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Leasehold Financing Obligations
6 Months Ended
Jul. 28, 2012
Leasehold Financing Obligations [Abstract]  
Lasehold Financing Obligations [Text Block]

13. LEASEHOLD FINANCING OBLIGATIONS

 

As of July 28, 2012 and January 28, 2012, the Company reported $62.8 million and $57.9 million, respectively, of long-term liabilities related to leasehold financing obligations. In certain lease arrangements, the Company is involved with the construction of the building. If the Company determines that it 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, the Company determines if the asset qualifies for sale-leaseback accounting treatment. If the arrangement does not qualify for sale-leaseback 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 properties which are 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 $1.4 million for the thirteen weeks ended July 28, 2012 and July 30, 2011, respectively. Total interest expense related to landlord financing obligations was $3.3 million and $2.6 million for the twenty-six weeks ended July 28, 2012 and July 30, 2011, respectively.