Property and Equipment (Notes)

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment Disclosure [Text Block]

Property and Equipment

The major classes of assets and total accumulated depreciation and amortization are as follows:


		December 31,
	Average Useful Life	2020		2019
Land and building	27.5 (Building)	$	882	$	947
Leasehold improvements	Lesser of remaining lease or asset life	88,012		86,625
Machinery and equipment	10 years	6,340		6,257
Furniture and fixtures	3 to 5 years	11,201		11,354
Computer equipment and software	3 to 10 years	71,601		61,732
Construction in progress		744		9,035
		178,780		175,950
Less impairment (1)		(14,712)		—
Less accumulated depreciation and amortization		(120,800)		(110,446)
Property and equipment - net		$	43,268	$	65,504

1) Due to COVID-19 pandemic, impairment was recorded related to stores (see below for further explanation).

Depreciation and amortization expense related to property and equipment included in operating expenses amounted to approximately $13,350 in 2020, $15,933 in 2019 and $16,036 in 2018. Includes computer software amortization expense for 2020, 2019 and 2018 of $3,007, $2,788 and $3,024, respectively.

Property and equipment, along with other long-lived assets, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Due to the impacts of the COVID-19 pandemic on the Company’s operations and declines in the retail real estate market, the Company identified indicators of impairment for long-lived assets at certain of its retail stores. For such stores, the Company performed a recoverability test, comparing estimated undiscounted cash flows to the carrying value of the related long-lived assets. When the carrying value was more than the estimated undiscounted cash flows, the Company determined if an impairment test was required. Fair values of the long-lived assets were estimated using an income approach based on management’s forecast of future cash flows derived from continued retail operations and the fair values of individual operating lease assets were determined using estimated market rental rates. Significant estimates are used in determining future cash flows of each store over its remaining lease term, including the Company's expectations of future projected cash flows that include revenues, operating expenses, and market conditions. An impairment loss is recorded if the carrying amount of the long-lived asset group exceeds its fair value. As a result, the Company recorded impairment charges of $14,712 related to furniture fixtures and leasehold improvements for the year ended December 31, 2020. The impairment charges were recorded in the Retail segment.