content_image/115280.jpg content_image/115277.jpg content_image/115279.jpg
## Other Current Liabilities 

Other current liabilities as of January 29, 2005 and January 31, 2004 consist of accrued expenses for the following: 

<img src='content_image/115280.jpg'>

## Capital Leases 

The present value of future minimum capital lease payments as of January 29, 2005 is as follows: 

<img src='content_image/115277.jpg'>

Included in property, plant and equipment at January 29, 2005 and January 31, 2004 are leased furniture and fixtures and transportation vehicles, excluding sale- leaseback assets, with a cost of $4,465 and $5,641, respectively. Accumulated depreciation on these assets totaled $2,964 and $3,370 at January 29, 2005 and January 31, 2004, respectively. 

## Sale-Leaseback Transaction 

On September 30, 1999, the Company sold certain retail store leasehold improvements to an unrelated third party and leased them back for a period of seven years. This transaction is being accounted for as a financing arrangement. In 2004, the Company exercised the right to purchase the leasehold improvements at September 30, 2005. In order to exercise this right, the Company’s lease obligation increased by $200. The total amount of the 

lease obligation, including this $200, at January 29, 2005 was $11,735. The lease agreement includes financial covenants that are not more restrictive than those of existing loan agreements. As part of the transaction, the Company received proceeds of $20,880, net of financing costs, and an $8,120 11% note receivable, which matures in September 2005 and is included in “other assets, net.” The future minimum lease payments related to the capital lease obligation are included in the schedule above. 

## Fair Value of Financial Instruments 

The carrying values of cash and cash equivalents, short-term investments, prepaid expenses, other current assets, accounts payable and other current liabilities approximate fair value because of the short maturity of these instruments. The carrying values of other liabilities, excluding interest rate swaps, approximate fair value because they are recorded using discounted future cash flows or quoted market rates. 

The carrying value of the Company’s variable-rate and fixed-rate long-term debt approximates its fair value. The fair value is estimated by discounting the future cash flows of each instrument at rates offered for similar debt instruments of comparable maturities. 

It is not practicable to estimate the fair value of our outstanding commitments for letters of credit and surety bonds without unreasonable cost. 

The fair value of the interest rate swaps (see Note 6) are the estimated amounts the Company would pay to terminate the agreements as of the reporting date. The fair value of the liabilities associated with interest rate swaps at January 29, 2005 and January 31, 2004, are as follows: 

<img src='content_image/115279.jpg'>

The fair values of the interest rate swaps are included in “other liabilities” in the accompanying consolidated balance sheets. The $10,000 and $5,000 interest rate swaps expired during fiscal 2004. 

