Accrued Store Closure And Lease Exit Costs

9 Months Ended

Oct. 29, 2011

Accrued Store Closure And Lease Exit Costs [Abstract]

Accrued Store Closure And Lease Exit Costs

2. ACCRUED STORE CLOSURE AND LEASE EXIT COSTS

When stores under long-term leases close, the Company records a liability for the future minimum lease payments and related ancillary costs, net of estimated sublease income and discounted using a risk-adjusted rate of interest. This liability is recorded at the time the store is closed and at the end of each quarter, the Company adjusts the estimated liability balance based on actual sublease income and lease settlement agreements that occurred during the period. Accrued store closure and lease exit costs also include costs related to closing the stores and relocating and terminating employees. 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, sublease income or negotiations with landlords regarding buy-out payments on leases.

Following is a year-to-date summary of the accrued store closure and lease exit costs as of the nine months ended October 29, 2011, the 12 months ended January 29, 2011 and the nine months ended October 30, 2010, respectively:

(In thousands)	October 29, 2011			January 29, 2011			October 30, 2010
Beginning Balance	$	6,575		$	10,220		$	10,220
Lease exit costs, net of estimated sublease income		1,113			4,245			3,707
Severance and closure costs		521			416			342
Payments for leases and settlements		(3,846	)		(7,827	)		(6,706	)
Payments for severance and closure costs		(644	)		(479	)		(460	)
Ending Balance1	$	3,719		$	6,575		$	7,103

1. At October 29, 2011, January 29, 2011 and October 30, 2010, the reserve for store closures includes $0.7 million, $1.6 million and $1.7 million, respectively, for stores that are classified within continuing operations and includes $3.0 million, $5.0 million and $5.4 million, respectively, for stores that are classified within discontinued operations.