Property and Equipment

6 Months Ended

Mar. 31, 2014

6. Property and Equipment

The Company had the following property and equipment balances as of March 31, 2014 and September 30, 2013, dollars in thousands:

		As of
	Useful lives (in years)	March 31, 2014			September 30, 2013
Construction in process	n/a	$	3,835		5,421
Capitalized real estate leases for build-to-suit stores, including unamortized land of $617 and $617, respectively	40	17,107			15,774
Capitalized real estate leases	15	4,866			4,866
Land improvements	5 - 15	1,000			1,000
Leasehold and building improvements	2 - 20	68,179			59,058
Fixtures and equipment	5 - 7	64,037			56,459
Computer hardware and software	3 - 5	9,468			8,252
		168,492			150,830
Less accumulated depreciation and amortization		(59,974		)	(51,920	)
Property and equipment, net		$	108,518		98,910

As of March 31, 2014 and September 30, 2013, respectively, capitalized real estate leases for build-to-suit stores includes the assets for the Company’s buildings for build-to-suit stores under capital lease finance obligations, and capitalized real estate leases includes assets for the Company’s buildings under capital leases (see Note 5).

Construction in process includes zero and approximately $1.3 million as of March 31, 2014 and September 30, 2013, respectively, related to construction costs for build-to-suit leases in process for which the Company was deemed the owner during the construction period.

Depreciation and amortization expense for the three and six months ended March 31, 2014 and 2013 is summarized as follows, dollars in thousands:

	Three months ended March 31,			Six months ended March 31,
	2014		2013	2014	2013
Depreciation and amortization expense included in cost of goods sold and occupancy costs	$	190	183	376	356
Depreciation and amortization expense included in store expenses	3,799		2,949	7,442	5,650
Depreciation and amortization expense included in administrative expenses	127		101	236	219
Total depreciation and amortization expense	$	4,116	3,233	8,054	6,225

- 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.

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