Discontinued Operations

6 Months Ended

Jul. 30, 2011

Discontinued Operations

Discontinued Operations

3. DISCONTINUED OPERATIONS

During the third quarter of fiscal 2010, the Company closed one store in Wellington, Florida. Therefore, the condensed consolidated statements of operations for prior periods have been revised to present certain components as discontinued operations. The prior year results for this store are classified as discontinued operations on the Company's condensed consolidated statements of operations. The loss from discontinued operations also includes the costs associated with stores that closed in prior years that have not yet settled as the estimated lease exit costs are recorded at the time a store is closed and then subsequently adjusted based on actual sublease income and lease settlement agreements. These costs were approximately $0.6 million for the six-month period ended July 30, 2011 and $0.4 million for six-month period ended July 31, 2010.

The recognition of the costs associated with closing the stores requires the Company to make judgments and estimates regarding the nature, timing, and amount of costs, including estimated lease exit costs net of estimated sublease income, employee severance and various other costs related to the closure of stores. At the end of each quarter, the Company evaluates the remaining accrual balance. Additional charges or recoveries related to the planned disposition of stores may be incurred as a result of changes to management's current estimates and assumptions. The timing of future transactions and charges related to these store closures are subject to significant uncertainty, including the variability in future vacancy periods, and sublease income or negotiations with landlords regarding buy-out payments on leases.

Results from discontinued operations were as follows:

	Three Months Ended						Six Months Ended
	July 30, 2011			July 31, 2010			July 30, 2011			July 31, 2010
(In thousands)
Store sales	$	0		$	568		$	0		$	1,145
Costs and expenses:
Cost of store sales and occupancy		0			429			0			877
Operating and administrative expenses		22			205			49			418
Lease exit costs, net of estimated sublease income		262			298			566			440
Loss from discontinued operations, net of tax	$	(284	)	$	(364	)	$	(615	)	$	(590	)