Pier 1 2012 Annual Report Download - page 50
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
NOTE 2 – PROPERTIES
Properties are summarized as follows at February 25, 2012 and February 26, 2011 (in thousands):
2012 2011
Land $ 4,256 $ 4,776
Buildings 12,396 12,994
Equipment, furniture, fixtures and other 277,247 250,797
Leasehold improvements 176,069 167,776
Computer software 87,821 76,764
Projects in progress 7,241 4,179
565,030 517,286
Less accumulated depreciation and amortization 461,390 452,513
Properties, net $ 103,640 $ 64,773
NOTE 3 – OTHER ACCRUED LIABILITIES AND NONCURRENT LIABILITIES
The following is a summary of other accrued liabilities and noncurrent liabilities at February 25, 2012
and February 26, 2011 (in thousands):
2012 2011
Accrued payroll and other employee-related liabilities $ 65,758 $ 55,540
Accrued taxes, other than income 19,965 20,414
Rent-related liabilities 10,064 11,100
Other 15,892 19,685
Other accrued liabilities $ 111,679 $ 106,739
Rent-related liabilities $ 19,090 $ 23,401
Deferred gains 7,574 18,204
Retirement benefits 31,754 25,098
Other 16,414 18,167
Other noncurrent liabilities $ 74,832 $ 84,870
NOTE 4 – COSTS ASSOCIATED WITH EXIT ACTIVITIES
As part of the ordinary course of business, the Company terminates leases prior to their expiration when
certain stores or distribution center facilities are closed or relocated as deemed necessary by the evaluation of its
real estate portfolio. These decisions are based on store profitability, lease renewal obligations, relocation space
availability, local market conditions and prospects for future profitability. In connection with these lease
terminations, the Company has recorded estimated liabilities to cover the termination costs. At the time of
closure, neither the write-off of fixed assets nor the write-down of inventory related to such stores was material.
Additionally, employee severance costs associated with these closures were not significant. The estimated
liabilities were recorded based upon the Company’s remaining lease obligations less estimated subtenant rental
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