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Table of Contents
STEIN MART, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in tables in thousands, except per share amounts)
10. Contingencies
We are involved in various routine legal proceedings incidental to the conduct of our business. Management, based upon the advice of outside
legal counsel, does not believe that any of these legal proceedings will have a material adverse effect on our financial condition, results of
operations or cash flows.
11. Store Closing Charges
We close under-performing stores in the normal course of business. We closed 5 stores during both 2011 and 2010 and 11 stores during 2009
incurring pre-tax lease termination and severance costs. Lease termination costs are net of estimated sublease income that could reasonably be
obtained for the properties. In the event we are not successful in subleasing closed store locations when management expects, additional
reserves for store closing costs may be recorded. During 2011, 2010 and 2009, we recorded net pre-tax charges of $1.2 million, $1.9 million
and $2.7 million, respectively, for store closing charges, including adjustments to previously recorded store closing reserves for changes in
estimated sublease income. Fiscal 2010 net store closing charges include an offsetting $1.2 million gain on a lease buyout by a landlord for the
early termination of a lease. Store closing charges are included in SG&A expenses in the Consolidated Statements of Income.
The following tables show the activity in the store closing reserve:
The store closing reserve at January 28, 2012, January 29, 2011 and January 30, 2010 includes a current portion (in Accrued expenses and
other current liabilities) of $1.6 million, $2.3 million and $1.8 million, respectively, and a long-term portion (in Other liabilities) of $1.5
million, $2.7 million and $2.6 million, respectively.
12. Sales by Major Merchandise Category
We are a single business segment. The following table summarizes sales by major merchandise category:
F
-
17
Lease-
Related
Severance
Total
Balance at January 31, 2009
$
5,040
$
185
$
5,225
Charges
2,089
569
2,658
Payments
(2,759
)
(705
)
(3,464
)
Balance at January 30, 2010
4,370
49
4,419
Charges
2,887
241
3,128
Payments
(2,296
)
(256
)
(2,552
)
Balance at January 29, 2011
4,961
34
4,995
Charges
663
130
793
Payments
(2,532
)
(164
)
(2,696
)
Balance at January 28, 2012
$
3,092
$
—
$
3,092
2011
2010
2009
Ladies’ apparel and accessories
$
731,451
$
746,886
$
778,410
Men
’
s apparel and accessories
255,927
259,016
263,059
Home
135,122
137,706
138,987
Other
37,867
37,902
38,653
Net sales
$
1,160,367
$
1,181,510
$
1,219,109