SKS » Topics » NOTE 10 - STORE DISPOSITIONS AND OTHER ACTIVITIES

This excerpt taken from the SKS 10-Q filed Dec 6, 2007.

NOTE 10 – STORE DISPOSITIONS AND OTHER ACTIVITIES

The Company continuously evaluates its real estate portfolio and closes underproductive stores in the normal course of business as leases expire or as other circumstances indicate. The Company also performs an asset impairment analysis at each fiscal year end. During the three and nine months ended November 3, 2007, the Company incurred net charges of $413 and $4,111, respectively, primarily related to asset impairments in the normal course of business. During the three and nine months ended October 28, 2006, the Company incurred net charges of $2,420 and $8,010, respectively, primarily related to asset impairments. Asset impairments are included in Impairments and Dispositions in the accompanying Condensed Consolidated Statements of Income.

During the three and nine months ended November 3, 2007, the Company incurred expenses of approximately $882 and $26,843, respectively, for severance, retention and transition costs in connection with the Company downsizing following the disposition of its SDSG businesses (discussed in Note 2). Expenses for severance, retention and transition costs for the three and nine months ended October 28, 2006 were $8,085 and $20,327, respectively. Severance, retention and transition costs are included in Selling, General & Administrative Expenses in the accompanying Condensed Consolidated Statements of Income. There was a $15,115 payable related to these charges at November 3, 2007.

This excerpt taken from the SKS 10-Q filed Sep 7, 2007.

NOTE 10 – STORE DISPOSITIONS AND OTHER ACTIVITIES

The Company continuously evaluates its real estate portfolio and closes underproductive stores in the normal course of business as leases expire or as other circumstances indicate. The Company also performs an asset impairment analysis at each fiscal year end. During the three and six months ended August 4, 2007, the Company incurred net charges of $3,314 and $3,698, respectively, primarily related to asset impairments in the normal course of business. During the three and six months ended July 29, 2006, the Company incurred net charges of $1,260 and $5,590, respectively, primarily related to asset impairments in the normal course of business. Asset impairments are included in Impairments and Dispositions in the accompanying Condensed Consolidated Statements of Income.

During the three and six months ended August 4, 2007, the Company incurred expenses of approximately $3,390 and $25,961, respectively, for severance, retention and transition costs in connection with the Company downsizing following the disposition of its SDSG businesses

 

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(discussed in Note 2). Expenses for severance, retention and transition costs for the three and six months ended July 29, 2006 were $5,735 and $12,242, respectively. Severance, retention and transition costs are included in Selling, General & Administrative Expenses in the accompanying Condensed Consolidated Statements of Income. There was a $15,859 payable related to these charges at August 4, 2007.

This excerpt taken from the SKS 10-Q filed Jun 6, 2007.

NOTE 10 – STORE DISPOSITIONS AND OTHER ACTIVITIES

The Company continuously evaluates its real estate portfolio and closes underproductive stores in the normal course of business as leases expire or as other circumstances indicate. The Company also performs an asset impairment analysis at each fiscal year end. During the three months ended May 5, 2007, the Company incurred net charges of $384 primarily related to asset impairments in the normal course of business. During the three months ended April 29, 2006, the Company incurred net charges of $4,330 primarily related to asset impairments in the normal course of business. Asset impairments are included in Impairments and Dispositions in the accompanying Condensed Consolidated Statements of Income. There was a $255 payable related to these charges at May 5, 2007.

During the three months ended May 5, 2007 and April 29, 2006, the Company incurred expenses of approximately $22,571 and $6,712, respectively, for severance, retention and transition costs in connection with the Company downsizing following the disposition of its SDSG businesses (discussed in Note 2). Severance, retention and transition costs are included in Selling, General & Administrative Expenses in the accompanying Condensed Consolidated Statements of Income. There was a $16,394 payable related to these charges at May 5, 2007.

 

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This excerpt taken from the SKS 10-Q filed Dec 6, 2006.

NOTE 12 – STORE DISPOSITIONS AND OTHER ACTIVITIES

In October 2004, the Company announced its intention to close 12 Saks Fifth Avenue stores. The net pre-tax charges resulting from closing these stores are principally related to asset impairments, lease terminations, inventory write downs and severance costs, partially offset by gains on the disposition of one or more stores. As it relates to these closings, the Company realized net charges of $6,491 during the nine months ended October 28, 2006, primarily relating to lease termination costs at closed stores. The Company realized net gains of $597 during the nine months ended October 29, 2005, primarily resulting from net gains from the sale of closed stores, offset in-part by severance charges, markdowns and other costs associated with the closings. Severance costs represent the portion of accrued benefits for employees that will exit when the stores are closed. Lease termination costs are included in Impairments and Dispositions, markdown charges are included in Gross Margin, and severance costs are included in Selling, General & Administrative Expenses in the accompanying Condensed Consolidated Statements of Income.

The Company continuously evaluates its real estate portfolio and closes individual underproductive stores in the normal course of business as leases expire or as other circumstances indicate. The Company also performs an asset impairment analysis at each fiscal year end. During the nine months ended October 28, 2006, the Company incurred net charges of $1,946 related to asset impairments and other costs. During the nine months ended October 29, 2005, the Company incurred net charges of $628 related to asset impairments and other costs. Asset impairments are included in Impairments and Dispositions and severance costs are included in Selling, General & Administrative Expenses in the accompanying Condensed Consolidated Statements of Income. There were no amounts payable related to these charges at October 28, 2006.

During the three and nine months ended October 29, 2005, the Company also recorded a $16,514 gain related to the estimated insurance settlement on the Saks Fifth Avenue store in New Orleans which suffered substantial water, fire, and other damage related to Hurricane Katrina. The New Orleans store is covered by both property damage and business interruption insurance. The property damage coverage was paid to repair and/or replace the physical property damage and inventory loss, and the business interruption coverage reimbursed the Company for lost profits as

 

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well as continuing expenses related to loss mitigation, recovery, and reconstruction for the full duration of the reconstruction period plus three months. The Company reopened the New Orleans store on November 16, 2006. The gain, which represents the excess of the replacement cost over the net book value of the property, was included in Impairments and Dispositions in the accompanying Consolidated Statements of Income.

This excerpt taken from the SKS 10-Q filed Sep 6, 2006.

NOTE 12 – STORE DISPOSITIONS AND OTHER ACTIVITIES

In October 2004, the Company announced its intention to close 12 SFAE stores. The net pre-tax charges resulting from closing these stores are principally related to asset impairments, lease terminations, inventory write downs and severance costs, partially offset by gains on the disposition of one or more stores. As it relates to these SFAE closings, the Company realized net charges of $473 during the six months ended July 29, 2006, primarily relating to asset impairments at closed stores. The Company realized net gains of $1,261 during the six months ended July 30, 2005, primarily resulting from net gains from the sale of closed stores, offset by severance charges, markdowns and other costs associated with the closings. Severance costs represent the portion of accrued benefits for employees that will exit when the stores are closed. Lease termination costs are included in Impairments and Dispositions, markdown charges are included in Gross Margin, and severance costs are included in Selling, General & Administrative Expenses in the accompanying Condensed Consolidated Statements of Income. There were no amounts payable related to these charges at July 29, 2006.

The Company continuously evaluates its real estate portfolio and closes individual underproductive stores in the normal course of business as leases expire or as other circumstances indicate, as well as performs an asset impairment analysis at each fiscal year end. During the six months ended July 29, 2006, the Company incurred net charges of $5,246 related to asset impairments and other costs. Asset impairments are included in Impairments and Dispositions and severance costs are included in Selling, General & Administrative Expenses in

 

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the accompanying Condensed Consolidated Statements of Income. There were no amounts payable related to these charges at July 29, 2006. The components of these charges/gains are as follows:

 

     2006
Charges/
(Gains)
   Cash
(Proceeds)/
Payments
    Non-Cash Uses

Asset Impairments

   $ 5,202    $ (141 )   $ 5,343

Other Costs

     44      37       7
                     
   $ 5,246    $ (104 )   $ 5,350
                     
This excerpt taken from the SKS 10-Q filed Jun 6, 2006.

NOTE 12 – STORE DISPOSITIONS AND OTHER ACTIVITIES

In October 2004, the Company announced its intention to close 12 SFAE stores. The net pre-tax charges resulting from closing these stores are principally related to asset impairments, lease terminations, inventory write downs and severance costs, partially offset by gains on the disposition of one or more stores. As it relates to these SFAE closings, the Company realized net gains of $2,806 during the three months ended April 30, 2005, primarily resulting from a gain associated with the sale of one store. Severance costs represent the portion of accrued benefits for employees that will exit when the stores are closed. Lease termination costs are included in Impairments and Dispositions, markdown charges are included in Gross Margin, and severance costs are included in Selling, General & Administrative Expenses in the accompanying Condensed Consolidated Statements of Income. There were no amounts payable related to these charges at April 29, 2006.

The Company continuously evaluates its real estate portfolio and closes individual underproductive stores in the normal course of business as leases expire or as other circumstances indicate, as well as performs an asset impairment analysis at each fiscal year end. During the three months ended April 29, 2006, the Company incurred net charges of $4,225 related to asset impairments and other costs. Asset impairments are included in Impairments and Dispositions and severance costs are included in Selling, General & Administrative Expenses in the accompanying Condensed Consolidated Statements of Income. There were no amounts payable related to these charges at April 29, 2006. The components of these charges/gains are as follows:

 

     2006
Charges/
(Gains)
    Cash
(Proceeds)/
Payments
    Non-Cash Uses  

Asset Impairments

   $ 4,417     $ (138 )   $ 4,555  

Other Costs

     (192 )     —         (192 )
                        
   $ 4,225     $ (138 )   $ 4,363  
                        

 

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