Leases

12 Months Ended

Feb. 02, 2013

Leases [Text Block]

Note 7. Leases

Leases - lessee

As more fully discussed in Note 9 in the Notes to Consolidated Financial Statements, the Company leases its Albany, NY distribution center and administrative offices under three capital lease arrangements from its Chairman, Chief Executive Officer and largest shareholder.

Fixed assets recorded under capital leases, which are included in fixed assets on the accompanying Consolidated Balance Sheets, are as follows:

	February 2,			January 28,
	2013			2012
	($ in thousands)
Buildings	$	9,342		$	9,342
Allowances for depreciation and amortization		(7,591	)		(7,259	)
	$	1,751		$	2,083

At February 2, 2013, the Company leased 358 stores under operating leases, many of which contain renewal options, for periods ranging from one to ten years. Most leases also provide for payment of operating expenses and real estate taxes. Some also provide for contingent rent based on percentage of sales over a certain sales volume.

Net rental expense was as follows:

	Fiscal Year
	2012		2011		2010
	($ in thousands)
Minimum rentals	$	39,591	$	50,064	$	64,353
Contingent rentals		43		91		204
	$	39,634	$	50,155	$	64,557

Future minimum rental payments required under all leases that have initial or remaining non-cancelable lease terms at February 2, 2013 are as follows:

	Operating		Capital
	Leases		Leases
	($ in thousands)
2013		31,053		2,251
2014		16,249		2,251
2015		9,937		1,723
2016		4,131		—
2017		2,623		—
Thereafter		1,228		—
Total minimum payments required	$	65,221	$	6,225
Less: amounts representing interest				(3,285	)
Present value of minimum lease payments				2,940
Less: current portion				936
Long-term capital lease obligations			$	2,004

In addition to the obligations in the table above, a number of the Company’s stores have leases which have rent payments based on the store’s sales volume in lieu of fixed minimum rent payments. During Fiscal 2012, minimum rent payments based on a store’s sales volume were $1.4 million.