeks ended May 4, 2013 and April 28, 2012, respectively.