PROPERTY AND EQUIPMENT

9 Months Ended

Oct. 27, 2012

Property, Plant and Equipment [Abstract]

Property and equipment consist of the following (in thousands):



	Asset Life	October 27, 2012			January 28, 2012			October 29, 2011
Property and equipment:
Land and land improvements	—	$	3,403		$	3,403		$	3,403
Building and improvements	20-25 yrs	35,548			35,548			34,576
Material handling equipment	10-15 yrs	52,547			52,770			51,374
Leasehold improvements	Lease life	402,103			403,080			414,520
Store fixtures and equipment	3-10 yrs	270,140			287,838			294,431
Capitalized software	5 yrs	71,553			78,623			80,033
Construction in progress (1)	—	37,464			23,666			12,593
		872,758			884,928			890,930
Accumulated depreciation and amortization		(536,805		)	(561,065		)	(564,307		)
Property and equipment, net		$	335,953		$	323,863		$	326,623

____________________________________________


(1)	The majority of the Construction in progress at each reporting period relates to the Company's new enterprise resource planning system.

At October 27, 2012, the Company performed impairment testing on 1,004 stores with a total net book value of $166.1 million. At October 29, 2011, the Company performed impairment testing on 937 stores with a total net book value of $152.0 million. All stores that were open for at least two years were tested. The Company tested one store that had been open for less than two years in which circumstances indicated that its assets were impaired.

During the Third Quarter 2012, the Company recorded $0.5 million of impairment charges primarily related to two underperforming stores. During the Third Quarter 2011, the Company recorded $0.4 million of impairment charges primarily related to two underperforming stores.

During Year-To-Date 2012, the Company recorded $2.1 million of impairment charges primarily related to five underperforming stores, of which two were fully impaired and three were partially impaired. At October 27, 2012, all of these impaired stores were open and the stores which were partially impaired had a remaining book value of $0.6 million, which the Company determined to be recoverable based on an estimate of discounted future cash flows.

During Year-To-Date 2011, the Company recorded $1.7 million of impairment charges primarily related to six underperforming stores, of which three stores were fully impaired and three were partially impaired. At October 27, 2012, all of these impaired stores were open and the stores which were partially impaired had a remaining book value of $0.7 million, which the Company determined to be recoverable based on an estimate of discounted future cash flows.

As of October 27, 2012, January 28, 2012 and October 29, 2011, the Company had approximately $8.9 million, $6.1 million and $3.6 million, respectively, in property and equipment for which payment had not yet been made. These amounts are included in accounts payable and accrued expenses and other current liabilities.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details