Leases

12 Months Ended

Jan. 31, 2015

Leases [Abstract]

Leases [Text Block]

Note 6. 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 and largest shareholder.

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

	January 31,			February 1,
	2015			2014
	($ in thousands)
Buildings	$	9,853		$	9,853
Allowances for depreciation and amortization		(9,442	)		(8,302	)
	$	411		$	1,551

During 2014, the Company identified an error in the recording of depreciation expense related to its headquarter building, historically reported as a capital lease. The Company determined that certain building improvements, made years ago, have been depreciating over their estimated useful life and not the lease term, which is shorter. The Company determined that an increase to accumulated depreciation of approximately $826,000 was necessary as of January 28, 2012, which has been recorded as an immaterial adjustment to accumulated depreciation and retained earnings as of January 28, 2012. The Company also recorded additional depreciation expense in 2014 related to the Fiscal 2012 and 2013 periods, the impact of which was not deemed material.

At January 31, 2015, the Company leased 309 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
	2014		2013		2012
	($ in thousands)
Minimum rentals	$	32,732	$	34,719	$	39,591
Contingent rentals		11		31		43
	$	32,743	$	34,750	$	39,634

Future minimum rental payments required under all leases that have initial or remaining non-cancelable lease terms at February 1, 2014 are as follows:

	Operating		Capital
	Leases		Leases
	($ in thousands)
2015	$	23,196		1,779
2016		14,200		—
2017		8,890		—
2018		6,641		—
2019		3,754		—
Thereafter		7,070		—
Total minimum payments required	$	63,751	$	1,779
Less: amounts representing interest				841
Present value of minimum lease payments				938
Less: current portion				938
Long-term capital lease obligations			$	0

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 2014, minimum rent payments based on a store’s sales volume were $1.1 million.