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Danier Leather Reports Fiscal 2013 Second Quarter Results

Page 7 of 19

5. Property and Equipment:

               ------------------------------------------------------------               ------------------------------------------------------------                             26 Weeks Ended December 29, 2012               ------------------------------------------------------------               ------------------------------------------------------------                          Land       Building           Roof           HVAC               ------------------------------------------------------------CostAt June 30, 2012           $        1,000 $        6,063 $          308 $          793Additions                    -              -              -              -Disposals                    -              -              -              -               ------------------------------------------------------------At December 29, 2012           $        1,000 $        6,063 $          308 $          793               ------------------------------------------------------------               ------------------------------------------------------------Accumulated amortization and impairment lossesAt June 30, 2012                        - $        2,354 $          201 $          578Amortization for the period              -             77              7             23Impairment losses                      -              -              -              -Disposals                    -              -              -              -               ------------------------------------------------------------At December 29, 2012                        - $        2,431 $          208 $          601               ------------------------------------------------------------               ------------------------------------------------------------Net carrying valueAt December 29, 2012           $        1,000 $        3,632 $          100 $          192At June 30, 2012           $        1,000 $        3,709 $          107 $          215Capital work in progress included aboveAt December 29, 2012                        -              -              -              -               -------------------------------------------------------------               -------------------------------------------------------------                             26 Weeks Ended December 29, 2012               ------------------------------------------------------------               ------------------------------------------------------------                     Leasehold     Furniture &       Computer                  Improvements       Equipment       Hardware         Total               -------------------------------------------------------------CostAt June 30, 2012           $       22,208  $        9,088  $       3,386 $      42,846Additions                2,265           1,163             49         3,477Disposals               (1,292)           (127)             -        (1,419)               -------------------------------------------------------------At December 29, 2012           $       23,181  $       10,124  $       3,435 $      44,904               -------------------------------------------------------------               -------------------------------------------------------------Accumulated amortization and impairment lossesAt June 30, 2012           $       15,875  $        6,321  $       2,505 $      27,834Amortization for the period            813             388            193         1,501Impairment losses                    277              50              -           327Disposals               (1,292)           (127)             -        (1,419)               -------------------------------------------------------------At December 29, 2012           $       15,673  $        6,632  $       2,698 $      28,243               -------------------------------------------------------------               -------------------------------------------------------------Net carrying valueAt December 29, 2012           $        7,508  $        3,492  $         737 $      16,661At June 30, 2012           $        6,333  $        2,767  $         881 $      15,012Capital work in progress included aboveAt December 29, 2012                        -               -              -             -               ------------------------------------------------------------               ------------------------------------------------------------                             26 Weeks Ended December 24, 2011               ------------------------------------------------------------               ------------------------------------------------------------                          Land       Building           Roof           HVAC               ------------------------------------------------------------CostAt June 25, 2011           $        1,000 $        6,063 $          308 $          753Additions                    -              -              -             40Disposals                    -              -              -              -               ------------------------------------------------------------At December 24, 2011           $        1,000 $        6,063 $          308 $          793               ------------------------------------------------------------               ------------------------------------------------------------Accumulated amortization and impairment lossesAt June 25, 2011                        - $        2,198 $          184 $          531Amortization for the period              -             77              9             23Impairment losses                      -              -              -              -Disposals                    -              -              -              -               ------------------------------------------------------------At December 24, 2011                        - $        2,275 $          193 $          554               ------------------------------------------------------------               ------------------------------------------------------------Net carrying valueAt December 24, 2011           $        1,000 $        3,788 $          115 $          239At June 25, 2011           $        1,000 $        3,865 $          124 $          222Capital work in progress included aboveAt December 24, 2011                        -              -              -              -               -------------------------------------------------------------               -------------------------------------------------------------                             26 Weeks Ended December 24, 2011               -------------------------------------------------------------               -------------------------------------------------------------                     Leasehold     Furniture &       Computer                  Improvements       Equipment       Hardware         Total               -------------------------------------------------------------CostAt June 25, 2011           $       23,453  $        8,985  $       3,180 $      43,742Additions                1,762             638             97         2,537Disposals               (1,470)           (346)             -        (1,816)               -------------------------------------------------------------At December 24, 2011           $       23,745  $        9,277  $       3,277 $      44,463               -------------------------------------------------------------               -------------------------------------------------------------Accumulated amortization and impairment lossesAt June 25, 2011           $       17,968  $        6,232  $       2,225 $      29,338Amortization for the period            845             483            168         1,605Impairment losses                     21               -              -            21Disposals               (1,470)           (346)             -        (1,816)               -------------------------------------------------------------At December 24, 2011           $       17,364  $        6,369  $       2,393 $      29,148               -------------------------------------------------------------               -------------------------------------------------------------Net carrying valueAt December 24, 2011           $        6,381  $        2,908  $         884 $      15,315At June 25, 2011           $        5,485  $        2,753  $         955 $      14,404Capital work in progress included aboveAt December 24, 2011           $          270  $           59              - $         329

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