Property and Equipment, Net

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Property and equipment is comprised of the following:


	As of
(in thousands)	December 31, 2023			January 1, 2023
Land and buildings	$	215,065		$	213,901
Leasehold improvements		394,041			353,181
Fixtures and fittings		355,604			336,758
Office equipment and other		43,416			42,660
Construction in progress		35,810			20,394
Finance property lease		69,022			64,521
		1,112,958			1,031,415
Less: Accumulated depreciation		(471,875	)		(384,414	)
Less: Accumulated impairment		(14,048	)		—
	$	627,035		$	647,001

The Company recorded depreciation expense of $89 million, $81 million, and $69 million in the fiscal years ended December 31, 2023, January 1, 2023, and January 2, 2022, respectively, which is included in depreciation and amortization in the accompanying consolidated statements of operations.

Additions totaled $68 million and $74 million during the fiscal years ended December 31, 2023 and January 1, 2023, respectively, and were primarily related to leasehold improvements and fixtures and fittings for existing sites and sites under development.

The Company reviews long-lived assets for impairment when changes in circumstances indicate that the asset's carrying value may not be recoverable. During fiscal 2023, the Company performed recoverability tests for certain asset groups using the undiscounted cash flows approach. Based on the assessments, certain stand-alone sites failed the recoverability tests resulting in an aggregate impairment loss of $47 million (comprised of $33 million in respect of Operating lease assets and $14 million of Property and equipment, net), of which $37 million is in respect of Soho Works North America. The $47 million impairment included within loss on impairment of long-lived assets on the consolidated statement of operations for the fiscal year ended December 31, 2023.