text: **Merchandise Inventories**
  Merchandise inventories are generally stated at the lower of cost or market value using the retail inventory method (weighted-average cost). 
  Under the retail method, the valuation of inventories and the resulting gross margins are determined by applying a calculated cost-to-retail 
  ratio to the retail value of ending inventory. The value of our inventory on the balance sheet is then reduced by a charge to cost of sales for 
  retail inventory markdowns taken on the selling floor. To determine if the retail value of our inventory should be marked down, we consider 
  current and anticipated demand, customer preferences, age of the merchandise and fashion trends. We reserve for obsolescence based on 
  historical trends and specific identification. 
  
  **Land, Property and Equipment**
  Land is recorded at historical cost, while property and equipment are recorded at cost less accumulated depreciation. Capitalized software 
  includes the costs of developing or obtaining internal-use software, including external direct costs of materials and services and internal 
  payroll costs related to the software project. 
  
  We capitalize interest on construction in progress and software projects during the period in which expenditures have been made, activities 
  are in progress to prepare the asset for its intended use and actual interest costs are being incurred. 
  
  Depreciation is computed using the straight-line method over the asset’s estimated useful life, which is determined by asset category as 
  follows: 