Stein Mart 2012 Annual Report Download - page 55

Download and view the complete annual report

Please find page 55 of the 2012 Stein Mart annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 60

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60

STEIN MART, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in tables in thousands, except per share amounts)
F-27
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 five stores in 2012, 2011 and 2010 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 2012, 2011 and 2010, we recorded net pre-tax charges of $1.0 million, $1.2 million and $1.9
million, respectively, for store closing charges, including adjustments to previously recorded store closing reserves for changes in
estimated sublease income. 2010 net store closing charges include an offsetting $1.2 million gain on a lease buyout by a landlord for the
early termination of a lease. Store closing charges are included in SG&A expenses in the Consolidated Statements of Income.
The following tables show the activity in the store closing reserve:
Lease- Severance
R
e
l
a
t
e
d
an
d
Oth
e
r
o
a
Balance at January 30, 2010 4,370$ 49$ 4,419$
Char
g
es 1,702 241 1,943
Pa
y
ments
(
1,111
)
(
256
)
(
1,367
)
Balance at Januar
y
29, 2011 4,961 34 4,995
Char
g
es 663 494 1,157
Pa
y
ments
(
2,532
)
(
528
)
(
3,060
)
Balance at Januar
y
28, 2012 3,092 - 3,092
Char
g
es 782 271 1,053
Pa
y
ments
(
1,781
)
(
233
)
(
2,014
)
Balance at Februar
y
2, 2013 2,093$ 38$ 2,131$
The store closing reserve at February 2, 2013, January 28, 2012 and January 29, 2011 includes a current portion (in Accrued expenses
and other current liabilities) of $1.2 million, $1.6 million and $2.3 million, respectively, and a long-term portion (in Other liabilities) of $0.9
million, $1.5 million and $2.7 million, respectively.
12. Sales by Major Merchandise Category
We are a single business segment. The following table summarizes retail sales by major merchandise category:
2012 2011 2010
(Restated) (Restated)
Ladies’ apparel and accessories 746,616$ 731,451$ 746,886$
Men’s apparel and accessories 266,777 255,927 259,016
Home 150,347 135,122 137,706
Othe
r
48,938 36,351 39,288
Owned department sales 1,212,678 1,158,851 1,182,896
Leased department commissions 19,688 19,100 18,185
Net sales 1,232,366$ 1,177,951$ 1,201,081$
See Note 2 for further information regarding the impact of correcting adjustments made to previously issued Financial Statements.