Stein Mart 2012 Annual Report Download - page 47

STEIN MART, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in tables in thousands, except per share amounts)
F-19
3. Property and Equipment, Net
Property and equipment, net consists of the following:
February 2, January 28,
2013 2012
(Restated)
Fixtures, equipment and software 161,315$ 214,216$
Leasehold improvements 90,947 72,164
252,262 286,380
A
ccumulated depreciation and amortization (130,200) (186,103)
122,062 100,277
A
ssets under capital leases, net of accumulated amortization
of $2,117 and $416, respectively 9,508 9,713
131,570$ 109,990$
Assets under capital leases are primarily point-of-sale and related store equipment. Depreciation and amortization expense for property
and equipment totaled $23.9 million, $18.6 million and $17.8 million for 2012, 2011 and 2010, respectively.
During 2012, 2011 and 2010, we recorded net pre-tax asset impairment charges of $0.5 million, $1.2 million and $1.2 million, respectively,
to reduce the carrying value of fixtures, equipment and leasehold improvements held for use and certain other assets in under-performing
or closing stores to their respective estimated fair value.
Store assets are considered Level 3 assets in the fair value hierarchy as the inputs for calculating the fair value of these assets are based
on the best information available, including prices for similar assets. In 2012, 2011 and 2010, store assets with a carrying value of $0.5
million, $1.8 million and $1.2 million were written down to their fair value of $0, $0.6 million and $0, respectively.
See Note 2 for further information regarding the impact of correcting adjustments made to previously issued Financial Statements.
4. Accrued Expenses and Other Current Liabilities
The major components of accrued expenses and other current liabilities are as follows:
February 2, January 28,
2013 2012
(Restated)
Compensation and employee benefits 12,487$ 10,006$
Unredeemed
g
ift and merchandise return cards 9,163 11,277
Propert
y
taxes 11,357 11,845
A
ccrued vacation 6,553 6,443
Othe
r
26,549 28,492
66,109$ 68,063$
See Note 2 for further information regarding the impact of correcting adjustments made to previously issued Financial Statements.
5. Revolving Credit Agreement
In October 2011, we entered into an amended and restated revolving credit agreement (the “Credit Agreement”) with Wells Fargo Bank,
N.A. The Credit Agreement provides for a $100 million senior secured revolving credit facility which can be increased to $150 million. The
Credit Agreement matures on February 28, 2017 and replaces our existing $150 million revolving credit facility which was to mature in
early 2012. Borrowings under the Credit Agreement are based on and collateralized by eligible credit card receivables and inventory.
Proceeds may be used for general corporate purposes, including issuing standby and commercial letters of credit.
Borrowings under the Credit Agreement shall be either Base Rate Loans or LIBO Rate Loans (all terms as defined in the Credit
Agreement). Base Rate Loans bear interest equal to the highest of (a) the Federal Funds Rate plus one-half of one percent (0.50%), (b)
the Adjusted LIBO Rate plus one percent (1.00%), or (c) the rate of interest in effect for such day as publicly announced from time to time
by Wells Fargo as its “prime rate”, plus the Applicable Margin. LIBO Rate Loans shall bear interest equal to the Adjusted LIBO Rate plus