ASSET RETIREMENT OBLIGATIONS

12 Months Ended

Jan. 31, 2015

NOTE 7—ASSET RETIREMENT OBLIGATIONS

The Company records asset retirement obligations as incurred and when reasonably estimable, including obligations for which the timing and/or method of settlement are conditional on a future event that may or may not be within the control of the Company. The obligation principally represents the removal of leasehold improvements from stores upon termination of store leases. The obligations are recorded as liabilities at fair value using discounted cash flows and are accreted over the lease term. Costs associated with the obligations are capitalized and amortized over the estimated remaining useful life of the asset.

The Company has recorded a liability pertaining to the asset retirement obligation in other long-term liabilities on its consolidated balance sheet. Changes in assumptions reflect favorable experience with the rate of occurrence of obligations and expected settlement dates. The liability for asset retirement obligations activity from February 2, 2013 through January 31, 2015 is as follows:

(dollar amounts in thousands)
Asset retirement obligation at February 2, 2013	$	5,963
Additions		245
Change in assumptions		(287	)
Settlements		(12	)
Accretion expense		334

Asset retirement obligation at February 1, 2014		6,243
Additions		113
Change in assumptions		(734	)
Settlements		(48	)
Accretion expense		350

Asset retirement obligation at January 31, 2015	$	5,924