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Dick’s Sporting Goods, Inc. | 2007 Annual Report56
The following table summarizes the activity of the store closing reserves established due to Dick’s store closings as a result of the
Galyan’s acquisition, relocations, and other store closings:
2007 2006
(In thousands)
Accrued store closing and relocation reserves, beginning of period $ 19,903 $ 20,181
Expense charged to earnings 2,043 4,328
Cash payments (6,781) (4,867)
Interest accretion and other changes in assumptions 6,717 261
Accrued store closing and relocation reserves, end of period 21,882 19,903
Less current portion of accrued store closing and relocation reserves (7,284) (6,135)
Long-term portion of accrued store closing and relocation reserves $ 14,598 $13,768
The current portion of accrued store closing and relocation reserves is recorded in accrued expenses and the long-term portion is
recorded in long-term deferred revenue and other liabilities in the Consolidated Balance Sheets.
7. Property and Equipment
Property and equipment are recorded at cost and consist of the following as of the end of the fiscal periods:
2007 2006
(In thousands)
Buildings and land $ 34,003 $ 31,820
Leasehold improvements 452,723 374,879
Furniture, fixtures and equipment 425,522 330,757
912,248 737,456
Less: accumulated depreciation and amortization (380,469) (304,385)
Net property and equipment $ 531,779 $ 433,071
The amounts above include construction in progress of $66.9 million and $34.2 million for fiscal 2007 and 2006, respectively.
8. Accrued Expenses
Accrued expenses consist of the following as of the end of the fiscal periods:
2007 2006
(In thousands)
Accrued payroll, withholdings and benefits $ 74,495 $ 52,988
Accrued property and equipment 33,200 34,537
Other accrued expenses 121,121 102,840
Total accrued expenses $ 228,816 $ 190,365
9. Debt
The Company’s outstanding debt at February 2, 2008 and February 3, 2007 was as follows:
2007 2006
(In thousands)
Senior convertible notes $ 172,500 $ 172,500
Revolving line of credit ——
Capital leases 7,721 7,809
Third-party debt 1,214 708
Total debt 181,435 181,017
Less: current portion (250) (152)
Total long-term debt $ 181,185 $ 180,865