Discontinued Operations (Tables)

12 Months Ended

Feb. 02, 2013

Consolidated Financial Statements as a Discontinued Operation

A summary of the pre-tax exit and disposal costs recognized within Loss from Discontinued Operations on the Consolidated Income Statement for 77kids are as follows. There were no exit or disposal costs recognized in Fiscal 2011 or Fiscal 2010 related to 77kids.

	For the Year Ended
(In thousands)	February 2, 2013
Non-cash charges
Asset impairments	$	16,623
Cash charges
Lease-related charges		7,768
Inventory charges		10,237
Severence charges		3,439
Total charges	$	38,067

The Company is also complete with the closure of the M+O brand and a summary of the pre-tax exit and disposal costs recognized within Loss from Discontinued Operations on the Consolidated Income Statement during Fiscal 2010 are as follows. There were no exit or disposal costs recognized in Fiscal 2012 or Fiscal 2011 related to M+O.

	For the Year Ended
(In thousands)	January 29, 2011
Non-cash charges
Asset impairments	$	17,980
Cash charges
Lease-related charges (1)		15,377
Inventory charges		2,422
Severence charges		7,660
Total charges	$	43,439

(1) Presented net of the reversal of non-cash lease credits.

Rollforward of Liabilities Recognised in Consolidated Balance Sheet

A rollforward of the liabilities for the exit of the 77kids brand recognized in the Consolidated Balance Sheets is as follows:

(In thousands)	February 2, 2013
Accrued liability as of January 28, 2012	$	—
Add: Costs incurred, excluding non-cash charges		13,676
Less: Cash payments		(13,676	)
Accrued liability as of February 2, 2013	$	—

Significant Components Included in Loss from Discontinued Operation on Consolidated Statement of Operation

The tables below present the significant components of 77kids’ and M+O’s results included in Loss from Discontinued Operations on the Consolidated Statements of Operations for the years ended February 2, 2013, January 28, 2012 and January 29, 2011, respectively.

	For the Year Ended February 2, 2013
	77kids			M+O		Total
Total net revenue	$	20,117		$	—	$	20,117
Loss from discontinued operations, before income taxes (1)	$	(51,839	)	$	—	$	(51,839	)
Income tax benefit		19,849			—		19,849
Loss from discontinued operations, net of tax	$	(31,990	)	$	—	$	(31,990	)
Loss per common share from discontinued operations:
Basic	$	(0.16	)	$	—	$	(0.16	)
Diluted	$	(0.16	)	$	—	$	(0.16	)

(1) Loss from discontinued operations is presented net of the reversal of non-cash lease credits

	For the Year Ended January 28, 2012
	77kids			M+O		Total
Total net revenue	$	39,753		$	—	$	39,753
Loss from discontinued operations, before income taxes	$	(38,199	)	$	—	$	(38,199	)
Income tax benefit		14,625			—		14,625
Loss from discontinued operations, net of tax	$	(23,574	)	$	—	$	(23,574	)
Loss per common share from discontinued operations:
Basic	$	(0.12	)	$	—	$	(0.12	)
Diluted	$	(0.12	)	$	—	$	(0.12	)

	For the Year Ended January 29, 2011
	77kids			M+O			Total
Total net revenue	$	22,265		$	21,881		$	44,146
Loss from discontinued operations, before income taxes	$	(22,291	)	$	(66,959	)	$	(89,250	)
Income tax benefit		8,494			25,672			34,166
Loss from discontinued operations, net of tax	$	(13,797	)	$	(41,287	)	$	(55,084	)
Loss per common share from discontinued operations:
Basic	$	(0.07	)	$	(0.21	)	$	(0.28	)
Diluted	$	(0.07	)	$	(0.20	)	$	(0.27	)

Major Classes of Assets & Liabilities Included in Consolidated Balance Sheets

The major classes of assets and liabilities included in the Consolidated Balance Sheets for 77kids at January 28, 2012 are as follows. There were no assets or liabilities included in the Consolidated Balance Sheets for M+O as of February 2, 2013 or January 28, 2012. There were no assets or liabilities included in the Consolidated Balance Sheets for 77kids as of February 2, 2013.

(In thousands)	January 28, 2012
Current assets	$	10,912
Non-current assets		15,722
Total assets(1)	$	26,634
Total current liabilities	$	5,838
Total non-current liabilities		2,646
Total liabilities	$	8,484

(1) Current assets relate to merchandise inventory classified as an asset held for sale on the Company’s Consolidated Balance Sheets. Non-current assets relate primarily to property and equipment at cost, net of, accumulated depreciation.