Variable Interest Entity

9 Months Ended

Oct. 30, 2016

4. VARIABLE INTEREST ENTITY

Based upon the criteria set forth in ASC 810, Consolidation, the Company has determined that it was the primary beneficiary of one variable interest entity (“VIE”) as of October 30, 2016 and January 31, 2016, as the Company absorbs significant economics of the entity and has the power to direct the activities that are considered most significant to the entity.

The Company leases certain retail store facilities and office buildings from SRV, a VIE whose primary purpose and activity is to own this real property. SRV is a Wisconsin limited liability company that is owned by the majority shareholder of the Company. The Company considers itself the primary beneficiary for SRV as the Company is expected to receive a majority of SRV’s expected residual returns based on the activity of SRV. As the Company is the primary beneficiary, it consolidates SRV and the leases are eliminated in consolidation.

The condensed consolidated balance sheets include the following amounts as a result of the consolidation of SRV as of October 30, 2016 and January 31, 2016:


	October 30, 2016		January 31, 2016
(in thousands)
Cash	$	112	$	92
Other receivables		8		9
Property and equipment, net		3,268		2,823
Other assets, net		6		11
Total assets	$	3,394	$	2,935

Other current liabilities	$	114	$	527
Long-term debt		697		727
Noncontrolling interest in VIE		2,583		1,681
Total liabilities and shareholders' equity	$	3,394	$	2,935