Stein Mart 2014 Annual Report Download - page 37

STEIN MART, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in tables in thousands, except per share amounts)
F-13
previously issued financial statements. We adopted ASU No. 2014-08 in the first quarter of 2014. The application of this guidance did not
have an impact on our consolidated financial statements or disclosures.
In 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. ASU No. 2014-09 provides a single comprehensive
model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition
guidance, including industry-specific guidance. ASU No. 2014-09 will require an entity to recognize revenue when it transfers promised
goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those
goods or services. This update creates a five-step model that requires entities to exercise judgment when considering the terms of the
contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the
contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v)
recognizing revenue when each performance obligation is satisfied. ASU No. 2014-09 is effective for annual reporting periods beginning
after December 15, 2016, including interim periods within that reporting period for public business entities. The Company has the option to
apply the provisions of ASU No. 2014-09 either retrospectively to each prior reporting period presented or retrospectively with the
cumulative effect of applying this ASU recognized at the date of initial application. Early adoption is not permitted. The Company is
currently evaluating the impact the adoption of this ASU will have on the Company's consolidated financial statements.
In 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern. ASU No. 2014-15 requires
management to perform interim and annual assessments on whether there are conditions or events that raise substantial doubt about the
entity's ability to continue as a going concern within one year of the date the financial statements are issued and to provide related
disclosures, if required. ASU No. 2014-15 applies to all entities and is effective for annual periods ending after December 15, 2016, and
interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting
periods for which the financial statements have not previously been issued. The adoption of ASU No. 2014-15 is not expected to have a
material effect on the Companys consolidated financial statements.
Reclassifications
We have made certain reclassifications in the Consolidated Balance Sheets related to the difference between the amount charged to rent
expense and the rent paid as well as construction allowances and other lease incentives which were presented in other liabilities and have
been reclassified to deferred rent.
2. Property and Equipment, Net
Property and equipment, net consists of the following:
January 31, February 1,
2015 2014
Fixtures, equipment and software 215,662$199,362$
Leasehold improvements 99,766 92,591
315,428 291,953
Accumulated depreciation and amortization (166,646) (152,280)
Property and equipment, net 148,782$ 139,673$
During 2014, 2013 and 2012, we recorded asset impairment charges in SG&A of $1.5 million, $2.2 million and $0.5 million, respectively, to
reduce the carrying value of fixtures, equipment and leasehold improvements held for use and certain other assets in under-performing or
closing stores to their respective estimated fair value. The 2013 impairment charges also included write-off of certain information
technology assets that were replaced.
Store assets are considered Level 3 assets in the fair value hierarchy as the inputs for calculating the fair value of these assets are based
on the best information available, including prices for similar assets. In 2014, store assets with a carrying value of $1.5 million were written
down to their fair value of $0. In 2013, store and information technology assets with a carrying value of $1.2 million and $1.0 million were
written down to their fair value of $0 and $0, respectively. In 2012, store assets with a carrying value of $0.5 million were written down to
their fair value of $0.