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Property, Plant and Equipment
 12 Months Ended
Jul. 31, 2015
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment

Note 7—Property, Plant and Equipment

 

Property, plant and equipment consist of the following:

 

July 31
(in thousands)		 2015  2014 
Equipment $438,430  $438,899 
Land and buildings  61,449   53,895 
Computer software  130,340   116,775 
Leasehold improvements  42,260   42,190 
Furniture and fixtures  7,184   6,249 
   679,663   658,008 
Less accumulated depreciation and amortization  (588,347)  (576,248)
Property, plant and equipment, net $91,316  $81,760 

 

In fiscal 2013, the Company recorded an impairment charge of $4.4 million for the building and improvements that it owns at 520 Broad Street, Newark, New Jersey. The following facts and circumstances indicated that the fair value of the building and improvements may be less than their carrying value at that time: (1) the building was not occupied and, at the time, the Company did not expect to occupy it, (2) economic uncertainty and sluggish leasing activity stalled a recovery of the real estate market in Newark, (3) there were no potential tenants, (4) no sale of the building had been completed and there were no other likely buyers, (5) the building would be expensive to redevelop and (6) the building was expected to remain vacant for the foreseeable future. The Company determined the fair value of the building and improvements based on estimates of an owner/user’s market rental rate net of costs of improvements and tenant work as well as the estimated value to an investor/developer after deducting costs of improvements and costs to achieve full occupancy. This fair value measurement was classified as Level 2 of the fair value hierarchy.

 

In fiscal 2014, the Company began renovations of the first four floors of its 520 Broad Street building in order to move its personnel and offices located at 550 Broad Street, Newark, New Jersey to 520 Broad Street. In April and May 2015, the Company moved its Newark operations back into its building at 520 Broad Street and vacated its leased office space at 550 Broad Street. At July 31, 2015 and 2014, the carrying value of the land, building and improvements at 520 Broad Street after the impairment charge was $44.4 million and $37.7 million, respectively.

 

Depreciation and amortization expense of property, plant and equipment was $18.0 million, $15.7 million and $14.3 million in fiscal 2015, fiscal 2014 and fiscal 2013, respectively.