MAY 14, 2012 / 03:00PM GMT, PFSW - Q1 2012 PFSweb, Inc. Earnings Conference Call
George Walsh - Gilford Securities - Analyst
Okay. So it’s directly related to the receivables line. Okay.
Tom Madden - PFSweb, Inc. - CFO, Chief Accounting Officer
Yes,
most of it. Yes.
George Walsh - Gilford Securities - Analyst
Okay. The deferred rent line — that was the CapEx you mentioned during your remarks?
Tom Madden - PFSweb, Inc. - CFO, Chief Accounting Officer
Right, yes.
George
Walsh - Gilford Securities - Analyst
Okay, so that’s pretty much CapEx that will be reimbursed?
Tom Madden - PFSweb, Inc. - CFO, Chief Accounting Officer
It’s CapEx that has already been reimbursed for the most part. But we end up, from an accounting treatment standpoint, having to amortize the assets as a property component, and then we amortize that
deferred rent credit over the life of the lease.
George Walsh - Gilford Securities - Analyst
Okay.
Tom Madden -
PFSweb, Inc. - CFO, Chief Accounting Officer
You gross up both sides of the balance sheet and then amortize them. Not exactly 100%
offset, but generally, because of the nature of the assets that are being funded here, it will be relatively close to being offset between the two.
George Walsh - Gilford Securities - Analyst
Okay, great.
Alright, that’s all I had, thanks.
Operator
I’m showing no further questions at this time. I’ll turn the floor back over to management for any closing remarks.
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