v2.3.0.15
Store and Corporate Office Closings
9 Months Ended
Oct. 29, 2011
Store and Corporate Office Closings 
Store and Corporate Office Closings

2.  Store and Corporate Office Closings

 

The calculation of accrued store closing and relocation reserves primarily includes future minimum lease payments, maintenance costs and taxes from the date of closure or relocation to the end of the remaining lease term, net of contractual or estimated sublease income.  The liability is discounted using a credit-adjusted risk-free rate of interest.  The assumptions used in the calculation of the accrued store closing and relocation reserves are evaluated each quarter.

 

The following table summarizes the activity in 2011 and 2010 (in thousands):

 

 

 

39 Weeks Ended

 

 

 

October 29,

 

October 30,

 

 

 

2011

 

2010

 

 

 

 

 

 

 

Accrued store closing and relocation reserves, beginning of period

 

$

46,918

 

$

35,716

 

Expense charged to earnings

 

—

 

19,386

 

Cash payments

 

(10,511

)

(8,192

)

Interest accretion and other changes in assumptions

 

1,279

 

120

 

Accrued store closing and relocation reserves, end of period

 

37,686

 

47,030

 

Less: current portion of accrued store closing and relocation reserves

 

(11,322

)

(14,913

)

Long-term portion of accrued store closing and relocation reserves

 

$

26,364

 

$

32,117

 

 

The Company recorded $16.4 million of expenses related to the closure of 12 underperforming Golf Galaxy stores in the third quarter of fiscal 2010.  These expenses are reflected as part of selling, general and administrative expenses on the unaudited consolidated statements of income.

 

The current portion of accrued store closing and relocation reserves is recorded in accrued expenses and the long-term portion is recorded in long-term deferred revenue and other liabilities on the unaudited consolidated balance sheets.