XML 25 R12.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Property and Equipment, Net | 12 Months Ended
--- | ---
Dec. 31, 2018
Property, Plant and Equipment [Abstract] |
Property and Equipment, Net | PROPERTY AND EQUIPMENT, NET ‘Property and equipment, net’ consists of the following:
| December 31,
| 2018 |  | 2017
| (in thousands)
Leasehold improvements | $ | 63,702 |  |  | $ | 72,961 |
Machinery and equipment | 20,054 |  |  | 33,109 |
Furniture, fixtures, and other | 16,779 |  |  | 19,776 |
Construction-in-progress | 2,632 |  |  | 992 |
Property and equipment | 103,167 |  |  | 126,838 |
Less: Accumulated depreciation and amortization | (80,956 | ) |  | (91,806 | )
Property and equipment, net | $ | 22,211 |  |  | $ | 35,032 |
Asset Retirement Obligations The Company is contractually obligated under certain of its lease agreements to restore certain retail and office facilities back to their original condition. At lease inception, the estimated fair value of these liabilities is recorded along with a related asset. At December 31, 2018 and 2017, liabilities for asset retirement obligations were $2.0 million and $3.1 million, respectively, and are reported in ‘Accrued expenses and other liabilities’ in the consolidated balance sheets. Depreciation and Amortization Expense Depreciation and amortization expense related to property and equipment, reported in ‘Cost of sales’ and ‘Selling, general and administrative expenses’ was:
| Year Ended December 31,
| 2018 |  | 2017 |  | 2016
| (in thousands)
Cost of sales | $ | 1,422 |  |  | $ | 2,278 |  |  | $ | 1,755 |
Selling, general and administrative expenses | 11,180 |  |  | 12,723 |  |  | 13,312 |
Total depreciation and amortization expense | $ | 12,602 |  |  | $ | 15,001 |  |  | $ | 15,067 |
Asset Impairments During the years ended December 31, 2018, 2017, and 2016, the Company recorded impairments of $0.9 million, $0.5 million, and $2.7 million, respectively, for underperforming retail stores. During the year ended December 31, 2018, the Company recorded impairment expenses of $1.3 million to reduce the carrying values of certain supply chain assets related to the closure of our Mexico and Italy manufacturing and distribution facilities, included in ‘Other businesses,’ to their estimated fair values. Impairments for retail stores by reportable operating segment, were:
| Year Ended December 31,
| 2018 |  | 2017 |  | 2016
| Asset Impairment |  | Number of Stores |  | Asset Impairment |  | Number of Stores |  | Asset Impairment |  | Number of Stores
| (in thousands, except store count data)
Americas | $ | 138 |  |  | 1 |  |  | $ | 455 |  |  | 3 |  |  | $ | 1,703 |  |  | 12 |
Asia Pacific (1) | 760 |  |  | 12 |  |  | — |  |  | — |  |  | 573 |  |  | 19 |
EMEA (1) | — |  |  | — |  |  | 75 |  |  | 1 |  |  | 437 |  |  | 11 |
Total | $ | 898 |  |  | 13 |  |  | $ | 530 |  |  | 4 |  |  | $ | 2,713 |  |  | 42 |
(1) In the third quarter of 2018, certain revenues and expenses previously reported within the ‘Asia Pacific’ segment were shifted to the ‘EMEA’ segment. The previously reported amounts for asset impairment for retail stores for the years ended December 31, 2016 have also been revised to conform to the current period presentation. See ‘Impacts of segment composition change’ table below for more information. Impacts of segment composition change:
|  | Year Ended December 31, 2016
|  | Increase (Decrease)
Impacts on retail store asset impairment: |  |
Asia Pacific |  | $ | (99 | )
EMEA |  | 99 |
Impacts on number of retail stores impaired: |  |
Asia Pacific |  | (2 | )
EMEA |  | 2 |

X
- References No definition available. + Details
Name: | us-gaap_PropertyPlantAndEquipmentAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 + Details
Name: | us-gaap_PropertyPlantAndEquipmentDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration