Property and Equipment (Notes)

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment Disclosure [Text Block]

Note F – Property and Equipment

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


		As of December 31,
(in thousands)	Average Useful Life	2023		2022
Land and building	27.5 (Building)	$	929	$	890
Leasehold improvements	Lesser of remaining lease or asset life	90,700		85,974
Machinery and equipment	10 years	12,641		7,617
Furniture and fixtures	3 to 5 years	14,750		12,508
Computer equipment and software	3 to 10 years	83,710		75,004
Construction in progress		1,976		8,662
		204,706		190,655
Less: impairments and disposals		(12,784)		(14,271)
Less: accumulated depreciation and amortization		(144,723)		(135,720)
Property and equipment - net		$	47,199	$	40,664

Depreciation and amortization expense related to property and equipment included in operating expenses amounted to approximately $13,419, $11,576, and $12,533 in 2023, 2022, and 2021, respectively, and includes computer software amortization expense for 2023, 2022, and 2021 of $3,762, $3,505, and $3,135, 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. In 2021, the Company identified indicators of impairment for long-lived assets at certain 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 that 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 an impairment charge of $409 related to furniture fixtures and leasehold improvements for the year ended December 31, 2021. These impairment charges were recorded in the Direct-to-Consumer segment. There were no impairment charges recorded for the years ended December 31, 2023 and 2022.