WMAR » Topics » NOTE 5: IMPAIRMENT OF LONG-LIVED ASSETS

These excerpts taken from the WMAR 10-K filed Mar 16, 2009.

Impairment of long-lived assets

Impairment of long-lived assets was $2.9 million in fiscal 2008, compared to $1.3 million impairment charges for 2007. The impairment was primarily due to 45 impaired stores. The 2007 impairment charge of $1.3 million was for impairment of store and information technology assets.

 

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Impairment of long-lived assets

Impairment of long-lived assets was $1.3 million in the fiscal 2007, compared to $4.6 million impairment for fiscal 2006. In 2006, we incurred a non-cash charge of $4.6 million for store assets whose carrying value was greater than their expected undiscounted future cash flows; offset by a $1.1 million deferred rent adjustment, for a net impairment charge of $3.5 million.

Impairment of long-lived assets

FACE="Times New Roman" SIZE="2">Impairment of long-lived assets was $1.3 million in the fiscal 2007, compared to $4.6 million impairment for fiscal 2006. In 2006, we incurred a non-cash charge of $4.6 million for store assets whose carrying value
was greater than their expected undiscounted future cash flows; offset by a $1.1 million deferred rent adjustment, for a net impairment charge of $3.5 million.

SIZE="2">Interest expense

Interest expense decreased $2.4 million, or 38.2%, to $4.0 million in 2007, compared to $6.4 million in
2006. The decrease in interest expense was primarily due to lower inventory levels than the prior year which drove reduced bank borrowings.

This excerpt taken from the WMAR 10-Q filed Nov 4, 2008.

NOTE 5: IMPAIRMENT OF LONG-LIVED ASSETS

The Company’s condensed consolidated financial statements for the 13-week and 39-week periods ended September 27, 2008 include $0.2 million and $2.4 million of asset impairment charges, respectively. These charges are based on management’s analysis of expected future cash flows associated with certain retail stores and information technology assets. See Note 9 for more information. These impairment charges reduced the carrying value of long-lived assets, primarily leasehold improvements, fixtures and equipment, to their estimated fair value.

 

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