These excerpts taken from the GPS 10-K filed Mar 27, 2009.
The decision to close or sublease a store, corporate facility, or distribution center can result in accelerated depreciation over the revised remaining useful life of the long-lived asset. In addition, we record a charge and corresponding sublease loss reserve for the net present value of the difference between the contractual rent obligations and the rate at which we expect to be able to sublease the properties. We estimate the reserve based on the status of our efforts to lease vacant office space and stores, a review of real estate market conditions, our projections for sublease income, and our assumptions regarding sublease commencement.
Costs associated with the production of advertising, such as writing, copy, printing, and other costs, are expensed as incurred. Costs
Prepaid catalog expense consists of the cost to prepare,