Big Lots 2013 Annual Report Download - page 197

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Recent Accounting Standards
There are currently no new accounting pronouncements with a future effective date that are of significance, or potential
significance, to us.
Subsequent Events
We have evaluated events and transactions subsequent to the balance sheet date. Based on this evaluation, we are not aware of
any events or transactions (other than those disclosed elsewhere) that occurred subsequent to the balance sheet date but prior to
filing that would require recognition or disclosure in our consolidated financial statements.
NOTE 2 – PROPERTY AND EQUIPMENT - NET
Property and equipment - net consist of:
(In thousands) February 1, 2014 February 2, 2013
Land and land improvements $50,830 $ 50,797
Buildings and leasehold improvements 835,117 803,267
Fixtures and equipment 692,152 674,684
Computer software costs 128,787 114,572
Transportation equipment 26,763 27,303
Construction-in-progress 6,791 23,759
Property and equipment - cost 1,740,440 1,694,382
Less accumulated depreciation and amortization 1,170,758 1,100,820
Property and equipment - net $569,682 $ 593,562
Property and equipment - cost includes $4.2 million and $4.2 million at February 1, 2014 and February 2, 2013, respectively, to
recognize assets from capital leases. Accumulated depreciation and amortization includes $3.2 million and $2.2 million at
February 1, 2014 and February 2, 2013, respectively, related to capital leases.
During 2013, 2012, and 2011 respectively, we invested $104.8 million, $131.3 million, and $131.3 million of cash in capital
expenditures and we recorded $115.1 million, $106.1 million, and $90.1 million of depreciation expense.
We incurred $7.8 million, $1.0 million, and $2.2 million in asset impairment charges in 2013, 2012, and 2011, respectively.
The charges in 2013 principally related to the write-down of long-lived assets in our Canadian segment as a result of our
announced intention to wind down the operations of our Canadian segment. As there will be no expected future cash flows
from our Canadian segment beyond the first quarter of 2014, we impaired our property and equipment to its estimated salvage
value at February 1, 2014, which resulted in an impairment charge of $6.5 million. Additionally, in 2013, we wrote down the
value of long-lived assets at seven U.S. stores identified as part of our annual store impairment review. The charges in 2012
principally related to the write-down of long-lived assets at one U.S. store and four Canadian stores identified as part of our
annual store impairment review. The charges in 2011 relate to asset impairments from the valuation of the Company's oldest
airplane.
Asset impairment charges are included in selling and administrative expenses in our accompanying consolidated statements of
operations. We perform annual impairment reviews of our long-lived assets at the store level. When we perform the annual
impairment reviews, we first determine which stores had impairment indicators present. We generally use actual historical cash
flows to determine if stores had negative cash flows within the past two years. For each store with negative cash flows, we
obtain future cash flow estimates based on operating performance estimates specific to each store's operations that are based on
assumptions currently being used to develop our company level operating plans. If the net book value of a store's long-lived
assets is not recoverable by the expected future cash flows of the store, we estimate the fair value of the store's assets and
recognize an impairment charge for the excess net book value of the store's long-lived assets over their fair value.