Note 4 - Property and Equipment

12 Months Ended

Dec. 31, 2011

Property, Plant and Equipment Disclosure [Text Block]

(4)	Property and Equipment

Property and equipment consist of the following (in thousands):

	December 31,		January 1,
	2011		2011
Land	$	2,261	$	2,261
Furniture and fixtures		39,306		41,819
Computer hardware		20,705		23,672
Building		14,970		14,970
Leasehold improvements		137,352		137,335
Computer software		35,326		29,660
Construction in progress		2,543		1,918
		252,463		251,635
Less accumulated depreciation		175,018		163,606
	$	77,445	$	88,029

For 2011, 2010 and 2009, depreciation expense was $22.8 million, $24.9 million and $26.7 million, respectively.

During 2011, the Company reviewed the operating performance and forecasts of future performance for the stores in its Retail segment. As a result of that review, it was determined that several stores would not be able to recover the carrying value of certain store leasehold improvements through expected undiscounted cash flows over the remaining life of the related assets. Accordingly, the carrying value of the assets was reduced to fair value, calculated as the net present value of estimated future cash flows for each asset group, and asset impairment charges of $0.4 million were recorded in the fourth quarter of fiscal 2011, which are included in cost of merchandise sold as a component of net loss before income taxes in the Retail segment. The inputs used to determine the fair value of the assets are Level 3 inputs as defined by ASC section 820-10. In the event that we decide to close any or all of these stores in the future, we may be required to record additional impairments, lease termination charges, severance charges and other charges. The Company recorded asset impairment charges of $0.6 million in the fourth quarter of fiscal 2010 and $3.3 million in the fourth quarter of fiscal 2009.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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