XML 32 R17.htm IDEA: XBRL DOCUMENT

CLOUD COMPUTING HOSTING ARRANGEMENT

12 Months Ended

Jan. 29, 2023

Disclosure Text Block Supplement [Abstract]

NOTE 9 – CLOUD COMPUTING HOSTING ARRANGEMENT

We are in the process of implementing a common Enterprise Resource Planning (ERP) system across all divisions. The ERP system went live at Sunset West in December 2022 and is expected to go-live in our legacy Hooker divisions in fiscal 2024, with the Home Meridian segment following afterwards. Based on the provisions of ASU 2018-15, Intangibles — Goodwill and Other — Internal-Use Software, we capitalize implementation costs associated with hosting arrangements that are service contracts. These costs are recorded on “Other noncurrent assets” line of our consolidated balance sheets. Amortization expense commenced as the system went live at Sunset West in the fourth quarter of fiscal 2023. In addition, we recorded capitalized interest of $84,000 as we entered into new term loans in July 2022. Implementation costs are amortized over ten years on a straight-line basis.

The capitalized implementation costs at January 29, 2023 and January 30, 2022 were as follows

	Capitalized Implementation Costs			Capitalized interest expenses

Balance at January 30, 2022	$	3,228		$	-
Costs capitalized during the period		5,382			84
Accumulated amortization		(12	)		(0	)
Balance at January 29, 2023	$	8,598		$	84