OTHER COMMENTS

Included in accrued expenses on the Company’s Consolidated Balance Sheets are certain incentive compensation accruals of $57,006 and $60,070 as of February 3, 2013 and January 29, 2012, respectively, and certain wholesale sales allowance accruals of $50,981 and $51,976 as of February 3, 2013 and January 29, 2012, respectively.

The Company’s asset retirement obligations are included in other liabilities on the Company’s Consolidated Balance Sheets and relate to the Company’s obligation to dismantle or remove leasehold improvements from leased office or retail store locations at the end of a lease term in order to restore a facility to a condition specified in the lease agreement. The Company records the fair value of the liability for asset retirement obligations in the period in which it is legally or contractually incurred. Upon initial recognition of the asset retirement liability, an asset retirement cost is capitalized by increasing the carrying amount of the asset by the same amount as the liability. In periods subsequent to initial measurement, the asset retirement cost is recognized as expense through depreciation over the asset’s useful life. Changes in the liability for the asset retirement obligations are recognized for the passage of time and revisions to either the timing or the amount of estimated cash flows. Accretion expense is recognized for the impacts of increasing the discounted fair value to its estimated settlement value.

The following table presents the activity related to the Company’s asset retirement obligations for each of the last two years:



	2012			2011
Balance at beginning of year	$	11,709		$	9,385
Liabilities incurred	2,585			3,252
Liabilities settled (payments)	(1,160		)	(879		)
Accretion expense	294			133
Revisions in estimated cash flows	273			(474		)
Currency translation adjustment	(1,198		)	292
Balance at end of year	$	12,503		$	11,709

The Company is a party to certain litigation which, in management’s judgment, based in part on the opinions of legal counsel, will not have a material adverse effect on the Company’s financial position.