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Note 4 - Property and Equipment
 12 Months Ended
Jan. 03, 2015
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Disclosure [Text Block]

(4)

Property and Equipment


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


   

2014

   

2013

 

Land

  $ 2,261     $ 2,261  

Furniture and fixtures

    39,391       39,723  

Computer hardware

    22,720       21,722  

Building

    14,970       14,970  

Leasehold improvements

    119,894       124,068  

Computer software

    43,540       42,276  

Construction in progress

    5,034       2,655  
      247,810       247,675  

Less accumulated depreciation

    185,044       177,512  
    $ 62,766     $ 70,163  

For 2014, 2013 and 2012, depreciation expense was $17.6 million, $18.6 million and $20.4 million, respectively.


In 2012, the Company made the decision to close a number of stores. The Company considers a more likely than not assessment that an individual location will close as a triggering event to review the store asset group for recoverability. As a result of these reviews, it was determined that certain stores would not be able to recover the carrying value of store leasehold improvements through expected undiscounted cash flows over the shortened 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, $1.0 million and $0.9 million were recorded in 2014, 2013 and 2012, respectively, which are included in selling, general and administrative expenses as a component of income (loss) before income taxes in the Retail segment. Any remaining net book value is depreciated over the shortened expected life. The inputs used to determine the fair value of the assets are Level 3 fair value inputs as defined by ASC section 820-10.


The Company reviews the operating performance and forecasts of future performance for the stores in its Retail segment. If as a result of that review, it is determined that any 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, the carrying value of the assets is reduced to fair value, calculated as the net present value of estimated future cash flows for each asset group, and asset impairment charges are recorded in cost of merchandise sold as a component of income or loss before income taxes in the Retail segment. Impairment charges related to this analysis in 2014 were immaterial. The inputs used to determine the fair value of the assets are Level 3 fair value 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 $0.1 million in the fourth quarter of fiscal 2013 and $1.4 million in the fourth quarter of fiscal 2012.