EXIT AND DISPOSAL ACTIVITY

12 Months Ended

Jan. 28, 2012

EXIT AND DISPOSAL ACTIVITY

NOTE 11 – EXIT AND DISPOSAL ACTIVITY

Lease Termination

Lease obligations still exist for some store closures that occurred in 2008. We record the estimated future liability associated with the rental obligation on the cease use date (when the stores were closed). The lease obligations are established at the cease use date for the present value of any remaining operating lease obligations, net of estimated sublease income, and at the communication date for severance and other exit costs, as prescribed by FASB ASC 420, “Exit or Disposal Cost Obligations”. Key assumptions in calculating the liability include the timeframe expected to terminate lease agreements, estimates related to the sublease potential of closed locations, and estimates of other related exit costs. If actual timing and potential termination costs or realization of sublease income differ from our estimates, the resulting liabilities could vary from recorded amounts. These liabilities are reviewed periodically and adjusted when necessary.

During fiscal 2011, we reserved an additional $0.1 million in rent expense related to the revision of the estimated amount of the remaining lease liability for the fiscal 2008 store closures. We also utilized $0.5 million, leaving $0.3 million in the reserve at January 28, 2012.

The following table illustrates the exit and disposal activity related to the store closures discussed in the previous paragraphs (in millions):

	Beginning Balance January 29, 2011		Additions FY11		Utilized FY11			Ending Balance January 28, 2012
Lease contract termination liability	$	0.7	$	0.1	$	(0.5	)	$	0.3